Ever feel like you’re working harder and harder but not getting closer to your real goals? You’re not alone. Many business owners chase revenue, assuming growth equals success. But here’s the thing: growing your revenue doesn’t always mean you’re building value. Sometimes, it can even lower your company’s worth.
Think about it. Imagine landing a huge client—it’s exciting, right? But what if that client suddenly represents half your revenue? You’ve just introduced a massive risk into your business. If they leave, you’re in trouble. That’s called revenue concentration, and it’s one of those sneaky things that can hurt your valuation big time.
I remember working with a business owner who learned this the hard way. He spent years driving revenue up, only to find out his company was worth $35 million less than it should’ve been. Why? Because nearly all his revenue came from a single source. He ended up having to stick around longer than he planned, just to fix this one issue.
That’s why I always emphasize focusing on the right metrics—valuation-driving metrics. It’s not just about revenue; it’s about balance. Keep an eye on your churn rate, your pipeline, your EBITDA, and your employee engagement. These are the numbers that truly matter because they directly influence your company’s value.
Don’t wait until it’s too late. Shift your focus today. Align your team’s goals and strategies around these core metrics. When you do, you’ll find yourself building not just revenue, but real, lasting value. And the best part? This approach gives you freedom—freedom to sell when you want, freedom to step back, and freedom to enjoy the life you’ve worked so hard to build.
So, ask yourself: Are you chasing the right goals?