Business Growth And Enterprise Value Are Driven By Continual Innovation In Three Key Areas.
Improving each of the following strategic areas can lead to increased dispersal of risk between employees, customers and vendors, increased probability of long term survival and ease of hand-off to new ownership.
1. Operations. Operations is obviously a broad topic but the operational areas we believe deserve the most innovative focus are:
Making this more complex is that these programs must also appeal to employees from very diverse cultural backgrounds, in all age groups. We believe that recruitment, retention and development of personnel will be one of the most challenging jobs for owners of middle market companies in the next decade.
One key recommendation we have is for owners and their key managers to participate in a CEO peer advisory organization. Without exception, if you take two companies in the same industry, one that's a peer advisory board member compared to one that is not, the peer-advised member will have a more profitable, more valuable company and the CEO will have a much more peaceful, focused, purpose-filled life. Contact us if you'd like to get connected to a peer group in your geographical area.
2. Marketing. Consider what business buyers want to buy and what they are willing to pay top dollar for. It's not your tangible assets. It's not your people (although if you develop your personnel systems as described above, your people will be a key value component). It's not "you" they want to buy. It's not your cool ideas. It's not your patents. It's not your past glories.
Business buyers want to purchase a system for making money that they perceive has a high probability of making an ever increasing amount of money for them in the future.
Business buyers want purchase an organized way to make money that they can assess will yield them a return on their investment of time and money and energy that is more attractive to them than making an alternative investment.
A proven marketing program is the single biggest value enhancer in selling your company.
3. Information Systems. Information systems will power your new operating and marketing strategies. Effectively employed they will offset the personnel shortages and the training, skill and cultural challenges. It is impossible to overemphasize the importance of software and web-based solutions to operational and marketing challenges. It's also impossible in a format like this to address the risks and opportunities associated with information technologies.
Simply put, every business that expects to prosper in the coming decade needs a brilliant IT advisor and/or staff person. Every management team needs someone to manage its computers and network so it can focus on innovating and running the business. Every middle market business needs someone to focus upon proactive/preventative technology support, network and security audits, mobility solutions, and database development. Every middle market business needs IT experts who can implement the constantly evolving technology management solutions that address efficiency, productivity and security.
To be assured of a company that will be valuable and marketable, focus on your operating, marketing and information systems.
CrossPointe can help you assess your situation and design winning strategies in these three critical areas. We've assembled a team of top professionals who can work with you to develop an integrated strategic plan so that you can prosper and then ultimately exit profitably and smoothly. Contact us to discuss your objectives in confidence and without obligation.
Transactions – Business sales, mergers and acquisitions. Strategic partnerships. Debt and equity financial advisory services.
Franchise Consulting - Select the correct local, regional or master franchise opportunity.
Valuation – Enterprise assessment, business appraisal, deal structure, marketability.
Exit Planning – Organizational design to facilitate business succession and ownership transition.
Business Growth – Innovative operational, marketing and information services consulting services to turbo-charge profitability and value.