Succession And The Catalysts of Capital Value
Are you serious about building the capital value of your business? Then your focus must be firmly on the catalysts that will create that capital value.
We have previously discussed the importance of recognising the interdependency of succession planning and building capital value.
Succession starts the day your business is formed and continues for the entirety of its life. Succession is really about the capital value of your business, as capital value represents its ability to earn an enduring income.
We have discussed the importance of legacy to capital value, ensuring valuations are fit for the purpose of succession, and where value may lie through intangible assets.
But behind all of these elements and the profit you earn, there exist catalysts, which in simple terms allow your business to compete effectively and be successful. What do you think has made your business successful?
List out — in your mind will do — the top seven drivers that have underpinned your success. Here is what Australia’s most successful business people believe made their businesses the successes they became:
· Worthy leadership.
· A customer focus which drives customer value.
· A purpose and vision that inspires and guides.
· The right culture for your business.
· A proactive attitude.
· Recognising and growing core competencies.
· Engaging with employees in a manner that establishes trust and commitment.
It is focusing on these agents within your business that will allow you to create and sustain the catalysts that will build the intangible assets that underpin the profit. They are the seed of the capital value of your business.
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An Invaluable Resource — ‘Transition — Orienteering The Lands of Succession’
