Picture a magic slot machine. Each time you pull the arm, you make back a multiple of whatever you wagered. How much time would you devote to cranking that arm? When it comes to the value of your business, you can make many bets, but only one has a virtually guaranteed return. In this blog post, we'll explore the PURE method—a powerful strategy to increase the value of your business. Most companies are valued based on earnings before interest, taxes, depreciation, and amortization (EBITDA), so every pound of incremental profit you earn in the short term will translate into a multiple of that down the road. Whether you're planning an ownership transition or simply looking to boost your business's worth, the PURE method can be your secret weapon. 
How Derek Morin Jacked Up the Value of His Business: 
For an inspiring example of a founder obsessed with finding every dollar of profit available, let's look at Derek Morin. Morin founded Tabarnapp to create after-market sales applications for Shopify website owners. The business was a success, but when his partner, who handled finance, left the company, Morin was forced to take a closer look at his profit & loss (P&L) statement. 
Morin saw potential improvements, so he made notes in the margin next to each line item he wanted to change. To save time, he started using a single letter beside each entry to represent the action he wanted to take: 
- P stood for "Plus," something profitable, and he wanted more. 
- U stood for "Unnecessary," an expense he could eliminate. 
- R stood for "Replaceable," a cost that could be replaced with a better or cheaper option. 
- E stood for "Equal" and was used for items that should be left untouched. 
Morin realised his shorthand notes could be organised into a memorable acronym he referred to as "PURE." Morin treated the PURE method like a game. Every month, he scrutinised his P&L with the same four-letter system. Morin engaged his team to act on each item that needed improvement. He became obsessed with squeezing out a few more dollars of profit every month. 
His game worked. In 2020, Morin bought out his business partner in a deal that valued the company at around $400,000. Two years later, after applying the PURE methodology of improving profitability, Morin sold Tabarnapp in an agreement that implied a roughly tenfold increase in the value of his business. 
The Downside of Using Your Company’s Bank Account as a Slush Fund: 
While it may be tempting to treat your company's bank account as a slush fund, there's a downside to this approach. Co-mingling personal and business expenses while letting other costs go unchecked may help you reduce taxes in the short term, but it could end up costing you more in lost value when you decide to sell your business. Instead, keep your P&L "PURE" to jack up the value of your business. 
Increasing the value of your business doesn't require risky bets or complicated strategies. The PURE method, as demonstrated by Derek Morin's success story, provides a clear and effective roadmap. By focusing on profitability, eliminating unnecessary expenses, replacing costly items with better alternatives, and leaving untouched what's already working, you can steadily grow the value of your business. Remember, it's not about making drastic changes overnight but consistently working towards a more profitable and valuable future. So, don't gamble with your business's worth—go PURE and watch your investment multiply. 

Are you curious about the true value of your business?  Wondering if you're ready to sell it for maximum profit?  Or perhaps you're unsure if your current assets can support the life you dream of living? 

Stop wondering and start taking control of your financial destiny! We're thrilled to offer you three FREE assessments that will provide you with invaluable insights into your financial situation 


Join 65,000 business owners and get your score on the 8 Factors That Drive Your Company’s Value, a comprehensive analysis of your score and a detailed action plan for how to improve your score on each 
Watch the video to see how it works or click the link above for your free report 

PREScore™ FREE report 

The questions that make up the Personal Readiness to Exit (PRE) Score questionnaire are designed to help you evaluate your preparedness to exit your business and ensure you leave your company with no regrets 
Watch the video for more information or click the link above for your free report 


There comes a time when the sale of your company will generate enough income to fund the rest of your life. We call it the Freedom Point. A comprehensive analysis of your financial readiness to enter the next phase of your life 
Click the link above to get your free report today 
Share this post:
Our site uses cookies. For more information, see our cookie policy. Accept cookies and close
Reject cookies Manage settings