Duct Tape & WD-40: Why Your Business Could Be Worth More Than You Think
The License Plate That Changed Everything
I was having breakfast with my friend when I first noticed it. As we walked out of the restaurant together, I spotted the duct tape wrapped around his Jeep's license plate holder. This wasn't just any vehicle—it was a nice Jeep, well-maintained and clearly cared for. But there it was: silver duct tape, already starting to peel at the edges and leaving sticky residue on the paint.
"Woah, what's going on here, man?" I asked, pointing at the makeshift repair.
He shrugged with a casual smile. "Well, you know, it was something that I needed to make sure was attached. I have to have the license plate, so I used duct tape." Then he chuckled and added, "My grandpa always told me you just really need two things to keep things running: duct tape and WD-40. You use duct tape when something needs to be attached but isn't, and you use WD-40 when something needs to move but won't."
We both had a good laugh, sharing fond memories of our grandparents and their practical wisdom. But as I drove away from that conversation, something stuck with me beyond the humor. I couldn't stop thinking about the impact of that duct tape on my friend's Jeep's value. Sure, cars are depreciating assets, but you still want to do proper maintenance and keep things up so you can get the most value out of them when it's time to sell or trade.
That's when it hit me: this is exactly how so many businesses are running, especially with owner-operators. They're operating on my friend's grandpa's theory of duct tape and WD-40—quick fixes to keep things moving, without thinking about the long-term impact on value.
The Pattern I Recognized
This realization took me straight back to my own family. My father was a serial entrepreneur whose most successful venture started out of pure necessity. After being fired from his job, he needed to support our family, so he launched an automotive repair business. Within fifteen years, he had built it from a one-man operation into four business entities with more than 25 employees—a genuine success story.
But thinking about how our family handled cars revealed a telling pattern. We always held onto our vehicles until they were on their last leg. We took good care of them, maintained them well, and got every possible mile out of them. They lasted for a really long time because we were diligent about upkeep. But we were never strategic about how we bought vehicles, and more importantly, my dad wasn't strategic about what he did with his businesses so they could be real wealth creators.
While his businesses had enough systems in place that he was able to sell them, it was certainly for less than their potential. Within a few years, the people who purchased them went out of business—a clear sign that my father had been the duct tape and WD-40 holding everything together.
The parallel was unmistakable: the same "get the most out of what we have" mentality that worked for our cars was limiting the wealth-building potential of his businesses. Both were treated as utilitarian tools rather than appreciating assets.
The Utilitarian Business Owner
My father's story isn't unique. Like many Americans who need a car to function in daily life, countless business owners started their companies not out of grand entrepreneurial dreams, but out of necessity. They needed to support their families, so they started businesses.
And here's what's remarkable: many of these utilitarian business owners have been incredibly successful. They've been able to clothe, house, and feed their families, educate their children, and often enjoy very nice lifestyles. But they're not thinking about how their business could become a vehicle for real wealth creation.
Just like utilitarian car owners often drive their vehicles until they can't run anymore, utilitarian business owners are planning to just shut their doors when they're done.
The Shocking Reality
Recent research from Gallup reveals how widespread this thinking has become. In their 2024 Pathways to Wealth Survey, they found that roughly half of U.S. business owners either plan on closing their business or don't have any plan to step away.
The data shows:
22% plan to simply close their business
33% have no plan or are unsure about their future
Only 23% plan to sell, with an additional 2% hoping to go public
Just 26% plan to give their business to family or others
There's a massive difference between businesses with employees versus those without. Among employer-business owners—those who have built teams and infrastructure—22% plan to sell or transfer ownership, compared with just 9% of solo operators.
The financial data shows employer firms who plan to sell or give away their business earn median profits of $100,000 and $85,000 per year respectively, compared with just $20,000 for those who plan to close their doors.
Those numbers aren't just statistics. They represent real people like Sarah, a cleaning business owner.
Sarah's Story: The Real Cost of Duct Tape Thinking
Sarah started her cleaning business twenty years ago when she needed to support her family. What began as a necessity became a genuine success story. Today, she employs 22 people, including five crew leaders who have been with her for over ten years: Maria, Juan, Patricia, David, and Sam. She also works with a contract bookkeeper who has been instrumental in getting her financial house in order.
Sarah's crew leaders don't just show up for paychecks—they're practically family. Each one manages their own team, knows the clients personally, and has developed systems that keep operations running smoothly. The business has loyal customers, steady revenue, and a reputation built over years of reliable service.
But when Sarah thinks about retirement, she's planning to just shut it down. "I'll close the doors and call it good," she says. "It's served its purpose."
Here's what Sarah doesn't realize: her "utilitarian" cleaning business, if properly planned and positioned, could be worth $1.2 million. But without strategic planning, it's currently valued at maybe $200,000—essentially just equipment and some client contracts.
When Sarah says she'll "just shut it down," she's essentially telling Maria, Juan, Patricia, David, and Sam: "After a decade of building this together, you're all on your own to find new jobs. And those 17 people you've trained and led? They're out too."
When Disasters Strike
Sarah's situation became critical when two scenarios hit simultaneously. At age 58, she suffered a stroke that affected her ability to drive to job sites and make complex decisions. The stress of her disability, combined with mounting medical bills and disagreements about the future of the business, led to a difficult divorce.
Without proper planning, here's what happened:
Sarah found herself fighting her disability, divorce lawyers, and a business crisis all at once. With no disability insurance, medical bills consumed their savings while business income dropped. The divorce proceedings dragged on for months, creating uncertainty about business ownership that made her crew leaders nervous. Without a postnuptial agreement, the business became a contested asset in court.
Maria and Juan tried to keep operations running, but without clear authority or documented processes, service quality became inconsistent. Clients started looking elsewhere. Key crew members left for more stable employment. The business that could have been worth $1.2 million was now worth maybe $50,000 in liquidated assets—just the equipment and remaining contracts.
All 22 employees ended up job hunting. Sarah was left with almost nothing to fund her medical care and rebuild her life.
But what if Sarah had invested in proper planning?
With strategic planning over five years, she could have built a business worth $1.2 million while protecting everyone who depended on her success. When her stroke and divorce hit, the outcome would have been entirely different.
Her disability insurance would have provided immediate income replacement. The postnuptial agreement would have protected the business from being divided in divorce court. Maria and Juan could have stepped into clearly defined leadership roles they'd been trained for, using documented systems and processes.
Most importantly, Sarah's early succession planning had already identified her crew leaders as potential buyers. Instead of 22 people losing their jobs, the business could have continued under new ownership that honored Sarah's legacy while providing her with the financial security she needed.
The Five Critical Scenarios
Here is why comprehensive planning isn't just a nice-to-have—it's essential protection for everyone riding in your business vehicle.
Sarah's situation involved Disability leading to Divorce, but smart business owners prepare for all five critical scenarios because you never know which one might hit first—or how they might cascade into each other.
The Exit Planning Institute identifies these five scenarios as the biggest threats to business value: Divorce, Disagreement, Distress, Death, and Disability. While Sarah faced two of these, the other three—Death, Distress, and Disagreement—could have been equally devastating without proper planning. A sudden death without succession planning, financial distress without contingency reserves, or a business disagreement without buy-sell agreements could have destroyed everything she'd built just as quickly.
The key insight: proper planning doesn't just protect against the disasters you expect—it builds systems and safeguards that increase your business value regardless of which scenario unfolds.
The Real Return on Investment
Business owners are often initially shocked when they get an estimate for comprehensive planning of $250,000 over five years, this can seem astronomical. Had Sarah worked with Liberated Leaders the investment would have proven to be solid - it wouldn’t have just protected her business value—it would have multiplied it.
Without planning:
$200,000 business becomes $50,000 in liquidated assets = $150,000 loss
22 people unemployed
With strategic planning:
Built business value through strategic development: $1,200,000
Minus planning investment over five years: -$250,000
Net created value: $950,000
When disaster struck, the planning would have paid for itself many times over. Instead of losing everything, Sarah would have multiple options:
Maria and Juan could buy the business with seller financing,
a competitor could acquire a turnkey operation,
or a private equity firm could see a professionally-run platform for growth
Sarah had an opportunity to transform her utilitarian cleaning business into an appreciating asset worth nearly five times what she invested. Her crew would go from vulnerable employees to valuable stakeholders in a business designed to outlast any single person.
The Choice Is Yours
That's the difference between duct tape & WD-40 thinking and true business planning. One keeps things barely functioning. The other builds wealth that extends far beyond the original owner.
If you're a utilitarian business owner who started your company out of necessity and built something successful, you're sitting on more potential than you realize. The question isn't whether you can afford to invest in proper planning—it's whether you can afford not to.
Your business could be worth something much more. Your team deserves that security. And you've earned the right to capture the full value of what you've built.
The duct tape is starting to peel. It's time to build something that lasts.
At Liberated Leaders, we're success architects who replace your duct tape with true scaffolding for your business.
Ready to discover what your business could really be worth?
A Fit Study is a good place to start.
About the Author
Tina Dao is founder and principal of Liberated Leaders, she partners with business owners and decision-makers to ease the burden of company leadership and embrace the discipline needed to create long-term value. With COO and fractional COO experience, Tina has a wealth of knowledge in technology, operations, strategy, and leadership development. She is a trusted advisor to multiple CEOs, helping them navigate challenges, optimize their businesses, and achieve sustainable growth. Find out more about Tina on our About page.
Note: This article was 85% human generated and 15% machine (AI) generated.
Citations:
Gallup Pathways to Wealth Survey, conducted fall 2024 with support from JPMorganChase and the Ewing Marion Kauffman Foundation
Exit Planning Institute, "Planning for the 5 Ds" framework