The more you work, the less your business is worth

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Last week, I was speaking to a friend who is selling her business.

She was feeling down because a valuation expert had told her that as everything in her business depends on her, the valuation she wants means she will have to stay working in the business post-sale.

In other words, she is trapped!

This is a mythical dilemma felt by many small business owners. Do I control everything to make sure it happens how it should? Or do I leave it to my team and risk chaos?

But it isn’t as black-and-white as this. There is an alternative option - using a business management system, like EOS.

A system allows you to create consistent, scalable, process-driven operations that do not depend on you. 

A system allows you to decouple yourself from the day-to-day, and work “on” the business instead of always “in” it.

A system means that the right decisions are made by a team, guided by a clear set of values and established and agreed goals.

When this happens, you will be able to take a vacation - even a sabbatical - without worrying your business will collapse in your absence.

It also means you are free to exit that business, and get the valuation that your years of hard work deserve.

So what is your system? If you are not sure or you are feeling trapped in your business, get in touch.

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