The four numbers a buyer will ask for, beyond revenue and profit, are your average ticket, your repeat rate, your customer lifetime value and your best channel. Together they show what drives your revenue, and a buyer who can see the engine is far more likely to believe the price you are asking them to pay.
Here is a quick test I give owners. If a buyer asked you for these four numbers right now, could you answer without calling your bookkeeper? Most owners know their revenue and profit by heart. Far fewer can explain where that revenue comes from, how often it comes back and what a single customer is worth over time.
What each of the four numbers tells a buyer
Revenue and profit are the starting point, not the whole story. A serious buyer wants to understand what produces them, because that is what they are really buying.
Average ticket. This is what a typical customer spends each time they buy from you. It tells a buyer how much each sale is worth and gives them a baseline for any growth plan, such as raising prices or adding services.
Repeat rate. This is how often customers come back. A strong repeat rate tells a buyer your revenue is not a one time event. Revenue that keeps returning on its own is easier to forecast, and easier to finance, than revenue you have to win again every month.
Customer lifetime value. This is your average ticket times the number of times a customer buys from you over the years they stay. It turns the first two numbers into one figure a buyer can weigh against what it costs to win a new customer.
Best channel. This is where your best customers actually come from. Referrals, a website, a sales rep, a partner or a single big account all mean very different things to a buyer, especially if the channel depends on you personally.
The lifetime value math, worked through
Lifetime value sounds technical, but the math is simple. Let's say your average ticket is $200. A typical customer comes back six times a year and stays with you for four years.
Six visits a year at $200 is $1,200 a year. Over four years, that customer is worth $4,800 to your business. Those numbers are only an example, so run the same math with your own figures.
Once you have that number, a buyer can start asking better questions. What does it cost to bring in a new customer? What happens to lifetime value if the repeat rate rises a little? How much of the business would be at risk if one channel dried up? Having clear answers ready makes those conversations shorter and more productive.
Why these numbers matter when you sell
Every buyer is trying to answer one question: will the profit I am paying for still be there after I take over? Revenue and profit tell them what happened. These four numbers help them understand why it happened and whether it is likely to keep happening.
When you can show your average ticket, your repeat rate, your lifetime value and your best channel, you are showing the buyer that the business has a working engine, not just a good year. That makes the numbers on your financial statements easier to trust, and trust is what keeps a buyer moving forward through diligence.
The opposite is also true. If you cannot explain where your revenue comes from, a buyer has to guess, and buyers tend to guess conservatively.
How to find your four numbers this week
You do not need a consultant to get started. Most of this lives in the systems you already use.
- Pull your sales or invoices for the last twelve months and divide total sales by the number of transactions to get your average ticket.
- Count how many customers bought more than once in that period and how often they came back.
- Estimate how many years a typical customer stays, then multiply it out the same way as the example above.
- Look at where your best customers first found you, using your CRM, intake forms or simply by asking them.
Write the four numbers down and see which ones you could not fill in. Those gaps are worth fixing well before a buyer asks. If you want to see how these numbers fit into what your business could be worth, my business value worksheet is a good place to start.
Ready to talk it through? Talk with me about selling. No cost, no obligation.
Read the transcript
Owners ask me which numbers a buyer will want first. Here's a quick test.
If a buyer asked you for these four numbers right now, could you answer without calling your bookkeeper?
Revenue and profit are just the start. A serious buyer wants to know what drives them.
The first number is your average ticket. That's what a typical customer spends each time they buy from you.
The second is your repeat rate. How often do customers come back? That tells a buyer your revenue isn't a one time event.
The third is lifetime value. That's the average ticket times the number of times a customer buys, over the years they stay with you. Let's say your ticket is $200. The customer comes six times a year and stays for four years. That's $4,800.
And the last one is your best channel. Where do your best customers actually come from?
Here's why all this matters. When a buyer sees the engine works, they can believe the numbers you're asking them to pay for.
Save this, and see if you can fill in all four numbers in the next few days.
