3 Things That Surprised Me Most About Small Businesses
Growing up as the daughter of a business owner, I thought I understood how businesses worked.
I watched my parents build a manufacturing company that started in our basement and grew into four buildings in the Twin Cities. I saw the long nights, the payroll stress, the growth spurts, and the customer wins. I learned early that the numbers mattered — I heard phrases like “profit,” “payroll,” and “taxes” around the dinner table.
But working at Doescher Group has opened my eyes to a whole different world of numbers. Things are happening beneath the surface of small business ownership — in the financials, in the decision-making, and in the buyer’s mind — that most owners never get exposed to.
It’s been quite an education.
Here are the three things that surprised me the most about running a small business.
Why Owners, Buyers, and Bankers See the Same Business Differently
1. The Numbers Tell Two Completely Different Stories
Owner Financial Reality vs. Buyer Financial Analysis
And most owners don’t realize it.
One of the first things I learned at Doescher Group is that business owners, buyers, and bankers speak two entirely different financial languages.
Owners look at numbers through the lens of day-to-day survival:
How much cash is in the bank?
Are we profitable this month?
Can I afford that hire?
What did we spend on supplies?
Buyers and bankers, however, see something else entirely. They’re reading between the lines for:
Adjusted EBITDA
Add-backs
Trends, seasonality, and cyclicality
Enterprise value multipliers
Cash flow sustainability
Operational risk
Leadership stability
This article explains how buyers and bankers evaluate small businesses, why forecasting matters, and what business owners often misunderstand about valuation.
It’s almost like two people describing the same movie: one from watching it in the theatre, and one working on set – both technically correct, but completely different perspectives.
What I’ve come to appreciate is how essential it is to have an interpreter — someone bilingual in both “owner language” and “buyer/banker language.” Without that translation, owners can inadvertently undersell their true value… or misunderstand what a buyer is actually willing to pay.
And honestly? Most owners have more value than they realize — they just need someone who knows how to tell the story in the language buyers understand.
2. Most Small Businesses Don’t Have High-Level Forecasting —
and It Changes Everything**
Why Forecasting Changes Decision-Making, Growth, and Exit Outcomes
Here’s the second big surprise: most small businesses don’t have access to strong forward-looking financial tools.
I grew up seeing our numbers in a spreadsheet (and we used a dot printer, remember the kind where you had to tear the edges off the paper once it printed?), in whatever format made the most sense at the time. What I didn’t realize is that:
Forecasting is a completely different world.
A good forecast doesn’t just project numbers — it reveals:
When cash will tighten
What investments can be made safely
Where pricing needs adjusting
Whether the headcount is sustainable
Which products or services actually drive profit
How fast can you grow without burning through cash
And even more surprising: the forecasted story is often VERY different from the story told by the basic 3-statement financials.
Related Read: The Numbers Tell A Story (So Make it a Good One)
That difference affects everything — strategy, hiring, pricing, inventory, expansion, and especially exit planning.
Most owners are phenomenal at making money.
But scaling it, planning it, and packaging it for a buyer?
That’s usually where things fall apart.
Seeing the power of high-level forecasting — and the clarity it brings to owners — has been one of the most eye-opening parts of my time here. It’s absolutely transformational.
3. Buyers Look at Far More Than Profit (More Than I Ever Imagined)
Why Systems, Leadership, and Predictability Drive Valuation
Before joining Doescher Group, I assumed buyers looked mainly at the bottom line.
If the business made money, great.
If it made more money, even better.
How complicated could it be?
…Turns out: very.
Buyers and bankers examine every layer of the business, well beyond financial performance. Things I never even considered growing up in my family’s business are actually major drivers of valuation:
When Purchasing a Business Buyers look at:
Standard operating procedures (SOPs)
CRMs, systems, and tech stack maturity
Org charts, roles, and reporting structure
Leadership team strength and bench depth
Historical turnover — who left, when, and why
Customer concentration
Documented processes
Quality of financial reporting
Years of historical data
Years of reliable forecasting data
In other words:
They aren’t just buying profit.
They’re buying predictability, stability, and transferability.
And that was a huge surprise to me.
Profitability might open the door,
But operational excellence — the unsexy day-to-day systems — is what actually sells the business at a premium.
Bonus Insight — Selling a Business Is More Complex Than Most Owners Expect
Why Preparation Matters Long Before a Deal Begins
I Had No Idea How Much Work It Takes to Sell a Business
Growing up, I always thought selling a business was like selling a house: find a buyer, sign some papers, celebrate.
Nope.
Selling a business is more like building a house while simultaneously running the family inside it, while also preparing to move, while also navigating inspections, appraisals, lenders, lawyers, due diligence, and negotiations — all at the same time.
The paperwork alone is staggering.
Getting a deal to the finish line requires:
Years of clean financials
Organized documentation
Leadership stability
Operational transparency
Forecasts that hold up to scrutiny
A clear narrative for buyers
A team on both sides that knows the process
It is overwhelming for owners.
And honestly, it made me appreciate my parents’ journey in a whole new way.
What I’ve Learned About Preparing a Business for Buyers (And What I Wish Every Business Owner Knew)
Translating Owner Reality Into Buyer Language
Small business owners are some of the hardest-working, most resilient people on the planet. They pour their lives into their companies. But the world of buying, selling, valuing, and forecasting… It’s a different language.
And most owners simply haven’t been taught that language.
Being part of Doescher Group has shown me how powerful it is when owners finally have someone in their corner:
translating the numbers
forecasting the future
telling the best possible story
Proactively fixing any potential red flags
Interpreting and reading between the lines of the buyer’s communication
preparing the business for buyers
and helping them capture the value they’ve spent a lifetime building
As a business owner’s daughter, I wish more owners had access to this kind of clarity — long before they ever think about selling.
Because the story your numbers tell… should reflect the true story of the hard work you’ve lived. It’s a good one.
