Predictable Revenue Growth
WARNING: This page is intended only for Entrepreneurs who are raising investment capital or thinking about selling their business.
Growing and Selling a business doesn’t have to take decades.
I went through the process from start to finish in my early thirties… it took three years.
When I joined, the previous year’s sales were just under $2M.
It took about 4 months to figure out how to consistently get more sales leads and how to consistently turn leads into sales.
The company doubled in under a year.
We expanded our marketing and started hiring sales-people like crazy.
The company grew so fast, we had to hire someone to hire people.
In less than 3 years, we got it up to $10M/year and sold it. The owner’s and investors became multi-millionaires.
Predictable Revenue Growth is the Key to High Valuations
On my first day, the lead investor in the company pulled me aside.
“We’re going to sell this company in 3 years. I’m going to cut you in on a percent, but you need to document everything just like these guys did in this report.”
He hands me the slide deck from a competitor who sold for $400 million.
“Here’s the secret to making millions as an entrepreneur… It’s not about the sales. It’s not about the marketing. It’s not about the product.”
“Figure out a system that brings in new customers… that will scale up with either more marketing or more reps. Can you do this?”
It was the most interesting first day.
Why Revenue Growth Matters
Declining revenue will reduce your valuation. That should be obvious.
If nothing is done the company will become less valuable in the future.
Flat sales or slow revenue growth is OK… as long as revenue is predictable.
A company that’s done $2M/year for 5 years in a row is likely to do $2M the next year and the year after that.
Fast-growing and hyper-growth companies are incredibly valuable, but there is a catch… revenue growth must be predictable.
It’s no good if you’re getting a flood of sales one month and none the next.
Sales activity like that stands out on an income statement and attracts negative attention.
What you want to see are revenue numbers that increase every month.
When you can show 18 or 24 months of consistent increases, you’ve demonstrated Predictable Revenue Growth.
Congratulations, you are now sitting on a gold mine!
With history of growth, the investors feel confident in investing.
The buyers feel confident in buying.
Your employees are confident and excited… because business growth means increased wages and benefits. They’re buying into your company’s mission and becoming more productive.
You start to get the “cream of the crop” talent and the losers wash themselves out.
These things happen almost automatically when you figure out a system that brings in new customers… that scales up with either more marketing or more reps.
If I could do this in your business would you be interested?
I’m developing a six-month program for entrepreneurs and investors who are looking to establish predictable revenue growth in preparation for investment or sale.
Call Chris at (503) 830-4313 to learn more.