Is that a term you want associated with the sale of your business asset? Maybe if you were thinking of hiring someone and getting him or her at a discount, it sounds great. But, if you are selling your business, would you want the buyer looking at a discount? Probably not but this is exactly what will happen if you, the owner, are still the key man in your business.

Let me ask, how long can you be away before the business feels it? Seconds? Minutes? If so, then you need to step back and reevaluate whether this is the best time to sell because you are in the discount zone and it can be huge.

What can you do about it? Many things, but they need to be started well before thinking of selling.

First, is get yourself out of the daily operations. If you are the only person who can do the job right (in your own mind), I suggest that you more seriously consider finding a highly qualified or trainable person to take over those tasks. It may cost you something today, but it will more than pay off over time.

Second, get your employees on board with new changes and plans for growth. Empower them with some of the tasks and let then learn. Start, in small increments, taking time off and being unavailable. Monitor the business performance and adjust.

Just these two actions can dramatically change the value of your business. Think of it this way, if values range from, let’s say, a multiple of earnings between 1.8 and 3.1 for your type of business, what are the deciding factors? The Key Man Discount is a big one.