I’ve been working with a client for about a year now on building their business ready for “What’s Next”, ie for succession. As part of that, key to the process is developing a Valuation strategy to lift both their profits and their profit multiple up to and beyond their industry benchmark. As someone who has sat on all sides of the table, from valuing businesses as an acquirer, to building value as an owner, to coaching and advising businesses and their owners and leaders, one simple adage on the journey that I always use is “a plan is not a plan unless it is written down”. I talked about that to my client today and they came up with an even shorter phrase that I love:
Think in Ink
Building valuation is a patient and methodical process and you must not skip steps, but it is worthwhile. Be the business that trusts the process and doesn’t skip a step and you are already a long way ahead of others seeking to raise their exit valuation. This starts with addressing the “V-” areas below that benchmark line, then moves onto V+2, around Talent/Capability/Culture.
This particular client is well into addressing any “V-” processes and functions in the business, they are now moving onto Culture as the next phase.
Now, if the first step to being ahead of others is to follow the steps, to trust that process, the next step is simple. Think in Ink. Document everything.
As to Culture, I am currently working with several clients in different countries from small to very large and they have one thing in common. None of them has fully documented their culture. Oh, and a list of values on a wall does not count, a “think in ink” consciously created culture is far more detailed and documented than that!
Being immersed in Culture projects right now, I am reminded how much I love this work and linking it to business valuation. It is among my most favourite work to do with leaders and owners.
If you are at the stage on your business journey where what I have said resonates, do book a call with me, I’d love to listen then see where I can add value to you in a conversation (I note that my client roster is very nearly full for the rest of the year, so I cannot promise to do more than have one call, but hopefully what I write and if you like, a call, can help you gain clarity on what’s next for you).