Richie Lowe
AREINZ
Tips to make
your business more successful
What makes a business successful?
Providing value, cost effectively! “Value Drivers” leverage business
profitability and reduce risk. Value drivers distinguish successful
businesses from their competitors. For many business owners, the
business represents their life’s work and most of their net worth.
It would be wise to take steps to maximise the value of the
business. Value drivers vary by type of business. While reputation
and cost control are always important, other factors vary. Such as:
Restaurants – are known for good
food and a positive dining experience.
Value drivers include:
location, concept, menu, quality of cooking, wait staff and cost
control.
Technology Businesses – must have
core product/technology or “know how”
Value drivers include:
highly skilled staff, quality and cost control, R & D (research and
development).
Professional Services – known by
reputation.
Value drivers include:
personal relationships, highly skilled staff, cost effective
delivery of service.
Retail: merchandise/brand mix and
location are important.
Value drivers include:
stock management and cost control.
What are the value drivers for your
business?
Using the SWOT analysis (strengths,
weaknesses, opportunities and threats) can help you identify value
drivers in your business.
To maximise the value and
profitability of your business, you need to focus on the key value
drivers, which may be intangible assets, including your staff, as well as having up
to date equipment and systems. An independent perspective, such as
that of
an ABC Business Broker, could be quite invaluable in identifying
value drivers.
Richie
Lowe is General Manager of Affiliated Business Consultants Ltd (ABC)
and Chairman of the Business Brokers Division of the Real Estate
Institute of New Zealand.
