When most business owners think about growing their company, they focus on income. More revenue. Better margins. Increased profit.
But there’s another key part of the value equation that’s often overlooked: risk.
In this final episode of the 4M Strategies™ podcast, Carl J. Cox, CEO of 40 Strategy and 40 Accounting, explains how reducing risk increases your business’s multiple — and why that leads to more freedom and long-term success.
Whether you’re planning to sell your business someday or just want more time to focus on what matters, this episode helps you understand the full picture of business value.
Most business owners focus on income. They want to bring in more money. That means making more profit and growing the bottom line.
But when it comes to the true value of your business, income is only half the story. The other half is something many people forget — risk.
Risk is what makes a buyer hesitate. Risk is what makes a business harder to run. Risk lowers the price someone will pay to buy your company. So, if you want to build value, you need to reduce risk.
What Is a Business Multiple?
Let’s say your company makes $500,000 in profit each year.
If your business sells for 2× profit, then it’s worth $1 million.
If it sells for 4× profit, then it’s worth $2 million.
The multiple is the difference. It’s what changes a good business into a great one.
Why Most Business Owners Miss This
Most people focus on net income or EBITDA. That’s important, but it’s not the only thing that matters.
The multiple is what changes everything.
And what affects the multiple? Risk.
The more risky your business, the lower your multiple.
The less risky it is, the more someone will pay for it.
How to Reduce Risk
Carl shares several ways to reduce risk in your business:
- Build systems: If your business depends on you, that’s a risk. Systems make things consistent and easier to manage.
- Hire the right team: A strong team means you don’t have to be in every decision. It shows the business can run without you.
- Use clear processes: When everyone knows how to do their job, things don’t fall apart if one person leaves.
- Track your numbers: Know your financials. When you understand your numbers, you can make smart decisions and catch problems early.
The Goal: More Freedom
Most business owners dream of freedom.
Freedom to work less.
Freedom to spend time with family.
Freedom to choose when — or if — to sell the business.
You get that freedom when your business no longer depends on you.
When systems, people, and processes are in place, the business becomes an asset — not just a job.
What This Episode Covers
In this final episode of the first phase of the $4M Strategies™ podcast, Carl looks back at over 100 episodes of strategic insights.
He talks about:
- The journey of building the podcast
- Lessons learned from expert guests
- What he’s seen work with real clients
- The power of combining income with risk reduction
- Why freedom is the ultimate measure of success
Carl also shares that all of this work may soon be turned into a book or workbook — something business owners can use to walk through these strategies step by step.
A Tool That Helps
Carl and his team work with a company called GrowthDrive. They’ve used it with clients to identify risk, create strategic plans, and take action.
Every time they use this tool, the client says the same thing:
“I didn’t know that was a gap. Now I can fix it.”
That kind of insight is powerful. It turns confusion into confidence.
What Happens Next
This may be the last episode of the podcast for now, but the journey continues.
Carl encourages listeners to:
- Keep following the Measure Success Podcast
- Visit 40Strategy.com for resources
- Explore services at 40 Accounting to understand your financials
- Stay focused on building value that lasts
Whether you’re building to sell or building to scale, these strategies help you reach your goals — and live the life you want.
Final Thoughts
You work hard every day to grow your business. But working hard isn’t enough.
You need to work smart. That means knowing your numbers, building systems, and lowering risk.
This episode gives you the tools to get started.
Start thinking beyond profit.
Start thinking about value.
And most of all — build for freedom.
Listen Now
🎧 Tune into the last episode of the $4M Strategies™ podcast and take the first step toward a better, more valuable business.
Our $4M Strategies™ REDUCE the risk ON your business, which INCREASES the VALUE of your business, by increasing your multiple. Take the free assessment to learn more.
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