Relationships: Your Greatest Asset and Your Greatest Risk

Written by Nick Ursem.

Every day, as a business consultant, I speak with small and medium-sized business owners regarding acquisitions or financing. A key topic of discussion is the company’s business model, which quickly narrows in on a specific product it offers, how it’s produced, and what makes it special. That makes sense, of course—this is what an entrepreneur is proud of. But less often do we consider the day-to-day activities an entrepreneur carries out, even though these are often the foundation of success. And those activities happen to revolve around one thing: relationships.

A quick text to a regular customer who needs something urgently. A quick call to the supplier to work things out together. A good conversation with that one employee you wouldn’t let go for anything in the world. These are the relationships that keep a business running. Often without the business owner even realizing it—it’s just part of the job. But these relationships don’t happen on their own; they’re built up over the years, with care, trust, and plenty of cups of coffee.

And it is precisely that long-term investment that pays off. Lasting relationships ensure recurring revenue, predictable margins, and a loyal team. An entrepreneur who nurtures these relationships often builds the value of their business without even realizing it.

But that’s also where the paradox lies. Because it is precisely those relationships that become a key focus when an entrepreneur wants to sell their business. For a buyer, it is crucial that customers, suppliers, and employees remain on board even after the current owner leaves.

The more personal those relationships are, the more the value is tied to the entrepreneur personally rather than to the business. And that is exactly what makes a business transfer difficult. The key, therefore, is to separate those relationships from the entrepreneur. It’s not “Do my customers know me?” but “Do they know my business?” Those who ask that question early on are building a business that will thrive even without them. A good relationship is valuable, of course. But a transferable relationship is truly worth its weight in gold.

This column appeared in the summer issue of IntoBusiness West-Friesland.