How to Build Asset Value

- Chris Spratling

Welcome to today’s blog which is our second in this latest four part series focused on the key drivers that successful entrepreneurs focus on to scale up and build real asset value.

Today’s blog builds on the importance of focusing on the key revenue, margin and cashflow drivers and highlights the importance of understanding the key drivers of asset value in a business.

Asset Value Drivers

In addition to driving rates of growth in short term revenue, margin and working capital successful entrepreneurs within the JUMP and FLY phases will typically be concerned with increasing the overall asset value of the organisation and their shareholding as well.

Successful entrepreneurs typically see the biggest wins in this area by focusing on the key drivers of asset value, namely;

The organisation’s overall financial performance 

The organisation’s strategic plan and ability to scale-up

The strength of the organisation’s cashflow position

The organisation’s market position, USP’s, and intellectual property

The organisation’s contracted and/or recurring revenues

The organisation’s Net Promoter Score

The organisation’s reliance on key customers, suppliers and staff

The organisation’s reliance on the founder/shareholders

The net result for ambitious entrepreneurs working with us whilst in a JUMP or FLY phase is that they can expect to see operating profits increase by a multiple of 3 or 4 times over a 3-4 year period whilst it’s even more realistic with the right level of focus and commitment to see asset value rise for the organisation by well in excess of 10 fold! 

Regardless of how you define the term entrepreneur , being a successful entrepreneur is never easy and requires a distinct set of skills and attributes. 

On a personal level, you will have seen how successful entrepreneurs have a real vision for where they’re heading, and an ability to inspire others in pursuit of the organisation’s goals, along with an ability to instinctively solve problems and bring about strategic and operational improvements consistently. You will equally see those successful entrepreneurs displaying considerable levels of resilience and despite the fact that things don’t always go to plan they have the ability to remain optimistic whilst still being prepared to take risks and lead the organization in search of bigger and better results.

On a more practical level, you will have noticed how those that manage to really scale their businesses possess an innate ability to get to the heart of an issue quickly. They equally possess exceptional decision-making skills along with an ability to seamlessly juggle both the strategic and operational goals of the organisation based on their strong knowledge of what it takes to succeed in business, whilst taking advantage of both market opportunities and venture specific opportunities.

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It’s packed full of practical and easy to implement strategies that will help you “Avoid the Pitfalls” and drive your business to the next level!

The successful entrepreneurs amongst us also recognise the value of learning from others, learning from those that have already been through similar experiences and are willing to mentor and/or coach them. 

As successful business owners ourselves, we’ve all been sat exactly where you’re sitting right now and understand the challenges of scaling a business only too well

We understand that periods of rapid growth in both revenue & margin bring about a wide range of emotions (excitement and fear) often in equal measures, alongside some very real strategic and operational challenges. 

Maybe right now you’re unnerved by the rates of growth in your business, maybe the magnitude and complexity of decisions you’re faced with is unsettling for you or even the team too?

Along with the joy of seeing the top and bottom line numbers growing rapidly, are you perhaps concerned about maintaining control and building a business that doesn’t increasingly need your direct involvement?

In addition to the personal challenges that you face as an owner, maybe the situation is also having a big impact on your team? Are you possibly finding that the team is equally challenged by the rates of growth and the changing nature of what’s expected of them, both operationally and strategically? Given the speed of the journey, how well aligned are the team with the organisational goals and right now how are they performing individually and collectively? Do you worry that the team that got you here may not be the team to take you to the next level? 

With all of this in mind, how confident are you that the plans you originally devised are still fit for purpose? 

For instance, how well set up is the business to exploit opportunities such as entering into new markets and territories, abandoning less profitable products/services in favour of new, higher value/margin ones?

When presented with these kinds of challenges, would you benefit from having an additional experienced set of eyes to help shape your thinking with proven processes and strategies to support you through these most challenging of times?

High-performance coaching is about helping ambitious entrepreneurs and their organisations reach their full potential. 

Our One to One coaching is the fastest way to give you and your business the clarity around the key strategic and operational decisions you need to take, the focus as to what needs to be done in order to achieve those organizational goals, and ultimately the action plan to deliver the growth ambitions/results that you desire. 

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Why not get in touch with the team today? We’d love to hear from you!

We’re truly passionate about supporting business owners like you overcome your challenges and unlock the true potential of your business. If you’re looking to drive your business forward, get in touch today!

Expert Advice

As an ambitious entrepreneur that’s determined to scale your business, you already possess a high level of self-awareness. You’re already successful but almost certainly know that there are potentially still many things that you’ve not got previous experience of. Whilst you have proved adept at solving numerous challenges in the past you’re perhaps mindful of the time it might take to figure out what’s next in the context of your ambitious growth plans. Consequently, you appreciate that the risks associated with getting it wrong could indeed be considerable and far-reaching for both you and your organisation.

Alongside today’s top sports stars, entrepreneurs across the globe widely recognise the need and therefore the considerable benefits (financially, emotionally and personally) of investing in help & support from an experienced third party with a proven track record of success. Indeed the likes of Larry Page (Google), Bill Gates (Microsoft), Mark Zuckerberg (Facebook) have all invested over the years in coaching and continue to extol the virtues of high performance business coaching as a vital resource when scaling an organisation

By hiring a coach with a proven track record of success in terms of scaling businesses you’ll benefit from both their strategic and operational expertise. Having been there and done it themselves many times you will benefit from an expert who is able to provide practical, hands-on support & advice to build your scale-up plan, ensure you stay on track and therefore deliver the results that you’re striving for. 

They’ll recognise your potential and help you minimise the interference in order to ensure that your performance is maximised both personally and as an organisation.

          PERFORMANCE   =   POTENTIAL  –  INTERFERENCE

They’ll understand first-hand the challenges of running, scaling and even exiting a business within an ever-changing commercial landscape. They’ll not only have first-hand experience of scaling a business to maximise the organisation’s profitability but also of scaling a business by building the organisation’s asset value with a view to a potential sale at some point in the future.

In both scenarios, an experienced coach/mentor will recognise the importance of getting the harder elements such as the Strategy, Structure and Systems in place whilst balancing those with some of the softer elements such as the required Staff, Skills, Style (leadership) & Shared Values. Better still they will possess lots of experience to help you implement them as part of your own scale-up plans.

Why Not try Our

Milestone Survey?

Understand what stage your business is currently at, and get a bespoke report that will help you take it to the next level!

As businesses grow, they invariably face some very specific challenges. Understanding how best to address them, in what order, whilst also identifying the opportunities associated with these challenges is a critical part of unlocking your business’ true potential.

As part of your team, an experienced coach will, like you, have entrepreneurialism in their blood. As well as being a  trusted advisor they’ll be a great confidante and mentor. They’ll understand just how important it is to you, your business and your stakeholders that you are successful. They’ll be passionate about seeing you succeed.

In summary – A great coach will leverage all of their experience to help you unlock the true potential within you and your business by helping you to develop the clarity, focus and action plan to deliver the desired RESULTS.

We hope that today’s blog has again added some great value and insight into what it takes to scale a business and build real asset value within it. DON’T MISS our next blog in this four part series where we will be focusing in on the importance of building the appropriate strategy and systems to scale and build real asset value.

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