Business Development
for location-based, service & trade companies.
defining operating systems for lead gen & sales to scale owners out of the daily needs of the business
See disclaimer at footer.
Business development is the process of driving enterprise value.
Have you ever thought about selling your business? Have you asked the question, “How much is my business worth?” Regardless if you ever sell the company, don’t you think it’s important to know how a business is valued?
Hint: A business isn’t valued like pricing a home.
If you don’t know how to calculate a business’s valuation how can you purposefully & consistently do the things that make the company more valuable?
Business development is the process of identifying the critical components impacting company valuation, then solving each constraint that restricts growth.
Enterprise Value
Enterprise value (EV) is the total worth of the business, cash-free and debt-free. Let’s say a business is valued at $1M. If the checking account has $100K, and the business has $50K of loans we’d subtract those 2 amounts to calculate the enterprise value at $850K.
But how did we get to that million dollar valuation? Is that the price an employee or a fellow tradesman owner-operator would pay? (a plumber buying another plumber’s business)
What if the buyer wants to be an absentee owner-investor? (Berkshire Hathaway purchasing Mrs. B’s Furniture Mart)
These are questions that drive great business development for the trades.
Driving enterprise value is the context & backdrop of all that we offer at The Culture.
Whether it’s building a lead gen campaign with an SEO-driven website paired with Google Ads
or integrating a CRM with lead source attribution so we can finally calculate LTV/CAC
or service analysis & prioritization based on TAM, job costing and crew capacity
All this work is done to chase down & reverse-engineer enterprise value. When we say we help owner-operators build an investor’s perspective, this is the framework we’re referring to.
Again, if you don't know how a business is valued how can you expect to systematically do the very things that increase the value of your business?
When you understand the fundamentals of business valuation you can isolate the drivers of value and push them to produce the output that best suits your current leadership team and production crew (or a future buyer).
In other words, when you understand how much a ready-willing-able buyer would pay for a business like yours you can take the necessary actions to preserve or increase that value.
A great business owner develops a business to not need him or her regardless if he/she ever sells the business. This is because a sellable business is a valuable business.
A business that isn’t worth being sold isn’t worth being held onto–other than for the job it creates for the owner.
Business development makes the difference between being a business owner or a self-employed sole proprietor.
The business owner works on the business, for the business.
The sole proprietor works for himself.
(and before you get offended, both are working for those he provides for)
This is NOT good versus bad.
This is scalable versus unscalable.
This is salable versus unsalable.
Do you own a business, or do you own a job?
Have you imagined what it’d be like if your company no longer needed you there for the day-to-day operations, and yet the business still predictably cash flowed and increased in revenue YOY?
What does the process look like to decouple the operator from “owner-operator”? How does that person become owner-investor?
This is only possible by identifying, installing, and iterating systems & roles so the business becomes mechanistic; a boring cash-flowing company.
Imagine that, owning a company that owes you rather than the owner owing the business.
If you’re an owner-operator and want help figuring out this process we’d love to setup up that discovery call.
What kind of companies do you work with?
OUR CONSULTING IS TUNED FOR COMPANIES THAT MEET ALL 4 CRITERIA:
Location-based, service companies
Majority of revenue comes from customers who hire you directly (not through a GC)
If cash flow is under $1M, owner committed to making lead gen a top priority
Owner committed to building a business that eventually no longer needs the owner in the day-to-day operations.
TPYE OF OWNER-OPERATORS WE WORK WITH
There are a lot of honest, hard-working, blue collar, pull-over-on-the-side-of-the-road-to-help kind of guys and gals out there. We thoroughly enjoy helping these folk!
EXAMPLES OF COMPANIES WE WORK WITH
Home trades:
asphalt paving (and concrete)
house painting
hardwood flooring
custom fence contractors
custom deck builders
Home services:
window cleaning & pressure washing
tree care
gutter cleaning & seamless install
Mechanical trades
electrical
plumbing
HVAC
Book a call
If you would like to schedule an intro call please fill out the form. Please note our scheduling is limited.