The Music Industry Illustrates the sometimes exponential value of owning a unique brand. Artists like Bruce Springsteen who own their name, Amazon who owns their distribution experience and Peloton who owns a unique community all illustrate how these unique aspects drive up their respective values.
If you are a business owner you will often have to “fire “yourself from the day-to-day grind of your business so you can truly unlock the value of your business.
To Grow the Value of my Business requires more than just increasing profits. It requires me to optimise my business on the 8 key value drivers a potential buyer would look at.
Use the art of bundling both your expert and general services to capture customers, build their lifetime value, and drive up the value of your business.
Despite having no grapes, vats or wineries of their own – nor experience in the industry – Michael Houlihan and Bonnie Harvey were able to create, grow and sell Barefoot Cellars for millions. 15 lessons they shared from this experience are listed below.
As you know, it is far easier and efficient to cross-sell a new product to an existing customer than it is to market and find a new customer for that product.
If you are looking to just grow your top line revenue, then cross-selling is a very effective technique.
However, you do have to be mindful as to the extent of your cross selling and how it affects your revenue diversification. In some instances, if you cross-sell your existing customers too much stuff, it could make your business far less valuable.
Amazon Prime is arguably one of the most successful examples of a company transforming its repeat customers into repeat business subscribers on the planet.
Not only did the average customer life time value (LTV) more than double, the the success drove tens of thousands of non Amazon customers to subscribe and engage with the company off the bat as repeat subscribers.
As Amazon knew (and clearly illustrated) repeat business drives the value of a company, but not all repeat business is the same.
“I wasn’t being strategic, I was going through a divorce!”
Divorce often sinks a company but John the owner was able instead to transform his company into an independent asset. Today he works 90% less hours, his company is growing, and he enjoys the business much more.
is your business independent or does it own you?
10 Questions Often Asked When Looking to Sell Your Business One of the most intimidating aspects of selling your business can be facing the barrage of
Wisdom is not the same as Intelligence or even technical knowledge. Thousands and tens of thousands of very smart business owners were technical experts at what they produced and should have had business success, but their companies lie in unmarked graves across the economic landscape.
Lack of market demand is the primary reason provided for many start ups failing, but that does not fully explain why 50% of SMEs fail within five years.
“Prepare the business for a sale even if no intention to sell currently or in the future”
Why ? Because if you are preparing to sell from now (even if you do not intend to actually bring the business to market anytime soon), you will position your business to provide you multiple options when it does come to exit. That can mean passing along a well-functioning business to your children (instead of a lemon that prematurely ages them as they struggle to deal with its inherited issues and problems), selling your business at a premium (due to multiple and/or strategic buyers) or other options in between (minority sell off, etc)
Why did you decide to become an Entrepreneur? If you’re like most owners, you aspire to have the freedom that comes from owning your own independent business. This desire for freedom often leads owners to aspire for a bigger business, which they think will give them what they want. Unfortunately, most owners who strive for more revenue or profit as their primary goal often end up with less freedom as slaves to the day-to-day grind of their business.
There’s an alternative to get you closer to what you want..
Excellent Service drives up the value of your business. In this article I illustrate how Amazon solved an AED 1,835 issue for me that generated over AED 400,000 in business value for them. It’s a formula (excellent service – repeat customers – high multiples) they practice again and again.
The Major Blind Spot Blocking Business Value “…Do not think you are wiser than you really are” (Romans 12:16) I wrote an article last month
Financial Freedom – “You Proofing” Your Business In a previous post, I spoke about the Freedom Point and the risk in holding on to your
Are you Achieving Financial Freedom through your Business? When did you last calculate how much of your net worth is tied to your company’s value?
Have you struggled to identify a recurring revenue model that will work in your business?
If so, you’re not alone.
Most owners understand the benefits of recurring revenue, such as predictable cash flow and an increase in their company’s valuation, but struggle with where to start. Just changing your pricing from a one-time transaction to a smaller, recurring fee does not make a sticky subscription model.
Chasing all types of revenue by offering a wide array of products and services is common among growth companies. The easiest way to grow is to sell more things to your existing customers, so you just keep adding adjacent product and service lines.
However, there can be two drawbacks: First, you offer a wide range of products and services without any deep expertise in any of these products and services.
Second, a wide range of products and services can just confuse your customers and lead them to look elsewhere.
Should you Sell your Business Now? 5 Reasons why 2021 might be the time you look to sell your business Have you been thinking about
How practicing Situational Awareness adapted to your business can protect you against the unexpected as well as increase your business value.
Meet Reg, a seasoned corporate veteran branching out into his own consulting business. His beautifully structured marketing profile is, surprisingly, a detriment. Why? Discover the dangers, key insights and strategies throughout the week but starting here.
During my MBA studies at the University of Chicago, I learned about “sawing the floor,” a concept where you outmaneuver a larger competitor by exploiting a neglected niche. This strategy helped me launch million-dollar institutional trading desks in London and Dubai. It’s simple in concept but requires clarity and dedicated focus to execute. This approach can transform any small business once you understand your target market’s core desires and effectively communicate your solution.
A disastrous date taught me a vital business lesson: be true to yourself. In business, trying to please everyone leads to mediocrity. Instead, focus on attracting the right audience and repelling those who aren’t a fit. When you’re clear on your purpose and ideal clients, it’s easier to be heard by the right people and achieve powerful results.
A recent conversation with a yoga influencer highlighted a powerful business truth. Most entrepreneurs would envy her loyal following and unique brand. She’s 80% there – the last 20% is legal structure, marketing, and other logistics. Too many entrepreneurs do it backward, creating a solution before finding an audience. Success comes from understanding your audience first and building around their desires..
Remember the heyday of online dating with cliché profiles? Many businesses fall into the same trap, underselling themselves and competing on price. By learning to stand out and communicate effectively, you can choose your clients, set your terms, and achieve higher sales and profits. It only takes a few months to escape the bog of commoditization. Start with taking that first step, not on a moonlit beach, but towards business clarity and success.
In networking events, many describe their business in basic functional terms, which commoditizes their services. Instead, focus on the unique value you provide. “I save clients $5-10K annually on taxes” is more compelling than “I do your books.” This approach attracts higher-quality prospects and allows you to charge for the full impact of your work, improving your quality of life as a business owner.
Think delegation is just about assigning tasks? Think again. Effective delegation is an art—a strategic four-stage process that gradually transfers responsibility while increasing accountability. From hand-holding to complete autonomy, each stage prepares your team to take the reins effectively.
Take a quick look at the four stages that can change your business, allow you to free your time and transform your life.
Meet Mary, an entrepreneur who isn’t buffeted by financial stress, but is driven by a different kind of hunger. She has all the resources, yet she seeks something more invaluable for her specialty snacks brand. What is Mary chasing that money can’t buy? Discover what’s driving her to scale her business and how it’s shared by many other business owners.