I was on a plane not long ago when the pilot came over the intercom and said:
“Folks, I’ve got good news and bad news.
The good news is… we’re making great time.
The bad news is… I don’t know where we are.”
It got a good chuckle, but it reminded me of something I see far too often in the business world.
A whole lot of owners are flying fast—busy, growing, hustling—yet have no real idea where they stand in terms of value.
And instead of getting the right compass, many rely on:
- A rumor they heard from a buddy at lunch who knew a “guy.”
- A “rule of thumb” someone posted on Facebook
- An online calculator that spits out a number with no context
- Some salesy broker telling them what they want to hear.
That’s like flying cross-country with a compass you found in a cereal box.
Speed Isn’t Strategy
Making great time doesn’t mean you’re headed in the right direction.
In business, valuation tells you where you really are—not where the internet, your neighbor, or a Facebook group thinks you are.
The truth is simple:
Buyers don’t pay based on hearsay; they pay based on verified performance and measurable risk.
Why an Accurate Valuation Matters
A proper valuation gives you three gifts:
- Direction
Clarity on whether your decisions are building equity or quietly eroding it.
- Timing
Insight on how close—or far—you are from the exit you want.
- Confidence
The ability to plan, negotiate, and grow without guessing.
Compare that to the folks who are trusting an algorithm they found between cat videos.
Bless their hearts—they mean well—but they’re cruising with no map.
The Danger of Flying Blind
When you don’t know what your business is really worth, you risk:
- Misjudging your retirement timeline
- Underpricing (or overpricing) your company if a buyer shows up
- Investing in the wrong priorities
- Believing stories that feel good but aren’t grounded in reality
Just like that pilot, you can be moving fast… straight past your destination.
A Simple Rule of Thumb
Your business is likely your largest asset.
Relying on rumors or internet guesses to value it is like asking WebMD to perform surgery.
- Get the real numbers.
- Understand the real position.
- Chart the real course.
Bottom Line
Making great time is wonderful.
But knowing where you are—that’s what gets you home safely.
If you’d like a grounded, no-nonsense valuation that reflects what the market would actually pay, I’d be glad to walk through it with you. Feel free to schedule an introductory call with me by clicking here.
I help entrepreneurs buy and sell remarkable businesses as well as help them plan their exits. I will help you discover how to find out if it’s the right time to exit and help you ask a higher selling price for your business. All information is managed in the strictest of confidentiality.
