Where do you lead? How to make your mission and vision your most profitable investment! – PART 6
Using four examples, I will show you how vision creates revenue & business value!
15. Less comparability – more unique position and margin (earnings & enterprise value)
Problem
Why are you satisfied with less than is possible in your business?
- At the bottom of your heart, you have always wanted to create something great and special, but you have not yet been able to achieve this goal with your current company?
- Do you hate being pigeonholed by customers and non-customers alike as some of your competitors?
- You could achieve higher prices and a higher margin if your company positioned itself clearly and credibly as a unique supplier?
Solution
How is your company and offer unique?
- Everyone knows about the enormous value of positive differentiation from the customer’s point of view, which is also difficult to copy.
- There is no better opportunity to elaborate your company’s unique positioning than the moment you define your mission and vision for the future.
- Arguments for the uniqueness of your company can be found in many places, starting with the founding story. Leverage the disruption strategies used by startups today.
- Choose and design a set of differentiating elements that support each other and in combination are very useful for customers and unique in the market.
Benefit
You’ll enjoy a compelling differentiation that’s hard to duplicate!
- The strongest lever for success is a strategic orientation that differentiates in the market.
- A distinction that is valuable from the customer’s point of view enables higher prices, thus a higher gross profit and, in most cases, a higher return on sales.
- Your competitive position is strengthened by a positioning consisting of several mutually supporting differentiating factors.
16. No stagnation – more potential utilization and sales (earnings & enterprise value)
Problem
Why aren’t you generating more revenue?
- Are you dissatisfied with how your company is exploiting the sales potential available on the market?
- Are you upset that your team is not more ambitious?
- You sense or know that there is enormous sales potential in your markets, but you don’t see exactly what claim you should set for your future market position?
Solution
What are your challenging aspirations for your company’s growth and market position?
- There is no reason to give a team and a company a vision that falls well short of its potential and possibilities.
- Set an aspiration for your future with your vision that is in sight but still out of reach. Your vision should not be achievable with today’s capabilities, but based on today’s capabilities.
- Set your vision challenging enough to hit the sweet spot of activating your team as much as possible, not under challenging, but not over challenging either.
Benefit
You activate the performance of your team and exploit sales potential in a sustainable way!
- With an ambitious and challenging vision of the future, you activate the performance of your employees and also the better use of your financial and material resources.
- You create and foster your team’s awareness of having a special mission together, of being a unique company, and of working toward the realization of a vision that is both valuable and challenging.
17. Lower costs – higher earnings (earnings & enterprise value)
Problem
Why don’t you get more yield?
- Ambiguities, conflicts and disputes about the strategic direction cause enormous hidden costs?
- Several projects are running in different directions, so that a good part of them is futile and much too expensive?
- You know full well that the diversity and complexity of your business leads to huge complexity costs, but you’re not sure exactly what to eliminate and what to leave in place?
Solution
Which elements of your business system are really necessary for your future strategy?
- Place your mission, positioning and vision each like a stencil over your current company. They recognize what is superfluous and what is missing.
- Clarify what capabilities, systems and resources you really need for your future with your focused mission, positioning and vision.
- Determine what is important and what is not with your strategic focus. This will give you confidence in your decision to discontinue, eliminate and sell the unimportant and unnecessary.
Benefit
Your income statement is only burdened by minimized costs!
- Several effects of a clear picture of the future directly or indirectly reduce your costs, such as strong focus, team unity and alignment, concentrated use of your skills and resources.
- The number of purposeless and aimless projects and processes and also investments is minimized.
- The length and hardness of the discussions is reduced.
18. Less financial worries – maximum enterprise value (earnings & enterprise value)
Problem
Why is your business not more valuable?
- Do you know of companies in a similar business to yours that are valued at a multiple of your company’s value?
- Potential investors do not recognize the value in your company that you clearly have in mind?
- Are you sometimes disappointed by how little your years of hard work are reflected in the company’s value?
Solution
What could be made of your company in the best case?
- Companies like TESLA have always been valued many times higher on the stock market than the hard facts and figures justify. The reason is mainly that customers, employees and investors see a bright future for the company and consider it credible.
- Even the most ice-cold financial investors achieve an immense increase in value for a company by developing and credibly communicating a convincing image of the future.
- Answer the question: What could I or could you do with our company in the very best case?
Benefit
You significantly increase the value of your company with a fascinating and credible image of the future!
- A good mission, positioning and vision can be worth many billions. The company values realized in purchases of shares and stocks prove this.
- You enjoy the greatest possible reward for your ideas and your years of often hard work.
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Follow these links as well:
► The Future Strategy Program for SMEs
► Free video crash course THE FUTURE OF YOUR BUSINESS
► BUSINESS WARGAMING for robust business and future opportunities
► KEYNOTES by Pero Mićić for your employees and customers
Have a bright future!
