If you’re a service provider, it can be difficult to separate the service from the provider. Your customers might demand you, which means you can’t scale your business beyond the number of hours you’re willing to work. In the absence of a point of differentiation, offering generic services leads consumers to evaluate the people doing… Read more »
GPS Blog
3 Ways to Get Your Employees to Sell More
Who does the selling inside your business? If you’re involved, your business will be less valuable than if you weren’t. Investors and acquirers are reluctant to invest in a business where the owner is the rainmaker of the company. More than 70,000 businesses were analyzed, and the data revealed that companies that can sustain a… Read more »
3 (Creative) Ways to Get Your Business to Run Without You
If you aspire to build a valuable company, one crucial factor is to ensure your business can operate independently without your constant involvement but embarking on this journey can feel daunting. In this article, we’ll explore three cost-effective, simple strategies to set your business on a path to autonomy and allowing it to thrive without… Read more »
The Recurring Revenue Bump
Last month, Darden, the owner of the Olive Garden restaurant chain, announced it was acquiring Ruth’s Chris, the legendary American steakhouse, for $715 million, implying a valuation of around one times last year’s annual revenue, or about ten times their adjusted EBITDA for 2022. Not bad for a giant company, but Ruth’s Chris’s value was… Read more »
3 Things to Consider When You Hit “The Freedom Point”
When was the last time you calculated the percentage of your net worth tied to your company’s value? When you started your business, its value was probably negligible. Unless you purchased or inherited your company, it wasn’t worth much when you opened your doors, but over time, the proportion of your assets tied to your… Read more »
The purest way to increase the value of your business
Picture a magic slot machine. Each time you pull the arm, you make back a multiple of whatever you wagered. How much time would you devote to cranking that arm? When it comes to the value of your business, you can make many bets, but only one has a virtually guaranteed return. Most companies are… Read more »
How to Protect Your Equity When Your Business Is Thirsty for Cash
When it comes to financing the growth of your business, you may find yourself facing a difficult choice between the lesser of two evils. Selling shares in your business can provide an immediate cash injection, but it means giving up some of your valuable equity stake. Borrowing money from a bank, on the other hand,… Read more »
How First Impressions Can Drive the Value of Your Business
The initial impression customers have of your business often influences how much they decide to spend with your company. This is well known, but have you ever considered how first impressions affect the way potential investors value your business? When raising capital, investors’ initial perception of your business significantly impacts their valuation, affecting both the… Read more »
3 Invisible Gates That Stop Most Companies Flat
How many people can one person manage? Harvard Business Review estimates the ideal range for an experienced manager is between five and nine direct reports. Inc. pegs the sweet spot at seven. The ratio of managers to direct reports matters because it explains why some companies grow and others plateau. Every business is different, but… Read more »
5 Ways to Get Your Business to Run Without You
Some owners focus on growing their profits, while others are obsessed with sales goals. Have you ever considered making it your primary goal to set up your business so that it can thrive and grow without you? A business not dependent on its owner is the ultimate asset to own. It allows you complete control… Read more »
