What’s Your Value Gap?
We define the value gap as the difference between today’s business value and what it could be after you invest in the Value Enhancement Process.
The Value Enhancement process includes several components that are visible to your Team, Customers, Suppliers and Outsiders. These efforts are time consuming and require an investment on your part and pay tremendous dividends.
1. Improve Profitability
2. Improve Systems and Processes
3. Develop your Team and Management
4. Improve Customer Stickiness, Retention, Penetration & Acquisition
5. Improve the Culture
In this simple illustration we see the benefit of the Value Enhancement Process is to move the value of the company from $1,500,000 ($600,000 profit times a 2.5 multiple) to $3,200,000 ($800,000 profit times a 4.0 multiple). Most would agree it is worth working hard for 1 – 3 years to generate a $1,700,000 return.