Skip to content

Benchmarking your company – How am I really doing?

by on October 8, 2014

BenchmarkingSo you’ve made a decision on some aspect of your business that feels good.  It feels like the right decision.

Maybe your decision centered around creating strategic partnerships.

Maybe it was a decision about implementing a new sales process.

Whatever it was, you want confidence that what you’re doing is the right thing.

You don’t have unlimited resources so you have to be sure you’re spending your money in the right areas that will create sustainable growth.

So how do you do that?

Benchmarking and Best Practices

A very good way to know you’re making the right improvements is to benchmark what you’re doing against your peers and against “Best Practices”.

Find out where you stand.

You’re probably better than some in a few areas and have a couple of areas where you have opportunity for improvement.

But do you know what those areas are?  How do 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.

Once you know how you compare, what do you focus on first?

What do you focus on after that?

You can’t go all-in to improve everything at the same time.  You need a process to determine what is most important to focus on, what will be the impact of completing the task, and what is the impact on the company as a result.  How will you know if it’s done right?

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.

p.s.

If you want to learn how your company compares to your peers and Best Practices contact me for a quick chat about the Valuation Amplification Process.

Learn What a VC is Looking For

Need Help Understanding what a VC looks for when evaluating the companies they might invest in?

Download the VC Due Diligence Checklist and learn what they want from you.  https://www.therevenuegroup.net/vc-due-diligence-checklist

Upcoming Course Launch: “How to Build a Company a VC Will Want to Invest In”

We are about to launch a new online course that will help entrepreneurs learn the best methods for building a fundamentally sound company; a company that a VC would want to invest in.

Help us tailor the course by letting us know what issues or questions you have about securing VC funding.  Please take the survey here:  https://www.therevenuegroup.net/course-survey

 

Advertisements

From → Strategy, Valuation

Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: