The Million-Dollar Misconception

Here's a startling fact: according to a study by Pepperdine University, 65% of business owners overestimate the value of their companies by 30% or more.

That's not just a rounding error – that's a blind spot big enough to drive a truck through!

And it's exactly the kind of blind spot that my XOS™ method is designed to eliminate.

 Remember, we're aiming for that Tier 3 Owner-Investor status, where your business is an asset, not just a job.

So, today I want to shine a light on 5 blind spots that could be tanking your business value:

1. Over-dependence on the owner 🦸‍♂️

If your business can't run without you, you don't own a business – you own a job.

And jobs are a lot harder to sell than businesses.

In XOS™ terms, this is classic Tier 1 Owner-Operator thinking. 

It's time to start delegating and systemizing to move up to Tier 2 and beyond.

2. Inconsistent financials 📊

Messy books are a huge red flag for potential buyers. 

They suggest either poor management or, worse, something to hide.

Clean, organized financials are a key part of the "Creating a Passive Profits Machine" stage in the XOS™ method. 

Get those books in order!

Hire a finance coach. Get a CPA. 

Get someone qualified to help you get your financial books in order. 

Every dollar you spend on this will make you possible tens of thousands of dollars when you go to sell your business. 

Side note: my mastermind, The Exiter Club, has a certified financial coach as part of our community. 

He provides every member with a deep dive into their finances to make sure they are keeping good books that will help with cash flow today and business valuation later. 

If that interests you, look into The Exiter Club here

3. Lack of documented processes 📝

If all your business knowledge is in your head, that's a big risk for any potential buyer. 

Documented processes are worth their weight in gold.

This is a crucial part of the “Mastering Systems & Automation” stage in XOS™. 

Start documenting those processes now!

4. Concentration risk 🎯

Relying too heavily on a few big clients or suppliers? 

That's a ticking time bomb in the eyes of a buyer.

Diversification is key to creating a resilient, valuable business – exactly what we aim for in the later stages of XOS™.

5. Ignoring industry trends 🔮

If your business model is becoming obsolete, your business value is going down the drain – fast.

Staying ahead of trends is part of being a Tier 3 Owner-Investor.

It's about working on your business, not just in it.

When I started my lighting business in 2010, retrofitting commercial lighting systems in buildings to LEDs was becoming more and more popular.

But I knew that there was a shelf life to this business model – eventually every building would have already been retrofitted.

So, rather than riding that wave all the way to the shore and crashing not he beach, I made a decision to start up another division of my company that would dovetail quite nicely into what we were already doing.

This was the shift we needed to make sure that industry trends didn’t kill off an otherwise historically successful business.

Do you need to do something similar?

The Hidden Costs

These blind spots aren't just theoretical – they can cost you big time.

I once worked with a client – let's call him Tom – who thought his business was worth $5 million. 

When he finally got a professional valuation, it came in at just $2.5 million.

Why?

He had fallen into every single one of these traps. 

His business was completely dependent on him, his books were a mess, nothing was documented, 60% of his revenue came from one client, and he was using outdated tech.

Don't be like Tom. Start clearing your vision now.

First Steps to Clearing Your Vision

1.  Get an objective valuation. You can't improve what you don't measure. (BTW, all members of The Exiter Club get two business valuations in their first year of membership: one at the beginning and one 12 months later to track the increase in value.)
2.  Start exit planning early. Even if you're not planning to sell, it'll make your business more valuable and easier to run.
3.  Implement a system like XOS™ to move from Owner-Operator to Owner-Investor.

Remember, in the world of business exits, timing is everything. 

Don't wait until it's too late to start planning your grand finale.

Here's to your success!

The Real Jason Duncan