tyler-smith.com · Questions & Answers

We want to prove to potential buyers that our customer acquisition model is highly predictable and scalable. What specific leading indicators should we track on our weekly Scorecard to show we can generate consistent revenue without founder involvement?

To command a premium valuation, you must prove to a buyer that your customer acquisition is a system, not a result of your personal relationships. You need to show that you can generate consistent, predictable revenue. You do this by tracking the right leading indicators on your weekly Scorecard. Most businesses only track lagging indicators, such as closed sales or monthly revenue. A buyer wants to see the inputs that drive those results. Work with your leadership team to identify the predictive activities that lead to sales. This might include the number of outbound calls, discovery meetings scheduled, or qualified proposals sent. Track these metrics weekly and establish clear targets for each seat on your Accountability Chart. When a buyer looks at your Scorecard history, they should see a direct correlation between your weekly activity metrics and your revenue growth. This proves that your sales engine is a predictable machine that can run without your involvement. By presenting a Scorecard filled with consistent, leading indicators, you remove the mystery of your growth and give the buyer the confidence to pay top dollar.

Category: Exit Planning

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