In this episode of the Max Your Business Podcast, hosts Ben Fewtrell and David Carlin get straight to the point: revenue is just a vanity metric. The real measure of a successful business is how much profit it generates and how much value it holds for the future.
Ben and David unpack why so many owners fall into the trap of building a low-profit business that relies entirely on them. They discuss the critical mindset shifts needed to move from being an employee in your own company to a true business owner and investor.
If you're working flat out but not seeing the rewards, or if you've never really thought about your business's end game, this episode is a must-listen.
Episode Highlights:
00:00 – Welcome to the Max Your Business Podcast
02:43 – Why focusing only on revenue is a recipe for disaster.
04:58 – What's your end game? Defining the real purpose of your business (to sell, to run under management, or just to close down).
09:32 – Why most business owners have never considered an exit strategy and why you need one now.
13:57– The crucial mistake owners make: not paying themselves a proper market-rate salary (and why your "profit" might not be profit at all).
19:18 – The Mindset Ladder: Are you thinking like a Manager, an Owner, or an Investor?
22:29 – How to think about your business valuation and the difference between a 3x and 10x multiple.
24:38 – Your next steps and the free Business Value Workbook.
Key Takeaways:
Profit is the Real Scorecard: High turnover means nothing if there's no money left at the end of the day. A profitable business gives you lifestyle options and a valuable asset.
Begin with the End in Mind: Whether you plan to sell in five years or thirty, building a business with a clear succession plan makes it more systemised, profitable, and attractive.
Pay Yourself Properly: Your business must be profitable after paying a market-rate salary for the role you perform. If it isn't, you're just propping up a failing model.
Build an Asset, Not a Job: An investor wants to buy a business that runs without its owner. The less it relies on you, the more valuable it becomes.
Think Like an Investor: Shift your focus from managing day-to-day tasks to getting the best possible return on your investment of time and money.
🚀 It's time to build a business that truly serves you. Get your free Business Value Workbook at maxmyprofit.com.au/value.
Tune in to discover how to build a more profitable and valuable business today. Don't miss this episode, and remember to subscribe for more practical insights!
