How do you measure success in your business?
Some measure revenue, gross and/or net profit, EBITDA, customer experience via NPS or similar metrics, staff retention, staff numbers, recurring revenue, number of contracts or projects and much more.
Very few measure the value of their business on a regular basis.
Yet business value might be the most important measure of success of all.
Because value determines the true health, scalability, and freedom of your business. It’s what gives you options, whether that’s selling, raising finance, stepping back from day-to-day operations, or passing your business on to the next generation.
Why Business Value Matters (Even If You’re Not Selling)
Many business owners say, “I’m not planning to sell, so valuation doesn’t matter.” The truth is, knowing and building business value isn’t only about exit planning. It’s about building a stronger business today.
A business with high value tends to:
- Generate consistent, predictable profits
- Run smoothly without the owner being involved in every decision
- Be more attractive to investors, lenders, and future leaders
- Create flexibility and freedom for the owner
Simply put, a valuable business is a healthy business.
What Drives Business Value
At ActionCOACH Bolton, we use the ValueBuilder System™, a proven approach based on analysis of over 70,000 businesses worldwide. It identifies eight key drivers that have the biggest impact on your company’s value, including:
- Financial performance
- Growth potential
- Customer diversification
- Recurring revenue
- Independence from the owner
- Scalability of systems and processes
- Strength of team and leadership
- Market differentiation
These drivers combine to form the backbone of a scalable and sustainable company.
The Reality Check
Most business owners can tell you their monthly revenue or last year’s profit. But ask them what their business is worth today, and very few have a clear answer.
That’s like driving a car with no dashboard. You might feel you’re moving quickly, but you’ve no idea how efficiently or safely you’re travelling.
When you know your value, you can make better decisions, set realistic goals, and measure true progress. It helps you move from short-term firefighting to long-term strategic growth.
Discover Your Business Value
You can find out how your business performs against the eight key drivers in just 15 minutes with a free ValueBuilder Assessment from ActionCOACH Bolton.
You’ll receive a confidential report showing your company’s current value potential and gain practical insights to help you build a stronger, more valuable, and more rewarding business.
