ARR is the predictable, subscription-based revenue your business can count on every year, normalized to a 12-month figure — e.g., a $500/month client equals $6,000 ARR.

High-performers who build and track ARR (while ruthlessly minimizing churn, the percentage of subscribers who cancel each month) go from “six figures busy” to “seven figures wealthy” because every new subscriber compounds cash flow without constant hustling.

Corporate escapees often treat all revenue as equal (one-time projects vs recurring) and stay trapped in feast-and-famine; this fails because buyers and banks only get excited about predictable income that survives cancellations.

Do it right: identify every recurring stream (memberships, retainers, subscriptions), multiply monthly value by 12, and obsess over increasing average revenue per user while keeping churn under 5 %.

Paying attention to ARR today dramatically increases your eventual exit value because buyers pay far higher multiples for documented, growing recurring revenue that survives the founder’s departure.

One $10K increase in monthly recurring revenue (with low churn) adds $120K ARR and often $500K+ to your sale price at a conservative 4–5× multiple.

Ignore ARR and watch your business stay valued like a freelance job instead of a wealth-building asset.

A good prompt to basic AI can audit your current offers, calculate true ARR and churn rate, and suggest three proven ways to add $5K–$20K MRR in the next 90 days — turning vague revenue into a precise wealth plan in minutes.

Amortization is the process of spreading the cost of an intangible asset (course, software, trademark, client list) over its useful life so you get steady tax deductions instead of one big hit.

Disciplined solopreneurs who track amortization go from “six figures busy” to “seven figures wealthy” by legally keeping thousands more every year; those who don’t leave free money on the table and overpay taxes.

Corporate escapees often think of big purchases as “one-time expenses” because that’s how the company credit card worked — this fails when you’re the one writing the tax check and every dollar counts.

Do it right: when you spend on long-term assets, assign a realistic useful life (3–15 years), calculate the annual deduction, and document it clearly from day one.

Paying attention to amortization today increases your eventual exit value because buyers love clean, documented schedules that prove you’ve been tax-smart and the assets have real, transferable basis.

One $30K course platform amortized over 5 years can save you $6K–$10K in taxes while building equity instead of vanishing as an expense.

Ignore it and watch thousands disappear to the IRS every year while your books look messier to future buyers.

A good prompt to basic AI can take your last big asset purchase, calculate the optimal amortization schedule, and generate the exact documentation buyers and accountants love — turning a one-time spend into years of tax savings in minutes.

Burn multiple is the ratio of your monthly net cash burn to your cash reserves — it tells you exactly how many months you can survive if revenue stopped tomorrow.

Future ex-owners who keep their burn multiple under 1.5 months go from “six figures busy” to “seven figures wealthy” because they never make desperate decisions from a weak cash position.

Corporate escapees often ignore burn multiple entirely (“I’ve got money in the bank”) and wake up one day with 60 days of runway and no options — this fails when one bad quarter forces fire sales or bad deals.

Do it right: calculate cash balance ÷ monthly burn every week, cut non-essential spend ruthlessly, and keep at least 6–12 months runway — treat it like oxygen.

Paying attention to burn multiple today dramatically increases your eventual exit value because buyers love businesses with long runways and lean operations — it proves the company isn’t one bad month from collapse.

One disciplined burn-multiple habit can add six figures to your personal cash cushion while making every negotiation stronger.

Ignore it and watch a single slow quarter force you to take low offers, kill momentum, or shut down entirely.

A good prompt to basic AI can audit your last 90 days of transactions, calculate your exact burn multiple, and generate a 30-day reduction plan that adds months of runway — giving you seven-figure peace of mind in minutes instead of panic.

CapEx is money spent on long-term assets that benefit the business for years — equipment, software platforms, trademarks, vehicles, or course production — instead of day-to-day operating expenses.

Disciplined solopreneurs who track CapEx correctly go from “six figures busy” to “seven figures wealthy” by turning big purchases into tax deductions and documented assets instead of profit-killing expenses.

Corporate escapees often expense everything immediately because “that’s how the company card worked” — this fails by erasing thousands in legitimate deductions and leaving no asset value on the books for buyers.

Do it right: before any $1K+ purchase ask “Will this benefit the business beyond 12 months?” — if yes, capitalize it, depreciate over its useful life, and keep receipts organized from day one.

Paying attention to CapEx today dramatically increases your eventual exit value because buyers see documented, depreciable assets that justify higher multiples and clean add-backs.

A $10K CapEx item depreciated over 5 years can save $2K–$4K in taxes while adding real equity to your balance sheet.

If this gets ignored, and watch thousands vanish to the IRS yearly while your books look thinner and less attractive to buyers.

A good 5-minute AI prompt can review your last 12 months of spending, flag every missed CapEx item, and generate the exact depreciation schedule buyers love — turning past expenses into future wealth in minutes.

Cash reserves are the liquid money you keep in the business — ideally 3–12 months of operating expenses — to handle emergencies, opportunities, or revenue dips without panic or bad decisions.

Calm seven-figure founders who maintain strong cash reserves go from “six figures busy” to “seven figures wealthy” because they never take nightmare clients or slash prices out of desperation.

Corporate escapees often spend every dollar that comes in because “the company always had cash.” This fails the moment one big client delays payment and bills are due tomorrow.

Do it right: calculate your true monthly burn (all expenses including taxes and owner pay), then build a separate “do not touch” account and auto-transfer 5–10 % of every invoice until you hit 6 months minimum.

Paying attention to cash reserves today dramatically increases your eventual exit value because buyers love businesses with long runways and no forced-fire-sale risk, it proves the company is antifragile and survives the founder’s departure.

One year of disciplined reserve-building can turn a fragile $300K business into a calm, $1M+ sellable asset.

Ignore it and watch one slow quarter force you to take bad deals, kill momentum, or shut down entirely.

A good prompt to basic AI can analyze your last 6 months of cash flow, calculate your exact monthly burn, and generate a 90-day plan to reach 6 months reserves, giving you unbreakable peace of mind in minutes instead of years of stress.

Churn rate is the percentage of subscribers or recurring clients you lose in a given period — usually measured monthly — revealing how “sticky” your revenue really is.

Top 5 % founders who keep churn under 3–5 % go from “six figures busy” to “seven figures wealthy” because every new customer compounds instead of leaking out the back door.

Corporate escapees often ignore churn completely (“they just weren’t a good fit”) and wonder why revenue never grows despite constant marketing; this fails because high churn turns every dollar of acquisition cost into a losing investment.

Do it right: calculate churn monthly (cancellations ÷ total customers at start of month), survey every leaver with one question (“What could we have done differently?”), and fix the top three reasons immediately.

Buyers acquiring businesses pay life-changing premiums when low churn is embedded in documented retention systems — because predictable recurring revenue survives long after the founder departs.

One percentage-point drop in churn can be worth tens or hundreds of thousands in lifetime profit without a single new sale.

If this is ignored, watch your business stay on a treadmill — spending more to acquire customers than you ever keep.

A good prompt to basic AI can analyze your last 12 months of cancellations, spot patterns, and generate a complete churn-reduction playbook with survey questions and retention offers — turning leaks into locked-in wealth in minutes instead of months of guesswork.

Contribution margin is the profit left from each sale after subtracting only the variable costs directly tied to delivering that specific sale, revealing how much each client actually contributes to covering overhead and building wealth.

Top 5% founders who pay attention to contribution margin go from “six figures busy” to “seven figures wealthy” because they know exactly which offers and clients print money and which quietly bleed it.

Corporate escapees often treat every dollar of revenue as equal and wonder why they’re exhausted but not rich — this fails because low-margin work eats all the profit while high-margin work gets neglected.

Do it right: for every offer, calculate revenue minus direct costs (ads, subcontractors, software per client), then ruthlessly prune or reprice anything under 70% margin.

Paying attention to contribution margin today dramatically increases your eventual exit value because buyers love documented, high-margin offers that prove the core engine is wildly profitable and transferable long after the founder departs.

One 10 % lift in average contribution margin can add six figures to your take-home without a single new sale.

Ignore it and watch “busy” stay broke while competitors with 90 % margins work half as hard and exit for millions.

A good prompt to basic AI can analyze your last 50 invoices, calculate contribution margin per offer type, and suggest exact price tweaks or cost cuts, turning guesswork into a precise wealth map in minutes.

Debt Service Coverage Ratio (DSCR) is the simple calculation of how much cash flow your business generates to cover debt payments — net operating income divided by total debt service — with lenders and buyers wanting 1.25 or higher.

Business owners who keep DSCR strong go from “six figures busy” to “seven figures wealthy” because they can borrow cheaply to buy more cash-flowing assets instead of staying stuck with slow organic growth.

Corporate escapees often load up on debt without checking DSCR (because the old job had a steady paycheck). The risk is one slow month can mean missed payments and crushed credit.

Do it right: calculate DSCR monthly (cash flow ÷ total debt payments including principal and interest), keep it above 1.5, and only take loans the business can comfortably service from profits alone.

Paying attention to DSCR today dramatically increases your eventual exit value because buyers love businesses that are already proven to handle debt, making your company far more attractive for bank-financed acquisitions.

A strong debt service coverage ratio can unlock $500K–$2M in growth capital at 6–8  while competitors pay 20 %+ on credit cards or stay small.

Ignore it and watch good debt turn bad fast: missed payments, ruined credit, and forced fire sales instead of strategic expansion.

A good prompt to basic AI can pull your last 12 months of financials, calculate current DSCR, and model exactly how much debt your business can safely add, giving you banker-level clarity in minutes instead of weeks of spreadsheets.

Diversification is the intentional spread of revenue across multiple streams, client types, or income sources so no single loss (client, niche, platform, or offer) can cripple the business.

Thoughtful business owners who stay diversified wisely go from “six figures busy” to “seven figures wealthy” because one dry spell never becomes a crisis because they have multiple rivers feeding the same lake.

Corporate escapees often stay dangerously concentrated on one big client or one offer because “it’s working right now” — this fails the moment that client leaves or the market shifts and half their income vanishes overnight.

Do it right: aim for no single client >25 % of revenue and no single offer >50 %, then deliberately add one new stream every 6–12 months (membership, affiliate, productized service, or acquisition).

Buyers acquiring businesses pay life-changing premiums when revenue is diversified across documented, repeatable streams — because the company stays profitable and stable long after the founder departs.

One year of smart diversification can cut risk in half while opening entirely new profit centers you never had to hustle for.

Ignore it and watch one lost contract or platform change wipe out years of progress — the hidden killer of freedom and wealth.

A good prompt to basic AI can audit your last 12 months of revenue, score concentration risk, and map three low-effort diversification paths that fit your skills, giving you a resilient, seven-figure roadmap in minutes instead of years of trial and error.

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is the universal profit metric that strips out non-operating expenses to show how much cash your core business actually generates.

Disciplined solopreneurs who track and grow EBITDA go from “six figures busy” to “seven figures wealthy” because they know the real number buyers use to value companies above ~$1M revenue.

Former corporate employees often focus only on top-line revenue or SDE and get shocked when buyers recalculate to EBITDA and slash the offer — this fails because EBITDA is the standard for larger, more sophisticated deals.

Those who get this right start with net profit, add back interest, taxes, depreciation, and amortization (and owner salary if you’re still operating), then clean non-recurring items — review quarterly and optimize relentlessly.

Buyers acquiring businesses pay enormous premiums when EBITDA is documented, growing, and backed by repeatable systems — because true cash generation survives long after the founder departs.

One $100K increase in clean EBITDA at a 5× multiple adds $500K to your exit price.

Ignore it and watch your seven-figure dream turn into a six-figure disappointment when buyers apply the real metric you never tracked.

A good prompt to basic AI can take your last 24 months of financials, calculate true EBITDA with proper add-backs, and show exactly which levers move it most — giving you buyer-ready numbers in minutes instead of months of accountant spreadsheets.

Your Financial Freedom Number is the exact amount of monthly or annual passive/semi-passive income you need to cover your desired lifestyle forever, without ever touching principal or being forced to work again.

Business builders who keep an eye on their number make it a point to go from “six figures busy” to “seven figures wealthy” because every business decision is measured against “Does this move me closer to freedom?”

Former corporate employees often guess (“I’ll know when I get there”) or copy someone else’s $10K/month number. This fails because your actual number is personal and ignoring it keeps you chained to the business far longer than necessary.

Do it right: list every personal expense (rent, travel, kids’ school, charity, taxes), add a 20–30 % buffer for inflation and fun, then multiply by 12 (or 25× for the 4 % rule) — that’s your target.

Paying attention to your Financial Freedom Number today dramatically increases your eventual exit value because a business built to hit a specific, documented freedom target is far more focused, profitable, and attractive to buyers.

Having a clear Financial Freedom Number can shave 5–10 years off your working life by turning vague ambition into a precise finish line.

Those who ignore this grind for decades at “successful” revenue while freedom stays just out of reach.

A set of strong AI prompts can walk you through a detailed lifestyle audit, calculate your exact number with inflation buffers, and reverse-engineer the business model needed to hit it, giving you a personalized freedom roadmap in minutes instead of years of guesswork.

Good debt is money borrowed to acquire assets that produce more cash flow than the debt costs — SBA loans for cash-flowing businesses, ad spend at 3x ROI, or equipment that scales delivery.

Bad debt is money borrowed for consumption or lifestyle — cars, vacations, or “keeping up appearances” before the business can truly afford it.

Freedom-focused founders who master good debt go from “six figures busy” to “seven figures wealthy” by using leverage to buy income instead of trading time; those who fear all debt or drown in bad debt stay stuck or bankrupt.

Corporate escapees often treat debt like the old job’s credit card — “I’ll pay it off later” — and wake up crushed by high-interest bad debt that eats profit and freedom.

Do it right: only borrow when the asset pays for itself (and then some), keep debt service under 25% of cash flow, and document every loan against a specific revenue-producing purchase.

Paying attention to good vs bad debt today dramatically increases your eventual exit value because buyers love businesses already proven to profitably use leverage — making your company far more attractive for bank-financed acquisitions.

One smart good-debt deal (SBA loan on a $300K SDE business) can turn $100K cash into a million-dollar portfolio in 12–24 months.

Ignore it and watch bad debt quietly kill cash flow while good-debt opportunities pass to bolder buyers.

A good prompt to basic AI can analyze any debt or purchase, calculate exact ROI and payback period, and classify it as good or bad debt — giving you seven-figure leverage decisions in minutes instead of years of expensive mistakes.

Gross margin is the percentage of revenue left after subtracting only the direct costs of delivering your product or service (cost of goods sold) — the first true measure of whether your core offer is actually profitable.

Calm seven-figure founders who master gross margin go from “six figures busy” to “seven figures wealthy” because they know exactly how much each sale contributes to overhead and real profit.

Corporate escapees often treat every dollar of revenue as equal and never calculate gross margin — this fails when low-margin clients eat all the money and leave nothing for growth or freedom.

Do it right: for every offer, list revenue minus direct costs (ads, subcontractors, materials, payment processing), divide by revenue, and aim for 70–90% on services or 40–60% on products — then raise prices or cut costs until you hit the target.

Paying attention to gross margin today dramatically increases your eventual exit value because buyers love documented, high-margin offers that prove the core business is wildly profitable and transferable long after the founder departs.

One 10-point lift in gross margin can add six figures to your take-home this year without a single new client.

Ignore it and watch “busy” stay broke while competitors with 90% margins work half as hard and exit for millions.

Renew Prosper hands you the exact AI prompt to calculate gross margin for each product, service, or pricing tier that you sell. You get instant recommendations on what to raise, cut, or discontinue.

A liquidity event is the moment you convert years of business ownership into actual cash — usually by selling the company, taking on investment, or a major dividend payout.

Future ex-owners who build toward a deliberate liquidity event go from “six figures busy” to “seven figures wealthy” in one transaction; those who never plan stay trapped in the business forever or walk away with pennies when they finally burn out.

Corporate escapees often think “I’ll just sell when I’m tired” without realizing most small businesses never sell — they simply close and the owner gets nothing after a lifetime of work.

Do it right: from day one run the business like someone else will own it tomorrow — clean books, documented systems, recurring revenue, and a clear exit path (full sale, partial sale, or dividend recap).

Paying attention to liquidity event planning today dramatically increases your eventual payout because buyers love documented, repeatable businesses that deliver cash without the founder’s daily involvement.

A well-planned liquidity event can turn 10 years of grind into generational wealth and true freedom.

Ignore it and watch your life’s work die with you instead of funding the next chapter you dreamed of when you left corporate.

Renew Prosper hands you the exact AI prompt — already written for those who hope to exit profitably — to map your personal liquidity event timeline and the 7 must-have systems buyers demand, so you build for millions.

The Magic Number is your annual recurring revenue divided by your customer acquisition cost. It is the single ratio that tells you if your growth is truly profitable and sustainable.

Owners who keep their Magic Number above 1.0 go from “six figures busy” to “seven figures wealthy” because every marketing dollar returns more than it costs.

Former corporate employees who haven't evolved into seasoned business owners often spend on ads without ever calculating the Magic Number and wonder why revenue grows but profit never does — this fails because growth without a Magic Number above 0.8 is just expensive vanity.

Do it right: take last 12 months ARR, divide by total acquisition spend (ads, affiliates, content), and aim for 1.0+ — then cut channels below 0.7 and double down on those above 1.5.

Paying attention to the Magic Number today dramatically increases your eventual exit value because buyers love documented, repeatable growth that pays for itself — making the business far more attractive and profitable when you sell.

One point increase in your Magic Number can add six figures to profit this year without a single new customer.

Ignore it and watch marketing dollars vanish while competitors with Magic Numbers over 2.0 scale effortlessly to millions.

The prompt is already waiting inside Renew Prosper — just ask and we'll provide a pre-engineered prompt that will calculate your exact Magic Number, flag your best/worst channels, and map the fastest path to 1.5+ in 90 days.

Net worth is the true measure of your wealth — total assets (cash, investments, business value, home, etc.) minus everything you owe (debts, loans, mortgages).

Freedom-focused founders who track net worth go from “six figures busy” to “seven figures wealthy” because they see the real scoreboard and make every decision to move that number up.

Corporate escapees often confuse revenue with wealth (“I made $400K this year, I’m rich”) — this fails when the money leaks to lifestyle, taxes, or bad debt and actual net worth stays flat or shrinks.

Do it right: calculate it monthly — list every asset at fair market value, subtract every liability, update business valuation quarterly — then ask “What one move this month adds the most to this number?”

Paying attention to net worth today dramatically increases your eventual exit value because a high personal + business net worth proves you’ve been building real, transferable wealth, not just cycling cash.

One year of net-worth focus can turn a $300K revenue business with $50K net worth into a $3M+ sellable asset with $1M+ personal wealth.

Ignore it and watch six-figure revenue leave you broke in reality while everyone assumes you’re rich.

Renew Prosper hands you the exact AI prompt — already written for corporate escapees — to calculate your complete personal + business net worth and the three fastest moves to double it in 24 months, no spreadsheets required.

Operating Expenses (OpEx) are the day-to-day costs of running your business that aren’t directly tied to delivering a specific sale — rent, software subscriptions, insurance, marketing not linked to one client, VA salaries, and office supplies.

Disciplined solopreneurs who ruthlessly trim OpEx go from “six figures busy” to “seven figures wealthy” because every saved dollar drops straight to profit and compounds into freedom.

Corporate escapees often let OpEx balloon with “nice-to-have” tools and lifestyle creep because “the company always paid for it” — this fails when there’s no corporate budget to hide behind and one extra $500/month subscription quietly eats a year of profit.

Do it right: audit every expense quarterly, ask “Would I pay for this if it came from my personal checking account?”, cancel anything that doesn’t move revenue or sanity, and keep OpEx under 30–40% of gross profit.

Paying attention to OpEx today dramatically increases your eventual exit value because buyers love lean, documented cost structures that prove profitability isn’t inflated by founder perks.

One 10 % cut in OpEx can add six figures to your take-home this year without a single new client.

Ignore it and watch lifestyle creep quietly keep you broke no matter how much revenue grows.

The prompt is already waiting inside Renew Prosper — just ask and basic AI will audit your last 90 days of spending, flag every unnecessary subscription, and give you a lean OpEx plan that adds thousands to profit in weeks instead of years of drift.

Opportunity cost is the value of the next-best alternative you give up every time you say yes to something, the hidden price tag on every decision you make.

Future ex-owners who master opportunity cost go from “six figures busy” to “seven figures wealthy” because they stop trading hours for low-impact work and focus only on what actually builds the business.

Corporate escapees often say yes to every $2K project or shiny tool because “it’s money” — this fails when those hours could have built a $50K retainer or a sellable system instead.

Do it right: before any commitment, ask “What am I giving up by doing this?” — then choose the option with the highest long-term return on your time, money, or energy.

Paying attention to opportunity cost today dramatically increases your eventual exit value because every hour invested in high-leverage work compounds into documented assets buyers pay premiums for.

One year of ruthless opportunity-cost thinking can add six or seven figures to your net worth by killing low-ROI busywork.

Ignore it and watch your most precious resource — time — quietly leak on things that never move the needle while competitors build empires.

Renew Prosper gives you the exact AI prompt — already written for corporate escapees — to audit any decision, calculate its true opportunity cost, and show the higher-leverage alternative in minutes instead of months of regret.

Owner Salary vs Distributions is the tax-smart split in an S-Corp where you pay yourself a reasonable salary (subject to payroll taxes) and take the rest as tax-free distributions — legally saving thousands once profit crosses ~$80K–$100K.

Calm seven-figure founders who master this split go from “six figures busy” to “seven figures wealthy” by keeping 10–15 % more of every dollar they earn.

Corporate escapees often take everything as distributions to “avoid taxes” or everything as salary to “play it safe” — both fail when the IRS reclassifies and hits them with six-figure back taxes plus penalties.

Do it right: once profit reliably exceeds ~$80K–$100K, elect S-Corp status, set a defensible salary (use industry benchmarks or tools like RCReports), pay payroll taxes on that portion, and distribute the rest tax-free — document the reasoning.

Paying attention to owner salary vs distributions today dramatically increases your eventual exit value because buyers love documented, IRS-compliant tax strategies that prove the profit is real and transferable.

One year of correct structure can legally save you five figures in taxes while building clean books buyers trust.

Ignore it and watch the IRS turn your “clever” tax play into a nightmare audit that costs more than you ever saved.

One click inside Renew Prosper and the perfect AI prompt is yours — it calculates your exact reasonable salary, optimal split, and generates the documentation template that keeps the IRS happy and your wallet full.

Profit First is Mike Michalowicz’s cash-management system that flips the traditional formula (Revenue – Expenses = Profit) to Revenue – Profit = Expenses — forcing you to take profit first and run the business on what’s left.

Top 5% founders who live Profit First go from “six figures busy” to “seven figures wealthy” because profit becomes non-negotiable instead of whatever scraps remain after spending.

Corporate escapees often follow the old GAAP mindset (“pay everyone else first, hope something’s left”). This fails when lifestyle creep and surprise expenses leave zero profit and constant stress.

Do it right: open separate bank accounts for Profit, Owner Pay, Tax, and OpEx; on the 10th and 25th of every month allocate incoming revenue by fixed percentages (start with 1–5 % profit), then run the business only on the OpEx account.

Paying attention to Profit First today dramatically increases your eventual exit value because buyers love documented, repeatable profit allocation, it proves the business is genuinely profitable, not just high-revenue with no owner benefit.

One year of disciplined Profit First can turn a break-even business into one that pays you six figures in profit while building real reserves.

Ignore it and watch revenue grow while profit stays zero — the fast lane to burnout with nothing to show for it.

Renew Prosper gives you the exact, ready-to-use AI prompt — already written for corporate escapees — that instantly builds your custom Profit First percentage plan and bank-account setup guide in minutes instead of weeks of reading and guessing.

Profit margin is the percentage of revenue that turns into actual profit after every expense is paid — net profit divided by revenue — the ultimate measure of how efficiently your business converts sales into money you keep.

Freedom-focused founders who master profit margin go from “six figures busy” to “seven figures wealthy” because every dollar of growth now adds real wealth instead of just more work.

Corporate escapees often chase revenue while accepting 5–10 % margins because “that’s normal”; this fails when one bad month wipes out the year and freedom stays forever out of reach.

Do it right: calculate monthly (net profit ÷ revenue), target 20–40 % minimum, then raise prices, cut costs, or kill low-margin offers until you hit the number.

Paying attention to profit margin today dramatically increases your eventual exit value because buyers pay far higher multiples for documented, high-margin businesses that print cash without constant founder effort.

One 10-point margin increase can add six figures to your take-home this year without a single new client.

Ignore it and watch revenue grow while profit stays thin — the fast lane to burnout with nothing to show when you finally want out.

We hand you the pre-written AI prompt — already tuned for corporate escapees — to calculate your exact profit margin by offer, spotlight your three biggest leaks, and deliver a 90-day plan to add 10–20 points, all in minutes instead of months of guesswork.

The Quick Ratio (also called the acid-test ratio) is a snapshot of your business’s short-term liquidity — current assets minus inventory, divided by current liabilities — showing whether you can pay all immediate bills if revenue stopped tomorrow.

Calm seven-figure founders who keep their Quick Ratio above 1.5 go from “six figures busy” to “seven figures wealthy” because they never make desperate decisions from a weak cash position.

Corporate escapees often ignore the Quick Ratio completely (“I have money in the bank”) — this fails when a big client pays 60 days late and you can’t cover payroll or rent.

Do it right: calculate monthly (cash + receivables ÷ current liabilities), keep it above 1.5, and build reserves so a single bad month never threatens the business.

Paying attention to the Quick Ratio today dramatically increases your eventual exit value because buyers love documented, repeatable liquidity — it proves the company is antifragile and survives long after the founder departs.

One year of strong Quick Ratio discipline can add six figures to your personal safety net while making every negotiation stronger.

Ignore it and watch one slow quarter force fire sales, bad debt, or closure — the hidden killer of freedom and wealth.

One click inside Renew Prosper and the perfect AI prompt is yours; it pulls your last 90 days of transactions, calculates your exact Quick Ratio, and delivers a 90-day plan to hit 2.0+ — giving you bulletproof peace of mind in minutes instead of months of stress.

Recurring revenue is money that shows up predictably without new sales effort — memberships, retainers, subscriptions, or maintenance contracts — the closest thing to “money while you sleep.”

Future ex-owners who build recurring revenue go from “six figures busy” to “seven figures wealthy” because every month starts in the black instead of at zero.

Corporate escapees often stick to one-time projects because “that’s what I know” — this fails when one lost client wipes out a quarter and freedom feels like constant hustling.

Do it right: add one recurring element to your core offer (monthly group, $500 retainer, $49 membership) and make it the default way clients work with you long-term.

Paying attention to recurring revenue today dramatically increases your eventual exit value because buyers pay far higher multiples for documented, predictable income that survives the founder’s departure.

One $10K/month recurring stream can be worth $500K–$1M at sale (4–8× ARR) while giving you calm cash flow today.

Ignore it and watch your business stay valued like freelance work instead of a wealth-building asset.

We hand you the pre-written AI prompt — already tuned for entrepreneurs — to design your first profitable recurring offer and ascension path in minutes instead of months of trial and error.

Return on Investment (ROI) is the simple calculation of profit generated divided by money spent — (gain minus cost) ÷ cost — showing whether your time, ads, tools, or hires actually make you money or quietly bleed it.

Those top 5 % founders who track ROI ruthlessly go from “six figures busy” to “seven figures wealthy” because every dollar invested returns 3–10× instead of vanishing into vanity metrics.

People who still have corporate employee habits often spend on “shiny” tools or ads because “everyone else is doing it.” Unfortunately, this fails when thousands disappear with no measurable return and cash flow stays tight.

Do it right: before any non-trivial spend, define the expected return in dollars and timeline, track actual results monthly, and kill or double-down based on real data.

Paying attention to ROI today dramatically increases your eventual exit value because buyers love documented, repeatable marketing and hiring systems that consistently deliver high returns — making the business far more attractive and profitable when you sell.

One year of disciplined ROI tracking can add six or seven figures to your wealth by cutting losers early and scaling winners hard.

Those who don't pay attention watch money leak on tools, ads, and hires that feel productive but never move the needle.

One click inside Renew Prosper and the perfect AI prompt is yours — it audits any investment, calculates true ROI, and delivers the exact “keep, kill, or scale” recommendation in minutes instead of months of guesswork.

Revenue is the total money flowing into your business from all sources — the top line everyone loves to brag about.

Profit is what’s left after every single expense is paid — the bottom line that actually pays your bills and builds wealth.

Business owners who understand and differentiate between revenue and profit go from “six figures busy” to “seven figures wealthy” because they know bragging about revenue while profit stays thin is just expensive vanity.

Corporate escapees often chase revenue like the old job’s sales targets and think “I made $500K, I’m rich” — this fails when expenses eat 90 % and you’re still broke despite “success.”

To get this right: track both numbers monthly, aim for profit at 20–40 % of revenue, and treat any dollar that doesn’t become profit as a leak to plug immediately.

Paying attention to revenue vs profit today dramatically increases your eventual exit value because buyers pay for documented, growing profit — not just high revenue with no money left over.

One year of profit focus can turn a $500K revenue business with $20K profit into $300K take-home while making it sell for millions instead of hundreds of thousands.

Those who ignore this and watch revenue grow while they stay exhausted and cash-poor... well, that's the fast lane to burnout with nothing to show when they finally want to sell their business.

The prompt is already waiting inside Renew Prosper — just ask and basic AI will analyze your last 12 months, separate revenue from profit, and give you the exact three moves to add six figures to your take-home this year.

The Rule of 40 is the growth-plus-profitability benchmark where your annual revenue growth percentage plus your profit margin percentage should equal or exceed 40 — the simple litmus test for a healthy, sustainable online business.

Business owners who are building toward a successful, profitable exit (sale of their business) live above the Rule of 40 because they balance fast growth with real profit instead of burning cash on vanity metrics.

Ex-corporate thinkers often chase 100% growth with negative margins because “that’s what startups do” — this fails when the money runs out and there’s nothing left to sell. Cash flow is king!

Do it right: calculate monthly (YoY revenue growth % + profit margin %), aim for 40+ combined, and adjust — slow growth but high margins? Raise prices. High growth but low margins? Cut costs or raise prices.

Paying attention to the Rule of 40 today dramatically increases your eventual exit value because buyers pay far higher multiples for documented, repeatable businesses that grow profitably without endless cash burn.

One year above the Rule of 40 can turn a $500K revenue business into a calm, $2M+ sellable asset.

Those who ignore this become high-growth/low-profit companies and they flame out while low-growth/high-profit ones stay small forever — neither path leads to a wealthy exit.

We hand you the pre-written AI prompt — already tuned for corporate escapees — that calculates your exact Rule of 40 score, pinpoints whether you need more growth or margin, and delivers the three fastest fixes in minutes instead of months of guesswork.

Runway is the number of months your business can survive at current burn rate if all revenue stopped tomorrow — cash in bank plus liquid reserves divided by average monthly expenses.

Financial-freedom-focused founders who keep runway at 6–12 months go from “six figures busy” to “seven figures wealthy” because they never take bad deals or slash prices out of desperation.

Corporate escapees often run with 30–60 days of runway because “money is coming in” — this fails when one big client delays payment and panic decisions destroy margins or reputation.

Do it right: calculate runway monthly, cut non-essential burn ruthlessly, and build a separate “do not touch” reserve account until you hit minimum 6 months — treat it like oxygen.

Paying attention to runway today dramatically increases your eventual exit value because buyers love documented, repeatable cash buffers that prove the business is antifragile and survives long after the founder departs.

One year of disciplined runway building can turn a fragile operation into a calm, bulletproof asset that commands premium multiples.

Ignore it and watch one slow quarter force fire sales, bad debt, or closure — the hidden killer of freedom and wealth.

One click inside Renew Prosper and the perfect AI prompt is yours — it audits your last 90 days of cash flow, calculates exact runway, and delivers a 90-day plan to reach 12 months — giving you unbreakable peace of mind in minutes instead of years of stress.

SDE is the true cash flow an owner-operator can take home — net profit plus owner salary, personal add-backs, interest, and depreciation/amortization — the #1 valuation metric buyers use for Main Street businesses under ~$2M revenue.

Business builders who track and grow clean SDE go from “six figures busy” to “seven figures wealthy” because every $100K increase at a 4× multiple adds $400K to their exit check.

Corporate escapees often mix personal and business expenses with no documentation and wonder why buyers slash the price — this fails because sloppy add-backs trigger distrust and massive valuation cuts.

Do it right: keep a separate add-backs spreadsheet from day one, save every receipt, categorize clearly, and review quarterly so nothing is a surprise when it’s time to sell.

Paying attention to SDE today dramatically increases your eventual exit value because buyers pay far higher multiples for documented, verifiable owner benefit that survives the founder’s departure.

One year of disciplined SDE tracking can add six or seven figures to your final payout without a single new client.

Ignore it and watch buyers shave 1–2× off your multiple or walk entirely because they can’t trust the real cash flow.

The prompt is already waiting inside Renew Prosper — just ask and we'll help you use basic AI to audit your last 24 months, calculate true SDE with proper add-backs, and generate the exact buyer-ready report in minutes instead of weeks of accountant spreadsheets.

Tax strategy is the intentional, legal practice of structuring your business entity, deductions, retirement plans, and timing to minimize what you owe the IRS while maximizing what you keep — turning the tax code from enemy to ally.

Disciplined solopreneurs who master tax strategy go from “six figures busy” to “seven figures wealthy” because they legally keep 10–30 % more of every dollar instead of handing it over out of ignorance.

Corporate escapees often treat taxes like the old W-2 job (“just pay whatever TurboTax says”) — this fails when self-employment tax, quarterly estimates, and missed deductions quietly rob them of six figures they’ll never see again.

Do it right: form the right entity early (LLC → S-Corp at ~$80K profit), max retirement contributions, track every deductible expense from day one, and work with a tax pro who understands solopreneurs.

Paying attention to tax strategy today dramatically increases your eventual exit value because buyers love documented, repeatable tax structures that prove profit is real and transferable — not inflated by sloppy books.

One year of smart tax strategy can legally save you five figures while building clean financials buyers trust. A decade of this results in hundreds of thousands more at exit.

Ignore it and watch the IRS become your silent business partner who takes 30–50 % of everything you earn.

We hand you the pre-written AI prompt — already tuned for corporate escapees — that audits your current setup, flags every missed deduction, and builds your personalized tax-minimization plan in minutes instead of thousands in accountant fees.

Unit economics is the profit or loss generated by a single transaction or customer — revenue per sale minus all variable costs directly tied to that sale — revealing whether your core business model actually makes money before overhead.

Top 5 % founders who master unit economics go from “six figures busy” to “seven figures wealthy” because they know every new client adds real profit instead of just more work.

Corporate escapees often look only at total revenue and assume “more sales = more money” — this fails when low-margin or loss-making units quietly bleed the business dry while volume grows.

Do it right: for every offer, calculate revenue minus direct costs (ads, subcontractors, payment fees, materials), aim for at least 3× return, and kill or fix anything below 2× immediately.

Paying attention to unit economics today dramatically increases your eventual exit value because buyers love documented, repeatable models where each customer is profitable — making the entire business far more attractive and scalable long after the founder departs.

One optimized unit can turn a break-even funnel into a cash machine that funds growth without constant hustle.

Without paying attention to this, “growth” can mask a broken model that collapses the moment you try to scale or sell.

We hand you the pre-written AI prompt — already tuned for corporate escapees — to calculate unit economics for every offer, flag losers, and deliver exact fixes that add six figures to profit in 90 days.

A valuation multiple is the number of times your profit (SDE or EBITDA) a buyer is willing to pay to acquire your business — typically 2.5–8x depending on risk, growth, and transferability.

Those who someday want to sell their business understand that they can sell for more if they deliberately push the drivers that move the number from 3x to 6x+ before they list their business for sale.

Corporate escapees often think “more revenue = higher price” and ignore the multiple drivers, This can result in a $1M revenue business with high owner dependence selling for 2x while a $600K revenue business with systems sells for 6x.

Do it right: from day one build recurring revenue, document every process, reduce owner hours, and keep financials buyer-clean — each improvement adds 0.5–2× to your multiple.

Paying attention to valuation multiple today dramatically increases your eventual exit value because buyers pay far higher multiples for documented, repeatable businesses that generate profit without the founder’s daily involvement.

One extra turn on your multiple (4x → 5x on $300K SDE) puts an extra $300K in your pocket at sale.

Ignore it and watch your seven-figure dream shrink to a six-figure disappointment because buyers only see risk.

One click inside Renew Prosper and the perfect AI prompt is yours — it scores your business on the 12 multiple drivers, shows exactly how many turns you’re leaving on the table, and delivers the 90-day plan to add 1–2x before you ever talk to a broker.

Velocity is the speed at which money cycles through your business: how fast you turn invested dollars into revenue and revenue back into cash, measured by shorter client payment terms, faster delivery, and lower days-sales-outstanding.

Freedom-focused founders who increase velocity go from “six figures busy” to “seven figures wealthy” because the same revenue requires far less capital tied up, letting every dollar work harder and compound faster.

Corporate escapees often let 60–90 day payment terms and slow delivery become the norm — this fails when cash gets trapped and growth stalls even though sales look strong on paper.

Do it right: invoice immediately with 15-day terms and late fees, deliver faster than promised, and use tools that auto-follow-up — every day shaved off the cycle is free money.

Paying attention to velocity today dramatically increases your eventual exit value because buyers love documented, repeatable cash cycles that prove the business is capital-efficient and profitable long after the founder departs.

A 30-day reduction in cash cycle can free six figures in working capital while making your business look leaner and more attractive.

Ignore it and watch profits sit in “receivables” while you borrow or beg for cash — the hidden choke that keeps wealth locked up instead of working for you.

The prompt is already waiting inside Renew Prosper — just ask and basic AI will audit your current cash cycle, calculate exact velocity, and deliver the three fastest fixes to free six figures in trapped cash in 90 days.

The Wealth Gap is the difference between your current net worth and your Financial Freedom Number — the exact amount of passive/semi-passive income needed to cover your desired lifestyle forever.

Thoughtful, intentional founders who measure and work to close the Wealth Gap can succeed if every business decision is laser-focused on the one number that actually buys freedom.

Business owners who used to be corporate employees can struggle because of a tendency to ignore the gap entirely (“I’ll know when I’m there”) and grind for decades while net worth barely moves. This is an unforced error because revenue without wealth-building is just a treadmill. No one leaves a corporate job with benefits to end up in a worse position.

Do this right: calculate your Freedom Number annually, subtract current net worth, then reverse-engineer the exact revenue, profit, and investment plan needed to close the gap in 5–10 years.

Paying attention to the Wealth Gap early and often dramatically increases your eventual exit value because a business deliberately built to close that gap is far more focused, profitable, and attractive to buyers.

One year of gap-closing focus can shave 5–10 years off your working life and turn a $500K revenue business into a $3M+ sellable asset.

Ignore it and watch yourself stay “successful” on the outside while still chained to the business on the inside — freedom forever just out of reach.

Renew Prosper gives you the exact, ready-to-use AI prompt — already written for corporate escapees — to calculate your Wealth Gap, model multiple closing scenarios, and deliver your personalized 5-year freedom plan in minutes instead of months of guesswork.