Goal Setting

Use Case: Goal Setting

As business owners, we’re trained to watch the bottom line. Revenue, profit, and growth rate are the numbers we monitor, track, and celebrate. And for good reason: they matter.

But when it comes to long-term planning, whether you’re thinking about retirement, stepping back from day-to-day operations, or simply growing the business’s transferable value, profit alone doesn’t tell the whole story.

A professional business valuation helps you understand what your business is really worth today, and more importantly, why. It’s not just about bottom-line profit, it’s about structure, risk, and sustainability.

‍

Value Is About More Than Profit

Let’s say you’re running a business that earns $300,000 in profit each year, but it relies heavily on you. You’re working 40–50 hours a week, overseeing every major decision. Now compare that to another business that profits $250,000 a year, but runs smoothly with a management team in place and minimal owner involvement.

All else being equal, a buyer will typically pay more for the second business.

Or consider two companies: one earns $1.2M in annual revenue from five large clients. The other earns $1M from fifty diversified clients. Despite earning less overall, the second business will likely be more attractive because it spreads risk more evenly and is less exposed if one client leaves.

These are the kinds of factors that drive real-world valuations. A business isn’t just a profit engine, it’s a combination of people, systems, risk, and repeatability. And that’s why it’s so important to understand how value is created.

‍

A Valuation Turns Guesswork Into Strategy

When you know what your business is worth today and what factors are helping or hurting that value, you can set more focused goals. You can:

- Track value growth over time, not just revenue or profit

- Prioritize improvements that actually increase saleability

- Understand how your role, team, and client mix affect buyer perception

- Spot risks now instead of finding them out during a future transaction

- Align your business trajectory with your personal or retirement goals

Whether you’re hoping to grow, reduce involvement, bring in a partner, or plan for a sale years down the line, knowing your value gives you leverage in every decision.

‍

Our Recommendation

For most business owners starting the planning process, our Lite Package is a great fit. It provides a concise, data-backed valuation that sets the foundation for your business.

If you want a more detailed breakdown, or if you’re already in discussions with advisors or partners, the Standard Package adds more depth, multiple valuation methods, and professional commentary.

See our pricing or contact us to get started.

‍