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Cash is King - Data is Queen

Understanding the last 45 days can lead to building your company value

At this point with Coronageddon, everyone has far more questions than answers. But business was always more of an art than a science which means we need to continue to navigate the unknowns. The fact that there are now more unknowns today than perhaps two months ago doesn't change the need for every business owner to view cash as king but to now add data as the partnering queen.

Now is the perfect time to invest a deep dive in to your data to see what it's telling you about the last week, last 2 weeks, last 30 or even 45 days. The pace of change has gotten crazy fast, so fast that the what you knew to be true about your business back in January or even mid February, has now potentially dramatically changed. And of course a major question is, has it changed permanently or just temporarily? Regardless, you want to know the answer to help navigate at least the near term.

Starting today, challenge if what you knew about your business back in January is still true to this day and leverage what your customer purchase data is telling you:

1.) What is occurring with your new orders...which sources are down, which might actually be flat or up? For those that are up, can you do more to build upon that even more? For those that are down, are you clear on the reasons why? Don't assume it's because the customer's business is down...could it be they need something different or faster than you have made available and they have had to make a quick switch to another source?

2.) Where new orders may be holding steady or even up, what is the profile of these customers/sources and could you find more of them in the market and now would be a good time to introduce your company to them? We all know that online is the market to be playing in...if you're not, can you quickly navigate your way to particpating somehow?

3.) Is there a change geographically where your orders are/are not coming from versus prior to COVID-19?

4.) Has there been a mix shift in terms of what customers are buying from you? What of your offering is down, flat or perhaps even up? What is up, can you build upon it?

5.) Are customer buying patterns now different in terms of the volumes/units...are they buying larger volume in a single purchase than prior or have they adjusted downward and do you undersatnd what's driving this new behavior?

6.) Are customers buying new packages or bundles of what you offer? Perhaps prior you seldom saw a customer buying Part A and Part D together from you on a single order but now they are. Look for any changes to the combination of what customers are/are not buying to see what you can learn.

7.) Talk to your sales people, your customer service people...talk to your customers and see if they are needing a new product or a new variation of an existing product and they would like to get it from you. A few clients I'm helping have done this and sure enough it uncovered some quick bolt on products they can add to their offering and customers are jumping on it.

Again, challenge your paradigms about what you confidently knew about your business just 60 days ago. Look at your data in smaller chunks...see what trends may have changed in just the past two weeks versus the prior two weeks. It's not a time to be looking just at a full quarter or the past 12 months of your data given how things have changed in just a few weeks. Drill in to the last few weeks and see what trends might be evolving. The more you learn, the more you might be able to protect or build your company value or worth today and the future exit valuation you might receive from an acquirer.

 

Use Greenpoint Testing to Achieve Your Desired Exit Valuation

It only takes 106 questions, scanning 10 essential business functions, to stress test your readiness for a successful exit.

However, these questions require thoughtful commitment to achieve your desired exit valuation.

During this up to hour-long online testing, you'll see questions such as the following.

Sample Question 02

After internalizing each question, select among three answer options – Agree, Unsure and Don’t Agree – choosing the answer which best describes you and your business.

Then, complete the Greenpoint questionnaire to unlock your personalized report, which will reveal any gaps in your planning, pointing to the action steps needed to maximize your desired exit valuation.

Format: Digital

Delivery method: Email

Report included: Your Greenpoint results