But here’s the truth: buyers don’t pay for top-line sales — they pay for what’s left after the dust settles.
If your revenue is growing but your margins are shrinking, you’re not building value — you’re just working harder for less.
Let’s say you’re doing $5 million in sales. Sounds impressive, right?
But a buyer will immediately ask:
“How much of that turns into profit?”
If your costs are rising, your margins are tight, or you’re discounting to hit those numbers, the business might look big — but it won’t sell big.
Here’s the secret: buyers love boring, stable, profitable businesses way more than fast-growing, cash-burning ones.
Especially in product-based businesses, where:
Open your financials and check:
Is it consistent? If it’s slipping, you may be scaling with leaks.
Are you keeping more as you grow, or just spending more?
How much does it really cost you to generate a new sale? (Think ad spend, promotions, returns.)
If those numbers don’t look clean, buyers will dig in — and discount the price.
Pick your best-selling item. Write down:
If the margin is thinner than expected, it’s time to optimize before scaling further — or before talking to buyers.
Want help showing buyers a clean, profitable, high-value business?
Download the free Exit Toolkit and see how to turn revenue into real valuation.
