Building Business Value
Rachel Panther Business Coach at Harborough Innovation Centre shares how you can start Building Business Value.
So you’ve got your own business or you are thinking of starting one. Why? What do you want to get out of it? What do you want to give to your customers?
The answers to the above 2 questions are two sides of the same coin.
Firstly, any business has a tangible value analysed by the company’s balance sheet but the true worth is calculated by adding in additional intangible measures of value such as Intellectual property, customers and the strength of your brand. Basically, anything that would be attractive to a potential buyer of your company.
Start with the end in mind. If one day you intend to sell your business develop the business into something of value to potential buyers and just as importantly make sure you the organisation can operate without you.
The second side of the value coin is the value you provide to customers.
- What benefits are they seeking?
- What solutions are they looking for?
- How are you different, what do you do really well?
- What value do they perceive they will get if they buy from you?
Value is very much in your customers’ hearts and minds. It’s their perception of your brand. What are you offering them that will convince them to part with their money? It is the perceived value that they are buying.
To create both kinds of value it is important to have a plan. What problems do customers have that you solve, how do you do it and demonstrate it? What are you trying to achieve? Personally – how much money do you want to take out of the business? Do you want to have an entity to sell or will the business retire when you do? Know this and work towards that goal.
You will then build a business with real value.