Expert Workshop: Is Your Business Built to Sell Or Just Built Around You?
When you think about the future of your business, do you imagine it thriving without you, or does everything depend on your constant involvement? Many entrepreneurs unknowingly build businesses that revolve around their own effort, instead of creating something that has transferable value.
In our August workshop, Michelle Scribner, CEO of Sum of All Numbers, unpacked what really drives business value and why profitability alone doesn’t guarantee a sellable company. Whether you plan to exit in five years or never at all, these insights can help you build a stronger, more resilient business.
Why EBITDA Matters More Than Profit Alone
One of the first steps in valuing a business is calculating EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This metric strips away owner perks, debt, and non-cash expenses to show the company’s true earning power.
While net profit tells you how you’re doing today, EBITDA tells potential buyers what the business could look like in their hands. If you want to increase valuation, start by making sure your financial statements are clear, accurate, and adjusted to reflect EBITDA.
The Real Drivers of Business Value
Buyers don’t just want a profitable business, they want a low-risk, high-growth opportunity. That means:
Strong client retention and repeat business
Diversified revenue streams instead of dependence on one client or channel
Systems and processes that allow the business to run without you
In other words, the less the business depends on you personally, the more valuable it becomes.
Four Risks That Can Reduce Your Valuation
Even if you have healthy profits, your value can take a hit if you don’t manage key risks:
Key Person Risk – Does everything rely on you (or a single star employee)?
Key Client Risk – Do one or two clients make up most of your revenue?
Single Channel Risk – Are sales tied to just one marketing platform, supplier, or revenue stream?
Financial Data Risk – Are your books accurate, consistent, and reliable?
Mitigating these risks doesn’t just prepare you for a future sale, it protects your business today.
Watch the Full Workshop Replay
Michelle covered these concepts in detail, including the valuation formula, how multipliers are applied, and negotiation strategies during a sale.
Don’t Miss the Next Workshop: Margins Matter
We’ll continue this series on September 25 with a session called Margins Matter: Stop Guessing and Start Growing Smarter.
If you want to learn how to measure and improve your margins to fuel smarter growth, this is a session you won’t want to miss.