Surviving to thriving

20 April 2023 / Insight posted in Article

As a business grows, the focus can often be lost as leadership teams battle to manage the multitude of daily challenges and opportunities associated with growing a business: building sales, managing people, controlling operations and keeping on top of finances, among other things.

Most businesses also experience a gradual blurring of their original vision and objectives over time, as barriers to efficiency and profitability creep into working practices and company structure. Often, these dynamics can result in the business failing to realise its full profitability and enterprise value potential.

So, what does it take for a business to thrive? How do you ensure you are adding value to your business to grow, remain profitable, and potentially be able to sell your business in the future?

It could be assumed that profit is the main driver of value; however, this is one of many factors to consider. At Moore Kingston Smith, we work with our clients to dig deeper into our 10 key drivers to achieve value.

10 key drivers to achieve value

1. Clients
Do you have high-quality clients, with no overreliance on a single client or few clients?

2. Income security
Do you have loyal clients with a high proportion of your income retained, or recurring?

3. Value proposition
The most valuable businesses stand out by having a clear proposition, backed by a compelling brand – what is yours?

4. Sales and marketing
Does your business have a scalable and consistent sales and marketing plan to ensure efficiency and a coordinated approach?

5. Owner reliance
As a leader, if you were to step back, would your business be able to function and run without so much of your involvement?

6. Management team
Are you supported by a highly committed, engaged, and driven senior leadership team who share responsibility?

7. Management information
Do you have high quality, timely management information that allows you to make high quality decisions, which will in-turn drive value through your business?

8. Strategy
Do you have clear objectives for the business, underpinned by a powerful strategy that can be successfully implemented and is achievable?

9. Environmental, Social and Governance (ESG)
Do you have an ESG proposition? If so, has it been clearly communicated to your staff, clients, and prospects?

10. Profit
Does your business have KPIs that are at or over industry norms and are your projections underpinned by credible assumptions?

An honest assessment of the above questions can help you identify which areas of the business might need some work. If you can score highly on all the above, you will see a vast improvement in the success and therefore value of your business.

Please get in contact with our team if you have any further questions.

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