We discovered that there are these eight key drivers that drive up the value of a company. The Value Builder assessment gives you a score for each of those eight drivers. This paper gives you the detail behind the Growth Potential driver and shows you how to get your own score.

1. DRIVERS
8
of
Company Value
Peter Cruikshanks
www.outsideinmanagement.co.uk | 07790 615 120

2. Financial Performance
Your history of producing revenue and profit combined with the
professionalism of your record keeping.
Growth Potential
Your likelihood to grow your business in the future and at what rate.
Switzerland Structure
How dependent your business is on any one employee, customer or supplier.
Valuation See Saw
Whether your business is a cash drain or a cash tap.
Recurring Revenue
The proportion and quality of automatic, annuity-based revenue you
collect each month.
Monopoly Control
How well differentiated your business is from competitors in your industry.
Customer Satisfaction
The likelihood that your customers will re-purchase and also refer you.
Hub & Spoke
How your business would perform if you were unexpectedly unable to work
for a period of three months.
8 Drivers of Company Value
Overview
Peter Cruikshanks | www.outsideinmanagement.co.uk | 07790 615120
We discovered that there are these eight key drivers that drive up the value of a company. The Value
Builder assessment gives you a score for each of those eight drivers. This paper gives you the detail
behind each driver and shows you how to get your own score.

3. The second driver is your company’s growth potential. The
owner of the company, when they think about their business,
they want it valued based on what they've done in the past.
We're proud of what we've done in the past, that's normal. For
example, the fact you won an Association Award or that you've
got a 20 year business or that you're recognized for your
reliability – whatever it is that you think you've done in the past.
But the hard truth of it is, that when a buyer comes in, they're
not buying the past. They're not buying what you've done.
They're really only buying one thing and that is: they are buying
your future stream of profits – what this business is going to do
in the future?
For you it's the end of the game. It's the finishing line. For them
it's the start. It's a different frame of mind for them. They ask:
What can this business do in the future?
So, to drive up your score on growth potential you have to
make the case and focus on what is the future potential of this
business. Can it operate in a different market? Let's say you've
been successful in market A. Is it possible to scale to market
B, C and D?
Could you cross-sell additional products and services to your
existing customer base? Are there ways that this could work in
different cultural markets for example?
The answer to those questions is going to drive up your growth
potential. If you're not selling the business yet then you can
exploit that growth potential for income now.
Value Driver 2: Growth Potential
8 Drivers of Company Value
Peter Cruikshanks | www.outsideinmanagement.co.uk | 07790 615120

4. 8 Drivers of Company Value
Now it’s time to take the next step and get
your Value Builder Score by visiting:
www.outsideinmanagement.co.uk/valuebuilder
Peter Cruikshanks | www.outsideinmanagement.co.uk | 07790 615120