AVA Tracker Infographic v7

Tracker™answers two questions for business owners and CEOs:

1. What is the value of my business?

2. How do I increase the value of my business?

Once you know the value of your business, you can work to increase that value over time, and “track the increase in value.”

The process involves BOTH calculating the value your business AND increasing that value over time.

The process starts with a business valuation to give you a starting point to know where you are at a given point in time. Then the process moves step-by-step around 12 steps to identify opportunities and enhance each area as needed:

  1. Calculate a valuation benchmark. Determine your starting point.
  2. Analyze KPIs, ratios. Simplify these metrics so you can focus on what really matters. Develop an ROI mindset.
  3. Increase sales. Analyze sales compensation, product mix, customer mix, industry mix A properly designed sales compensation plan can increase sales.
  4. Manage cost of goods sold. Delve into people, processes, and materials. This is a critical area where a lot of dollars get lost.
  5. Optimize marketing expenses. Analyze the effectiveness of your marketing dollars. Are you getting the best return on your investment?
  6. Reduce G&A expenses. Manage your expenses. It is easy for this to grow out of control unless it is managed.
  7. Manage working capital. Examine cash, accounts receivable, inventory (if any), and accounts payable with an eye toward improving liquidity. What are your A/R DSOs, A/P DSOs, and Inventory turns? What is your current ratio and your debt to assets ratio?
  8. Leverage debt. Are you utilizing debt to your best advantage? What is your collateral ability? What is the best mix of term loan versus a line of credit?
  9. Evaluate people. Work together to identify who the stars are as well as those that are not performing as well. This can be a difficult, but necessary process to increase value. Some tough decisions may need to be made.
  10. Streamline processes. Review the processes, which are everywhere in your business. We work together to analyze each one to save time and improve throughput.
  11. Upgrade technology. Maximize the use of technology. Technology changes daily. Are you getting the most out of using technology?
  12. Reduce risk. Identify areas of risk and reduce where possible.