How To Put Your Pedal To The Metal: 6 Steps To Enhance Your Business Value
By Tom Schramski, PhD, CMAA
Volume 1 Issue 22, November 25, 2014
Many business owners are so consumed by the day-to-day demands of their business operations that they lose sight of what really drives value from an investor’s or buyer’s perspective. This is very understandable, especially at start up or during a crisis, yet it’s essential that over time you build your company with the eyes of buyers in mind.
So what do buyers look for? That depends on the buyer’s objectives, but here are some common themes with practical steps that you can take to address them:
- Focus on sustainability – While strong top line growth and profitability are important, take time to look inside your results for trends and assess what is on the horizon for your marketplace. Even if something potentially negative is coming your way, knowing about it puts you in a stronger place to act productively.
- Be in the right role – As much as possible, remove yourself from day-to-day operations and focus on being in a strategic planning and decision-making position. This is often one of the first things strategic buyers consider in evaluating your management talent and their ability to continue your success when you leave.
- Reward people who take an informed risk to innovate – Encourage creativity and the willingness to fail and learn. These types of people will accelerate your sustainable growth and reinforce others who have been thinking of taking a chance.
- Give people what they need – Provide your coworkers with the basic materials and resources they need to be successful. How do you know? Ask them and you will learn how resourceful most people can be.
- Be informed by data – Make critical decisions based on data that is directly related to what you want to achieve and ask everyone to keep track of data related to their work expectations. This is where affordable and accessible technology plays a significant role.
- Bring yourself and everyone else back to your vision – Vision is what drives above average companies and most of the time it’s something very basic like delivering premier service and/or products in your marketplace.
While value is always in the eye of the beholder, it can be in the eye of many beholders. That happens when you take some simple steps that integrate your goals with the dreams of others.