Let's take a look at the eight drivers and see how they can be leveraged to increase the value and efficiency of your company over time. For more indepth explanations and short case studies, download the ebook today.

1. Financial Performance

2. Growth Potential

Buyers are drawn to companies with excellent growth potential because they promise higher rewards in the future. This potential is quantified within the Value Builder Score, which can be determined by completing the Value Builder Questionnaire.

3. The Switzerland Structure

The Switzerland Structure emphasizes the importance of business independence from any single customer, supplier, or employee. This model is inspired by Switzerland's geopolitical neutrality and independence. In a business context, it ensures that no single point of failure can threaten the company's stability.

4. The Valuation Teeter Totter

5. Recurring Revenue

Models of recurring income are effective at increasing a company's worth. Their consistency lowers risk for the company, boosts cash flow, and lengthens client lifetime value.

Take recurring revenue to the next level by requiring payment before the services are delivered. This is common in many subscription based services.

6. Monopoly Control

Monopoly control, inspired by Warren Buffett's investment philosophy, refers to a company's ability to dominate its market segment. This gives the company pricing power and leads to higher gross margins and EBITDA.

Companies can greatly increase their market worth if they can obtain monopoly control in any way, whether it be via intellectual property, specialized product development, or fostering client reliance.

7. Customer Satisfaction

Satisfied customers lead to lower churn rates, increased customer lifetime value, and lower cost of customer acquisition. 

By focusing on delivering exceptional value, gathering constant feedback, and investing in customer service, businesses can improve their customer satisfaction score, which in turn elevates their overall company value.

Measuring net promotor scores (NPS) is one of the most effective ways to understand how your customer base feels about your business, products, and services.

8. Hub & Spoke

The Hub & Spoke model warns against the dangers of a business overly dependent on its owner. A company that can operate efficiently without its owner's continual presence is generally more desirable to prospective buyers.

By decentralizing operations through standard operating procedures, empowering employees, and investing in middle management, business owners can break free from the Hub & Spoke trap and build a more valuable, sellable company.

Conclusion

The key to optimizing your company's value is to understand and take advantage of these eight important drivers. By mastering these elements, you can build a company that thrives and commands a premium in the marketplace.

Download today! - Unveiling the 8 Key Drivers of Company Value