Over the past three decades of working with growth-minded business owners, I’ve had countless conversations that start with the same statement: “We had a great year—our revenue was up, and profits were solid.” That’s fantastic. But then I ask, “What’s your business worth?” And more often than not, the conversation stalls.

Here’s the truth that catches most business owners by surprise: Revenue and profit are not the same as business value. In fact, if you're only focused on revenue and profit, you're likely leaving millions of dollars on the table.

The Real Goal: Maximize Value

Most entrepreneurs I meet are driven by a vision. You’ve built something incredible—something that serves your customers, creates jobs, and impacts your community. But if you want to unlock the true wealth and legacy potential of your business, you need to focus on maximizing value, not just profits.

As I say in A Business Owner’s Guide to Maximize Business Valuation:

“The ultimate goal of every business owner should be to maximize value—not just profit”.

Here’s why: value is what someone will pay for your business. It’s not just about how much money the company makes. It’s about how predictable, sustainable, and scalable those profits are.

Understanding Value: EBITDA × Multiple

From a market perspective, business value comes down to a simple formula:

Value = Recast EBITDA × Industry Multiple

• EBITDA is the cash flow of your business after adjusting for one-time expenses, excess owner compensation, and discretionary spending.

• The Multiple reflects the quality of your business. High-quality companies—those with strong processes, leadership depth, and growth potential—get higher multiples.

Many owners grow revenue and profit but don’t invest in the value drivers that increase their multiple. The result? A disappointing valuation—or worse, no buyer at all.

(Want to know more? Learn about the three types of valuation.)

Don't Let Someone Else Reap What You Built

One of the toughest pills to swallow is this: if you don’t intentionally build value now, someone else will harvest it later. I've seen it happen. A business with solid profits but weak infrastructure sells at a low multiple—or doesn’t sell at all.

But when you build value, everything changes. As I write in the book:

“Businesses with higher value are more sustainable... This helps ensure that the work you have done over decades can continue to thrive with new owners or a new generation of leadership”.

Your Path to Value: The Four Engines

To build value, you need to upgrade your Value Creation Engines™:

1. Revenue Growth – Attract new customers and sell more to existing ones.

2. Process Optimization – Document and improve processes to increase efficiency.

3. Culture Development – Build a team that’s engaged, aligned, and equipped.

4. Strategic Innovation – Launch new offerings to stay ahead and grow market share.
   

Each engine drives both EBITDA (profit quantity) and the multiple (profit quality). Together, they build a business that’s not only profitable—but also irresistible to buyers.

The Time To Act Is Now

Here’s the kicker: more than 50% of exits are unplanned. Life happens. And if you're not ready, you risk losing the value you worked so hard to build.

Don't wait until you’re ready to sell to start thinking about value. The best time to start was yesterday. The second-best time is today.

If you’re curious about what your business is worth—and what it could be worth—let’s talk. Visit measure.valuecreationengines.com for a free, confidential valuation consultation.

Originally published on Darrell Amy's LinkedIn.