EP. #1 [THEME TWO]
Today, we kick off a new theme: are you running a lifestyle business or are you growing a valuable asset?
In this episode, Arkona co-founders Ryan Tansom and Pat Hobby break down what it takes to view your business as a financial asset - regardless of when you want to sell - so you can focus on growing the value of the company. By running your business as a financial asset, you can focus your time, money, and energy on areas that will increase the company’s valuation by creating sustainable, predictable, and transferable cash flow. The more valuable your company is, the more choices you will have down the road and it will allow you to create wealth, enjoy work, and make an impact.
Ryan and Pat dive deep into some key concepts that will help you walk away with a clear understanding of the metrics that you need to focus on - and what they mean - in order to see what your company is worth today and how you can project out the value of the company years into the future. It all starts by clearly understanding the difference between your ownership role versus your management role and three financial targets.
// WATCH THE INTERVIEW ON YOUTUBE: Intentional Growth™ Podcast
What You Will Learn
The difference between a lifestyle business and long-term value creation.
The three financial targets that will help you view your business as a financial asset.
The number one thing holding people back from long-term value creation.
The difference between ownership and management roles, why they matter, and how it impacts your decision-making.
How to clearly see the interaction and tradeoffs between funding growth, distribution, and taxes.
What EBITDA and Normalized EBITDA is, why it matters, and how it is used to value a business.
How the three financial statements are used to project out the value of a company.
Why you need to use - and integrate - all three financial statements and why business owners typically don’t.
How to integrate enterprise value, equity value, and net proceeds into the three financial statements so you can project out the value of your business year into the future.
The importance of creating a financial “path” to creating long-term value.
// USE YOUR FINANCIALS TO CLARIFY A PATH TOWARDS A MORE VALUABLE BUSINESS: Intentional Growth Financial Assessment
Bio:
Pat started at EY before creating his own outsourced CFO services company. There, he advised over 15 companies. He ended up joining one of those clients as they continued to grow,