Value Realized: How Do You Get There?
If you accepted our challenge last week, you should have a clear idea of what Value Realized means to you. While making a list may not seem like you've achieved much, having a clear understanding of what you want your business to do for you is the first step in designing a business of value.
Here is the hard truth...business owners (maybe even you) are already taking the time and expending the effort to design a business that does not give them what they want. The key is to be determined about the right work - the work of designing a business that gives you more than it takes out of you!
The secret sauce is how you THINK about designing your business. If your business isn't currently giving you what you want, you need to design it differently - the way you think today is what is giving you the business you have today. First, THINK DIFFERENTLY. This allows you to design a business that gives you, your employees, your customers and ultimately the next owner the best possible results.
The good news is, you don't have to do it alone. You don't have to reinvent the wheel. You don't have to redesign your business from scratch. There are well-designed and proven tools and best practices that will help you design a business of value. Yes, you will have to spend time adjusting them to fit your idea of Value Realized, but getting started isn't as difficult as you would think. Your next step is to benchmark where you are today and truly understand what needs to be different. You need to know:
- What would a buyer pay for your business today?
- How close are you to having a business that gives you what you want?
So where do you start? If you're at the point where you're ready to sell your business within the next year, you're going to want to get an Opinion of Value.
An Opinion of Value, provides a detailed analysis of the market value for your business as it is today.
Remember, what you think your business is worth is often not the market value-or what a buyer would realistically pay. If you plan to stay in your business another year, or two or 25, and want to realize value day to day AND grow the value of your business, we recommend starting with a Value Builder Score.
The Value Builder Score is a tool that was made famous by John Warrillow in the best-seller, "Built to Sell". It is an assessment that is built on a set of 8 Key Drivers that studies have shown can influence the sellability of a business.
In addition, we've found that by focusing on these eight key drivers an owner can create a business that not only has more value when they go to sell it, but also gives them more value while they own it.
Improving these drivers will help business owners create more time, more growth, and overall more value on a day to day basis while they own their business and increase it's value when they are ready to sell. Every business owner should understand these 8 key drivers and know how they can leverage them to design a business that gives them more value.
Knowing your score is essential - it only takes 15 minutes and you can do it for no financial cost.
Our passion has always been about helping business owners create a business of value and we believe whether you are our client or not, you can and should benefit from this assessment. Stay tuned, next week we'll be diving into how you can begin to design a business of value once you have a baseline understanding of where you are today.