Unlocking Business Potential: Business Value Drivers

Blog Unlocking Business Potential: Business Value Drivers

At Rizolve Partners, our mission is “To help private business owners optimize the value of their business and ensure their company is transition-ready so that they can harvest their life’s work at peak value”. To this end, we employ a tailored process to improve value revolving around three progressive development stages: predictable profits and cash flow; predictable growth; and building predictable transferable value. These stages, each identifying eight “Business Value Drivers”, are incremental and essential for driving growth that maximizes business value, ultimately ensuring a smooth and profitable transition for business owners.

Business Value Drivers:

Business Value Drivers, Infographic | Created by Rizolve Partners

Building Predictable Profits & Cashflow: The Launchpad for Growth

The first stage of our value-driven approach involves establishing a solid base of predictable profits and cash flow. This foundational step ensures that a business has the stability and balance needed for future scaling and growth.

By focusing on key areas such as senior management, attracting productive and loyal human resources, operations that can meet the promise made by sales, and delivering customer satisfaction, we help businesses produce a reliable financial base.

This stage is crucial for identifying and securing recurring revenues, which are delivered by instituting robust sales processes and margins that deliver a return on investment for shareholders. Comprehensive financial and operational reporting allows management to regularly monitor performance and action change where required to meet plans.

Building Predictable Growth: The Launchpad for Achieving Higher Value

Once a stable financial base is established, the next stage of value creation focuses on predictable growth. The components of this phase are essential for sustainably, scaling the business and delivering improvements in value.

We emphasize the importance of setting a clear strategy and goals, understanding and appropriately addressing the market size, defining the culture you want to operate with, and creating innovative, in-demand products or services that stand out from competitors.

By creating awareness and excitement about products coupled with targeted marketing plans, it becomes possible to forecast financial budgets with a greater degree of precision.  This positions the company to capitalize on identified opportunities more effectively. Recruiting and training also play a pivotal role, ensuring that the team is equipped to handle and drive this growth.

Building Predictable Transferable Value: The Ultimate Measure of Success

The final stage is about creating transferable value, which is the ultimate measure of a business’s success. This involves ensuring that the business can sustain and transfer its value independently of its current ownership.

Key focus areas include being able to present the business profile to third parties, producing credible, audited financial information, demonstrating good governance and legal compliance, and delivering sustainable market share.

This ensures the ability to meet commitments to stakeholders and satisfactory returns on capital employed for shareholders. By diversifying our customer base, creating market entry barriers, and strengthening our brand, we aim to ensure that the value created by the business is sustainable, repeatable and can be forecasted with accuracy. This makes the business attractive to potential buyers or investors.

Our Comprehensive Approach:

To achieve success across these three stages, we employ a detailed and methodical approach:

  • Benchmarking: We use leading-edge tools and processes to benchmark the quality of your core value drivers against best-in-class companies in your industry. 
  • Sales Agility Assessment: This assessment focuses on predictability, repeatability, and scalability of your sales processes.
  • Uncovering Hidden Assets:  We apply best practices to boost efficiencies, raise profits, and increase business value.
  • Detailed Roadmap: We provide you with a detailed roadmap, performance indicators, and milestone checkpoints to ensure accountability at every step.
  • Ongoing Support: With weekly check-ins throughout the process, we ensure that plans are on track or adjusted in response to unexpected changes to achieve your goals.
  • Deal Killers:  We identify issues that are likely to increase perceived risk to the point where potential buyers would decline an invitation to bid for the company. 

Take Action with Rizolve Partners:

Enhancing business value involves strategic planning and execution. At Rizolve Partners, we guide businesses through the necessary stages: establishing predictable profits and cash flow, fostering sustainable growth, and delivering transferable value. Our comprehensive approach includes benchmarking, sales agility assessments, uncovering hidden assets, providing a structured roadmap with ongoing support, and ensuring that any blockers to value improvement are removed along the way. This equips business owners with the insights and strategies necessary to maximize their business’s value and ensures future transaction success by creating a transferable asset.

Rizolve Partners understands what needs to be done to achieve sustainable, high-quality growth. We help business owners pivot from being just profit-driven to becoming value-driven businesses. To learn more, check out our process here.