How Much Did Your Business Increase in Value Last Year?

Annual metrics and bragging rights usually include:

• Top-line growth
• Net income
• New clients acquired
• Major investments 

But do you know whether your business is more valuable today than it was at the start of the year?

If you don’t know, you’re not alone.

Revenue Feels Good. Value Builds Wealth.

Revenue pays the bills.
Profit funds your lifestyle.
But value gives you the ability to:

• Market your business to prospective buyers
• Step back out of day to day operations 
• Borrow money strategically
• Create generational wealth

You can grow revenue 20% and still decrease the value of your company.

You can increase profit and still build something no one wants to buy.

Why? Because value is driven by risk, transferability, and sustainability not just performance.

The Real Question Behind the Question

When I ask business owners how much their company increased in value this year, what I’m really asking is:

• Is your revenue diversified or are you at the mercy of one or two big clients?
• Can the business run without you - seriously, no contact for 2 weeks or more?
• Are margins stable and predictable?
• Do you have documented processes?
• Do you have recurring revenue?
• Is your customer concentration healthy?
• Can your team produce the same results (or better) without you?
• Have you given your team the chance to lead?

Buyers don’t pay for hard work. They pay for transferable, predictable cash flow with manageable risk.

If You Don’t Measure It, You Won’t Build It

What gets measured gets managed.

Most owners run their business using:

• Revenue targets
• Expense ratios
• Sales KPIs

But very few track valuation as a KPI. And what you don’t track, you can’t intentionally improve.

When you start treating valuation like a measurable metric, your decisions change.

You think differently about:

• Hiring
• Pricing
• Systems
• Client mix
• Strategic investments

You stop building a job and start building an asset.

A Simple Exercise

Ask yourself:

1. What would my business likely sell for today?
2. What multiple would a buyer apply and why?
3. What are the top 3 risk factors that would lower that multiple?
4. What one move could I make this year that would increase value the most?

Not sure how to answer those questions? That’s ok. You don’t need to spend a lot of money to get a baseline valuation, identify what things are dragging down valuation, learn more about what buyers want, or create a measurable plan to make your business more attractive. 

Build for Value Even If You Never Sell

You don’t have to plan to sell your business to build a business that is valuable. In fact, the businesses that are easiest to sell are also the most enjoyable to own.

Because they:

• Don’t depend entirely on you
• Generate predictable cash
• Operate with clarity
• Have strong leadership depth

And that’s what real freedom looks like.

If you don’t know your business value or how to increase it, we can help you with that.

Book a call to learn more.