Tom thought he was building wealth. In reality, he was just staying busy.
For 32 years, he ran a successful manufacturing company. First in, last out. His phone never stopped. He wore his long hours like a badge of honor.
“I’m building something here,” he’d tell his wife, Sarah, when she asked when he might slow down. “Just a few more years.”
But one Tuesday afternoon, Tom’s accountant asked a question that stopped him cold.
“Tom, you’re 64. If you retired at 67, how much would you need to sell this business for to maintain your current lifestyle?”
Tom didn’t have an answer. And he’s not alone.
Most business owners haven’t done the math. They’ve built income, not wealth. They’ve built a job, not an asset.
Tom’s accountant estimated the business was worth between $1.8 and $2.2 million. But Tom needed significantly more to retire comfortably. Worse, the business was entirely dependent on him. Without Tom, there was no business.
Over the next six months, Tom began to step back from the daily grind and look at his business through a more strategic lens. He started asking questions he hadn’t considered before—questions about long-term value, transferability, and what would happen if he wasn’t there tomorrow. As he worked with a business advisor to assess the company’s readiness for transition, several critical issues came into focus—issues that had quietly been eroding value for years:
These weren’t just operational inefficiencies—they were structural risks. And they were standing in the way of building a business that could be sold, scaled, or passed on.
“Do you have three to five years?” his advisor asked.
That question haunted Tom—especially after what happened to his friend Mike.
Mike owned a commercial landscaping company. He planned to retire at 65. At 62, he had a heart attack. He had to sell quickly. Buyers knew it. The business sold for 40% less than it should have.
Then there was Janet. She owned a printing business. At 59, she was diagnosed with early-onset Parkinson’s. She needed to exit within 18 months. Her business was so dependent on her relationships and expertise that finding a buyer proved nearly impossible. She closed the doors and liquidated equipment for pennies on the dollar.
Health issues, accidents, and life events don’t wait for your business to be ready. They don’t care if you’ve built systems or diversified your customer base. Tom realized he wasn’t just racing toward retirement—he was racing against the unexpected.
“What if I’d had the heart attack instead of Mike?” Tom asked Sarah one night. “What would we have done?”
She didn’t have an answer. Neither did he.
That’s when Tom got serious.
He hired a manager to handle daily operations. He documented processes. He transitioned client relationships to his sales team. He diversified his customer base. He identified backup suppliers. He stopped being the hub of every decision.
It wasn’t comfortable. Some days he felt useless. But slowly, methodically, the business became less dependent on him—and more valuable. More importantly, it became transferable.
Three years later, Tom had the business revalued. It was worth $2.9 million. An investor expressed interest in acquiring it, with Tom staying on part-time for two years to ensure a smooth transition. It wasn’t quite the $3.5 million he’d hoped for, but with adjusted spending and part-time income, he and Sarah could make it work.
More importantly, Tom understood what the past 32 years had built—and what the last three years had protected.
“If I’d waited,” Tom told his advisor, “I wouldn’t have had time. Life doesn’t give you a three-year warning.”
If you own a business, ask yourself:
Fixing these issues takes time. Owner dependency doesn’t disappear overnight. Diversification requires strategy. Building a leadership team means investing in people and letting go of control. Creating systems means documenting what’s been in your head for decades.
You can’t fix these things in a crisis. You can only fix them when you still have time.
You’ve spent decades building your business. The question isn’t whether you’ve been busy—it’s whether you’ve been building the right thing.
The math doesn’t lie. And the clock doesn’t stop.
Will you wait until life forces the calculation—or will you take control now?
If this article hit a nerve, or if you know someone dealing with these issues, let’s talk. At FocusCFO, we help owners like Tom every day. The earlier you start, the more options you’ll have.
Jeff Semple helps business owners turn their companies into transferable wealth. As a Certified Exit Planner, GoGrow Strategic Planning implementor, and Area President at FocusCFO, he works alongside owners to build value, reduce dependency, and prepare for successful transitions. A 14-year Vistage Chair and former founder of a high-growth manufacturing startup, Jeff brings decades of experience guiding leaders from busy to intentional—and from income to equity.