Other than financial . . . . . value creation is the essence of business. Value is what attracts and keeps customers, attracts and maintains relationships with investors and suppliers who are critical to the businesses long term success.
It is a mistake to look at your business from within – better to look at your value propositions through your customers’ eyes, because the biggest differentiator on valuations of a business is the intangible value placed on business reputation. So, therefore
- Make and keep realistic promises on service, quality and delivery
- Use IT to improve transaction speed and information sharing
- Develop staff decision making practices
- Spend more time and money on the important areas
- Build capability within your business
- Build enthusiasm with your staff
Value is all about creating a ‘serving mission’ for your customers.
There are 9 things that will make your business worth more than your competitors in the same industry.
1) Recurring income
2) Provide something different
3) Show growth at a pace
4) Be seen as a ‘trendy’ innovative company
5) Ensure no customer is responsible for more than 10% of your revenue
6) Be able to predict business conversion rates
7) Have a second in command
8) Be able to demonstrate happy customers
9) Remove complexity and duplication in your business processes
If you can tick a number of theses 9 facts you are well on your way to creating and building an enhanced value for the future.
And looking to the future. Stop thinking about ‘making products’ and start thinking about experiments. Because it is one of the experiments which will be the one opportunity that will make your business fly!