Ever feel like you’re working harder but not seeing your business value grow? You’re hitting your revenue goals, your team is busy, but something still feels off. I’ve seen this happen more times than I can count, and it’s usually because companies are chasing the wrong metrics.
A client of mine once hit all his revenue targets, only to discover his business was worth $35 million less than expected. Why? His revenue was overly concentrated in one customer, making his company risky to potential buyers. He had to spend three more years fixing it. That’s why focusing on valuation-driving metrics is critical—metrics like revenue concentration, churn rate, and employee engagement.
Think about your own business for a second. Do you know your churn rate? How about your pipeline growth or employee engagement levels? These aren’t just buzzwords—they’re essential indicators of your company’s health. They tell you if you’re building sustainable value or just spinning your wheels.
Here’s a quick tip: Start tracking these core valuation-driving metrics immediately. Don’t wait until you’re prepping to sell or seeking investment. By then, it might be too late to fix underlying issues quickly.
Another thing I’ve learned: having a high-level strategic partner, someone who understands these metrics and how they connect to your vision, can be a game-changer. A strategic architect doesn’t just help you reach goals—they ensure you’re creating lasting value and reducing risk.
Building a valuable business isn’t just about revenue or hitting quarterly targets. It’s about balance, alignment, and focusing on the right numbers. Keep an eye on these metrics, and you’ll not only hit your goals—you’ll build something genuinely valuable.