Understanding your Strategic Capacity is critical for fine-tuning your business so that it can deliver your goals. Congratulations, you've taken the first step.
1Your Strategic Capacity score
Strategic Capacity
- ✓Become a best-in-class competitor by increasing your strategic capacity.
- ✓Strategic Capacity measures how well your business can deliver predictable profits, sustainable growth, and transferable value — the key drivers of what a buyer will pay for your business.
- ✓Leading your business to become a best-in-class competitor also generates wealth and peace of mind.
Growth Capacity
Ability to deliver sustainable growth compared to best-in-class operations.
Value Capacity
M&A transaction readiness — ability to monetize equity value.
Potential Business Value
—
How Strategic Capacity currently maps onto transferable value.
2Strategic Capacity in the 3 Dimensions of Business Growth
Predictable Profits & Cash Flow
—
- Asset Class
63
- Moderate
63
- Under Performing
63
Ability to deliver predictable profits & cash flow.
Predictable Sustainable Growth
—
- Asset Class
69
- Moderate
69
- Under Performing
69
Ability to deliver predictable profitable growth.
Predictable Transferable Value
—
- Asset Class
44
- Moderate
44
- Under Performing
44
Ability to deliver predictable transferable value.
- Underperforming
- Moderate
- Strong
Transferring value at the high multiple requires top 5% performance in all 3 Dimensions of Business Growth. The highlighted cell is where this business currently sits.
| Value capacity |
Low growth capacity
|
Moderate growth capacity |
High growth capacity
|
High value capacity
Score > 85 |
N/A |
— |
— |
| Moderate value capacity |
— |
— |
— |
Low value capacity
score < 40 |
— |
— |
— |
3Survey highlights
Current Best Practices
--
Growth Killers
Business is below best practices in
--
Deal Killers
Business is below best practices in
--
Take a moment to read the questions again: how would it feel to run a business where all of the answers are “yes”?
4Your answers
Your answers are used to calculate your scores.
Dimension 1: Create Predictable Profits & Cash Flow — your launchpad for growing profits and making your business easier to run
| Growth-Driving Objective (Best Practice) | Your Answer |
|---|
| 1 | You have an effective leadership team and the business can run smoothly in your absence. | -- |
| 2 | Your employees are productive and loyal. | -- |
| 3 | You have a high percentage of recurring revenues. | -- |
| 4 | You generate gross and net margins above the industry norm. | -- |
| 5 | You have strong financial reporting processes. | -- |
| 6 | You use a documented sales process. | -- |
| 7 | You have documented operational processes. | -- |
| 8 | You track customer satisfaction. | -- |
Dimension 2: Create Predictable, Sustainable Growth
| Growth-Driving Objective (Best Practice) | Your Answer |
|---|
| 1 | You have a written vision, mission and strategy with the capacity to execute. | -- |
| 2 | You have a strong culture that you actively nurture. | -- |
| 3 | You can easily hire and train new employees. | -- |
| 4 | The market supports significant growth of your business. | -- |
| 5 | Your products and services are unique. | -- |
| 6 | You use a documented marketing process. | -- |
| 7 | You manage the business using a budget. | -- |
| 8 | You foster innovation in every area of the business. | -- |
Dimension 3: Maximize the Transferable Value of your Business
| Growth-Driving Objective (Best Practice) | Your Answer |
|---|
| 1 | You have a document a lender or investor could read and get a complete understanding of your business. | -- |
| 2 | Your business financial reports and filings are accurate. | -- |
| 3 | Your legal house is in order. | -- |
| 4 | Your business is growing faster than its competitors. | -- |
| 5 | You have defined your market and niche and have data showing you have dominant market share. | -- |
| 6 | Your business generates revenue from a large number of customers. | -- |
| 7 | You can defend your market and future revenues from new competitors. | -- |
| 8 | Your brand is a valuable competitive tool. | -- |
| 9 | Bonus: Strength of M&A Market | -- |