In my experience, I have found that early-stage business exit planning helps my clients focus on accelerating their speed to revenue — the rate at which they generate income.
This focused lens allows for a thorough evaluation and optimization of sales infrastructure that can also significantly enhance business value.
Whether you’re planning to exit your business in the near future or you’re in it for the long haul, the strategies I share in this article have the potential to deliver game-changing results at any stage of your ownership journey!
The Impact of Intangible Capital on Business Value
Intangible capital has increasingly become a critical factor in determining business value in the modern economy.
This type of capital includes assets that are not physical in nature but hold significant value like brand reputation, customer relationships, or intellectual property. This means that two companies can have drastically different values to potential buyers even if every tangible aspect of their business is identical.
These intangible assets are the factors that give your company its unique selling points and impact your business worth in a way that it wouldn’t for another company.
Did you know that Intangible Capitals make up roughly 80% of a business’s value?
This claim is backed up by extensive studies conducted by Exit Planning Institute– considered the standard trendsetter in the field of exit planning across the globe.
According to Christopher Snider, CEO, Exit Planning Institute, “Managing intellectual knowledge has become the single most important task of business. Today, wealth is created by your ability to create, assemble, integrate, protect, and exploit knowledge assets.”
Evaluating Sales Intangible Capital
Without understanding the strengths and weaknesses of the intangible capital of your business, you run the risk of leaving value on the table during your business exit.
To help you assess the opportunity gap related to your sales specific intangible capital, I have partnered with my Fractional Sales Leadership colleagues to create a custom Sales Capital Scoring Tool (as featured below). Drop me a message if you’d like a copy of the working model.
When I partner with a client, I assess these areas in more detail. This tool offers initial insight into how your sales organization contributes to your company’s enterprise value.
To help you process the impact intangible capital development focus can have, I published a compelling growth story that demonstrated a client’s 5-year invest-to-exit growth sprint. It outlined how a once $5m struggling business was sold for an impressive $50 million!
The optimization of sales intangible capital contributed to that impressive business exit outcome. If you missed it, here’s the article link, “A Story of Transformation: From Struggling Sales to Rapid Growth”.
Expedite Results with Fractional Sales Leadership
Pinpointing and fixing sales leadership and infrastructure gaps that cause underperformance is my area of expertise.
I do this by employing a proven discovery process and best practice approach to building a sustainable sales operating management system that applies to any B2B company, regardless of industry or size.
To discuss how these improvements can benefit your business, contact me at 321.229.8910 or [email protected].
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I am part of a national group of Senior Sales Leaders who collaborate to share insights like the examples shown in this article. We formed because of our shared passion to help business leaders exponentially grow their revenue.