In this solo advisory segment of Weeks Weekly, Ed Weeks Jr. explains that the most valuable asset in many trade‑focused businesses is not the owner but a single “rock‑star” employee who holds operations together. He outlines a simple test – if the owner were absent for 30 days, whose phone would ring? – to identify this key person. Buyers focus heavily on this individual during due diligence; if the business relies solely on the owner, perceived risk lowers the sale price or alters deal structure. Weeks highlights two common deal failures: new owners inflating salaries and internal buyers lacking operational expertise. He then provides a step‑by‑step playbook: name and document the key person’s role, review and adjust compensation, create a retention plan with legal and tax advisors, keep the sale confidential from the key person until appropriate, and begin delegating responsibilities. Finally, he invites listeners to assess their business’s optionality via a three‑minute online assessment. The overall message is that protecting and formalizing the role of the key person strengthens the business and improves exit outcomes.
Chapters
Welcome to Weeks Weekly. I'm Ed Weeks Jr. This week, the most important person in your business, and why it might not be you. Last week a buyer asked me how you take over a company in a trade you're not licensed in. I told him what I tell everybody. Somewhere inside most of these businesses, especially in the trades, there's an absolute rock star. One person who is really keeping the whole thing together. That's the person you're gonna lean on heavily, and you're gonna end up paying that person pretty well. Because you need them to take over. Now flip that around. If you own the business, every serious buyer is going to go looking for that person in your company. So who is it? Here's a simple test. If you were gone for 30 days, who would the phone ring for? If the answer is a strong general manager or an office manager who holds it all together, that's good news. A buyer sees someone who can carry the business through the handoff, and that lowers the risk. If the answer is only you, The buyer sees risk. And risk shows up in the price. Or the structure. Or both. I hear this 2 or 3 times a week. An owner tells me they operate above the business. Then, halfway through our call, hold on, I have to take this. Most of the time, that's an easy fix. For a lot of owners, the dependency is just their own ego in the way. I can say that because I'm the same way. I always have to have my hands in everything. Where do deals go wrong with key people? 2 places. First, a new owner comes in and tries to maximize everything, starting with salaries. In the trades today, good people can just go to a different company and make the money. Pay people the right way, treat them the right way, and you'll find the people you need inside these companies. Second, an owner sells to a couple of people inside the business. They drop the ball, and now he's back in, trying to make it right. A great operator isn't automatically a great buyer. So what do you do now? Name the person. Put their role on paper— what they do every day, and which customers, vendors, and licenses run through them. Look at their pay. Because if they're underpaid, a buyer will fix it out of your price or watch them leave. Talk to your attorney and CPA about a retention plan. Keep a possible sale quiet, but don't let your key person hear about it from a buyer first. And start handing them the calls you've been taking. None of that means you're selling. It makes the business stronger, whatever you decide. Want to know where your business stands right now? Take the Business Optionality Assessment. It's about 3 minutes at edweeksjr.com/assessment. I'm Ed Weeks Jr. See you next week.
