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Sometimes it’s good to compare yourself

by on July 3, 2014

Comparison

I’ve been told often not to compare myself to others.

I have my own journey to make.  They have theirs.

But sometimes it’s good to compare yourself.

Did you ever wonder how your company compares to your peers?

I don’t mean just in terms of the amount of revenue and profit you produce, or even so much how your products compare.

I mean, how you compare on a deeper level.

How you compare operationally, organizationally, and in terms of processes.

How do you compare against Best Practices?

When you’re doing your planning sessions it would be nice to know, don’t you think, what areas you can improve upon, and not just because you think so but because you don’t compare favorably against Best Practices or your peers.

By improving your operational processes you can reduce your risks, enabling you to grow without breaking your processes, by getting out of your own way, and therefore reduce your cost of capital, which in turn increases your valuation.

This is the essence of a corporate development plan.

It’s a road map for your company.

You can increase your company’s valuation just by operating more efficiently.

Imagine that!

Every business has inefficiencies.

Very few businesses can identify them, create a plan to address them, and then calculate the impact it will have on their valuation.

What Do I Believe?

I deeply believe that middle market tech companies need to stop limiting their options and opportunities because they’re small or have little cash and that they need to start acting like bigger companies with more tools and resources.

I believe middle market tech companies can dramatically improve their performance and market positioning by looking at their business the way a PE firm would.

I believe mid-market tech companies should create and implement a corporate development plan so they can sell the company for a premium to a strategic buyer.

I believe that there is more these companies can do with what they’re already doing.  By looking for inefficiencies one can find things that can change to impact the top and/or bottom line in 1 or 2 quarters.

You don’t need to hire 10 more sales people.

You don’t need to tweet more.

What you need is to do more with what you’ve already got deployed.

p.s.

If you’re wondering how you build a company that you can sell for a premium in a few years, contact me to discuss the Valuation Amplification Process.

I also invite you to download the white paper and learn the 5 step process on How to Quickly Increase Your Valuation: a Proven 5 Step Process.  http://www.therevenuegroup.net/free-offer.html

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From → M&A, Strategy

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