Archive for December, 2010

“Six Factors that Determine the Value of Your Business to the Marketplace” – by Rob Burnham

Tuesday, December 7th, 2010

Consider These 2 Foundations of Our Society

Worth of the Individual — We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are life, liberty and the pursuit of happiness.

 

Free enterprise system — An economic system characterized by private ownership of property and productive resources, the profit motive to stimulate production, competition to ensure efficiency, and the forces of supply and demand to direct the production and distribution of goods and services.

 

Personal Choice — You may recognize the first quote from the Declaration of Independence.  Through that document, our founding fathers hard-coded into our society their vision that, as individuals, we are all equal; we have the same rights and our individual worth is unquestioned.  However, the second statement defines our commitment to allow individuals to determine their own measure of success and to pursue individual dreams… sometimes at the expense of the success of others…as long as personal rights are not violated.  While the ground may be level in the personal worth area, with our declaration of independence from employment to become an employer, we find that the ground is anything but level.  It is up to us as business owners to ensure the continuing value of our business to the marketplace. 

 

For a business owner…

Success in Life Demands the Effective Balance of Personal Worth and the Worth of Your Business

 

There are many factors to evaluate the health of a business, but I would like to ask that you consider 6 that were shared by my friend, Dave Crenshaw.

 

6 Value Factors…

1.   Demand – You have little control in some cases because of the weather, laws, etc. But, success requires that you be a student of the demand for your products/services, understand trends and align with them.

2.   Ability – How well you add value, exceed your customer expectations. How consistently you perform.  Does your business and every employee consistently deliver a product or service that demonstrates that you know what you are doing?

3.   Irreplaceability – How difficult is it to replace you? Is there a company or a technology that would provide your customers with a better product or service than you can offer? What is the biggest factor keeping your customers from firing you?

4.   Focus — Have you determined what your personal 2 or 3 most valuable activities are?  What hinders you from concentrating on those activities?  For the business owner or key executive, effective personal systems are critical to his/her success. For the organization, effective business systems are critical to the success of the business. A healthy balance of personal and business systems frees the owner and the organization to maximize creativity and positive results.

5.   Connections – The value of a business is directly related to its ability to connect with others: stakeholders, vendors, customers, and the community.  These connections normally include personal contact, a system of building a positive relationships and a method to maintain an effective follow-up to promote repeat business and referrals.

6.   Authority – Our world is saturated with information. Many look for an authority to help them shorten the decision cycle. How strongly does the market view your company as that authority?  What niche can you dominate by exercising your authority?

 

Every person who owns a business is vulnerable to the constant demand to balance personal and business issues.  True success only comes to those who achieve a healthy balance.  Let me encourage you to evaluate your business or career from the eyes of those closest to you, those who depend on you and those who have no question about your personal worth.  Then, from that perspective, make adjustments in the coming year to increase the worth of your business.