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Building Value in Your Business

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Building Value in Your Business

By , July 30, 2020
performance-reviews

Your guide to making your business more valuable.

Part of building value in your business is the profit it makes. But there are many more factors that increase the value of your business. Knowing what these are allows you to focus on areas of your business that you will gain a genuine, material return on the investment.

How do you know how much your business is worth, right now? Not just the numbers but all the other risk factors that an investor or buyer will look at when deciding to acquire. The solution – a Stage 1 Insights Report. It’s more than just a valuation. It is deep insight into your business.

Identifying Value

business insights
Multiple Scorecards of All Areas of Your Business

With over 10 years’ experience in valuing businesses, the Insights Report gives a clear view of the strengths and weaknesses in a business. The report action plan then allows business owners to focus on the activity most likely to maximise the value of their business. This makes them ready to achieve a successful exit.

The business insights report provides an overall insight score. This includes financial, non financial, exit and sale readiness, and credit and benchmarking comparisons.

Maximising Value

Ultimately, the report shows the current valuation. Telling you exactly what the business is worth today. More importantly it also the key drivers, issues, risks and gaps that have been identified. This allows you to see where you can improve the value of your business. You see the link between activity and increasing the value of the business over time.

BUILDING VALUE IN YOUR BUSINESS
Valuation Summary

As insightful as the Stage 1 Report is, it is only with action that you are building value in your business. The report provides a detailed implementation plan using our unique 21-Step Business Succession and Exit Planning process.

(To find the complete 21 Step process, click here to get a free e-book)

21 Step Proven Process

The 21-Step Proven process brings over 10 years of wisdom gained from working with over 500 clients. It utilises over 150 business tools (checklists, templates, processes and documents) to deliver results in reducing risk, filling identified gaps and improving performance.

business insights report 21 step table
21 Step Proven Process

Each step implemented within the business builds value, reduces risk and improves profitability. So does overall financial performance.

More Than A Valuation

The Insights Report identifies more than 150 different metrics. These are beyond financial and include non-financial analysis, risk assessment and benchmarking. All this guides the business owner in exactly the right steps to take. Especially which steps are going to make the most difference to improving and building value in the business. Priority given to the risks that are extreme or urgent means they are resolved as quickly as possible. This minimises risk and protects the value of the business.

Implementation of all the steps, tools and processes takes time. This identifies which levers to pull to change the value of the business. Over a 12 to 18-month period, it’s not unusual to see the value of the business increased by 20%, 30% and even 40% or 50%. But you have to know where to start.

How Others See Your Business

Most businesses never undertake any form of benchmarking. The Business Insights report benchmarks other mid-market businesses in your industry. Any acquirer will do this investigation so it is worth knowing what they will find. Benchmarking helps to see your business in the context of the wider market.

Your business might perform well financially but has some risks and non-financial issues. The report will help identify those so they can be rectified. Banks and other lenders can look at the insight report and get a very clear view of where your business is at and where it’s heading. It also shows what you’re doing as an owner to start to address any issues.

When you look at selling or raising capital or investment or even debt, then the report shows an independent view of your business. People who look at your business with an independent review quickly get some clarity and comfort for what they’re investing in, lending to or buying. Every business with an insights report has a realistic view of the state of the business. Reviewed regularly, and the actions implemented help you as a business owner maximise the value of your business and achieve a successful exit.

For more information on extracting value from your business, click here

Darryl Bates-Brownsword

Darryl Bates-Brownsword

CEO | Succession Plus UK

Darryl is a dynamic, driven Business Mentor and Coach with over 20 years of experience and passion for creating successful outcomes for founder-led businesses. He is a great connector, team builder, problem solver, and inspirer – showing the way through complexity to simplicity.

He has built 2 international multi-million turnover businesses; one now operating in 16 countries. His quick and analytical approach cuts through to the core issues quickly and identifying the context. He challenges the status quo and gets consistent, repeatable and reliable business results.

Originating in Australia, Darryl’s first career was as an Engineer in the Power Industry. Building businesses brought him to the UK in 2003 where he quickly developed a reputation for combining systems thinking with great creativity to get results in challenging situations.

A keen competitive cyclist, he also has a B Eng (Mech) Engineering and an MBA.