Building your company worth starts with the fundamentals, how are yours
When you look to sell your business one day, an acquirer will come in to kick your tires and they will look to see if your team can handle the basic business fundamentals. In working with clients, we often find fundamentals are lacking and it’s hurting performance.
Here are a few of the more common business fundamentals we see missing. Sit with your leadership team to ensure you have these covered:
- - Customer retention isn’t being effectively monitored. Does your team regularly review retention and metrics by customer segment/geography?
- - Win/Loss monitoring isn’t being effectively monitored. Does your team regularly review your wins and losses on customer activity? And this should be monitored for existing versus new customers as the win/loss metric will be different.
- - Lead management is weak. Does your team regularly monitor number of leads received, response time to each lead, outcome of each lead and ultimately moving a lead to becoming a customer (which links to the win/loss rate)?
- - Customer phone or email queries aren’t effectively being managed. Does your team monitor the customer experience related to customers (existing or new) trying to phone or email your team? How fast are phones being answered or emails replied to, how many buttons does a customer have to push to reach a live person, is your team responding effectively and doing what they committed to do, etc.? Don’t assume your team is managing these at a world class level.
These are just a few examples of the basics that we find are often missed. Fixing them can directly or indirectly positively enable your company and even help build company worth. Don’t commit assumicide with the basics.
