Stay profitable for 12 or more consecutive months
A buyer is buying future profits, so consistent profitability is the single biggest driver of value. Steady, reliable earnings year after year command a higher price than a business that swings between boom and bust.
Do this
- Track profit margins over multiple years and aim for stability.
- Smooth out the swings — diversify revenue and control costs.
- Protect margins; don't chase revenue that erodes profit.
- Show an upward or steady trend heading into a sale.
Consistent Profitability Checklist
- Profitable for 3+ consecutive years
- Stable or rising margins
- Revenue not dependent on one customer
- Costs under control and predictable
- A trend a buyer can count on continuing
