Thou shalt focus on Value.
I know, this sounds counter intuitive. Our whole job is to help you get your business stable, scalable and potentially sellable.
The first commandment of Value Building business owners is to break free from everyone else’s obsession with sales growth.
Don’t mistake what I’m saying. Sales growth is important, but I’ve watched too many owners pursue sales dollar growth and sacrifice profitability, mess up their companies efficiencies, and work harder to make less in the end.
How on earth do we increase value without focusing on selling? Well, it’s really simple. The first commandment of Successful Business Owners is that we focus on building VALUE. And when we do, sales also rise. And the company becomes completely differentiated from its competition in the eyes of bankers, brokers, prospective buyers.
The truth is that you outshine all other businesses in outsiders eyes because of two simple frameworks.
The first one is the increase in company value due to the ‘multiple’ used to calculate value. Here’s what I mean. Imagine a hypothetical business generating 200,000$ in profit. In its industry, an average business would be offered a multiple of 3 times profits, which would make its value $600,000 on the street.
Grab a piece of paper and do that math with me.
For the next year the owner works hard, increased sales 20% and profits by that same 20%. That new $240,000 would be multiplied by 3 and get the owner 720,000 in street value.
OK – that’s the standard approach that financial advisors take when working with business owners. But here’s the thing. There are 8 Drivers of Value that actually MOVE the multiple up.
If that business owner had spent the time straightening out those 8 drivers, on the same original 200,000 in profits, the multiple would have increased to say 5… and the street value would have been one million dollars at the same level of sales. And if sales and profits grow that same 20% – NOW the business is valued at $1,200,000. So in just a couple of years, the value has doubled for that business owner.
The second framework is really simple. A 13-minute survey that lets us set the focus, prioritize the work and creates a roadmap for increasing the value of a business.
What is really cool is that it produces a score based on your specific answers, and that score is the starting point metric against which we check in and measure your progress as you work on those 8 drivers. And that is GOLD because what is measured is what gets attention and action.
Let’s show you how simple it is to get your starting point. Go to onday91.com/score and you’ll get your score. It based on the results of over 50,000 other business owners who have taken that survey and those that then worked to build value in their company, across industries.
If you’d like to know how much value you’re leaving on the table, use that link and pass it along to other business owners who want more control in their business and for the business to have more value.
I’ll see you on the other side.
P.S. Whenever you’re ready… here are 4 ways we can help you stabilize and grow your business:
1. Grab a free copy of our Guide and Checklist
It’s the roadmap to creating a stable, scalable, valuable business that is so healthy you could be absent for ninety days and it would continue to thrive. — Click Here
2. Join the On Day 91 group and connect with business owners who are resetting and scaling too
It’s our new Facebook community where smart business owners learn to get more control of their business, value for their company, and freedom in how they use their time. — Click Here
3. Join our Momentum Program and be a Case Study
We’re putting together a new case study group at On Day 91 this month… stay tuned for details. If you’d like to work with Linda on your business-pivoting and growth plans… just send her a message with the words “Case Study”. — Click Here
4. Work with Linda and her team privately
If you’d like to work directly with Linda and the On Day 91 team to take you and your business to it’s next level… just send Linda a message and with the word “Private”… tell her a little about your business and what you’d like to work on together, and we’ll get you all the details! — Click Here