Why You Should Track Profit Per Hour vs Revenue
We get into four powerful lessons from an investor’s perspective on building a business that’s both profitable and truly valuable. We break down why tracking profit per hour matters more than just chasing revenue, how to create a company that’s saleable as well as profitable, and the biggest misconceptions business owners have about their business’s worth. Plus, we share practical steps to systemise, scale, and build a business you don’t want to sell, all while making sure it’s worth top dollar if you ever do.
The Numbers Game · Martin Vidakovic, Nick Reilly, Jason Robinson
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Show Notes
We get into four powerful lessons from an investor’s perspective on building a business that’s both profitable and truly valuable. We break down why tracking profit per hour matters more than just chasing revenue, how to create a company that’s saleable as well as profitable, and the biggest misconceptions business owners have about their business’s worth. Plus, we share practical steps to systemise, scale, and build a business you don’t want to sell, all while making sure it’s worth top dollar if you ever do.
On this episode, we discuss:
(00:00) Intro
(00:49) What If Your Biggest Client Is Costing You Money?
(01:42) Why Profit Per Hour Beats Revenue As A Metric
(04:33) How Smaller Clients Can Deliver Bigger Returns
(07:49) Building A Valuable Business, Not Just A Profitable One
(09:48) The Risk Of Having All Your Wealth Locked In Your Business
(12:11) Valuing Your Business Every Month
(15:28) Why Business Owners Overvalue Their Business
(17:14) The Danger Of Relying On The Founder For Revenue
(19:49) Showing Strong Upward Trends Before Selling
(22:42) Build A Business You Don’t Want To Sell
(23:11) Staying Focused On Key Quarterly Objectives
(24:52) Why Every Business Should Be Built To Be Worth Owning And Selling
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The Numbers Game is brought to you by Future Advisory & Inovayt.
Hosts:
Nick Reilly
Jason Robinson
Martin Vidakovic
This podcast is produced by VIDPOD.
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