The Game with Alex Hormozi 7 Ways To Measure Business Value | Ep 702
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Apr 24, 2024 Dive into the intriguing world of business valuation! Discover seven essential metrics that truly reflect a business's worth, like contract value and lifetime revenue. Debunk common myths about what determines value, and learn why net free cash flow and EBITDA are crucial for assessment. The discussion ranks these metrics, helping entrepreneurs make informed decisions. If you’re curious about maximizing profits and understanding your business’s financial health, this conversation is packed with valuable insights!
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Evaluate Contract Value
- Assess contract reliability and payment collection.
- Secure contracts against assets or ensure recurring revenue streams.
Lifetime Revenue Deception
- Don't be fooled by lifetime revenue claims; they can be misleading.
- Ask about yearly revenue, profit, and cash collected for a clearer picture.
Scrutinize Business Valuations
- Investigate business valuations carefully, considering who sets the value.
- Understand the market's typical multiples for similar businesses.