Value Creation

 

Value creation as our primary objective of any business
It is obvious that most successful organizations understand that the purpose of any business is to create value for its customers, employees, investors as well as its stakeholders.
Value is created by the performance of teachable and repeatable actions that increase the worth of a business to its targeted customer. Many business operators now focus on value creation both in the context of creating better value for customers buying and experiencing its products and services, as well as for the business’ shareholders who want to see their stake appreciate in value so that they can exit on that value created.
Efficient ways to create value
The value of your company is partly determined by your industry. For example, cloud-based software companies are generally worth a lot more than printing companies these days.
However, major variations transpire in valuation; thus, the case for transformational value creation. Working with our partners at The Value Builder System™, we found a few things that will create value for you. Value creation has nothing to do with what you do, but instead, how you do it. 
1. Recurring Revenuevalue creation

The more revenue you have from automatically recurring contracts or subscriptions, the more valuable your business will be to a buyer.

2. Something Different

Companies with a unique product or service that is difficult for a competitor to knock off are more valuable than a company that sells the same commodity as everyone else.

3. Growth

Value is created if your business is growing much faster than your industry overall.

4. Caché

If you are the darling of your industry trade media, expect to get a premium acquisition offer.

5. Diversity

Acquirers pay a premium for companies that naturally hedge the loss of a single customer; ensure no customer amounts to more than 10 percent of your revenue.

6. Predictability

If you’ve mastered a way to win customers and documented your sales funnel with a predictable set of conversion rates, your secret customer-acquiring formula will make your business more valuable to an acquirer than an industry peer who doesn’t have a clue where their next customer will come from.

7. Clean Books

Companies that invest in audited statements have financials that are generally viewed by acquirers as more trustworthy and therefore worth more.

8. A 2iC

Build value by having a second-in-command so that not all the power and knowledge are in the hands of the owner.

9. Happy Customers

Being able to objectively demonstrate that your customers are happy and intend to re-purchase in the future will make your business more valuable.

Book today with one of our Resultants 

To Learn More About Our Value Enhancement System or to Schedule a Time to Discuss Your Business Needs, Click on the Contact Us Button or Call Us at 1-800-701-6875.