One of the biggest misconceptions about buying a business is that the owner's primary responsibility is managing operations. In our experience, that's rarely the case. The owner's most important job is driving revenue. Whether a company has a dedicated sales team or not, the owner ultimately serves as the chief revenue officer. That responsibility doesn't disappear after the acquisition closes, and buyers who underestimate it often struggle during their first few years of ownership.
Everyone is replaceable — including the seller
Many buyers worry about what happens if a key employee leaves after closing. That's a reasonable concern, but we've learned that businesses are remarkably resilient. Even elite employees are, by nature, replaceable. The real question isn't whether someone can be replaced. It's how long the process will take and how many people will be needed to fill the gap.
We experienced this first-hand when the head of sales at one of our businesses unexpectedly passed away just two weeks after we acquired the company. It was a devastating loss both personally and professionally, and the business certainly felt the impact. Even so, the company continued operating because the organization adapted and rebuilt over time. It simply had to.
The same principle applies to sellers. Many owners believe they're irreplaceable because they wear every hat in the business. They oversee operations, manage finances, lead sales, and make countless day-to-day decisions. Replacing that person with a single hire is rarely realistic. Instead, we look for ways to divide those responsibilities among people who are each equipped to handle one part of the role.
What to delegate first
The first responsibility we try to remove from a new owner's plate is financial administration. Tasks like bookkeeping, accounts payable, accounts receivable, collections, and other back-office functions consume valuable time without directly growing the business. We believe owners should spend as much time as possible serving customers, supporting employees, and building relationships, not handling administrative work. By creating systems around those financial responsibilities, owners gain the capacity to focus on higher-value activities.
Operational leadership is often the next responsibility to delegate. Hiring someone to oversee day-to-day operations is generally easier than replacing the person responsible for generating new business. Sales requires a unique combination of persistence, confidence, and resilience that is difficult to teach. That’s why we believe the owner should remain deeply involved in business development, even as other responsibilities are delegated.
We’ve seen this lesson play out repeatedly. Some of our operating partners have outstanding technical backgrounds and know their industries extremely well, yet they struggle because they aren’t comfortable selling. They’ll attend a trade show, collect dozens of business cards, and then never follow up. Others hesitate to make cold calls or ask for referrals because they aren’t accustomed to hearing "no." Unfortunately, avoiding those activities eventually shows up in the company’s revenue. Technical expertise alone isn’t enough to grow a business.
On the other hand, we've also seen what happens when an owner embraces the sales role. One of our strongest acquisitions has been a water well drilling company led by someone who already had industry relationships and wasn't afraid to develop new ones. He understood the market, knew the customers, and consistently invested time in building additional business. That combination of industry knowledge and proactive selling helped the company grow significantly after the acquisition.
Buy in an industry you already know
This is why we encourage prospective buyers to be honest with themselves before purchasing a business. If you have no interest in selling, networking, following up with prospects, or building customer relationships, business ownership may not be the right fit. Sales is a core owner responsibility, regardless of the industry.
Another advantage comes from buying a business in an industry you already know. Many people want to leave their current field behind and purchase something completely different. Someone with twenty years of manufacturing experience wants to buy anything except a manufacturing business. Someone who has spent their career in restaurants wants nothing to do with restaurants. While that reaction is understandable, it often creates an unnecessary hurdle.
Owning a business is already a significant transition. You're learning how to think like an owner rather than an employee. If you also have to learn an entirely new industry at the same time, the challenge becomes much greater. Buyers who stay within industries they understand begin with an enormous advantage. They already know the customers, the terminology, the competitive landscape, and the day-to-day realities of the business. Instead of learning two difficult jobs at once, they only have to learn one: how to become an owner.
Our water well drilling acquisition illustrates this perfectly. Because our operating partner already had years of industry experience, opportunities began finding him almost immediately. Older competitors regularly called asking whether he would be interested in acquiring their businesses. Those conversations happened because he had built credibility over years of working in the industry. Once you establish that reputation, acquisition opportunities often come directly to you.
The lesson
The owner sets the pace for growth. Financial systems can be outsourced, operations can be delegated, and employees can be hired, but someone must continually create new opportunities for the business. More often than not, that responsibility belongs to the owner. Buyers who understand that from the beginning position themselves for far greater success after the acquisition closes.
About the author
Mark Fleming, CFA, FRM
Mark Fleming is the co-founder of Owner Actions, where he partners with experienced operators to acquire and grow small businesses. He has participated in more than 40 business acquisitions and has evaluated thousands of businesses across dozens of industries. Drawing on a background in portfolio management, financial analysis, and business ownership, Mark helps entrepreneurs identify high-quality acquisition opportunities and build businesses for long-term success.