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 valued […]

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 […]

5 Ways to Get Your Business to Run Without You 

How well does your company run when you don’t show up for work? The answer to this question has a significant impact on the value of your business. Suppose your company could survive your absence for a while. In that case, you will score well on something referred to as “Hub & Spoke,” a driver […]

One Personality Trait Most Successful Entrepreneurs Share

Survey a group of founders about the personality traits that made them successful, and they will be quick to use words like determination, sacrifice, and hard work. Others will show more humility and chalk their success up to personality traits like curiosity. Still others will credit dumb luck. However, there is another personality trait that […]

Systematize Your Business (Without Making it Boring)

Have you ever noticed that you get some of your best ideas in the shower? Every morning, you’re stuck there for a few minutes doing something you’ve done since you were a child. Your mind knows it has a couple of minutes to think.  Employees get the same mental holiday when you specialize and give them […]

TAM vs. Target

As you enter the fourth quarter of the year, you may be starting to think about your marketing plans for 2023. Terms like Total Addressable Market (TAM) and Target Market may surface in your planning, and you could be tempted to use them interchangeably. However, your TAM and your target market are related but slightly […]

The 2 Best Ways to Make Your Company Special

Specializing in one product or service allows you to focus on delivering that thing better than everyone else. It enables you to hire (or train) specialists in your field, improving the quality of your work, which leads to happier customers. And satisfied customers buy again and refer their friends. That’s why specialists often grow faster […]

Will This Be the Year You Seriously Drive Up the Value of Your Company?

If you have resolved to make your company more valuable in 2022, you may want to think hard about how your customers pay. If you have a transaction business model where customers pay once for what they buy, expect your company’s value to be a single-digit multiple of your Earnings Before Interest Taxes, Depreciation and […]