8 Drivers That Determine Your Company’s Value (and How to Strengthen Each One)
Here’s the deal: If you wait until you have to sell your business, you’ve already lost some negotiating power. The good news? You can build a more valuable, more enjoyable company starting today—whether you plan to sell it or not.
The Wake-Up Call: A Story We’ve Seen Too Many Times
Rick ran a successful construction company. Customers loved him, the books were solid, and the phones never stopped ringing. Then a family emergency took him out of commission for a few weeks.
Within 48 hours, projects stalled. Clients panicked. The team froze. Why? Because Rick had been the hub of every decision, every deal, every fire that needed putting out.
When he tried to sell the business a year later, buyers didn’t see a thriving company; they saw a job opening. And the offers came in way lower than expected.
We call that the "Hub & Spoke" trap. And if that sounds familiar, you're not alone.
Why You Should Know What Your Business Is Worth—Long Before You Plan to Sell
Knowing your business value is not just about an exit strategy. Knowing your value gives you:
Clarity. You get to see what’s working—and what’s not—in black and white.
Confidence. You’re building something that doesn’t just rely on grit and duct tape.
Options. Whether you want to sell, bring in a partner, or take a six-week vacation, you can.
The Eight Drivers of Business Value
There are eight key factors that influence what your business is worth. These come straight from the Value Builder system—a framework that helps business owners like you build stronger, more valuable companies (and yes, we use it with our clients).
Each driver affects your company’s valuation, but it also affects how much you enjoy owning it.
Let’s walk through them:
| Driver | What It Means | One Thing You Can Do Today |
|---|---|---|
| Financial Performance | Steady revenue, clean books, and strong profits. | Review your last 3 months of financials with your CPA or bookkeeper. |
| Growth Potential | Room to grow in the market or expand offerings. | List 2 new service ideas or market segments you could test. |
| Switzerland Structure | No single customer, employee, or supplier holds all the power. | Check if any customer makes up more than 15% of revenue—then start diversifying. |
| Valuation Teeter-Totter | How cash flows in and out of your business. | Ask your vendors about extending payment terms or discounts for early payment. |
| Recurring Revenue | Income that shows up month after month. | Can you package what you do into a monthly service or subscription? |
| Monopoly Control | Your unique niche, reputation, or intellectual property. | Nail down your elevator pitch for what makes you different. |
| Customer Satisfaction | Do your customers come back? Refer others? Leave glowing reviews? | Send a quick survey after each job and start tracking responses. |
| Hub & Spoke | The business doesn’t fall apart when you take a week off. | Start writing down how you do what you do—and hand one task off this week. |
Fact: Businesses that score 80+ on the Value Builder Score are 71% more likely to get premium offers. More importantly? They’re a lot less stressful to own.
The Real Cost of Being Too Needed
If you’ve ever thought, “I can’t take a vacation because things will fall apart,” this one’s for you. We meet owners all the time who haven’t taken a real break in years, not because they love the grind, but because the business depends entirely on them.
That’s not a badge of honor. That’s a red flag for buyers. And honestly? It’s a recipe for burnout.
But it doesn’t have to be that way. You can build systems, train leaders, and create space for yourself. (We’ve walked lots of owners through it.)
Three Small Shifts That Make a Big Difference
You don’t need a total overhaul to start building value. Start here:
Write Down One Repeatable Task. Think: how you onboard a new client, schedule jobs, or follow up after a sale. Jot it down.
Let Go of One Decision. Pick something a team member can own. Then—this part is hard—let them own it.
Turn One Thing Into a Subscription. If people already come back regularly, make it easy and automatic.
These aren’t just good business practices. They’re sanity savers.
Want to Know Where You Stand?
The Value Builder Score is a free assessment that gives you a snapshot of your company’s current value—and where you can grow it.
You don’t have to do this alone. We help business owners every day turn chaos into clarity, and stress into strategy.
Take the assessment or let’s talk. The sooner you start, the more options you’ll have—whenever life throws you a curveball.
