Categories
Business Value Indexing and Analysis

Why an E-Software Distributorship?

2 Jobs or 1 Job and Side-Gig

Are you building business equity? How about a foundation of a business that could leverage into an E-Software Distributorship? You might be working on someone’s dream now but have the foresight or dream to move into a better place.

Lets go through an example of how you could get business equity working for you. If you had 10k from personal income (a job) in one year and 5k in expenses you would have 5k to invest for retirement. HOWEVER, if you had 10k from business income (side gig) in one year and 5k in expenses you would have 5k to invest for retirement plus $15,000 in business equity (from the side-gig). We are not talking a mlm, agent or independent contractor job, the side-gig must be a legitimate business. There are many to choose from but we offer the most cutting edge technology, online business model for a true side-gig that ends up to be an absentee run Executive Consultancy that would purchase an E-Software Distributorship.

Wealth What would you do with $15,000 in equity? What about leveraging an E-Software Distributorship if you had the connections? And then leverage, leverage and leverage. Yes, it is possible to leverage into a million dollar business with $30,000 the next three to five years. If you have the sweat equity documented, great team and are moving forward.  See the numbers here.

leveragingSome other areas to consider when selecting a side-gig that could leverage into another business. Is it low cost, could you work from home (online), high potential, Great People and Great Track Record? Or do you have to pay rent, go to a place and have equipment/product start-up costs? When you are considering start here.

If you feel that an E-Software Distributorship with Growth Concepts aligns with your skills and goals contact us with a resume.

Categories
Business Value Indexing and Analysis

Analyzer II and ChatGPT

Messaging from ChatGPT gets to the core of a business value culture but how do you know the overall value of a growing concern? And how do you then evolve the culture, short term and long term messaging with the processes to for a value stream so you have more equity for a loan or buy-out?

TeamOne variable or law could change the outcome of the best way to go. Let us review your situation and discuss your possibilities. Ask for a complimentary review with this link.

We have a proven system that brings business value culture and sales/marketing messaging and the numbers (processes/systems)together so a business owner could optimize her or his company’s value. What is your company’s value?

Without the A. I. tools, experience and common sense it would be difficult for a Business Owner to consider the possibilities. And then make a rational decision to move on. Bring key elements of your growing concern together for the loan officer or potential buyer using our proven system. We have the services and tools to do it. Contact us for a complimentary review.

Categories
Business Value Indexing and Analysis

Leveraging 30k of Income to a 1 million dollar Business

 

All of us are familiar how a duplex could be leveraged to a 4plex using it’s equity. What about a business?  And what about leveraging internal process and intellectual capital (intangible value pillars and drivers) for more value so you have more equity. Get an online complimentary review and see where we could start.

Let’s look at an internal business value leveraging example first. One could be found on page 12, of “14 Immutable Laws of Business Value”, however, let’s suppose a Business Owner spends $10,000 in new sales tactics to increase sales.  It worked.  $250,000 in gross sales came in and was added to revenue with 6% net profit. So, he added $15,000 to the bottom line. Now, what if the Owner invested the $10,000 into an earnings move to leverage intangible value pillars and drivers.  The move went something like (the A. I. software uses more variable and rules): increase price 3%, margin 3% and decrease advertising 3% resulting in the same revenue as above yet, this new earnings move had a 15% gain of net profit, and over $112,500 to business value.  Which move you would take? Get the A. I. software and system working for you and join us in an online complimentary review of your particular situation.

Now, from the bigger picture of a buy-out or merger. There are a lot of reasons someone might sell a business or buy another one. However, the leveraging model above is similar. Since, “leveraging is the fastest way to wealth”, by Warren Buffet why not use it with your business? Contact a Business Value Specialist for a spreadsheet of the leveraging model. They will explain it and give you examples and how you could use it to gain wealth. Contact us for an online complimentary review of your situation.

Categories
Business Value Indexing and Analysis

Business Value Culture

Business Value Culture

Business culture gets to the core of business value. It begins with the word (s), phrases, emotional lexicons and identifiers. However, the meanings are in each employee (Owner, teams, production/service) not in the word. An old professor (Tiemans) at the University of Utah once said, “meanings are in people not in the word,” in class back in the 80’s. As we develop a reference to certain cultures the importance of selecting the “right” word or words becomes apparent for moving forward with a business value culture. A culture that viberates throughout the industry and market place. Where little if any advertising is needed. And savvy buyers are bustling to find-out what you are doing and want it.

From starting a new business to leading a team an organization culture and structure could make a difference in the bottom line. Carefully placed words from research could begin to make a world of a difference in the work environment, promotional copy, hiring copy, employee training, social media descriptions-wherever there is a relationship. However, while moving towards the ideal business organization where the Owner works on the business and not in it brings the most business value. You cannot sell your business with you in it. See the chart below of a representation of the transition from a typical organization to an ideal business organization.Maximizing Business ValueFrom the chart above you’ll notice it takes a lot to bring the culture and organization to an ideal business organization. It all begins with the words. What words are you using?

The culture permeates throughout the entire company and reaches outward. With the right business value culture a business does no or little advertising. Download a case study of the Gore company with the form below.  W.L.Gore did zero advertising. Yet, Packinowski started building a formidable culture with each employee that evolved throughout the organization.

  1. (required)
  2. (valid email required)
 

HOW could you move your organization towards an ideal business organization with a solid culture while increasing value over $210,000 with $0 cost?  See an example on page, 12 in the book, !4 Immutable Laws of Business Value”. Of course, always have more than an HR manual but start early with ways an employee could engage in equity. There are several ways to do this. As you begin to unfold your culture begin with the ending in mind, like Covey would suggest while having the meanings of words foremost in your mind. Ask one of our experienced Advisors on the way to evolve a more solid culture foundation for higher retention and less advertising while increasing business value. We offer an online complimentary review of your particular situation.

 

Categories
Business Value Indexing and Analysis

Third Party Verification of Sweat Equity

A Small Business Owner gives, gives, and gives. So, how does the Owner get the most sweat equity from her or his business? So, they could show a loan officer or potential buyer their value? Owners are often putting in 60-70+ hours a week. Doing things that others cannot do. Or showing up for a front-line worker in an impossible moment. Do they ever get compensated for all this extra time?

Does your business have a third-party document your sweat equity?

There are ways to minimize the loss of sweat equity by working beforehand with a Business Value Specialist that writes down for you, and for a loan officer how you minimize risk with verified intangible assets in a business value plan. While meeting with the Specialist the Owner conveys activities and process while the Specialist also writes what fits with the principles and laws of business value from the book,”14 Immutable Laws of Business Value.” In turn, these sweat equity activities are written in a Business Value Plan and later shown and reviewed by a loan officer or private buyer. There is no other document that conveys the sweat equity of an Owner like this custom document and third party verification process.

This third-party documentation of business value activities and on-site inspection verifies the Small Business Owner’s sweat equity for a future review or evaluation. Without it, there is no way a Small Business Owner could get compensated for all the little extras she or he puts into the growing concern. Ask for a complimentary review of your specific situation by a Business Value Specialist. And start documenting what really matters with a third party.

Categories
Business Analysis

Profitable Business Yet NOT Valuable?

Are you having phenomenal sales? OK… Is your company valuable? Did you know you could have profitable sales and little or no business value? There are other critical factors besides sales volume during a valuation of a business. What are they?

Let us give you a true life experience to show this point: While Mr. Whipple was prospecting for small businesses to sell he ran upon a small manufacturing business making commercial energy materials. It that had been around for about 3 years and was doing around $95,000 annually in gross sales with a margin of 60%. The Owner had run into some personal problems and wanted to sell the business. From the surface, things look great for the business. With a review of the he determined to have it listed for $195,000 in business value (3 x EBITADA + a little more). What happens next?

So, he brought the paperwork to his Manager for a potential business listing (See Author’s Bio). Ralp put on his business value glasses and asked a few questions. He then asked him, “Did you know a business could have profitable sales but not valuable? He was unsure at the time so, he answered, “No.” And then listened to his Managers advice. He further explained, that a customer base with 20-30% with one type of customer or a business with one or two customers lowers the value of a business since it is dependent on that one type of audience or a few customers. And there is a greater chance to for something to change in the market place or offend one or two customers resulting in the customer leaving to a competitor. So the value of the businessness is not as high as a typical 3 X EBITADA.

Mr. Whipple was a little surprised but more because he knew this underlying factor was overlooked in most business transactions or in an internal growth initiative. And this particular manufacturing company only had 2 customers. What a mistake in a valuation this could be he thought. There were several other areas the Manager went into, but, specifically pointed to how the sales, product (s), customer base and value were all tied together. David realized this advice was not written down anywhere so he started taking notes and eventually had enough for a book(20yrs later). He then substantially lowered the value of the manufacturing company for the listing. Read how this might this be applied with businesses in other situations?

There is more to the story, but, how do you find what factors influence business value with your business. Get more information at this link.

 

Categories
Business Value Indexing and Analysis

Value Pillars and Drivers

Maximizing Business ValueEvery business has different value streams that add to business value. These are composed of intangible value pillars and drivers that are governed by principles and laws of business value. After careful business value analysis, the stream and pillars/drivers begin to emerge from within. What are your company’s value pillars and drivers? How do they create business value?

The value pillars are evolving in your business right now. It may be a sales pitch, leadership, patent, product feature, integrity, perseverance, determination, innovation, respect, passion and fair-mindedness or other. It takes a trained expert, to look from the outside-in to begin to see/understand them, so you could capitalize on them. Contact us for an online complimentary review to begin to identify what creates your company’s business value.

Categories
Business Value Indexing and Analysis

Business Value Indexing

Business Value Indexing

“An agile company for the changing world demands data information based on a solid platform.” Adobe

We use an overall business value index to know, “What is going on?” with the business value of a particular business during a specific time period. We do not use a performance index, that is a measurement tool business owners and managers use to evaluate business operations or keep people accountable. We are not looking at performance but business value.

Business Value is more important than a kpi, accounting ratio or profit/performance indicator. Example: A KPI might tell you how fast a car is going down a roadway but a value index lets you know the “value” of the car. How is the value of your car or bus doing?

What is the big picture? Have you ever wondered how the business is doing with business value? Is it your own or have you invested time and money into it? Yet, you know the business is unique and hard to measure. Traditional indexing usually compares numbers to other businesses that are in the same industry but not similar. Not with Analyzer II-we only look at historical data.

If your business is selected as a viable candidate for our Business Value Mastering Program, we are customize the business value variables to your business and provide a unique business value index from current and historical data. The software uses proprietary formulas to determine this unique number. This index from past index averages gives a holistic view of the health of a company that relates to principles and laws of business value, not another business or a small department or division. We look at business value of the company not comparing it to others.

“Organizations must focus on promoting a culture of agility across people, processes, and technology, to respond in the moment….” Adobe

Future reports of the business value index could give the impact of an initiative or program on the overall company’s value.   This proprietary way gives you information based on principles and laws of business value not just profits or performance.

How do you start indexing with your business? We first set key indicators of crucial areas to the company’s value. We then provide a report with a  Business Value Index (Includes business value, based on EBITADA) that forms a reference point. This point tells us how close a business is running with the principles and laws of business value. As time goes on your company’s score will be more accurate and useful in day-to-day operations, strategic planning, projections, and eventually the exit. If you would like we could develop other key variables of your business or initiatives for risk evaluation.

Here are a few of the benefits of the Business Value Index.

* Helps keep a pulse on the company from a broad view

*A way to start Optimizing a company’s  business value

* Focuses on the intangible value drivers of the company, not problems

* Continuous improvement mentality

There is no charge for setting up the Business Value Index for your specific situation. Start today and contact us for an online complimentary review of your situation.

 

Categories
Business Value Indexing and Analysis

5 Business Value Myths

5 Business Value Myths

  1. The value of your business is what you think it is.
  2. Employees are going to stay in the business you sell or buy.
  3. A Franchise is a better buy than an established business or E-Distributorship.
  4. Someone will tell you the “true” value of your business.
  5. You will know why they are really selling the business.

The principles or laws in the book are either working for or against your company’s business value, right now. Find the untapped value within your business with an online complimentary review and report with an Ambassador of Business equity. Contact us today!

Categories
Business Value Indexing and Analysis

Retirement Income?

How Much do you Need to Retire?

Not too many Business Owners will use this equation before it is too late; business value – business debt = business equity + personal equity = retirement income. What is the gap between what you need for retirement and what you have in business equity?

Maximizing Business ValueOne small change in business value in the above equation could make a Business Owner $100,000s for retirement. What is it? How much do you need to retire comfortably? We discuss these questions and more in an online complimentary review of your specific situation. Set a time with a Senior Business Value Analyst at this link.