Every business owner should be building one thing only – an Asset of Value.
What is an Asset of Value?
This is a business that is built into a tradable asset. An asset is anything of value or a resource that represents economic value – for example a bar of gold. Trading is an ability to buy and sell something – for example, a share on the stock exchange.
Why should you build an Asset of Value?
This is a business that has value and it can be sold one day. You are investing in your business daily. You invest time, sacrifice, your money and Sweat and this is all done because you believe that one day, you’ll earn a capital profit when you Sell. Yet, 94,6% of businesses started fail to sell. They close at great cost to the business owner and their family. This happens because they are not built into a tradable asset.
How do you build an Asset of Value?
There are six building blocks to build an Asset of Value:
This answers the question about what makes your business special in the eyes of your customer. Read more on getting positioning right, here.
This ensures that you build a 12-month sales engine. This engine is made up of business systems and processes that your sales and marketing team operate each day. If your business closes for holidays, the systems should be set to continue operating even without your staff. Selling is a 24/7/365 activity because it needs to bring in 12 months of revenue to service 12 months of cost.
Organised, well-managed operations that ensure your customers are serviced and get what you promised. Chaos in the operations is the silent killer of any great brand and good business. in fact, fulfilment is where the brand of a business is built, not marketing. If you know who you serve, understand their problems and solve the problems through a great experience, they’ll continue to support your business. if not, they will tell the world. This all needs to happen whether you are there or not.
Getting the first 3 layers right and properly integrated, releases time for you to think and act. Think about what will grow your business to the next level and then act to make it so. If you are stuck driving the momentum and fulfilment activities in your business, every minute of every day you will never have time to do this. Think about it, what are the 3 big deals you could do to triple the size of your business in a year or two? If you know what they are, that’s where you should be spending 70% of your time. If you aren’t, it’s because the first 3 building blocks are not in place and integrated. If you don’t know, it’s because you have not figured out your positioning.
Crucial to growth is funding. It’s the oxygen that your sprinting business needs to keep its speed. You cannot scale without funding and you cannot grow beyond a pedestrian level without funding. Finding it takes time and effort. Getting it is crucial especially if you know what you need to do with it. You know this because you know the 3 big things you need to triple the size of your business…right!
Building a business that is saleable is the single most important concern you should have. Tt doesn’t mean that you sell it. Think about it. The definition of an Asset of Value is a tradable asset. It’s not a tradable “you”. It’s not a tradable “your time and your hand”. It must be independent of you. In fact, if you are your business, you don’t have an asset since you cannot be traded. Saleability means that you can access funding with far greater ease and at a far better price. It allows you options to sell should a deal come along and should your circumstances change – for example you move countries, or you have a family circumstance that makes a sale the right thing to do. Life happens and you should always be ready for it.
We work with business owners to achieve one thing alone – the building of their business into an Asset of Value. We do this in service to them, their family and staff and the future. Let’s have a conversation to understand how?