𝘔𝘢𝘺𝘣𝘦 𝘪𝘵’𝘴 𝘣𝘦𝘤𝘢𝘶𝘴𝘦 𝘺𝘰𝘶𝘳 𝘳𝘦𝘷𝘦𝘯𝘶𝘦 𝘪𝘴𝘯’𝘵 𝘱𝘳𝘦𝘥𝘪𝘤𝘵𝘢𝘣𝘭𝘦.

Think about two businesses. One starts every year having to win most of its revenue all over again. The other knows that a large percentage of its customers will come back and buy again.

Which business would you pay a higher multiple for?

The second business is more predictable, less risky — and more valuable.

You don’t need subscriptions or long-term contracts to create predictable revenue. You need products and services customers want to buy repeatedly, and customers who are happy enough to keep coming back.

That’s why knowing how your customers really feel about you matters.

One of the best indicators is your 𝗡𝗲𝘁 𝗣𝗿𝗼𝗺𝗼𝘁𝗲𝗿 𝗦𝗰𝗼𝗿𝗲 (𝗡𝗣𝗦) — how likely your customers are to recommend your company to someone else.

The more loyal your customers, the more repeatable your business. The more repeatable your business, the more predictable your revenue. And the more predictable your revenue, the more valuable your company.

If you want to learn more ways to increase the value of your business, I’m putting together a 𝗩𝗮𝗹𝘂𝗲 𝗕𝘂𝗶𝗹𝗱𝗲𝗿 𝗙𝗮𝘀𝘁 𝗧𝗿𝗮𝗰𝗸 peer group for founders.