How almost all companies are valued, and why you want to increase the value of yours — even if you aren’t selling.
This is going to be an ongoing series based on the exact blueprint I have used to sell multiple businesses. My goal here is to demystify the process by which you can double or triple the value of your business in 24–36 months.
The strategies I am going to outline are targetted to help companies with cash flow (to be defined later) between $100,000 and $10,000,000.
So, you are considering retiring in the next few years, and are…
The importance of a defensive component to your strategy.
Small businesses have advantages that large businesses don’t. But that doesn’t mean they aren’t susceptible.
There is always a risk of losing a customer, a segment, or an entire industry. A smart business operator will pay attention to these and develop defensive strategies.
What is a defensive strategy?
It is something that may not be core, it may not be highly profitable, and it probably wouldn’t work all on its own. It is an add-on to your main (and hopefully offensive) strategy as a small or medium business.
For example, you…
Why service is the only real moat for most businesses, and how to define it and implement it.
In speaking with many owners, you’ll hear why they think people do business with them. You’ll hear technology, better quality, or brand. These are more often a reflection of what the owner values rather than the customers
When you ask customers why they do business with certain entities, you overwhelmingly hear some version of the same answer… service.
Now, I’m talking about traditional business, family-owned, small to medium shops that make up the majority of the business landscape (and the minority of…
Don’t let email distract you, focus on your work and you’ll get more done.
When an important customer reaches out, respond right away, even if just to let them know you are working on their request.
Both of these are so important in growing a service-based business, yet irreconcilable. So how do you do both?
One great and under-appreciated skill amongst knowledge workers and office workers is that of monitoring and triaging emails. The ability to watch things flow in, and instantly know what is important and what is not.
The bedrock of most B2B SMB and industrial-focused companies is…
Progress is moving things forward, and in business, the successful people in any industry are the ones that know how to drive progress. Truth be told, even within your company, the ones that will get promoted, get raises, get poached, or maybe even start their own thing… are the ones that know how to drive progress.
So what is this and how can you start doing it?
The good news is you don’t need an MBA, 10 years of experience, or a brilliant mind. You just need a notepad.
You see, business is the combination of hundreds of tasks and…
Problem-solving is as much a creative endeavor as a logical progression. I sit in on meetings occasionally and see individuals digging deep into their minds for possible solutions. While this can and does occasionally produce excellent paths forward, it is more often distracting and misses the best solution.
One of the first things to realize about Problem Solving is that it is less about throwing brainstorming ideas on a board, and more about walking down a decision tree split into mutually exclusive and completely exhaustive options or buckets. …
How Business Planning Misses The Mark.
Every time you deal with a forecast, or a demand plan, or anything to do with the unknown, you are dealing in probabilities. We don’t naturally think about probabilities correctly. Understanding not only probabilities, what they really mean (and imply) is important in translating business numbers to business decisions.
If I tell you that there is an 80% chance of rain, you would, if you were honest, think to yourself “It is going to rain today”.
However, we both know that that is not the correct interpretation of that statement. That statement actually means…
I started working from home 3 months ago.
I was forced to work from home starting 2 months ago. Coronavirus.
I have noticed that working without disruption, distractions, and the usual office social activities has allowed me to get much more done. My output per unit of time has increased.
At the same time, I miss the social interaction. The conversations. The laughing and the listening.
So is the current state of my work better or worse? Maybe both?
Now that I get my work done sooner, I have more time to spend with my wife, kids, friends, and community…
If one thing is clear, it is that we have a supply chain problem in the US. I know this because news articles are mentioning it, supply chain leaders are tweeting it, and friends who never cared what I do, are suddenly interested in talking about supply chain and its woes.
However, to be clear, while the recent pandemic has revealed issues, it will by no means fix them. Under the surface of efficient and streamlined global supply chains, lie a fragile system of weakly connected links with many possible breaking points, and little change needed to break them. In…
The prevailing wisdom, heavily brought on by the Toyota way, is that waste is bad. While true to a point, the extreme this has been taken to has created brittle supply chains.
Supply chains built on principles such as Zero Inventory, JIT, and other waste elimination tactics look great in theory. In reality, they build risky supply chains that perform well… until they don’t. They give up sustainability for short-term performance.
These theories and ideas ignore the world we live in and work in, and their assumptions are not our realities. Similar to financial models developed in the ’70s based…
Talk about SMB Ops, Systems Approach, Nocode & Automation. Built & Sold 3 Traditional Businesses.