From Activity to Impact: How to Rebuild Underperforming Teams Using KPI-Driven Role Clarity
Ever feel like you're spinning your wheels, working hard but not seeing your business's true value grow? Years ago, I met an owner I'll call Bob. He had built an impressive company, hitting all his revenue milestones, but when it came time to sell, he discovered his company was worth $35 million less than it could've been. Ouch.
Bob’s mistake? He didn't pay attention to valuation-driving metrics. Revenue growth alone wasn't enough. His business had too much revenue concentration in one client, making potential buyers wary. Bob ended up spending an extra three years fixing this issue. Imagine what he could've done with that time if he’d known earlier!
That's why I developed the Valuation-First Methodology. It's not just about growing revenue; it’s about aligning every aspect of your business around metrics that actually drive value. Metrics like revenue concentration, churn rate, EBITDA, pipeline, employee engagement, and employee churn. When these are balanced, your business becomes not just profitable, but truly valuable.
Think of these metrics as your business's vital signs. Just like a doctor checks heart rate and blood pressure, you should regularly monitor these core metrics. They’ll tell you if your business is healthy, or if you’re at risk of losing value.
I've seen firsthand how focusing on these metrics transforms companies. Owners gain clarity, teams align, and businesses thrive. But perhaps the best part? It gives you freedom—freedom to choose your path, whether that's selling your business, scaling it further, or simply enjoying more time with family.
Don’t be like Bob. Keep an eye on the valuation-driving metrics. Your future self (and your business valuation) will thank you.