Many business owners begin their journey with a deep knowledge of their craft. In the landscaping industry, this might mean designing high-end outdoor spaces, building complex hardscapes, or delivering exceptional property maintenance services. But at some point, to create a company that lasts, the focus must shift from doing the work to building the business.
This transition is something I’ve written about before in The Company Is the Product: Why Your Business Model Matters, where I discussed how a well-structured business becomes more than just the sum of its services—it becomes a valuable, sellable entity.
The value of a company isn’t just in its revenue streams—it’s in the systems, leadership, and culture that make it sustainable. A landscaping business that has strong leadership, engaged employees, and financial transparency is far more valuable than one that depends on the owner’s ability to drive sales.
This ties directly to Ownership Rule #2:
A company isn’t worth anything if nobody wants to own it.
A business that relies entirely on the owner’s sales abilities or personal reputation is not an asset—it is, in effect, a demanding job. In contrast, a company that operates smoothly with a strong team and repeatable processes is one that has true market value.
Building a Business That Attracts Owners: A Case Study from Creative Roots
At Creative Roots Landscaping, this shift in mindset was a defining moment in the company’s evolution. In the early years, our primary goal was securing new projects and keeping our crews busy. The business operated in a reactive state, dependent on my ability to drive sales and manage day-to-day operations.
Over time, we recognized that for the company to have lasting value, we needed to move beyond selling projects and start building the business itself as the product.
This transition focused on three key areas:
1. Developing Systems
- Standardizing workflows, job costing, and financial forecasting
- Implementing repeatable processes so the company could operate without my daily oversight
For a deeper dive into how we structured this, see How to Build Systems That Make Your Business Run Without You.
2. Empowering Employees
- Adopting Open-Book Management (OBM) to foster financial literacy and shared decision-making
- Encouraging employees to take ownership over outcomes, not just tasks
If you’re considering OBM, I wrote about its impact in Getting Employees to Think Like Owners: Lessons from Open-Book Management.
3. Strengthening Company Culture
- Making Creative Roots a place where employees wanted to stay and grow
- Establishing a pathway for key team members to take ownership roles over time
Culture is often an overlooked aspect of business value, yet it plays a crucial role in a company’s long-term success.
As a result of these changes, Creative Roots became a more resilient, profitable business, able to retain top talent, operate independently, and ultimately create opportunities for employees to take both psychological and actual financial ownership. This allowed me to step back from day-to-day operations while the business continued to grow and thrive.
The Wealth of Ownership vs. the Limitations of Transactions
A business built around transactions can generate income—but a well-structured company creates wealth. The difference is profound:
- A $2 million revenue landscaping company with little structure and an owner-dependent sales model might sell for 1–2 times net earnings—if it’s even sellable.
- A $2 million revenue company with strong leadership, standardized processes, and an engaged workforce is far more attractive to potential buyers or even employees looking to buy in.
The difference is clear: Selling more is not the end goal—building a valuable company is.
How to Build a Business That Creates Long-Term Value
For business owners looking to create wealth through ownership, the following steps are critical:
- Assess Your Business’s Independence
- If you stepped away from your company today, how well would it run?
- If the answer is “not at all,” your focus should be on developing systems and leadership capacity.
- Prioritize Leadership Development
- A sustainable business relies on leadership, not just the owner’s expertise.
- Investing in financial literacy and decision-making skills among employees helps create long-term value.
- Adopt an Ownership Mindset
- Revenue generation is important, but real wealth comes from a resilient, employee-driven company.
- Think beyond sales transactions and focus on long-term strategic growth.
Final Thoughts
Building a company that creates wealth is not about maximizing short-term sales—it’s about structuring a business that thrives beyond the owner’s involvement.
As The Great Game of Business emphasizes, successful companies don’t just succeed because they provide great services—they succeed because they are built to last.
Are you focusing on selling services, or are you building a company that has true market value?
About Me
I have spent over 30 years in business, from working in the field to leading a company and mentoring other owners. Through my experiences, I’ve learned that true business success comes not just from working harder but from building a company that operates as an asset, not just a job.
If you’re looking for ways to transition from working in your business to building an ownership-driven company, let’s talk.
