Ever feel like your business is hitting a plateau, no matter how hard you push? You’re not alone. The solution might be simpler than you think—it starts with understanding the right metrics.
Most business owners focus on revenue and growth, and that’s important. But here’s the catch: growth alone doesn’t guarantee value. I learned this the hard way when a client of mine, let’s call him Bob, hit all his revenue goals but ended up $35 million short in valuation. The issue? Revenue concentration—too much business from a single customer.
That’s why I advocate for a valuation-first approach. Instead of chasing every shiny opportunity, focus on strategic, valuation-driving metrics like revenue concentration, churn rate, and employee engagement. These metrics aren’t just numbers; they’re indicators of your company’s health and stability.
Think of your business as an engine—every part needs to work in harmony. If one piece is off, the whole system suffers. That’s exactly what happened to Bob. He had growth, sure, but it wasn’t balanced, and it cost him dearly.
The good news? It’s never too late to adjust your strategy. By aligning your entire team around these carefully selected, high-impact metrics, you’ll create a balanced business that drives sustainable value. You’ll avoid costly pitfalls and build a stronger, more resilient organization.
So, what metrics are you currently tracking? Are they driving true value, or are they just vanity numbers? If you’re unsure, now’s the perfect time to reevaluate. Remember, growth is great, but balanced growth aligned to valuation-driving metrics is what truly matters. Let’s build your business the right way—starting today.