Why Your Business Is Worth Less Than You Think

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:

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https://youtube.com/playlist?list=PLEEithd54kMle5_OUXiuLbc_UPBtz1vTE&si=uCOgDya1VnnCarDf

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#EnterpriseValue

#Sellable

#Systems