Mistake #9: Delaying Success: Fear and Hope
The Most Common Founder Mistakes
It is more important than ever to focus on activities that create business value. That means having laser-focus on business value drivers:
- Operational Effectiveness: Service Delivery, Operations & Technology, Change and Culture, Analytics, Governance
- Talent Strategies: Workforce Planning, Learning & Development, Total Rewards
- Revenue Growth: Business Transformation, Globalization, M&A, New Markets, Innovation
What are the Ideal Business Model Attributes that will Optimize Enterprise Valuations and Attract Useful Capital?
Operational
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Strategic |
- Established Measurement and Metric Systems beyond Financial Measures.
- The Business Process is more Salient then One Person or Team.
- Top quartile growth created through market differentiation at service level.
- Portfolio of Distribution Venues are Proven: Effective and Proven “Go-to-Market.”
- End-user Customer Satisfaction is a Critical Brand Equity.
- Compensation has a Variable Cost Component and Supports the Business Objectives.
- Illustrates the Attributes of Effective Risk Management.
- Outsourcing is Part of the Business Model.
- Illustrates a Results Oriented Culture.
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- Recurring Revenue Model.
- Core competencies identified and creating value.
- Positioned as attractive platform for additional investment or as a strategic acquisition.
- Balanced portfolio of revenues: service offerings, industries served and customer concentrations.
- Unique Attributes of the Business Model are Brand Equities.
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If a business realizes 80% of the table above it will:
- Create financing capital out of operating performance;
- Attract Useful Capital; and
- Create an economically efficient model.
Read more: Mistake #10:Taking Money from Friends, Families, and Fools: The Difference of “Useful Capital”