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This email is Part 5 of a short series covering everything you need to do after buying your first business.
You can read the first four parts here:
Over the past few editions, we’ve covered how to stabilize your business, document systems, build your team, and grow revenue.
Now comes the ultimate goal: removing yourself from daily operations.
This is how you build real wealth and maximize your business’s value.
Why making yourself replaceable matters
Remember when we talked about valuing a business?
The more the owner is involved, the less valuable the business is.
An owner-dependent business sells for 2-3x EBITDA.
An absentee-run business? 4-6x EBITDA or more.
Even if you want to hold on to the business for a long time before selling, being able to completely step away from your business will make your life so much easier, and make your business that much more valuable.
Implement AI and automation
We’re in the middle of an AI revolution, and you need to take advantage of it.
Look at every task in your business and ask: “Does this require human-to-human interaction?”
If the answer is no, automate it.
Your employees are great at customer service. But backend admin work - updating spreadsheets, scheduling, sending invoices - AI can handle that.
I suggest starting small and finding one repetitive task that you can automate. Once you’ve done that, move on to the next thing.
Document everything you do as owner
Most business owners have at least 20-30 things that only they know how to do.
To fix this, start writing down every task you handle:
How you review financials
How you make hiring decisions
How you handle vendor relationships
How you solve operational problems
Create written documentation and video training for each responsibility, and once it’s documented, you can delegate it more effectively.
Hire or develop a general manager
This is the ultimate key to removing yourself from the business.
A strong general manager handles day-to-day operations while you focus on strategy (or step away entirely).
Your GM should be incentivized through profit-sharing or performance bonuses, so that when the business does well, they do well.
In most of my businesses, the GM handles employee reviews, operations, and client relationships. I review financials monthly and stay involved in major decisions, but I’m not needed daily.
A real example - Zach’s medical practice
My student Zach acquired a medical practice and in the first year increased EBITDA from $1.1M to $1.8M.
He did this by modernizing systems, maintaining key staff with bonus structures, and expanding service offerings.
But most importantly, he built systems that didn’t require him to be there every day.
The business became more valuable because it became more independent.
Common mistakes to avoid
Don’t make too many changes too quickly, or you’ll lose employee trust.
Don’t ignore established procedures (there’s usually a reason they exist).
Don’t micromanage experienced staff.
And document your processes! If it’s only in your head, it can’t be delegated.
The complete roadmap
You’ve now got the framework for your first year:
Week 1: Build trust and stabilize
Days 30-90: Document and modernize
Months 3-6: Build your team
Months 6-9: Grow revenue
Months 9-12: Scale and remove yourself
Follow the steps I’ve outlined in this series, and you’ll have everything you need to turn your acquisition into a valuable, scalable business.
We’ll wrap up the series next Tuesday, but until then…
If you’re interested in buying your first business, I share high-quality deals with subscribers when I come across them.
To get those emails, take a second to fill out this form:
👉 I want to buy (or invest as a silent partner into) a small business
Or if you own a business and you’re looking to sell, let me know below:
👉 I want to sell my small business
Onward,
— Ben Kelly
