Business owners should shift from asking how to increase revenue to asking how to increase their EBITDA multiple (e.g., from 4x to 6x), as this creates real transferable enterprise value through strategies like securing recurring revenue contracts, diversifying referral sources, building leadership teams, documenting systems, and applying AI, rather than simply selling more jobs.
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Prerequisite Knowledge
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Deep Dive
Stop Chasing Revenue... Here's What Actually Builds Business ValueAdded:
You can start acting like a balance-sheet CEO in your own company today. Start by asking different questions. Instead of how do we increase revenue by 10%? Ask, how do we get our EBITDA multiple from four to six X? And the answer isn't sell more jobs. It's things like getting recurring revenue contracts with plumbers or diversifying your referral sources, building a leadership team that removes you from the day-to-day, documenting your system so the business isn't just a reflection of you, applying AI, all kinds of things that you could do to increase that multiple. And these are things that create real transferable enterprise value. This is what PE already knows.
And if you learn it first, you can control your own destiny.
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