🏴‍☠️ The question that kills deals

Hey, it’s Kinza!

Last month I was working with two business partners who'd built their company to about $10 million in revenue. Strong margins. Great reputation. Everything looked good on paper.

Then we got to the hard question:

"What happens if both of you step away from the business for a week?"

The silence told me everything.

One partner finally said, "Well, we'd probably need to check in. Maybe handle the bigger client calls." The other added, "And approve estimates. And handle any issues that come up."

That's when I knew we had work to do.

See, buyers aren't just buying your revenue. They're buying a business that can operate without the current owners. And if you can't step away without everything falling apart, you don't have a business... you have an expensive job.

Best Links

💰Sales: President Trump is pushing for U.S. public companies to report earnings only twice a year instead of every three months. If quarterly reporting goes away for public companies, it signals a broader cultural shift for small businesses. Less obsession with short-term numbers, more talk about long-term health.

🌟 Industry Trends:
You know one industry vertical that hasn’t slowed down? Robotics investment is rebounding hard in 2025, led by defense, industrial, and autonomy software plays, with mega-rounds consolidating capital around proven platforms. Here’s the industry preview and cheat sheet.

🍏 Extra Credit:
Exit activity is sluggish: 211 exits worth $28.4B in Q2, down both quarter-over-quarter and year-over-year. But with interest rates declining and a backlog of available capital, differentiation matters: if your business is buttoned up, it’s easier to attract a buyer in a crowded field. Here’s the full Q2 report from Pitchbook and a quick cheatsheet.

Stop Being the Bottleneck for Everything

Right now, you probably approve estimates, handle client relationships, make hiring decisions, and put out fires all day long. Every decision that requires your personal approval is a risk in a buyer's eyes.

Start simple:

• What decisions currently require your sign-off?

• Which client relationships run through you personally?

• What processes only exist in your head?

• Who on your team can actually run things when you're not there?

One of the partners I work with handles all the networking and bigger deals (over $1 million). The other manages accounting, marketing, and operations. Both wear way too many hats. Sound familiar?

That's not delegation. That's just organized chaos.

Build Systems That Work Without You

This is where most business owners get stuck. You need processes so clear that someone else can run them and get the same results.

The partners I mentioned? They're working with a consultant right now to define SOPs (Standard Operating Procedures). Starting with sales, then moving to production. Smart approach.

But here's what they realized: It's not just about having procedures. It's about having people who can follow them without constantly asking for your input.

They're hiring an assistant and a pre-construction coordinator specifically to handle the smaller stuff that's been eating up their time. The goal? Free up the owners to focus on what actually moves the business forward.

Test Your Systems by Actually Stepping Away

Here's the real test: Can your business run for a week without you checking email, answering calls, or "just quickly handling this one thing"?

Most business owners think they want this freedom, but they're secretly terrified to actually try it. Because deep down, they know the business would struggle without them.

The construction company partners told me their biggest fear is leaving and having "the business burn down." But here's the thing: If your business can't survive a week without you, it definitely can't survive being sold to someone else.

The Three Things That Have to Work Automatically

Based on what I see in successful exits, three things absolutely must function without owner involvement:

1. Sales Pipeline: You need consistent lead generation and conversion that doesn't depend on the owner's personal relationships. One partner I work with is trying to transition so they only handle deals over $1 million. Everything smaller gets handled by the team.

2. Operations: Your team needs to follow procedures and solve problems without escalating everything to you. This means clear SOPs and people who are actually trained to use them.

3. Financial Management: Bills get paid, invoices go out, and cash flow gets managed without daily owner oversight. One partner mentioned they still need to review payroll every Friday. That's exactly the kind of dependency that scares buyers.

The Painful Truth About Control

Most business owners say they want freedom, but they won't let go of control. They want their team to "think like an owner" but they won't give them the authority to make owner-level decisions.

Here's what I told those partners: You can't have both. Either you trust your systems and your people, or you stay trapped by your own success.

The businesses that sell for top dollar aren't the ones where the owner is indispensable. They're the ones where the owner has made themselves optional.

Start Building Your Freedom Now

Even if you're not planning to sell for three years, start building these systems today. Because the businesses that command premium valuations are the ones that run like clockwork without constant owner intervention.

Your future buyer is paying for predictable cash flow and growth potential. Both of those are impossible if everything depends on you personally.

Plus, here's the bonus: Businesses that run without constant owner involvement are way more enjoyable to own. You get your life back before you sell.

-Kinza

P.S. If you're reading this thinking "but my industry is different" or "my clients only work with me personally," hit reply. I've worked with all kinds of businesses, and there's always a path to reducing owner dependency. The question is whether you want to find it or keep being trapped by your own success.