We are planning to sell the business in three years, but potential buyers are telling me the company is too dependent on me. How do we build a self-sustaining leadership team that can run the business without my daily involvement?

Question

Tyler Smith · Accepted Answer

If your business cannot run without you, it is not an asset. It is a high-paying job. Buyers do not want to buy a business that is completely dependent on the founder. They want to buy a self-sustaining management machine that can consistently deliver results long after you walk out the door.

To build this machine, you must transition from being the hub of the wheel to letting your leadership team run the company. Start by empowering your Integrator to truly run the daily operations. Stop stepping in to solve every problem or make every decision. If an issue arises, push it back to the leadership team and have them resolve it using the IDS® process.

Next, ensure your V/TO® is clear and that every member of the leadership team is aligned on your long-term goals. Every department must have clear metrics and key performance indicators that are tracked weekly on your scorecard. This data must give your leadership team complete visibility into the health of the business without your input.

Encourage your leaders to take complete ownership of their seats. They must be responsible for hitting their quarterly Rocks and managing their own departments. If they are constantly asking for your approval, it means you have not delegated effectively or you have the wrong people in those seats.

By step-by-step removing yourself from daily operations and trusting your team to execute, you will build a highly valuable, self-sufficient business. When buyers see a strong, cohesive leadership team running a highly disciplined EOS® cadence, your valuation will skyrocket.