Ever noticed how easy it is to get caught up chasing revenue without realizing you’re actually hurting your company’s value? I’ve seen it happen more times than I’d like to admit. Owners get excited about landing big deals or rapid growth, but often overlook critical details that can seriously impact their valuation.
Let me tell you a quick story. A friend (let’s call him Bob) built his company successfully, hitting every revenue goal he set. But when he decided to sell, he got a shock—his company was valued $35 million less than he expected. Why? Because nearly half of his revenue came from a single client. This concentration of revenue created huge risk, scaring away potential buyers.
Bob had to spend three extra years diversifying his client base to fix this one issue. Those three years could’ve been spent on his next dream or with family. This is why I encourage business owners to think valuation-first. It means aligning your entire operation around metrics that truly increase your company’s worth, like revenue concentration, employee engagement, and churn rate.
Ask yourself right now: Do you know your revenue concentration? How about your churn rate? These metrics aren’t just numbers—they’re indicators of your company’s health and long-term potential.
Don’t make Bob’s mistake. Build your business strategically, with valuation-driving metrics at the core. It doesn’t mean sacrificing growth; it means growing smarter. When you keep an eye on the right metrics, you build something not just profitable but truly valuable. That’s a business worth owning, and eventually, worth selling.