Growth Concepts LLC

Archive for the ‘Value Drivers’ Category

No one knows your business quite like you do.  But, even a fast food business with similar operations is different from the next.  With specialized tools and a perspective of earnings not income we learn about your product and services and then apply principles and laws of business value to your particular situation.  Your “earnings” return is three times that of typical sales strategies while  moving your business to an “ideal business” model.   We do not sell businesses or put-together stock options but focus on maximizing business value before or after the sale.  Ask about a complimentary review or your particular situation.

What is your next business value move?

Short list:

MARKET SEGMENTATION

COMPETITIVE POSITIONING

DATABASE STREAMLINING

NETWORK DOWNTIME

BRANDING

FACILITATION

TIME MANAGEMENT

PRODUCT/SERVICE PRICING

SALES TRAINING

RECRUITMENT

Are you focusing on income or earnings?

How do initiative components form REAL business value?

Just talked with a good ole friend again after a few years (I me. He is working with a local MLM company-a USA synergy. He did something like IMall a few years ago. His competitor sold for millions. Now he is working with the former Owner/competitor.

SEO tactics alone do not get to business value. Suppose Company A which had an e-commerce business model did SEO including social media tactics to boost sales. And then went to sell the business in nine months. While Company B a similar business model but developed teams outside the internet space for moving products. Both had even gross sales and margins after 9 months of grueling work. Of course Company A would have a higher net because the Owner would not have to pay team members but which would sell for a higher business value? But looking at non discretionary cash might show a higher value of Company B for team members. What would you pay more for -a business with one person selling products or a business with great people and sales?
Note: Company B’s sales might not have “immediate” results but great people and growing sales have more value than a spurt.

If you viewed an expense as an expense in a typical profit and loss statement fine. But some expenses could be changed to form value drivers and value pillars moving your business closer to an ideal business model. For example an employee’s wage could be changed to a successor’s training. So you could be out of the business in 3 years.

Tips:

EBIT IS Earnings before interest and taxes
EBITDA is earnings before interest taxes and DEPRECIATION AND AMORTIZATION
EBITADA is earnings before interest taxes APPRECIATION (ANOTHER NON CASH AREA THAT SOME SMALL BUSINESSES USE)
and DEPRECIATION AND AMORTIZATION

EBITADA depends on discretionary cash.

Look for terms that represent non cash items.