The Game with Alex Hormozi 7 Ways To Measure Business Value | Ep 702
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Apr 24, 2024 Learn about key aspects of business valuation in this podcast, including contract value, lifetime revenue, yearly revenue, profit, net free cash flow, and personal net worth. Find out which metrics are best to use and why you should not rely on others to determine the value of a business.
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Contract Value Scrutiny
- Evaluate contract reliability and payment collection.
- Distinguish between secured contracts and inflated monthly recurring revenue claims.
Lifetime Revenue Misconceptions
- Don't be fooled by lifetime revenue claims; they are often misleading.
- Focus on yearly revenue and profit for a more accurate picture.
Business Valuation Nuances
- Understand business valuations are influenced by market factors and who assesses them.
- Be critical of extremely high multiples; they often indicate low profitability.