There's a clear difference between advising and operating. Advisors identify what should be done. Operators do it, week after week, until it compounds into something bigger.
In the world of small business acquisitions, this distinction matters more than most people realize.
An operator doesn't buy a business to implement a three-slide consulting deck. They buy it to run it. That means:
The work isn't glamorous. It's process documentation, team one-on-ones, pricing reviews, customer retention calls, supplier negotiations, and cash flow tracking. Done consistently, these small actions create value that lasts.
In the lower middle market, most businesses don't need strategy overhauls. They need execution discipline. The playbook is usually obvious:
The hard part isn't knowing what to do. The hard part is doing it, month after month, while keeping the team aligned and the customers happy.
Operators create value by showing up. Not once. Not for a project. Every week.
Here's what steady execution looks like over 12-24 months:
Months 1-3: Stabilize. Understand the business. Build trust with the team. Fix the obvious problems (late invoices, messy reporting, unclear roles).
Months 4-9: Improve. Roll out better processes. Upgrade tools (CRM, scheduling, inventory tracking). Raise prices on clients who've gotten more value.
Months 10-18: Scale. Hire a strong second-in-command. Delegate day-to-day operations. Focus on growth levers (new clients, upsells, adjacent services).
Months 19-24: Prove. The business works without you in every meeting. Cash flow is predictable. The team runs the rhythm. You're ready to either exit or reinvest.
This is what compounding execution looks like. Each quarter builds on the last. No single quarter is transformational. But the cumulative effect is.
To be clear: advisors add value. They bring expertise in areas where operators lack depth (legal structures, tax optimization, niche market knowledge). A good advisor can save you months of trial and error.
But advisors don't replace operators. They complement them.
The distinction is simple:
For buyers:
If you're evaluating whether to bring in an operator (yourself or a partner), the question is: Can you commit to the weekly rhythm? If the answer is yes, the model works. If the answer is no, you'll end up with an underperforming asset and a lot of expensive advice.
For sellers:
If you're preparing to transition your business, the best gift you can give a future operator is a business that already has a rhythm. Weekly reports. Documented workflows. A team that knows how to execute without you in every decision. That's what buyers pay for.
Value creation in small businesses comes from consistent, disciplined execution. Strategy matters. Advice matters. But execution is what compounds.
Operators win by showing up, making decisions, and iterating. Week after week. That's the model.
Want to understand how operators build value over time? I write practical notes on buying and running SMEs—focused on execution that compounds.