- Get Ready To Grow
Value Creation
For owners ready to treat their business as an asset.
Make your hard work pay off for you now and in the future by focusing on enterprise value!
What is Value Creation?
In a nutshell: Value Creation is when you, as the Founder or Owner, take a proactive approach to decision-making and execution in your business for the purpose of improving Earnings, increasing Growth, and reducing Risk.
Enterprise Business Value is the total value of the company. It’s calculated based on financial attributes of the business in the context of industry and relative risk. In other words, enterprise value is what your company is worth on the open market.
You’ll often hear value referred to as a “multiple of earnings.” This is where you take your EBITDA number and multiply it by the number assigned to your company as a ranking compared to its peers.
What makes your company more valuable? Higher profits, steady growth, lower risk.
A "Create Value" Mindset
Treat your business as an asset and become more objective about its value. Embrace its strengths, and acknowledge the areas for improvement.
Plan more confidently knowing your business priorities are right.
Value Creation is the epitome of working ON your business.
Features
- Reveals an owner's blind spots and provides the North Star for decision making
- Benefits owners immediately by improving business performance
- Positions owners for maximum choice around how they might exit their business in the future
What's Included
Frequently Asked Questions
Check out our Value Creation FAQs.
Didn’t answer your question regarding Value Creation? Shoot us a note at: info@bizopsolved.com
We have two engagement models.
Consulting Packages: 1-Hr value creation sessions that can be used individually or in combination. Pricing starts from $3,000 for 6 sessions.
Monthly Retainer: Customized level of consulting on a monthly or weekly basis. Our retainer clients enjoy additional benefits including email support, customized weekly insights, and greater flexibility. Pricing starts from $1,500/mo (minimum 6-month).
Everything in the business from planning to execution focused on improving profitability and growing revenue, while at the same time reducing risk.
This manifests in the way you run day-to-day operations, what internal initiatives you undertake, and where you make investment in the business. It also means removing yourself, as owner, from being a single point of failure.
First, we meet to identify your value creation goals. If you have a current business valuation, great. If not, we can help you get a go-to-market valuation or we can use rule of thumb to estimate current value.
Next, we look at the strengths and opportunities in the business. We help you evaluate where you spend your time as the owner and how to optimize that.
Together we strategically plan the path toward your goals, and determine the steps needed to get there – all with a focus on enterprise value, earnings, growth, and risk reduction. This will be a plan your business can actually use.
We then provide ongoing consulting support to help you “Do The Work” to execute the value creation plan we’ve designed together.
It’s a handy way to remember the priorities. Value Creation (EGR) comes from Improving Earnings, Increasing Growth, and Reducing Risk.
Bottom line: It’s about building a more successful and attractive company.
If your business has $500K in earnings and a 2.8x multiple, it’s worth $1.4M (500 x 2.8).
But with Value Creation efforts, your earnings increase to $800K, and the work you did improving the business to get there results in a 3.4x multiple. Now it’s worth $2.7M. That’s nearly double when you started!
Yes! You should care about Value Creation if your business financially provides for you today, or needs to in the future. It pays off right now with increased income, lower stress, and getting back your time to focus on the important things.
The difference between what your business is worth today vs what you need it to be worth to achieve your future goals. Owners should expect this topic to come up in conversations with their financial planner.
Value Creation engagements typically start within 1-2 weeks.
Get Serious About Business Value
We help you treat your business like the precious asset it is.