Value Creation 101: 12 Basics
Value, like something precious and rare, is a rich mixture of perception and scarcity.
There are many ways to create value with this in mind and here are a few basics for most business principals:
- Be focused with an end in mind, however general, and be thoughtful in your decision-making.
- Be clear about the expectations you have for yourself and others, both internally and externally.
- Make sure the people that work with you have the necessary resources to help build the business.
- Have a transparent system for reporting performance results and the simpler the better.
- Know your numbers and, if you are really brave, encourage financial literacy in the workplace.
- As you build a customer base, always market to existing customers first, and then build from there.
- Focus on continual learning throughout the organization and encourage discussion, debate, and some disagreeableness.
- Insist on accountability and initiative, with as few meetings as possible.
- As a principal, always use advisors and consultants to creatively consider your options.
- Manage your cash flow carefully and invest in opportunities to grow, not the illusion of synergy.
- Focus on sales and revenue generation over cost savings in the long run.
- Embrace accessible and affordable technology.
There are many other basics or variations on the above. The last point is simply “it’s ok to lose sleep from time to time.” Whether you have a small business or a large manufacturing concern, it comes with the territory. In fact, it’s probably necessary and you will reflect back on it as part of what it took to build a successful enterprise.