After several years of writing my weekly Phil’s Profit Points and more recently, The Triple Double newsletter, I’m pleased to move on to new ideas and introduce you to this exciting Business Wealth Builder newsletter. This will provide powerful yet brief strategies and tactics to help you, the business leader, drive profitable growth in your business. These tips will build wealth for your organization, your customers, your employees, and your shareholders.
Let’s get started.
After consulting with hundreds of companies in 51 industry segments over the last 26 years, I’ve figured out there are four kinds of business wealth.
Figure 1.1 Four kinds of business wealth
First, here are the definitions to get us started:
- Organizational wealth is about your company’s structures, systems, resources, technology, and management procedures.
- Talent wealth includes your employees, leadership team, culture, training and development, and ability to attract and retain key talent.
- Customer wealth is about your brand, the market’s awareness and perception of your value, your online presence, and your ability to attract and retain your ideal clients.
- Shareholder wealth is about the overall valuation of your company, governance, risk management, dividends, liquidity, and your ability to acquire or be acquired at any time.
Last week, I was working with an exciting high-growth entrepreneur in a dry goods industry with expanding operations in Canada and the United States. The company has recently added Talent to the management team and is constantly recruiting ideal Customers that appreciate its value proposition.
However, in order to maximize their long-term Shareholders’ wealth, we are focused on increasing the Organizational wealth by building up the company’s capacity, management processes, and scalability.
This concept is the same whether you are a high-growth mid-market company, an entrepreneurial small business, or a large company with thousands of employees.
Questions to Assess your Organizational Wealth
- How effective is your legal and tax structure at supporting growth and protecting wealth?
- What is your strategy? Hint: How do you help your customers generate results?
- How strong, current, and useful are your policies and procedures?
- How does your banker rate as a strategic partner?
- What kind of information is your management team using every day?
- How quickly can your management team assess performance and make adjustments?
Building business wealth starts with strengthening your Organizational wealth so your company can grow and support your Customers, Talent, and Shareholders in the future.
