The 80% You Can't See (But Can't Afford to Ignore)

Last time, we talked about the financial leg of your stool—the fuel that keeps you moving forward instead of floating at the dock. This time, we’re turning to the third leg: the business itself.

 This part might make some a bit uncomfortable, sweaty palms are even a potential. Because when we look honestly at our businesses, many of us see the truth: they may provide solid income, but not always lasting value. There are really two kinds of owners. The Lifestyle Owner, who builds a business that supports a good living. And the Value Creator, who builds a business that’s also a transferable asset—one that can thrive without them. Both matter. Only one sets you up for freedom when it’s time to step away.

 Here’s the kicker: nearly 80% of most company’s value is intangible or tied to intellectual capital. Not in trucks, buildings, or this year’s profit—but in people, customers, culture, and systems. Lifestyle Owners often leave those underdeveloped. Value Creators make them a priority.

 So, as we dig into the business leg of your stool, the real question is: are you building just income, or lasting value?

 Let’s get to work.

Tools of the Trade

If your business isn’t transferable, your most likely exit is liquidation. And liquidation rarely delivers what you hoped your life’s work would be worth. A non-transferable business is worth little to a buyer, an investor, or even to your own family.

 But here’s the good news: Building a transferable business doesn’t just pay off later. It makes things better now. Why? Because the very things that make a business easier to transfer such as strong systems, capable leadership, diverse customers, and a clear culture also make it run smoother and grow faster today.

 Want a quick gut check? Ask yourself:

• If I stepped away for a month, what would break?
• Could someone else step in and run the company, or would it all grind to a halt?

 If you’re the answer to every problem, the business may be generating income but not building value.

 So instead of asking, “What’s my exit plan?” ask this first: “Is my business transferable?”

 Because when it is, you’ve already started creating the freedom, income, and legacy you want without waiting for a future sale to make it real.

Firm Foundation 

Transferability is the difference between a profitable business and a valuable one.

Research shows that 80% of a company’s value lives in intangibles: Human, Customer, Culture, and Structural capital. Understanding these value drivers is the first step to making your business transferable:

• Human Capital: Are you building a team that can lead, or does everything still come back to you?
• Customer Capital: Is revenue spread across loyal clients, or concentrated with a risky few?
• Culture Capital: Is your culture intentional, or left to chance?
• Structural Capital: Are your systems documented and scalable, or mostly in your head?

Here’s the truth: if you want to build a company of significance, unlock the wealth trapped in it, and pass a legacy, becoming a Value Creator is the only way to do it.

 And here’s the irony: a transferable business doesn’t just make your company more attractive later, it makes it more profitable now. You can both have value and income, but only if you focus on value first. Transferability multiplies today’s income while also securing tomorrow’s freedom.

How We Partner With You

Roughly 80% of your company’s value is intangible, and most owners underestimate it. At Van Hulzen Financial Advisors, we help you understand the value drivers in your business; the people, customers, culture, and systems that determine whether your company is just profitable or truly valuable. 

 We help you translate those drivers into personal financial freedom so your business success becomes family wealth, not just revenue. That way, as your business grows in value, so does your personal wealth. Our goal is to help you enjoy both the benefits of today’s income and the long-term security of a transferable company that supports your lifestyle, your future, and your legacy.

*The foregoing content reflects the opinions of Van Hulzen Asset Management DBA "Van Hulzen Financial Advisors" and is subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. Securities investing involves risk, including the potential for loss of principal. There is no assurance that any investment plan or strategy will be successful. 

 Investment advisory services offered through Van Hulzen Asset Management, insurance products and services through Citadel, an affiliated company. Any references to guarantees relate only to insurance products and are based solely on the claims paying ability of the underwriting company.