We all admire leaders who roll up their sleeves and lead from the front. They set the tone, inspire loyalty, and show the team what it means to hustle. It’s often the only way a business gets off the ground in the early stages.
But as the business grows, that same leadership style can become a liability.
According to data from The Value Builder System™, companies where the owner is deeply involved in day-to-day operations receive 35% lower offers than businesses that can operate independently of the founder.
Why?
Because buyers aren’t looking to buy a job—they’re looking to buy a machine that runs without them (and ideally without you, the current owner). They want systems, not superheroes.
Meet Doug Lowenthal.
Doug founded TruTechnology, a managed IT services provider, and over nearly two decades built it into a multi-million-dollar company. He was the heart of the business—responding to tickets, handling client escalations, even jumping into the help desk queue during holidays. His team respected him. His clients loved him.
But when Doug experienced sudden chest pain and feared it was a heart attack, everything changed. It turned out to be a false alarm—but it was a major wake-up call. He realized:
“If I don’t show up, this business stops. And that means it’s not really a business—it’s a job with overhead.”
Doug made a radical shift. He:
- Empowered department heads to make real decisions
- Replaced himself in the sales function
- Tied employee bonuses to profitability
- Opened the books and taught his team how the business worked
- He started building a company that could thrive without him.
The result?
Doug eventually sold TruTechnology to Evergreen Services Group in a 100% cash deal—a direct outcome of transforming his company into a self-managing business.
If you’re a business owner still in the trenches, ask yourself:
Would my company survive a 90-day vacation without me?
If the answer is no, it may be time to shift from operator to architect. That shift not only creates freedom—it drives value.
Click here to schedule a time to meet if you want to talk about building transferable value, preparing for a future exit, or just getting your nights and weekends back.
