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.

Most founders protect the wrong revenue. This article breaks down how to identify low-margin, high-friction work—and how to eliminate it without disrupting the business.

Most service businesses don’t need more revenue—they need more of the right revenue. Here’s how the best operators identify the 20% of their work that actually drives margin, value, and long-term exit potential.