Business Aspects Magazine wanted to highlight the growth value that Paul Dodgshon, from Uscita Solutions, brings to businesses, once they have filled in a Value Builder Score questionnaire, in preparation for sale. Based on quantitative analysis of more than 18,000 users, companies that achieve a score of 80+ are predicted to get sale offers that are 71% higher than the average business.
Adapted from an original by Uscita Solutions, Paul Dodgshon talks to Santa (who has completed the Value Builder Score questionnaire) about his results:
Paul: “Santa, it is great to talk to you. I can confirm that your overall Value Builder Score is 42 out of 100. I see that you intend to keep your business for thousands of years to come, so why did you take our survey?”
Santa: “Running my business does take a lot of my personal time, so I was wondering if there were any tips or hints that might make my life easier. You should never be too old to learn”.
Paul: “I am always happy to help, Santa, so here are a few thoughts about the 8 key drivers of your business model”.
1 – Financial Performance
Paul: “You expect to see continued growth, underpinned by a growth in the world population of 1.1%. However, there seem to be a few challenges with no sales being seen. Perhaps your financial records could be a little more thorough?”
Santa: “I am very busy Paul, so I do not focus on the finances as perhaps I should. I am more about bringing joy than earning money”.
2 – Growth Potential
Paul: “Your Growth Potential would be limited by the fact you already serve most of your market and that there is limited room for cross sales, as you already provide customers with the very present they want”.
“There’ s also issues with geographical expansion, as you already cover everywhere! On the plus side, we can certainly classify you as a thought leader in the delivery sector. You have kept pace with a doubling of the world population since 1970 so scalability would not be an issue. You also provide the same service to everyone, which is key to growth”.
Santa: “We have our systems and stick to them, from inbound mail, through production to chimney. We do it the same way for everybody who believes”.
3 – Switzerland Structure
Paul: “The next area to discuss is your over-dependence on any key person, customer or supplier”.
Santa: “We have lots of small customers each receiving a few presents. We also have a vast range of suppliers, based on our customers’ requests. My army of elves are well-led and believe in the business culture”.
“The Sales and Marketing function is one of my key roles and it does take a lot of my personal time before Christmas. I suppose I am the original one-man brand”.
Paul: “You are, Santa. However, for anybody else this would certainly have stopped business growth a long time ago”.
4 – Valuation See-Saw
Paul: “Let’s look at your cash flow. Any normal business would not be able to run the way yours does Santa!”
Santa: “I do have an advantage in not having to think about working capital. As a result, I can continue to serve more people each year without worrying about raising cash”.
5 – Recurring Revenue
Paul: “You do have potential for an ideal business model. If you were anybody else I would suggest a Simplifier Model, such as Amazon Prime. One payment each year and you will sort out the presents, removing stress and making life easier for customers”.
Santa: “I see, Paul, but my model is more about giving back”.
6 – Monopoly Control
Paul: “You have a perfect score in this key driver. Your service is unique and your customers certainly do care about what you provide”.
7 – Customer Satisfaction
Paul: “This is another of your strengths. One key thing that you have achieved is a high level of referrals, with parents always recommending you to their children”.
Santa: “We do retain high levels of customer loyalty…for approximately 10 years, when our customers move on”.
Paul: “I would recommend a Customer Survey to find out why people stop being your customer. This would help your customer retention. It is clear that you have a great fan base and this will continue to help your business move forward”.
8 – Hub and Spoke
Paul: “Let’s discuss the extent to which the business revolves around you. Your team manages production, but you personally answer every letter, deliver every present and if you were not able to work at Christmas then the business would certainly suffer. For most businesses, this would be a real weakness”.
Santa: “It seems that I am stuck in the classic owner’s trap of being the expert that all my customers want to deal with. Luckily, I will never retire and will never be ill. On that basis, my business will continue to grow, where most others would not.”
Paul: “Santa, it has been a pleasure talking to you. Your business leads the way with many features, such as;
- staff engagement
- corporate social responsibility
- customers who are evangelists
- a strong referral program
- excellent levels of repeat work
- scalability of the operation
- and a truly differentiated marketing position that attracts new customers every year”
How does your business model compare to Santa’s?
Uscita Solutions have produced a guide which covers, in more detail, how these 8 key drivers can improve the value of your business.
To download your free copy of this guide, please click on the link below;
