The Truth About Profitability vs. Value: Why a $5M Business Might Be Worth Nothing

You’ve done what they told you to do.

Worked the hours. Signed the checks. Carried the weight. You’ve sacrificed time with your family, missed milestones, and still—you kept pushing.

Now the business finally makes money. You’ve got some nice toys, maybe a new house, the ability to breathe a little.

But deep down, you’re asking yourself:

“Is this it?”
“Why does it still feel like I’m trapped?”

The uncomfortable truth?

You’ve built a profitable business…
But it’s not valuable.

And that could cost you everything.

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Jeff’s Story — And Maybe Yours Too

A while back, a friend of mine—let’s call him Jeff—called me in a bit of a panic. Successful guy by any outward measure. A few million in revenue. Nice house. Fancy boat. Employees. Profit.

But when we started digging into his long-term plan, it hit him:

He had no plan.
Worse, he had no asset.

All his money? Tied up in the business.
All his time? Devoted to keeping it afloat.
All his energy? Spent trying to squeeze out one more percentage point of profit.

He had invested everything—emotionally and financially—into growing profits, but none of it made the business transferable.

In fact, once you took Jeff out of the business… there was no business left.

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Profitability ≠ Value

Jeff’s retirement plan was his business. But the only thing he could sell? Equipment. And at pennies on the dollar.

He didn’t have a company someone would buy.
He had a profitable job with overhead—and no exit.

That’s when it clicked for him:

Profit is for today. Value is for tomorrow.

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A Tale of Two $5M Businesses

Let’s break this down with a real-world comparison. Two companies—same numbers, radically different futures.

Company A and Company B:

 

• $5 million in annual revenue

• $500,000 in EBITDA

• 20 years in the same industry

• Same region, same growth trajectory

But that’s where the similarity ends.

Which one do you think a buyer wants?

Which one could run without the owner?

Which one builds wealth, not just income?

Bingo.

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The Real Cost of Chasing Profit Alone

You’ve been taught to chase the bottom line.
Revenue, margin, tax efficiency. And you’re good at it.

But here’s the brutal truth:

You’re making great money… in a business no one would buy.

That’s not freedom. That’s a trap.

Worse? You’re giving your best years—your energy, your creativity, your presence—to a machine that only works when you’re in it.

And it won’t be worth much when you’re ready to step away.

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Field Test: Could Your Business Survive Without You?

Try this.

Take a two-month sabbatical. Unplug completely.

If the business can’t run—and grow—without you there…

You haven’t built a business.
You’ve built a dependency.

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What Buyers (and Your Future Self) Actually Want

When it comes time to transition—whether that’s selling, handing it to a child, or just stepping back—the real value lies in:

• Systems that anyone can follow

• People who can lead without your hand-holding

• Processes that deliver consistent results

• Financials that are clean, credible, and scalable

These are the qualitative drivers that increase value. And ironically, when you invest in those, your profitability usually increases too.

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Don’t Be Jeff

Don’t spend 20 years building something no one wants to buy.

Don’t miss your daughter’s volleyball game just to squeeze another 1% margin this quarter.

And for the love of all that’s good—don’t wait until burnout forces your hand.

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Here’s the Challenge

Forget the hustle porn. Forget “10X” garbage. Forget the badge of burnout.

Instead, ask yourself:

• Am I building a business that works without me?

• If I died tomorrow, would this business bless my family—or burden them?

• Is my business buying my freedom—or consuming it?

Because Randy, here’s the deal:

You don’t need more grind. You need a plan.
A plan to build something that’s not just profitable—but valuable.
So you can enjoy the freedom you’ve been chasing all along.