Every additional service line introduces exponential complexity that erodes margins and destroys value. The evidence is clear: focused service businesses command 1-2x EBITDA premiums over complex competitors. Understanding why—and how to systematically simplify—separates scalable enterprises from lifestyle businesses.

Value doesn't disappear in dramatic failures—it leaks through seven operational inefficiencies that compound invisibly. From service sprawl to missing metrics, these friction points destroy 20-30% of enterprise value. Understanding and fixing them transforms hidden drags into competitive advantages.