Ever Wondered What Your Business Is Worth?

Here's a question that keeps every entrepreneur up at night: What the hell is my business actually worth?

Most founders have no clue. They'll throw around numbers like "Oh, we're probably worth $5M" based on... what exactly? A gut feeling? That one time their cousin's friend sold their SaaS for 10x revenue?

Look, I get it. Business valuation feels like voodoo magic mixed with Excel spreadsheets. But here's the thing — knowing your business's value isn't just some ego trip. It's strategic intelligence.

The $170M Beauty Brand That Thinks Like a SaaS Company

Drew F. just dropped the first-ever private company breakdown that perfectly shows why most founders are clueless about valuations. His friend Ryan Babenzien co-founded Jolie Skin Co., and the numbers are absolutely wild.

Here's what caught my attention: Jolie isn't just another beauty brand. It's a SaaS company disguised as a shower filter business.

The numbers are insane:

• 16,000 new customers per month (profitably)

• $135 average order value

• 80%+ product gross margins

• 60%+ delivered margins

• $46M in trailing twelve-month revenue

• 85% gross retention at 12 months (higher than most SaaS companies)

But here's the kicker — Drew valued Jolie at $170M. That's 3.41x revenue and 17x EBITDA.

For a beauty brand.

Why This Changes Everything About Consumer Valuations

Most DTC brands get valued like, well, consumer brands. Low multiples, high skepticism, constant questions about customer acquisition costs.

But Jolie cracked the code. They built SaaS economics in a consumer package:

The razor-and-blades model perfected: High-value initial purchase (the shower filter) with recurring subscription revenue (replacement filters). It's genius because customers have to keep buying — their shower literally doesn't work without new filters.

Retention that makes SaaS founders jealous: 85% gross retention means customers stick around. Almost half of their $46M revenue comes from subscribers. That's not typical consumer behavior — that's subscription software behavior.

Margins that matter: 80%+ gross margins on a physical product? Most consumer brands dream of 40%. These margins give Jolie the unit economics to scale profitably.

The Valuation Lesson Every Founder Needs

Drew's breakdown shows exactly why traditional valuation methods fail modern businesses. If you valued Jolie like a typical consumer brand, you'd probably land around 2-3x revenue. But that ignores the subscription mechanics, retention rates, and profit margins.

The brutal truth? Your business model determines your valuation more than your industry.

Jolie proves that a "beauty brand" can command SaaS multiples if it has SaaS characteristics. The product category matters less than the underlying economics.

The Three Numbers That Actually Matter

Forget the complex DCF models for a second. Here are the three valuations every founder should know:

1. Book Value (What You Own)

This is accounting 101. Assets minus liabilities. It's usually the lowest number, but it's your floor. If everything goes to hell, this is what you can salvage.

2. Market Value (What Others Pay)

Look at comparable companies in your space. What multiples are they trading at? But be careful — Jolie shows why you might be comparing yourself to the wrong businesses.

3. Strategic Value (What You're Worth to the Right Buyer)

This is where the magic happens. Maybe you're worth 3x revenue to a beauty brand buyer, but 8x revenue to a subscription commerce platform that understands your retention metrics.

The Valuation Mistakes That Cost Millions

Mistake #1: Using the wrong comparables Most founders compare themselves to businesses in their "industry" instead of businesses with similar economics. Jolie isn't competing with beauty brands for valuation — it's competing with subscription businesses.

Mistake #2: Ignoring unit economics Revenue multiples are meaningless without understanding the underlying profitability and retention. Jolie's 17x EBITDA multiple makes sense because of their retention rates and margins.

Mistake #3: Undervaluing recurring revenue One-time sales and subscription revenue aren't the same thing. Investors pay premiums for predictable, recurring cash flows. Almost half of Jolie's revenue is subscription-based.

How to Actually Figure This Out

Step 1: Understand your business model Are you really a [insert industry] company, or are you something else? Jolie calls itself a beauty brand, but the economics say it's a subscription business.

Step 2: Know your metrics cold Customer acquisition cost, lifetime value, gross retention, net retention, contribution margins. These drive valuations more than top-line revenue.

Step 3: Find the right comparables Look beyond your industry. What businesses have similar unit economics, retention rates, and growth profiles? Those are your real comparables.

Step 4: Get professional help Hire someone who understands modern business models. Traditional valuators might miss the subscription dynamics that make your business valuable.

The Bottom Line

Jolie's $170M valuation isn't just about shower filters — it's about building SaaS economics in a consumer package. They proved that your business model matters more than your industry when it comes to valuation.

Consumer spending is 70% of U.S. GDP. Tech is just 10%. If you can bring software-like economics to consumer markets, you're not just building a business — you're building a category.

Most founders spend more time researching their next laptop purchase than understanding what their life's work is worth. Don't be most founders.

Take the time to figure this out. Your future self (and your bank account) will thank you.

Credit to Drew F. for sharing the first-ever private company breakdown of Jolie Skin Co. on LinkedIn. Sometimes the best business lessons come from real numbers, not textbooks.