Follow Dallas Linkedin
Email Dallas Email
Financial
Oct 2, 2017

How To Increase Your Business’ Value Using Value Drivers

Sponsored Content provided by Dallas Romanowski - Managing Partner, Cornerstone Business Advisors

A fundamental aspect of a successful business exit is assuring that your business has enough value to allow you to exit with financial security.

This, coupled with wisely invested non-business assets, gives you the best chance to pursue the exit path you want on the timeline you want. Obtaining a proper professional business valuation is the first step in determining how much your company is worth, but what happens if the valuation shows that your business isn’t worth enough to allow you to exit your business with financial security? How can you increase your business’ value if everything that’s made it successful thus far isn’t enough?

The answer lies in installing value drivers.


What Are Value Drivers?

Value drivers are specific business characteristics that drive growth. While each business is unique, there are six areas of your business that, with focus and a little time, can have the greatest impact on your company’s value:
  1. Next-generation management
  2. Operating systems demonstrated to increase cash flow sustainability
  3. Demonstrated scalability
  4. Diversified customer base
  5. Proven growth strategy
  6. Recurring revenue that is sustainable and resistant to commoditization
The existence of next-generation management appears first because it is the most important value driver. The others are ordered by how likely they are to affect business value.


Why Establishing Value Drivers Matters

Growing business value and cash flow can help you close the gap between what your business is currently worth and what it must be worth to satisfy your exit goals. Thus, growing business value and cash flow is key to your ability to exit when you want and for the money you need.

Beyond the enormous benefit of being able to leave on your own terms, there are other benefits of identifying and enhancing value drivers:
  •  Identifying and enhancing value drivers can help you view your business through the eyes of a prospective buyer or another successor owner, such as a business-active child. This helps you overcome sentimental attachments to your company and decisions that only benefit you personally.
  •  Because you’ve already set your goals and determined how much your business is worth, you know how much and how quickly growth needs to occur. If you have not yet set business-exit goals or obtained an estimate of value, contact us to get started.
  •  By identifying value drivers in your business, you can concentrate your efforts (and management’s efforts) on areas that need the greatest improvement. Your business is obviously successful, but even the best-run businesses have areas that need improvement.
Contact us today to begin identifying, prioritizing, and installing the value drivers your company needs for you to leave your business on your terms.

© Copyright 2017 Business Enterprise Institute, Inc. All Rights Reserved
 
As a member of the Business Enterprise Institute (BEI), Cornerstone Business Advisors is an authorized distributor of BEI’s content and Exit Planning Tools.

The Cornerstone team includes former C-Level executives, successful entrepreneurs and advisers who offer unmatched experience in delivering advanced, custom-tailored, results-oriented solutions for business leaders. We developed the Performance Culture System™ to help clients implement best practices and drive high performance throughout their organization. For more information, visit www.launchgrowexit.com, call (910) 681-1420 or email [email protected].


 

Other Posts from Dallas Romanowski

Bizjournalblockad
Ico insights

INSIGHTS

SPONSORS' CONTENT
Ccoudrietheadshot 942542742

Partnership Brings Groceries and Prescription Medications to Underserved Households

Chris Coudriet - New Hanover County Government
Untitleddesign13 162533932

Ready to Sell Now? Maybe You Don’t Have to Wait

Tully Ryan - IQEXIT
Untitleddesign7

Five Years After Surfside: What HOA Boards Can Learn About Structural Integrity and Long-Term Planning 

Dave Orr - Community Association Management Services

Trending News

Tech Wilmington: Upcoming Events Calendar

Staff Reports - Oct 21, 2026

Live Oak Bank Reports Q3 Revenue Growth

Cierra Noffke - Oct 22, 2026

Corning Moves Forward With Wilmington Expansion

Cierra Noffke - Oct 21, 2026

Under New Owner, Pour Taproom To Add More Nonalcoholic Beverages, Events

Emma Dill - Oct 21, 2026

Vantaca, Live Oak Bank Chart AI Strategies

Cierra Noffke - Oct 20, 2026

In The Current Issue

Shoulder Season Lifts Tourism Industry

Industry professionals say people seem much more willing these days to travel to the Wilmington area outside of the traditional summer vacat...


Election 2026 Q&A: NC House Candidates In Local Districts

Candidates vying to represent local districts in the N.C. House of Representatives answer questions on timely topics....


County Buildings Rise In Burgaw

New buildings have opened or will soon open in Burgaw this year to support growing Pender County, including a new law enforcement center and...

Book On Business

The 2026 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

2024 Power Breakfast: The Next Season