10 Resolutions to Increase the Value of Your Business
As we leave behind another year, now is a good time to focus on enhancing the long-term value of your business. Here are 10 resolutions to consider for 2025:
- Shift Focus from Revenue to Profitability: Expanding sales without addressing dependency on your personal involvement can hinder your business’s value. Instead, focus on driving profitability through efficient, scalable solutions.
- Implement Net Promoter Score (NPS) Surveys: Collecting customer feedback through NPS surveys is an effective and simple way to gauge satisfaction while providing valuable insights into future growth potential.
- Sell More to a Broader Market: Rather than expanding your product range, concentrate on serving a large customer base with a select, differentiated set of offerings. This approach builds a more valuable, niche-focused business.
- Eliminate Products and Services Dependent on You: Products or services requiring your personal input consume time and resources. Let go of those that don’t significantly add to the value of your company.
- Collect Payments Upfront: Strengthen your cashflow by shifting to a model that collects more money in advance. This will improve your financial position and enhance the value of your business.
- Develop Recurring Revenue Streams: Establishing predictable revenue from subscriptions or long-term contracts reduces volatility and increases your business’s overall value.
- Emphasise Differentiation: Refine your marketing strategy to showcase what sets your business apart. Consistently highlighting this unique value proposition is key to building long-term competitive advantage.
- Diversify Your Supply Chain: Identify alternative suppliers for critical raw materials to reduce risks and ensure greater stability in your production or service delivery process.
- Empower Your Team: Cultivate a mindset of ownership within your team. Encourage employees to think critically and solve problems independently by asking, “What would you do if you owned the business?”
- Document Core Processes: Create comprehensive process manuals that allow your team to work autonomously, ensuring consistency and operational efficiency.
By implementing these resolutions, you’ll be well on your way to building a more valuable and resilient business in 2025.
If you have any questions about this article or would like to speak to one of our advisors about how you can improve your business, please do not hesitate to contact us or call our office on (08) 6212 7200.