Adding Value
Placing a precise value (as opposed to cost) on many inputs into a business, particularly the return from employees and service providers, can be a difficult exercise. These examples might put things into perspective and help potential clients assess how much value I can potentially add to their business:
Ask yourself this question: could the addition of a quality business adviser to your executive team lead to a combination of any of the following outcomes:
| If we spend time analysing your competitive positioning in the market and improving your value proposition… | …how much could we increase average prices and what would that be worth to your business? |
| If we focus some time on improving internal systems and controls… | …by how much could we decrease costs and/or increase productivity, and what would that be worth to your business? |
| If I was to do some financial analysis or document preparation that you would currently be doing yourself… | …how much of your time could we free up for you to spend with your clients, and based on how you value your own time what is that worth to you? |
| If we do some work reviewing your staffing policies, including systems, remuneration/bonus schemes, culture, training and other staff related issues… | …could we decrease turnover by just one staff member per annum and, given the cost of using a recruitment firm, advertising, and the substantial time involved in interviewing and training a replacement and the lost productivity over that period, how much could that save your business? |
| From my regular contact with my other clients and attendence at networking events, always acting partly in my capacity as a representative of your company and with a few of your business cards in my pocket… | …could we find one or two new clients for your business, and how much would that be worth to you? |
Any one of these examples would likely justify us working together for a few hours each month, yet with most clients we work on all of these areas and I would expect us to make improvements across each of them.
In addition, how much could you save in accounting and/or legal costs with the addition of an experienced finance executive in the team? And what value would you place on a formal training course that would give you as many new skills and ideas as you will get from attending the every few weeks and getting new ideas for your business from a number of other of my clients?
If I am wrong and we do not make improvements of this magnitude then I suggest to my clients that we end the relationship with no hard feelings. Additionally, if a client decides to follow that course I only ask that they pay as much of their final invoice as they feel comfortable with. There are enough risks in business, and I do not want working with me to be one of them.
