I recently met a private banker turned wealth firm founder. This gentleman (Harsh) had built a nice little business. He now wanted to get out and pointed to the vast untapped potential in his business. He said there is so much potential and this is why he deserves a very high value for his firm. Harsh is not alone in this type of thinking.

Many founders of wealth firms love to speak about the potential of their business.

They proudly point to future possibilities. Untapped opportunities. Growth waiting to happen.

But here’s the critical question—who is going to mine this potential?

Is it you? Is it your team? Or are you expecting the buyer to do it?

Because if the buyer has to do all the work, take all the risk, and make all the investments, then what exactly are you getting paid for?

The Gold Mine Analogy

Imagine you’re selling a gold mine.

The first part of the mine is what you’ve already been extracting. It’s producing a small but steady stream of gold. Nothing extraordinary, but reliable.

Now you show the buyer another part of the mine.

You say, “This area has incredible potential. There’s a lot of gold here waiting to be mined.”

But then you add a catch – “You have to drill it. You have to take the risk. You have to invest in the equipment. You have to extract the gold yourself.”

What is the buyer paying for here?

They’re buying potential, yes. But that potential comes with work, risk, and investment. And all of that is on the buyer.

In this case, the real value of the mine is the gold it’s producing today – not the gold that might be extracted tomorrow.

Potential Is Not Value

This is a concept many founders miss.

The potential of your firm is not the same as its value.

Buyers don’t pay for possibilities. They pay for certainty.

• They pay for what’s real.
• They pay for what’s proven.
• They pay for what’s tangible.

If you’re asking a buyer to come in, take all the risk, build out the infrastructure, and mine the gold, then you’re not offering a complete business.

You’re offering a starting point.

And starting points don’t command premium valuations.

Who’s Delivering on This Potential?

If your firm has untapped potential, then ask yourself:

Who is going to deliver on it?

• Do you have a team in place that’s actively working to realize this potential?
• Do you have systems and processes to scale this opportunity?
• Is the groundwork already laid for growth?

Or does the buyer have to do all of this themselves?

If the buyer has to step in, build the team, set the processes, and take the risk, then the potential you’re selling isn’t theirs to pay for.

It’s theirs to create.

And they won’t value it as much as you do.

Why Buyers Are Sceptical of “Potential”?

From a buyer’s perspective, potential comes with challenges:

1. Execution Risk: Will the growth actually happen? What if the potential you’re showing is harder to extract than it looks?

2. Investment Required: Realizing potential takes money. Buyers need to invest in teams, technology, and processes to make it happen.

3. Time Horizon: Growth isn’t instant. It takes time. And time is a cost for buyers.

4. No Guarantees: Potential is speculative. What looks good on paper might not materialize in reality.

When buyers see untapped potential, they see work. They see risk. They see investments they need to make.

They’re not going to pay you for their work. Will you if you were in their place?

They’re going to value the business as it stands today.

The Work You Haven’t Done

This is where many founders go wrong.

They expect to get paid for the future of their firm, even when they haven’t done the work to unlock that future.

It’s like expecting full payment for an unfinished house. You’re handing over the blueprint and saying, “The buyer can finish building it themselves.”

But why should the buyer pay a premium for something they have to build?

If you haven’t invested in your team, your technology, or your processes—then your business is incomplete.

It’s a foundation, not a fully built house.

And foundations don’t sell for the same price as finished properties.

The Value of Today vs. Tomorrow

If you want your firm to command a higher valuation, you have to create value today.

• Build a strong, capable team that doesn’t rely on you.
• Invest in technology and systems to scale the business.
• Show consistent, organic growth that proves your potential isn’t just talk.
• Develop processes that allow the firm to operate seamlessly without you.

When you do this, the potential you talk about becomes tangible.

It’s no longer just an idea. It’s a foundation for growth that buyers can see, trust, and value.

What Buyers Are Really Paying For?

Buyers pay for businesses that:

• Generate consistent, reliable cash flow.
• Have systems and teams in place to sustain that cash flow.
• Show growth that doesn’t depend on one person.
• Have invested in infrastructure that makes future growth achievable.

They’re not paying for hope. They’re paying for results.

If your business doesn’t have these things, then its “potential” is just speculation.

And buyers don’t pay for speculation.

Stop Overvaluing Potential

It’s time to get honest about the value of your firm.

If you’re not investing in your business, then you can’t expect buyers to value it like a business that has investments in it.

If you’re not growing, you can’t expect buyers to pay for growth.

If your team isn’t ready to take the reins, you can’t expect buyers to see future scalability.

The value of your firm is not in what it could become. It’s in what it is today.

So, What Should You Do?

If you truly believe your firm has potential, then unlock it.

• Build the team that will mine the gold.
• Put the systems in place that make growth automatic.
• Invest in technology to modernize and scale your operations.
• Show buyers that the firm can run without you.

When you do this, your potential becomes a reality.

And buyers will pay you for that reality—not just the dream.

The Bottom Line

Potential is not value.

A business that promises growth but delivers little today is worth far less than you think.

Buyers don’t pay for what might happen. They pay for what’s already happening.

If you want to realize the full value of your firm, then do the work to turn potential into results.

Because buyers will always ask:

 Who is going to mine the gold?

If the answer is them, don’t expect to get paid for it.

Build the value. Create the systems. Deliver the results.

And then, you won’t need to sell potential.

 You’ll be selling a business that buyers can’t wait to own.