Hey creative entrepreneurs! Ever ask yourself “What’s the value of my business?” Ready to grow and amplify that value? Revel’s here for you with our unique strategy to make your venture thrive. Let’s dive into the first few cornerstones of the PROPA framework!
Stay tuned to the end to take our free assessment designed to help you know where you’re at in the journey of improving your business’ value.
- Productizing Services
Think it’s impossible to streamline your unique services? Think again! With inspiration from Built to Sell by John Warrillow, you can transform your one-of-a-kind offerings into standardized products. Analyze your services, find the hidden structures, and create repeatable processes. You’ll strengthen your business, making it more attractive to prospective clients—and buyers.
💡 To-Do: Read the book, and start simplifying and standardizing your services.
- Diversify Revenue Streams
Increasing your revenue sources is crucial for a resilient business. Aim for at least three revenue streams, including ideally one recurring stream like a subscription. Next, avoid relying too much on a single client—it’s risky! By diversifying, you’re increasing the valuation of your company and shielding it from unexpected challenges.
💡 To-Do: Review your revenue sources and diversify where needed.
- Independence from the Owner
A business reliant on the owner has zero value. Ouch! Break free from this trap by implementing systems, structures, and processes. Put the right people in place to manage operations, and focus on growing your business value. Your business needs to thrive, even if you take a break!
💡 To-Do: Sketch out your “org chart of the future” and work towards making it a reality.
- Efficient Processes
A well-documented process is a goldmine. Create a playbook detailing how your business operates. Don’t overcomplicate—a simple checklist works wonders. When you’re ready, tools like Trainual or Tango can help you create a comprehensive manual. Your unique, proprietary processes can be protected and add value to your business.
💡 To-Do: Map out the major systems in your company and start documenting!
- Accounting Matters
Clean financial records are a must. Your books should be spotless and reconciled with your tax returns for at least three years. Focusing on improving your margins will naturally raise your EBITDA, which in turn boosts your business’s value and generational wealth.
💡 To-Do: Dive deep into your accounting and see where you stand.
By implementing the PROPA framework, you’ll not only increase your business’s value but also make it a stronger, more sustainable company.
Exercise: Take our assessment to know where you’re at in the journey of improving your business’s value. Pay special attention to the first four questions—these are the ones focused on your accounting and margins. If you didn’t score well on any of those four questions, work to improve things so you can come back with stronger answers.
Let’s build businesses that reflect our creative spirit and thrive through generations!
To learn more about building business value and take a more in-depth look at how to use your creative business to drive generational wealth, check out this article!