How To Build, Accelerate, and Harvest the Value of Your Business — John Warrillow // The ValueBuilder System

Quotes

• “If you can build recurring revenue, it increases the value of your businesses.”

• “So the value builder system effectively measures the value of your company and points out eight different drivers that impact your value beyond just your revenue and your profit, which are obviously standard metrics.”

• “Very few businesses actually have that a much more common way to give you a competitive moat is through great marketing, great branding, great differentiation that sets you apart from the competitors.”

• “It's only when you decide that buying that business will be cheaper and faster than competing with them does it make sense to buy it? And that happens when you've got a product or service that's highly, highly differentiated, really unique in the marketplace.”

• “So the more profit you have and the more reliable you can make that profit by using recurring revenue models and making sure it's not dependent on you personally, a bigger multiple of profit they're willing to pay.”

• “..we've got 10,000 customers and we've got $9 million of revenue. You've got 7 million subscribers. If 1% of the 7 million subscribers buy my payroll service, that's 70,000 customers… She sold it for $54 million.”

• “Ultimately she built a slower growth capillary over 25 years to $9 million in revenue, but infinitely more valuable than had she gone and cross sold a bunch of products and services to her existing customers.”

• “And what I would just encourage you to think about is selling that new product to service widening your competitive moat, or is it diluting your competitive mode? If it's the latter, it may be a fool's errand.”

• “Even though you may be 20 years away from wanting to sell your company, making decisions to stay based on whether it would make you more or less attractive to your natural acquirers, I think you build a better business.”

• “That the goal here is not always just to create top-line near term results. Its not always about revenue. It's about building sustainable growth. It's about building something that's defensible and something that's differentiated.”