Increasing the Value of Your Business: Choose Your Path Wisely
Everyone talks about the need to grow their business. With growth comes opportunities and the anticipation of increased profits. Growing the business also feels like you’ve accomplished something real and are increasing shareholder value. I doubt that there’s much argument about these previous statements. So where does getting better fit in as an option, or a path to take?
Getting better can mean many things to many people. Perhaps it’s striving to hit all your designated key performance indicators (KPIs). One area that is important to many clients is the journey, or experience they have in working with you. Are there areas that you can improve on there? And here’s a shocker, many clients may be looking to get a better price for the products and services they buy from you. There are a few ways to get a lower price. One is to discount your price. Another is to lower your costs and take out the things that your clients don’t really care about — your choice. You see, “better” carries a wide range of options. Does getting better help your bottom line or increase shareholder value? Sure it does.
By being better at processing orders and minimizing non value-added touches, you can increase the velocity of the work through your shop and help to decrease your overall costs. By being better at providing meaningful solutions to your clients, you have a better opportunity to demand a premium price. That’s better. By being better at recruiting, hiring, training, and cross-training your staff, you can become more flexible in meeting client demands by utilizing your people in a more productive manner.
Both paths have their advantages and their flaws. The point here is that one path isn’t necessarily better than the other, but they are different strategies. While they are different, they can both lead to increase opportunities, more profit, loyal clients and increased shareholder value for your business. The path you choose will be dependent a few things:
- The current status of your business
- The strength and diversity of the team you’ve assembled
- Your appetite for risk
- Your ability to focus on the "little things"
- The markets you serve and what your clients value
If your goal is to increase the value of your business, you have different options in how to get there. Choose the path that fits your style, your culture, and one that you and your team can execute. Good luck and let me know which path you’ve chosen.
Mike Philie can help validate what’s working and what may need to change in your business. Changing the trajectory of a business is difficult to do while simultaneously operating the core competencies. Mike provides strategy and insight to owners and CEOs in the Graphic Communications Industry by providing direct and realistic advice, not being afraid to voice the unpopular opinion and helping leaders navigate change through a common sense and practical approach. Learn more at www.philiegroup.com, LinkedIn or email at firstname.lastname@example.org.
Mike Philie leverages his 28 years of direct industry experience in sales, sales management and executive leadership to share what’s working for companies today and how to safely transform your business. Since 2007, he has been providing consulting services to privately held printing and mailing companies across North America.
Mike provides strategy and insight to owners and CEOs in the graphic communications industry by providing direct and realistic assessments, not being afraid to voice the unpopular opinion, and helping leaders navigate change through a common sense and practical approach.