Ever notice how easy it is to chase the wrong goals? I’m talking about focusing solely on revenue instead of the right metrics—the ones that actually boost your company’s value. I once worked with a business owner who hit every revenue target but overlooked the concentration of revenue metric. Sounds harmless, right? Well, it ended up costing him $35 million in valuation. Ouch.
Here’s the deal: not all metrics are created equal. There are valuation-driving metrics that matter more than others—metrics like concentration of revenue, churn rate, employee engagement, and pipeline strength. Ignoring these is like driving without a dashboard—you might be moving forward, but you’ve got no clue about your speed or fuel level!
That’s why I’m a firm believer in a valuation-first methodology. Instead of getting caught up in short-term revenue wins, aligning your entire operation around these key metrics ensures you’re building lasting value. It transforms your business from just another player into a market leader, ready for whatever comes next.
Think about it—what if every decision you made was filtered through these value-driving metrics? Imagine how much smarter, more strategic, and more profitable your company would become. You wouldn’t just be growing; you’d be growing smart.
The good news? It’s never too late to shift your focus. Start paying attention to the right KPIs, align your team around them, and watch your valuation soar. Remember, revenue is important, but only if it comes hand-in-hand with stability and strategic growth. Let’s not just chase numbers—let’s chase the right numbers.