Ever wondered why some businesses effortlessly navigate growth, while others seem stuck in endless firefighting? It’s all about alignment, and it’s easier than you think.
Many business owners focus primarily on revenue growth, celebrating every new sale without realizing they’re quietly building risk. How? By ignoring critical valuation-driving metrics like concentration of revenue, churn rate, and employee engagement. You can hit your revenue targets and still be lowering your business value—trust me, I’ve seen it happen.
I recently worked with an owner who lost $35 million in valuation because of one seemingly great customer who accounted for too much of his total revenue. He hit his revenue goals but had to spend three extra years correcting that imbalance. Imagine what you could do with three extra years!
That’s why I advocate for the valuation-first methodology. Instead of chasing revenue blindly, start aligning your entire operation around a handful of carefully selected metrics. Metrics that don’t just measure success—they create it. Metrics like customer churn rate, pipeline strength, and employee engagement help you build a stable, scalable business that buyers and investors love.
The best part? It doesn’t require a major overhaul. Small, strategic adjustments can dramatically shift your trajectory and increase your company’s value. Align your operations, meetings, and teams around these core metrics, and you’ll find yourself moving from chaos to clarity.
Want to start today? Pick one metric—perhaps employee engagement—and make it a focal point for your next meeting. Ask your team: “How can we improve this?” You’ll be amazed at how quickly alignment happens when everyone understands clearly defined goals.
It’s time to stop firefighting and start building the valuable business you’ve always envisioned. Let’s align, grow, and thrive together.