A lifestyle business is often built around the founder's brand and is not typically worth selling, as it is founder-dependent. In contrast, a performance business has a larger team and recurring revenue, making it more attractive for sale.

The valuation of a business is determined by its ability to generate cash flow that can be distributed to investors, or by its potential for acquisition based on unique technology or market position.

Getting your business model right can significantly increase your company's valuation, potentially leading to 5 to 10 times higher valuations compared to those with ineffective models.

For a company to build lasting value, it must ensure customer retention over time, as future cash flows are essential for establishing enterprise value.

It's common for founders' motivations to change over time, and many who initially planned to sell their company later find enduring reasons to continue.

After an acquisition, it's vital to continue pursuing the original vision of the startup, as it can be a significant motivator for the team.

It's crucial to understand how much of your company you've sold to investors at all stages of your company's life cycle and how that affects your ownership.

Retention and upsell are critical metrics that significantly impact revenue multiples; companies with high retention rates tend to have higher valuations.

Valuation, which is the value of your enterprise, and dilution, which refers to how much of your company you have sold, are critical concepts in fundraising.