Value Diagnostic

Questions help surface issues that need your attention, challenge outdated assumptions and uncover new and interesting paths forward.

The Shaw & Co value diagnostic asks 15 challenging questions, focusing on the five key areas of your business where you can achieve tangible results. The five key areas are:

  • Shareholder ambitions
  • Financial performance
  • Innovation and Future vision
  • Team
  • Market Dynamics

This quick diagnostic seeks to initiate important conversations that will help you consider, prioritise and map out your next steps.

1. How well defined are your medium term strategic goals?

Developing and communicating clear goals helps your team to focus on the right things. Make them ambitious enough that they inspire you and credible enough for the team to believe that they are achievable.

2. Where is your business in its natural lifecycle?

You've brought your business this far. Are you clear about what point it is in the typical business lifespan? Are you clear about what to focus on to move it in the right direction?

3. Do you have a plan to sell/exit your business?

It is a mistake to believe that an exit will take care of itself. It's unlikely that there will be a queue of buyers waiting to make an offer. There is a surplus of privately owned businesses looking for a new home. Proper exit planning can dramatically increase your chances of success.

4. Are your profits growing consistently year on year?

The majority of business owners will only experience one or two windows to exit in the course of building their company. In addition to favourable macro-economic conditions, the best time to exit your business is when you can demonstrate consistent growth, with more to come. Believable future profit streams are what buyers and investors are looking for.

5. Which answer most accurately describes the quality of your revenue?

We hear all the time that growth drives value. But focusing on growth alone is missing a trick. The quality of revenues are also important. High quality revenue has three key characteristics: predictability, profitability and diversity.

6. Are you right on top of your cashflow?

Cash flow is the single most important financial aspect for any company to survive in tough times and to grow and prosper in the good times.

8. Which statement best describes your marketplace?

Continual monitoring of market information and industry research will potentially give you an advantage over the competition and give you the best chance of moving early into new opportunities.

9. Are you relevant? Will you be relevant five years from now?

What works today won’t necessarily work as well tomorrow. You need to be constantly evolving alongside your customer’s needs. Clearly then the best way to go about achieving and maintaining relevancy is to know your customer inside out.

10. Are you crystal clear about the best way to grow your business?

Maintaining a level of entrepreneurialism in your business as it grows is important. Once a company becomes too rigid, creativity and innovation are stifled and it becomes hard to change to keep up/ahead.

11. Are you making decisions today that will help people and the planet tomorrow?

Amongst many of the advantages of building a sustainable business is that today's and tomorrow's employees, consumers and legislators will favour it and enable it to become more profitable than less sustainably run competitors.

12. Are you making as much use of digital tools as you reasonably could be?

Don’t just have a digital strategy, digitise your strategy!

13. Do you have the right people on board?

Could your business survive without you? If you had to take an unavoidable 6 month leave of absence starting tomorrow? A strong team will be needed to run the business without you when the time comes for you to exit.

14. Why would someone work for your business rather than your competitor?

If you can convince the best people to work for you, you have already gained a major competitive advantage.

15. How likely is it that a key colleague will leave in the next 12-18 months?

Staff turnover, particularly relating to key staff, is expensive and leads to inefficiencies.

Your score: 0/45

Ok, so the good news is that there’s a lot to work with here. We’d recommend doing a full review to assess those areas of your business that you’re not so sure about right now in order to get a good understanding for where you are. We can then use this data to plot, plan and otherwise work towards your future goals.

Hey, not bad! But you likely know there’s so much more you could be doing to build value in your business by focusing on the most impactful areas. And we can help you to do this in an extremely time-efficient manner so that you see results quickly.

Amazing result. You’re doing a great job of focusing on the key areas in your business that build value. Though your formula might work for right now, it’s important to be continually evolving to stay relevant tomorrow and beyond. If you want help plotting what next and how, get in touch.

Let us know if we can help

    Next step: Get in touch with Jim Shaw to see how we can help.

    Are you interested in developing your business to effectively and efficiently build value? Shaw & Co’s Value LAB could be the next step for you. For business owners serious about growth, this exclusive interactive workshop deep dives into the five key areas that build or destroy value in your business, helping you to get a clear idea for how you can move forward, and triggering exciting new ideas to get ahead of the competition.