tech
Owner Dependency
The degree to which the business cannot operate without the owner.
Definition
Owner dependency measures how much the business depends on the founder being in it daily - selling, delivering, managing, deciding. High dependency caps growth (founder is the bottleneck) and crushes valuation at sale (a business that can't run without you is worth 2-3x less). Reducing dependency requires deliberate investment: documenting SOPs, hiring decision-makers (not just task-doers), and building systems that survive your absence. The test: can the business run for 30 days without you?
In your business
- →Test: can the business run for 30 days without you? If not, identify the bottleneck and start delegating
- →Document the 5 things you do that nobody else can - then teach someone each one
- →Owner dependency is the #1 reason small businesses fail to sell - reduce it 2-3 years before any exit