Improve and grow your Business now and sell it for more money in the future
A small business is an exceptional investment that will not only increase in value with improved performance, but it will also provide the owner with employment, an above average return, a sense of achievement and, in some cases, non-cash benefits.
But every business owner needs to look at the future, and ways to grow the business.
The “Innovation Ambition Matrix”
A few years ago, the Harvard Business Review published an article which offers some interesting thoughts on how to grow and innovate in business. The article talks about a “tool” they have named the “Innovation Ambition Matrix” which (essentially) suggests that businesses should invest;
- 70 per cent of energy and effort into serving your existing markets and customers,
- 20 percent of energy and effort into branching into “new to the company” business activities
- 10 per cent of energy and effort into developing “breakthrough” products or services.
This concept is particularly relevant today where disruptive technologies and methods are challenging traditional business models.
What Business Owners should do:
- Look after your core business,
- Look for strategic opportunities
- Develop a “breakthrough” for markets that don’t yet exist.
Think about this. All Businesses are either:
- Growing
- Stagnant
- Dying
The choice is yours.
You need to choose Growth and you need to make it happen.
Read the full article from the Harvard Business Review about the Innovation Ambition Matrix here: https://hbr.org/2012/05/a-simple-tool-you-need-to-mana
The Australian Government supports Businesses and provides a checklist to guide you through important steps and common issues when growing a business.
You can find the Checklist here:
https://business.gov.au/change-and-growth/growing-your-business-checklist
Written by Bruce Coudrey
Principal Benchmark Business Sales and Valuations
Bruce Coudrey has been Principal of Benchmark Business Sales & Valuations, since 1999. Benchmark is one of Australia’s largest national business brokerages. Bruce is a Registered Business Valuer and has acted as a court-appointed expert witness.
