Mark Osborne explains how owner dependency kills your sale price. Document your processes and delegate tasks to boost EBITDA and raise your multiple. A $1M business can jump from 2x to 3x by building systems that work without you.
You hit on such a great point that it's really worth underscoring, which is, you know, by removing that owner dependency, not only do you get your time back, not only does it improve the overall efficiency because instead of, you know, you at $500 an hour, you can outsource it for $100 an hour. So that fundamentally drops to the bottom line of the EBITDA. But more importantly, that multiple that you're able to get for the business when it's got transferable systems, can go up a full turn. So a million-dollar business that you make less dependent on you, and so then you can go from a 2x multiple to a 3x multiple. That same million dollars is now, you know, worth an extra, you know, million dollars at the sale. Like, what a difference that makes. It's definitely worth that investment of time to figure out how to document your processes and how to get out of the way.
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