Module 4: What if I need more money from my business?

Download Your Workbook

Click to download your workbook before you start the lessons

There are many ways to build business value; some are quantifiable while others significantly increase its attractiveness.

Key Points

  • The multiple factors in the Market Value calculation is influenced by many variables. Some of these variables are not controllable, but many can be improved.
  • The Entrepreneurial Operating System (EOS) gets your entire company on the same page, ensures you have the right people in the right seats on the bus, gives you a scorecard and problem-solving methodology, and a cadence to keep things on track.
  • Companies that have EOS in place are significantly more sought after than those without.
  • The Value Builder System database has statistical data that shows companies with a Value Builder Score of 80 receive multiples 70% higher than those who score around 60.
  • The Value Builder System score uses eight actionable characteristics to calculate the multiple, and thus the value of a business.

Download the workbook for Module 4

You can use the workbook to take notes, and it also includes some assignments.

How can you build value?

Watch this video for an overview of EOS and the eight characteristics for building business value.

Key Takeaways

  • The Market Value equation applies a multiple to the earnings. This multiple can be increased to drive up the value of businesses.
  • The six components of the Entrepreneurial Operating System (EOS) are Vision, People, Data, Issues, Process, and Traction. Business owners often find a new love for their business once this system is implemented.
  • Businesses with EOS in place are clear winners when buyers search for turn-key companies.
  • Businesses can increase their multiple and hence their market value by 70%, by increasing their Value Builder Score from 60 to 80.
  • The eight value drivers in the Value Builder System make it easy to know what to do because they are specific and actionable.

Next Steps

  • If you haven't yet, please download the workbook for Module 4.
  • Complete the assignment in your workbook for lesson 1.
  • After this opening lesson, you've probably thought of many improvements you can implement right away. Be sure to capture those so you don't lose sight of them when you get back to the pressures of your day.
  • Move to the next lesson to see how you can decrease your business's dependence on you, the owner (hint: it also addresses the process component of EOS!).