Browsing Tag
john warrillow
10 posts
Where to Start When Your Growth Stops
Why would two companies in the same industry, with the same financial performance, command vastly different valuations? The answer often comes down to how much each business is likely to grow in the future. The problem is that many successful businesses reach a point where their growth starts to slow as the company matures. In fact, the price...
Value Builder Score: A Blood Pressure Test for Your Business
When was the last time you had your blood pressure tested? Taking your blood pressure is one of the first things most doctors do before treating you for just about anything. How much pressure your blood is under as it courses through your veins is a reliable indicator of your overall health; and it can...
Growth vs. Value: Not All Revenue is Created Equally
When you look ahead to next year, will your growth come from selling more to your existing customers or finding new customers for your existing products and services? The answer may have a profound impact on the value of your business. Take a look at the research coming from a recent analysis of owners who...
Competition: Its Power in Business and When to Fold
On June 1, 2011, both Floyd’s Coffee Shops in Portland, Oregon were busier than usual. The regulars were elbowed out of the way by new customers visiting the store for the first time to redeem their coupon and get $10 worth of coffee for $3. This tempting offer was made because Floyd’s had been picked...
4 Traps To Avoid When Selling Your Company
Business owners have been known to refer to due diligence as "the entrepreneur's proctology exam." It's a crude analogy, but a good representation of what it feels like when a stranger pokes, prods and looks inside every inch of your business. Most professional acquirers will have a checklist of questions they need answered if they’re considering...
8 Ways to Know if You Have a Job or Own a Business
The ultimate test of your business can be found in a simple question: would someone want to buy your company? Whether you want to sell next year or a decade from now, you must be building an asset someone would buy – otherwise, you have a job, you do not own a business. Here are eight ways...
The Hierarchy of Recurring Revenue
One of the biggest factors in determining the value of your company is the extent to which an acquirer can see where your sales will come from in the future. If you’re in a business that starts from scratch each month, the value of your company will be lower than if you can demonstrate the...
The Hidden Goal of the Smartest Business Owners
What are your business goals for the year? If you’re like most business owners, you have a profit goal you want to hit. You may also have a top line revenue number that’s important to you. While those goals are important, there is another objective that may have an even bigger payoff: building a sellable...
Do You Have a Billion Dollar Business Hiding Inside Your Company?
Asking customers to pay to join a special group of your best patrons, or an elite customer club, can increase your revenue, encourage customers to buy new products and services from you, and provide a healthy boost to your cash flow. Just ask Jeff Bezos, the founder of Amazon.com and the chief architect behind Amazon...
Subscribers Make Your Company More Valuable
Why are Amazon, Apple and many of the most promising Silicon Valley startups leveraging subscribers in a subscription business model? Subscribers not only provide steady revenue, they make your company more valuable in the eyes of an acquirer. In a traditional business, customers buy your product or service once and may or may not choose...