Earning vs. Creating: How a Cap-Table Insight Inspired The Index for Main Street

When I was working in private equity, I spent countless hours poring over cap tables—those detailed spreadsheets showing ownership stakes, investment rounds, and valuation milestones. One afternoon, as I balanced equity percentages and dilution effects for yet another deal, it hit me: there’s a stark difference between earning income and creating lasting wealth. Earning means trading hours for dollars; creating means building an enterprise whose value can compound and endure. That realization planted the seed for what would become The Index, our new benchmark for measuring and driving true wealth creation for Main Street businesses.

In private equity, value creation often follows a clear roadmap: identify inefficiencies, inject capital, optimize operations, and execute an exit strategy. But for small businesses—your local cafés, boutique shops, and family-run manufacturers—those playbooks rarely apply. Many owners are masters at today’s operations but lack a systematic way to translate hard work into scalable value. I asked myself: if a cap-table can quantify the upside for sophisticated investors, why can’t small-business owners have their own “cap table” for measuring enterprise value?

That question led to months of research and collaboration with our P&G Advisors team. We interviewed dozens of entrepreneurs, compiled financial and operational data, and applied the Value Builder framework to identify the eight core drivers of valuation. We then packaged those drivers into a single, composite score—The Index—that reflects a company’s health, growth trajectory, and wealth-creation potential. Just as a public-market index tracks a basket of stocks, The Index tracks the collective strength of actionable, owner-driven value levers.

But The Index isn’t just a score; it’s a strategic tool. When a client scores a 45 out of 100, we don’t leave them guessing. We break down which areas—whether recurring revenue, margin growth, or customer diversification—are holding them back. We then deliver a customized roadmap, complete with benchmarks against peer companies and clear milestones for improvement. Over the past year, firms that have embraced The Index have seen a 20% average increase in enterprise value within six months—and, more importantly, they’re building wealth that no single paycheck could ever match.

Beyond the numbers, The Index has a community impact mission. I grew up on Chicago’s South Side and have witnessed the power of thriving small businesses to anchor neighborhoods, create jobs, and inspire the next generation of entrepreneurs. By democratizing the valuation tools once reserved for big investors, we’re empowering Main Street owners to unlock capital, attract partners, and, ultimately, inject lasting wealth back into their communities.

As we launch The Index, our goal is simple: to shift your focus from merely earning today’s revenue to consciously creating long-term wealth. Whether you’re a café owner in Hyde Park, a manufacturer in Pilsen, or an online retailer serving customers worldwide, The Index gives you a clear picture of where you stand—and a roadmap to where you can go. Join us on this journey, and let’s turn your hard-earned efforts into enduring value for your business and your community.