How enterprise transformation drives growth and unlocks value

If you could reimagine your business, what would you change to make your company the best creator of value it can be? Thoughtfully thinking through this exercise can help leaders develop a deeper understanding of how their business generates value. With better insights, leaders can strategically allocate capital and resources to create better versions of their companies – more nimble, more competitive and capable of delivering greater shareholder returns

What are best first steps to create business value?

First, as a business owner, look at the business to understand how and where it creates value. Taking a deep look at profits and where they’re generated (most companies do this part well). Next, Business owners need to look at the capital and resources required in generating those profits to create a more holistic view of value creation.

How do companies know if they’re doing that correctly?

Partnering with the right strategic partner and CPA is vital. Through this process, business owners can understand this view of value creation through looking at returns on capital, cash flows, in a much more detailed level than they may have before. Then, sitting down with their wealth planner and CFP^®, working with them to create an investment plan like an investor might, which in some cases looks like helping grow the business, or perhaps reimagine the enterprise.

What’s a specific example on how to unlock value in business?

Together with your strategic partners, CPAs, and wealth advisor create a plan and workshop. The workshop should be centered around the understanding the flow between the whole organization which may include, commerical, supply chain, tax, finance, technology and more. Engage the employees to create an ownership mindset. This will help them understand how value is created in their company and the role they can play in unlock that. By involving employees in the process, companies can create a culture of accountability and innovation, where everyone is aligned with the organization's goals and motivated to drive success. This holistic approach not only improves operational efficiency but also enhances the overall customer experience, leading to increased loyalty and market share.

All expressions of opinion reflect the judgment of Jordan Niefeld, CPA, CFP^® and are subject to change. This information should not be construed as a recommendation. The foregoing content is subject to change at any time without notice. Content provided herein is for informational purposes only. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. Asset allocation and diversification do not guarantee a profit nor protect against loss.

All information provided is for informational and educational purposes only and is not intended to provide investment, tax, accounting or legal advice. As with all matters of an investment, tax, or legal nature, you and your clients should consult with a qualified tax or legal professional regarding your or your client’s specific legal or tax situation, as applicable.

The preceding is not intended to be a recommendation or advice.

*Raymond James & Associates does not provide ta, legal or accounting services.