Your Business is likely Undervalued by 40% or More!
Yesterday we discussed business expert Steve Wolman’s statements that traditional business valuation models fail to recognize 40% or more of real value of a company because they fail to properly recognize the specialized Intellectual Property of the company.
And we discussed a recent client consultation with a small company owner who was missing this massive part of his value and now we see how this impacts his present day cash-flow:
He shared with me a list of his key sales positioning statements which were simultaneously totally undifferentiated in any way from EVERY single one of his competitors and completely absent of ‘WIIFM’ (remember: people are only interested in What’s In It For Me) benefit language to effectively sell their products with strong profit margins.
The strong majority of Sales are generated by pure one-on-one relationships of the owner and his partner and Zero leverage is added to the business based upon what are truly exceptional points of differentiation and value additions that could drive this company to a totally dominant position in their niche, given even reasonably well executed Marketing and follow-up. They are totally undifferentiated from the competitors and forced to compete on price with ever increasing demands for customized service, this is not only unsustainable for the business, its torture for the owners.
But, as I said, they are failing to understand, clarify, and leverage one of the greatest strengths, their specialized intellectual property.
Tomorrow we begin to explain what we advise you do about this massive undervaluation…
Have a Margin Expanding day today!
Performance Institute – A Global Leader in Business and Human Capital Development
Russ M. Miller, LLIF – Chairman
Shawn M. Miller – CEO
Sunny Hong Zhang – Managing Partner – China
P.S. The P.I. Marketing Academy launched last night at the Lakeshore Advantage area of the Clock Building in Zeeland, MI… http://hollandmarketingacademy.eventbrite.com/ … here’s a live action shot from the meeting, that’s “Mighty” Joe Stankowski, my friend and Marketing cohort and co-Host of the Academy to my right: