How To Grow Business Value
Grow Business Value – A Proven Framework For Professionals, Entrepreneurs, Startups, SMBs and SMEs
Grow Business Value
As a founder of a business, you will understand your objective is to be profitable, otherwise you will not survive. However, what many do not understand is the big picture. Because more important than profitability, is to create long term business value.
In other words, you are creating a wealth asset that gives you options in the future. For example, options like allowing you to borrow funds to further scale. Or options to expand through establishing a franchise. Even the ability to licence your business, because it is clear your business is valuable.
Alternatively, you may even consider at some future point, selling your business. This may make a significant profit for your retirement or next venture!
Your Balance Sheet Only Tells Half The Story
The challenge for most founders is that even a strong balance sheet, does not always guarantee future value.
This is because future investors may not fully understand your business. Or importantly, you have not established the critical business assets. For example, formal structures to operate your business, repeatable processes, or embedded ongoing marketing systems. All these add value help to re-enforce the true value combining current and projected financials, brand value and market value.
That’s Why The Imperative Of Systems Is Your Final Focus
The Imperative of Systems, ensures you are focusing on working “on your business and not in your business” as Michael Gerber, author of the eMyth says. What this means is that simultaneously you have implemented systems to help you plan, manage, campaign and re-invent your business, so that you remain relevant and sustainable into the future.
To help you with The Imperative of Systems for your business, there are four steps that you need to implement…
The 4 Steps To Grow Business Value By Being Systems Focused and Executing Consistently…
Step 1 – Model To Attract Advocacy
When you set up a new business, it is important to have a thorough understanding of how this will work and typically, this is achieved through what we like to call a business plan.
This is where you outline in a document the management team who will make the money, what you are really selling, industry trends, marketing, how does your business work, expressing your ideas in financial terms, and enlightening extras, wrapped in your pitch.
Step 2 – Mobilise To Pivot Fast
Once your business is up and running, it is an important that a working rhythm is established where there is a series of key activities that form what we call a management operating system.
This operating system establishes the working rhythm of your business ensuring things get done!
Step 3 – Market To Accelerate Growth
If all you are doing is selling, and not running disciplined marketing campaigns, then it’s likely you’re missing out on sales opportunities.
The key is being “disciplined” and what this means is that over twelve weeks, four times a year, you are running a specific campaign on top of your business as usual activities. This starts with planning, then the implementation, followed by sales conversion.
Step 4 – Maximise To Deliver Long Term Value
Our last focus, but probably the most important of all, is the ability for your business to be sustainable – because your overall objective is to build business value for longer term sustainability.
Depending on where you’re coming from, there are many approaches to sustainability. At The Startup Business, we take the view from the big picture and include talking to you about your business succession plan, opportunities for licencing or franchising your business, and even selling your business at some point in the future.
Discover The Ways In Which We Can Help You Create Long Term Business Value Fast…
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