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Have you ever considered that knowing too much about your company’s product or service could be a disadvantage? Sometimes, not being a technical expert can help you avoid a common trap many founders fall into.&nbsp;Carrie Kelsch, who founded A Plus Garage Doors in 2005, had no experience in garage door repair. Instead of seeing that as a disadvantage, she turned it into an edge by focusing on growth, leadership, and building a high-performing team rather than getting stuck in the technical side of the business.&nbsp;“I didn’t, and I still don’t, know how to fix a garage door,” she says. Instead, Carrie leaned on her team to handle operations so she could dedicate her energy to marketing and growth. This approach reflects the advice in Michael Gerber’s The E-Myth Revisited: to work on your business, not in it.&nbsp;<h3>Not getting taken advantage of&nbsp;</h3>You might worry that if you don’t understand the technical side of your business, employees or vendors could take advantage of you by claiming tasks take longer or cost more than they actually do. To address this, consider tying key employees’ compensation to your company’s long-term success.&nbsp;&nbsp;One powerful strategy is implementing phantom equity. This gives employees a stake in the financial upside of your business without transferring actual ownership. It ensures their decisions are aligned with your goals and motivates them to contribute to the growth of your company.&nbsp;&nbsp;Carrie used a similar approach, rewarding loyal team members with phantom shares. This gave her team a sense of ownership and accountability, which helped her retain top talent. With her team handling the delivery of their service and aligned to the company’s success, Carrie was free to focus on growth.&nbsp;<h3>A transformative exit&nbsp;</h3>In 2024 Carrie sold a majority stake of A Plus Garage Doors to Guild Garage Group, a private equity-backed roll-up in the home services space. Guild valued her business at approximately $70 million, recognizing the strong financial foundation and brand she had built.&nbsp;This deal allowed Carrie to take significant capital off the table while keeping a stake in the company’s future growth. It’s proof that you don’t have to master every technical detail to build a business worth millions.&nbsp;&nbsp;Carrie’s journey shows that you don’t need to be a technical expert to succeed. By focusing on growth, empowering your team, and aligning incentives with performance, you can build a valuable asset that attracts buyers or investors. Working on your business—not in it—frees you to focus on the big picture, turning what might seem like a disadvantage into a competitive edge.&nbsp;&nbsp;Your business is more than the product or service it offers. It’s a system, a brand, and, ultimately, an asset. Sometimes the less you know about how the sausage is made, the better.&nbsp;

The power of working on, not in, your business

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A lot of companies are tempted to resell other people’s products and services as a quick path to hitting their next revenue milestone. While this approach might boost your top line, it often comes at the cost of your company’s long-term value. Acquirers aren't just looking for companies that generate revenue—they usually want businesses that bring something unique to the table, something they can't easily replicate.<h3>Finding a quiet corner of the market</h3>In the early days, Luke Peters sold portable air conditioners and thermostats online. When he made a sale, he’d head to a local industrial supply store, buy the unit, and ship it to his customer. He added no value and operated as a thinly veiled reseller with razor-thin margins.But Luke began thinking more strategically about his business. Instead of competing in crowded categories like air conditioners, he found a quiet, underserved corner of the HVAC market: portable beer and wine fridges. That’s when he started to build his own brand, NewAir. By focusing on this niche, Luke didn’t have to battle the big players like Whirlpool in traditional appliance categories. Instead, he carved out a segment where NewAir could dominate and create a brand that stood out.This strategic shift allowed him to build a brand that was recognized for delivering products that were easy to ship, fun to own, and specifically appealing to a target audience. By owning his niche, Luke unlocked a path to profitability and business value that wasn't dependent on thin reseller margins.<h3>The value of a brand</h3>In The Value Builder System™, product or brand differentiation is referred to as Monopoly Control—the ability to dominate a niche with an offering so unique that competitors can’t easily replicate it. Achieving Monopoly Control boosts your company’s value in three key ways:1. &nbsp; &nbsp; Commanding higher pricesDifferentiated products deliver unique value, making it easier to charge premium prices. Luke transitioned from reselling low-margin portable air conditioners to the relatively untapped market of premium bar and wine fridges. This shift raised his gross margin and net profitability—two of the most critical metrics in valuing a company.2. &nbsp; &nbsp; Increasing customer loyaltyWhen customers see your product as distinct, they are less likely to switch to competitors. Luke’s products weren’t just functional; they delivered an experience, fostering emotional connections that encouraged repeat purchases and stabilized revenue.3. &nbsp; &nbsp; Acquirers pay a premium for differentiated brandsWhen acquirers evaluate your company, they’re making a “build vs. buy” decision. They’re asking, “Should we buy this business or simply compete with it?” Acquirers pay top dollar when they conclude that replicating your point of differentiation would be too costly and time-consuming.<h3>Lasko acquires Luke’s $80 Million business</h3>By finding an underserved niche and building NewAir around it, Luke Peters grew the company into a business generating $80 million in annual revenue. His success culminated in NewAir being acquired by Lasko Products in 2021, marking a significant milestone in his journey from reseller to brand builder.

From reseller to brand builder: Luke Peters’ $80M success

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In the early days of Airbnb, co-founder Brian Chesky went to surprising lengths to gather customer feedback. He would stay with Airbnb hosts to experience the platform as they did, asking detailed questions about their needs and frustrations. Chesky’s commitment to listening wasn’t just about making improvements—it was about truly understanding the customer experience in a way few founders do.Sara Blakely, the founder of Spanx, took a similar approach. In the early days of her business, Blakely would personally visit department stores to watch customers try on her shapewear and listen to their feedback. She also spoke directly with store employees to learn what worked and what didn’t.As Spanx grew, Blakely continued reading customer emails and social media comments to stay connected to their needs. When women began asking for more than just shapewear—like leggings and bras—Blakely expanded her product line in response, fueling Spanx’s growth. Her hands-on approach to capturing feedback helped Spanx evolve into a billion-dollar brand.It’s not just giant companies like Airbnb and Spanx that benefit from this kind of founder obsession with customer feedback. Small business owners can unlock tremendous value by taking the same approach.<h3>William Brown’s journey: from $50 to seven figures</h3>William Brown’s story shows how the Listening &amp; Leveling approach can directly increase business value. Brown began with a simple $50 Word document designed to teach beginners how to trade online. What set him apart was his commitment to listening to customer feedback and using it to continually improve.When customers asked, “What broker do you use?” or “How do I navigate the market?”, Brown didn’t just answer—he adapted his product to better meet their needs. Over time, his offering evolved into a full-fledged educational program with videos, coaching, and additional resources. This not only enhanced the product but transformed Brown’s business, WB Trading, into a far more valuable asset.By responding to feedback, Brown’s product improved and so did its perceived value. This allowed him to raise prices from $50 to $2,000, significantly boosting profitability. His focus on continuous improvement also deepened customer loyalty, reducing churn and driving long-term value in his business.Through these strategies, William didn’t just build a better product—he built a more valuable business, leading to a seven-figure exit.<h3>Applying listening &amp; leveling to your business</h3>How can you apply the Listening &amp; Leveling approach to grow your business?<ul><li>Open feedback channels: Actively seek customer insights through surveys, follow-up emails, or direct outreach. These insights reveal opportunities to refine your offering and build customer loyalty.</li><li>Act on feedback: Quickly implement changes based on what you learn. As your product improves, you can increase prices and boost retention, directly enhancing your business’s value.</li></ul>No matter how big your business becomes, you’re never too big to listen to your customers. Whether you’re building a billion-dollar empire like Sara Blakely or fine-tuning a niche product like William Brown, customer feedback is the key to staying relevant, evolving your offering, and maximizing your company’s value.

Listening & leveling: how customer feedback turned a $50 idea into a 7-figure business

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What makes you tough to compete with?It’s that thing customers value but competitors can’t seem to match.For Apple, it’s their integrated ecosystem of devices and services. Apple’s ecosystem binds together iPhones, iPads, Macs, Apple Watches, and services like iCloud, Apple Music, and Apple Pay into a seamless experience. Once you own one Apple product, the additional benefits and ease of using multiple devices and services from the same company make it difficult to switch to competitors.The strength of Apple’s ecosystem lies in how all their products and services work together, enhancing convenience and functionality. This integration creates a powerful moat that other tech companies struggle to cross, contributing to Apple’s dominant market position.And this doesn’t just work for large tech companies. We refer to your moat as having Monopoly Control, and it can significantly increase your company’s value. A study done by The Value Builder System™ shows that companies with a monopoly are 40% more likely to receive acquisition offers, and these offers are typically 25% higher than businesses without a virtual monopoly.<h3>How Boondockers Welcome built a moat</h3> Let’s look at Boondockers Welcome, founded by Marianne Edwards and her daughter, Anna Maste.Boondockers Welcome is like Airbnb for RVers. RV enthusiasts can find hosts willing to let them park their RVs on their land for free. The RVers get a free place to stay, and the hosts enjoy meeting like-minded travelers.As with any two-sided market, the challenge lies in quickly growing both sides—hosts and guests. This challenge of establishing a thriving marketplace created the moat that made Boondockers Welcome tough to compete with. The success of a two-sided market depends on achieving critical mass; without enough hosts, guests won’t join, and vice versa.Edwards and Maste had an advantage here. Edwards had spent years writing travel guides and had a dedicated list of followers who made ideal hosts. By tapping into this community, they quickly populated the site with high-quality hosts, giving Boondockers Welcome a head start that was hard for others to replicate.This early success allowed the Boondockers Welcome network to grow to more than 3,500 locations across the country, creating a robust marketplace that was difficult for any new entrant to challenge.<h3>The sale to Harvest Hosts</h3> This well-established network caught the attention of Harvest Hosts, a membership service for RVers offering unique camping experiences at locations like wineries and farms. CEO Joel Holland saw the potential synergy and reached out to Maste and Edwards for a partnership.Initially, Maste and Edwards declined. But Holland, recognizing the strength of their moat, persisted and asked them to name their price.Maste and Edwards considered their ideal number and doubled it. After some negotiation, Holland agreed, and the deal closed just weeks later.Your moat may make your company attractive to customers, but it also makes your business more valuable. Focus on widening and hardening your moat, and watch the value of your business grow.

Why a strong moat made Boondockers Welcome an acquisition target

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Have you ever wondered why some athletes struggle to transition from player to coach? This challenge isn't just limited to sports; it’s a critical shift that many business owners need to make to build a valuable business.&nbsp;Take Wayne Gretzky, for example. Despite being arguably, the best hockey player of all time, he failed to make the playoffs in four years as the coach of the Phoenix Coyotes. Similarly, Ted Williams, the greatest hitter in baseball history, couldn't lead his team to the playoffs in four years as a manager.On the other hand, some of the most successful coaches never excelled or even played the sport they coached professionally. Andy Reid has won three Super Bowl titles with the Kansas City Chiefs without ever playing in the NFL. Greg Popovich, one of the best NBA coaches of all time, never played professional basketball.Why does this matter for business owners? The transition from being the star player in your business to becoming its leader or “coach” is crucial. The Value Builder System™ analyzed more than 80,000 businesses and found that companies able to function without their owner for three months are more than three times more likely to receive a premium offer (defined as greater than 6x pre-tax profit). In other words, owners who successfully transition from player to coach are much more likely to get a premium offer for their business.<h3>How Jason Bagley made the move from player to coach</h3>In 2013, Jason Bagley started Firing Squad, a lead generation company specializing in cold emails. Initially, Bagley did everything himself, especially copywriting, which he considered his “ninja skill.”However, Bagley wanted to build a business that could thrive without him. To do this, he needed to transfer his skills to his employees. Here’s how he did it:1. Create a library: Bagley compiled good and bad copywriting examples in a folder accessible to all employees. 2. Use video: He provided feedback through screen-sharing videos, making it easier for his team to understand his thought process. 3. Avoid perfection: Bagley learned to accept 80% of his standard from his employees, realizing that nitpicking every detail wasn’t productive. &nbsp;This approach allowed Bagley to transition his skills to his team, enabling him to sell Firing Squad to Southern Web in 2020.Making the shift from player to coach is challenging but essential if you aim to build a valuable and sellable business.&nbsp;

From Gretzky to Popovich: what sports legends teach us about business value

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When potential acquirers first evaluate your business, most will quickly categorize it into a specific industry. This initial classification can significantly impact the value they place on your business. Some industries are inherently perceived as more valuable than others, and if your business is placed in a less favorable category, it can be challenging to change that perception.&nbsp;When Jeremy Parker was raising money for Swag.com, he ran into investors who were left with the impression that Swag.com was a simple distributor of promotional products, which is an industry plagued by low valuations. &nbsp;Parker tried to make the case that Swag.com was more than a middleman, but investors weren’t buying it. They lumped Swag.com into the promotional products category and offered Parker a low single-digit multiple of EBITDA for a slice of his business.&nbsp;Parker regrouped and began positioning the business as an e-commerce play with an unforgettable domain name, world-class merchandising, and one of the most elegant direct-to-consumer (DTC) buying experiences online. Investors began to see the company differently. No longer a simple distributor of “trinkets and trash,” Swag.com began to be seen as a technology company and a digital commerce leader. Instead of a low single-digital multiple of profit, Parker attracted an acquisition offer valuing his $30 million company at a healthy multiple of revenue.&nbsp;Once an acquirer has categorized your business into a particular industry, it can be challenging to shift that perception. If your business doesn’t fit neatly into their preferred categories, it can be difficult to change their initial impression. &nbsp;Additionally, acquirers often compare your business to others within the same industry. If they have already placed you in a less favorable industry, they might use lower benchmarks and valuation multiples from that industry, making it harder to argue for a higher valuation. Furthermore, the initial narrative you present about your business can stick. If this narrative places you in a lower-valued industry, subsequent efforts to reframe your business may be met with skepticism.&nbsp;<h3>How to look like a valuable business&nbsp;</h3>To ensure your business is categorized favorably from the start, consider these strategies:&nbsp;1. Clear positioning: Clearly articulate your business’s value proposition and industry position. Avoid ambiguous descriptions that might lead to misclassification. Be explicit about where your business fits and why it should be valued accordingly.&nbsp; 2. Highlight industry trends: Emphasize positive trends in your industry and how your business is positioned to capitalize on them. Use data and market analysis to back up your claims and shift perceptions.&nbsp; 3. Put your best foot forward: If your business spans multiple industries, highlight the most favorable one. Demonstrate how your company leverages the strengths of high-value industries, and downplay associations with lower-value ones.&nbsp; 4. Leverage third-party validation: Use endorsements, industry awards, and analyst reports to support your positioning. Third-party validation can lend credibility to your claims and help shift acquirer perceptions.&nbsp; When selling your company, perception is everything. The category investors place your business in can make or break the deal.&nbsp;

Blog

The power of working on, not in, your business

From reseller to brand builder: Luke Peters’ $80M success

Listening & leveling: how customer feedback turned a $50 ...

Why a strong moat made Boondockers Welcome an acquisition...

From Gretzky to Popovich: what sports legends teach us ab...

How first impressions can impact your company’s value