Have you ever felt stuck in your business, unsure which metrics truly matter? I’ve spent years helping business owners get clarity, and here’s something I know for sure: not all metrics are created equal.
Most entrepreneurs track dozens of numbers, but only a handful drive real value. I’ve seen too many owners chase vanity metrics that look good on paper but don’t move the needle toward their vision. The secret is focusing on valuation-driving metrics that truly impact your company’s worth.
One client, let’s call him Bob, learned this the hard way. He spent decades building his business, hitting revenue goals, and feeling successful. But when it came time to sell, Bob discovered his company was valued $35 million less than expected. Why? Because he’d overlooked a critical metric: concentration of revenue. Too much dependence on one client had drastically reduced his business’s value.
That’s why I advocate for a valuation-first approach. Rather than chasing every possible number, identify the few metrics that directly affect your business’s worth—like churn rate, EBITDA, and employee engagement—and align your entire team around them. It simplifies your strategy, sharpens your focus, and ensures every action moves you closer to your ultimate goal.
Imagine knowing exactly what to measure and why it matters. It’s powerful, and it’s achievable. With the right metrics in place, you’ll not only grow your business but significantly increase its value, giving you the freedom and options you’ve always wanted.
Don’t wait until it’s too late like Bob did. Start today by asking yourself: Are the metrics I’m tracking truly driving value, or just taking up space? The answer could change everything.