Why Your Business Is Worth Less Than You Think

DEC 23, 202531 MIN
Franchise Secrets Podcast

Why Your Business Is Worth Less Than You Think

DEC 23, 202531 MIN

Description

Most business owners believe their company is valuable because it makes money. They're wrong. In this solo episode, Erik Van Horn explains why owner-dependent businesses are worth far less than founders realize, even when they're profitable. If your business only works because you're involved in everything, buyers don't see an asset — they see a job. Erik breaks down: -The "most expensive org chart in America" -Why being indispensable kills enterprise value -A personal health scare that tested his businesses -The difference between cash flow and a sellable asset -How to start removing yourself as the bottleneck without blowing up the business If you want real optionality — whether that's selling, stepping back, or building a better lifestyle — this episode will change how you think about your business. Timestamps: 00:00 – The most expensive org chart in America 03:45 – Why doing everything weakens your business 07:20 – The pride trap of "I do it all" 11:40 – Why buyers avoid owner-dependent companies 15:55 – A real health scare that tested the systems 20:30 – What a healthy business looks like without the owner 25:10 – $500K working 60 hours vs $350K working 5 30:05 – Why growth can still drain cash 35:40 – Cash flow vs enterprise value 41:15 – The real test of business health 45:30 – Practical ways to remove yourself as the bottleneck 51:00 – The mindset shift founders must make 55:10 – Final takeaway: build for value, not ego Connect with Erik Van Horn: 🌐 Website - https://franchisesecrets.com/ 📷 Instagram - https://www.instagram.com/erikvanhorn/ 👍 Facebook - https://www.facebook.com/erik.v.horn/ 💼 LinkedIn - https://www.linkedin.com/in/evanhorn/ Best Franchise Starter Playlist: https://youtube.com/playlist?list=PLEEithd54kMlgRgsBAo4LWNCMSOthnK0r&si=TD1z25-ie2d23rGm https://youtube.com/playlist?list=PLEEithd54kMle5_OUXiuLbc_UPBtz1vTE&si=uCOgDya1VnnCarDf https://youtube.com/playlist?list=PLEEithd54kMk2Kw07KwZGWgF8UTx9N5_T&si=ZldjBOqFanGE-JUL #EnterpriseValue #Sellable #Systems