Ben Franklin said, “A penny saved is a penny earned.”
But if he saw how some business owners run their books…
He might’ve added: “…and a dollar saved the wrong way is two fifty down the drain.”
Let me explain.
Kareem owns a digital consulting agency. Lean team, good margins, and on track to do just over $1M net profit this year.
He’s getting ready to sell — already in early conversations where he’s likely to get a 5x multiple.
For our purposes assume every extra $1 in profit this year adds $5 in enterprise value.
But here’s the twist:
Kareem’s accountant suggests adding $1,000 in new expenses — subscriptions, software, prepaid marketing, etc. — so he can “write it off” and save ~30% in tax.
So he’ll save $300 in taxes today…
But that extra $1,000 in expense cuts this year’s profit by $1,000.
Which cuts $5,000 off the value of his company.
Let that sink in.
He’s saving $300 to throw away $5,000.
And here’s the kicker:
That $1,000 he’s spending?
Not essential.
Not growth-producing.
Not urgent.
Just spend-to-save taxes “strategy.”
This happens frequently.
Worse, once you get used to making decisions based on tax deductibility instead of enterprise value, you stop spending on the right things:
- Skip a $500 strategy consultant because “it’s not deductible”
- Avoid a $1,500 growth advisor because it doesn’t reduce taxable income
- Delay a $3,000 rebrand because the ROI hits next quarter, not now
And yet — all three could drive a significant increase in LTV, retention, and margin.
Here’s what I told Kareem:
“You’re making tax decisions like you want to keep owning the business forever…
But you’re making valuation decisions like you want to sell tomorrow.
You gotta choose.”
Tax savings matter.
But they come dead last behind margin, growth, retention, and the value of your business.
You’re not here to optimise your tax bill.
You’re here to build a business that gives you the control over your time, the life you want and which you can exit on your terms.
And if you’re not sure how to balance those — that’s exactly what the 60-second Exit Readiness Survey shows you.
Start there.
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P.S. I’m not the “systems guy,” “process guy,” or “finance guy.”
I’m the “build a valuable business” guy—so you can regain the freedom to start living your best life now and exit on your own terms later.
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