After my last article, I received quite a number of questions so I figured that you may want more strategies on how to increase the value of your business. If you have successfully built the ABCD from the previous article, and you want to take it a step further then here are a few more points you can consider to take your valuation to the next level. Some of these strategies require a bit more “brain work” but if you do them well right now, then you can expect your business to do well in the long run. Remember it is better to execute one strategy at a time and do it well, than try to do everything and end up accomplishing nothing. So here are the 5 strategies to take your valuation to the next level.
Growth Plan and Strategies
It is a good habit to always start with the end in mind. Just like a ship sailing at sea, we need to know where the destination is, and we build the travel route according to the destination. When the travel route is unclear, then the ship may not be able to arrive at its destination, wasting a lot of resources along the way. So this travel route is like our Growth Plan and Strategies. There is a saying that, “He who fails to plan is planning to fail”. Any business who wants to thrive and continually grow must always have plans and strategies on hand to guide the trajectory of the business. The clearer a business’s growth plan is, the better its valuation. Potential investors and buyers always look for thriving businesses that show potential in the long run, and the business’s growth plan says it all to investors and buyers. Having clear Growth Plan Strategies helps your business stay on a favorable track and catches the interests of big investors.
Unique Selling Proposition
Having a USP does not only provide you with something to leverage in order to maintain competitiveness, but it also establishes an identity that can create relatability which encourages brand loyalty that helps you overcome price competition. Skillfully crafting your brand and positioning your business is crucial to increase the value of your business. It doesn’t end with just crafting your brand, it is also important to continually refine your USP and protect it with something like patents. Having a strong USP makes sure that you have a niche in the market, which in turn means a good amount of market share. Just always remember to supplement this by identifying you and your competitors’ Strengths and Weaknesses, is necessary to keep hold of your competitive advantage.
System
Systemising operations protects the whole business and increases valuation. It allows the business to quickly adapt to changes, efficiently operate, and reduce risk when key members leave the business. Having a good system greatly makes the business run smoother and easier. And even though crafting a working system and perfecting it requires a great amount of time and effort, setting aside a little bit of time every week can solve your problems in the long run. A good system is perhaps the best investment you can have on your business, investing your time and effort now so that when your system is running smoothly and perfectly, all that is left is to sit back and relax.
Strong Leadership and Management Team
Having a strong leadership and management team allows the business to run without you, allowing you to focus on key strategic points and decisions, leaving the time-consuming and exhausting operations to your managers. It isn’t easy to establish a team that can deliver optimal results without supervision, but combined with a well crafted system, you can find yourself with a business that can run itself without any problems which is any business owner’s dream. This can be achieved by running workshops and seminars occasionally to sharpen your managers, or preparing certain candidates for promotions. Hiring specific individuals with the right skillset can also be a good move, however the recruitment process can be a little bit tricky, expensive, or both. Having homegrown talents is probably going to give you the best results, who else is better in managing your business than the people who have the experience and your trust for years.
Scalability Factor
Transitioning from working IN the business to ON the business lets your business scale independently from you as an owner. Freeing the business from being tied to you allows it to grow even more, and is very healthy for the business in the long run. If people only want to buy your business because of you, then it is not scalable, and is not worth very much. Shifting the value from the business owner to the business itself puts the business on a whole other level. Pinning the scalability factor to the business owner isn’t necessarily negative, however as the business grows in value, it can be bottlenecked by the owner as the scalability factor.
These 5 points combined with Part 1’s ABCD can significantly up your game and put you ahead of your competitors. Even though creating a System, establishing a Strong Leadership and Management Team, and working on your Scalability Factor can be demanding, the time you’ll get from allowing your system and team to work for you immediately makes up for the effort. Factoring in these 5 points, how scalable is your business? If you are very much still in the business and you are selling your time, feel free to talk to me and I’ll help you make your business more scalable.
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About the Author
Coach Felie is a business coach and experienced trainer, having a successful track record of growing companies across various industries by 100-500% within a year. With her firsthand experience working with companies and their leaders, Coach Felie transforms disengaged employees into fully engaged leaders that create long-lasting results. Having seen the troubles people experience as they try to start their own business, she has made it her mission in life to help others help themselves in growing and succeeding in their businesses.
