How To Increase Company Value

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How To Increase Company Value

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Value Comes in Many Colors

Meeting the needs of your customer is a key principle of value creation. One of the many ways to create value is to look at your core competencies. (Isn’t it interesting how that keeps showing up?) There is no single applies-every-time formula for value creation. Some of the ingredients of the consolidated value of a company include its sales, marketing, personnel, intellectual property, and good will. These and other elements are considerations in the measurement and valuation of a business. To keep value from eroding, companies have bought back shares, uncoupled mergers, jettisoned outdated facilities, and downsized personnel. Although these actions do help, they DO NOT create new business. new revenue streams or new value.

Here are some of the more important ideas we have learned about value creation:

  • Value creation is more than monetary
  • Change can have a dramatic effect on value creation unless you manage it for your advantage
  • To make any positive changes happen, you must know how to sell them to all of your audiences, e.g., shareholders, stakeholders, bankers, etc.
  • Alliances provide an immediate solution to business expansion and ensuing value creation
  • Market research is important to help you validate goals, direction, and to define your audience.
  • Value creation is something you must work at all the time in order for it to be effective.

The use of modeling tools specifically involving performance and growth and profitability will suggest many areas in which to find value-creation opportunities.

Company policies can and do impact the creation of value. Remember, a company is not just a compilation of buildings but rather a powerful force whose impact affects many people. It is a living member of the community in which it is located.

Franklin Cooper ©2017