Know Your Competition – Market and Value Advantage

Can your company separate itself from others in the marketplace?

Welcome to Part 8 of 10.

Top Ten Tip of Week by Dale S Richards, a Certified Licensed Business Valuator for 20+ years. This week we will address: Know Your Competition – Market and Value Advantage

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Many companies employ a market research firm to examine the competition. This can cost thousands of dollars. My methodology is a proven technique that employs a college student to complete such an analysis.

The method allows the student to receive college credit while providing the company with details about the competition and market. I have used this technique to assist in the commercialization of fifty technologies based in universities, startups, and mature companies that enhance their ability to understand and adjust to the competition.

Competitive Advantage

One of the most important small business valuation ideas is to build a company that provides a service not provided by anyone else. If your company can separate itself from others in the marketplace, this is an instant way to increase your value to potential suitors.

One of the most important small business valuation ideas is to build a company that provides a service not provided by anyone else

Cash Flow

If you generate a solid cash flow, then your cash flow has value. If you create systems that translate tribal knowledge into workable processes, then there is a valuable addition. If there is a document of the process on HOW you generate sales and new customers, then there is added value. These will add cash flow and value. Without systems, your value decreases. Service and professional businesses can increase their value with systems.

TOP TEN WAYS

TOP TEN WAYS TO INCREASE VALUE IN YOUR COMPANY:

Here is a list of my top 10 way to increase value in your company

• Productivity Pyramid TM Goals–Coaching-Accountability–Rewards
• 80/20 Customer “Gold Program” ®
• Performance Dashboards: A/R, A/P, Cash Flow, Contrib. Margin (CM), Productivity $Rev/FTE, $CM/FTE, NI/FTE
• Why Do Customers Buy – Build Brand –
• Rifle vs. Shotgun Marketing ® Approach
• Systems – Processes
• Reoccurring or Recurring Revenue
• Know your Competition – Market and Value Advantage
• Optimize Product Pricing/Profits
• Remove Product Dead Wood –Increase Margins & Profits

Competition Tracking- Proactive & Ways to Increase Value

Competitive Tracking: You can’t stay ahead of your competitors if you don’t know what you are doing.

 80/20 Customer “Gold Program” ® 

How do you expand revenue with existing customers? 80/20 Customer techniques help to raise revenue 2X-4X. Proactively find out what customers’ needs are instead of waiting for them to call.

Not sure of your competitive advantage?  Maybe it’s time for competitive analysis.

Dayna Nuemann, Louisville KY, Learned key business concepts from Dale S Richards’ presentation on Business Valuation Principles – How to Increase Your Business Revenue, Profits and Value 2X because Dale used real-life examples to illustrate the financial topic that could have been boring but he made it fun.