Gary Holt Blog

Business Valuation Methods: How to Create Unlimited Opportunity

Posted by Andrea Hewett on Tue, Jan, 20, 2015 @ 14:01 PM

business valuation methodsHow do you become wealthy? If you already are wealthy, how do you keep that wealth? There is a limiting belief in which people feel they are doing as well as they can – that belief is the flaw that keeps people from achieving all that they are capable of. The solution is to shift your thought process to a mindset of constant learning.

People’s knowledge grows and lifts them to unlimited potential and opportunity. There is “what you think you know” but what is preventing you from going to the next level is “what you don’t know.”

A great example of this is when you are trained to work with a new company. Your trainer most likely teaches you the way he or she was taught, possibly according to procedure, or maybe in a way that they believe to be the best. However, none of those ways have your thought process behind them. Have you ever done a job and thought that there had to be an easier way or maybe even developed an easier way? Many of us have, that is what spurns innovation!

Imagine if nobody ever thought about how to improve upon things. We might still be traveling by foot or horseback, manually doing everything at both work and home! Now think about what would happen if everybody thought to consult industry experts on the best way to do that particular job and updated their methods as new information came out. Not only would the work be a lot easier, but more cost efficient as well. Think of how many more happy people we would have in this world!

The mindset of continuous process innovation and measurement goes from instinct and emotion to logic and true success intuitively. Once you begin this process, you can begin the path to creating, and keeping, your wealth.

Wealth is created by the accumulation of knowledge based on standards created in your strategic objective. Your strategic objective is your business and strategic plan reduced to a set of metrics. The metrics are a tool for measuring your progress toward an objective or 3-5 year end result. It is designed for implementation as a template.

The first metric is money.

The question becomes how much money you need to live the way you wish. Not in income, but in assets. In other words; how much money do you need to be independent of work? If you own the business, how much will you sell it for? Five times earnings? Ten times earnings? When do you want it? Three years from now? Five years from now? Why would someone buy it? The reason to systemize the business is to make sure the time and money you invest in it produces what you want from it.

The second metric is whether it is an opportunity worth pursuing.

Is there a large enough segment of customers to make the money you set in your first standard?

Will the products and services resolve a problem or fill a desire that particular segment will buy?

Is the market underserved?

What is your service or product?

What feeling will your customer get from it? Power? Satisfaction? Peace of Mind? Pride?

People buy feelings. Feelings are more urgent, more unconscious. The demographics and psychographics of your prospects predetermine how you develop that.

Who is your most probable customer?

What organizational strategy is necessary to achieve your strategic objective?

What management strategy will work the best?

Intuitive or creative solutions to these questions can then be input into a system designed to deliver the performance required in your marketing and sales promise.

Intuition or creativity is unlimited in opportunity. Moving from what you believe and “what you think you know” to “what you really know” is a very different way of thinking. Once you put this mindset into action, you will be amazed at the results you will achieve!

If you would like to learn more, you can reach Gary at 989-791-2475 Ext. 13 or send me an email.

What are your thoughts? Are you happy with the status quo or are you of the mindset that continuous improvement is a necessity you would never do without? Please let me know in the comments below.

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