By Cristhine O

Overlooked Value: The Path of Least Resistance and the Most Profit

An African proverb tells the story of a farmer who heard of miners who had amassed wealth by discovering diamonds. Allured by the prospect of this possibility, he decided to sell his farm to venture into mining. He would later realize in a rather regrettable manner that the new owner unearthed a wealth of diamonds on the very farm he had sold.

 
The initial owner of the farm parted with a valuable asset due to his inability to see its value and worth. He was allured by the idea of discovering something more in a different place. Subsequently, the new owner enjoyed the benefit of owning vast acres of diamond-laden land, even if he was oblivious to the true worth of the land.
 
The two farmers illustrated in this proverb failed to see value. Thus highlighting a major flaw that affects entrepreneurs.
 
There are opportunity costs attached to every decision made by a business owner. In this case, the farmer took a risk in the hopes of amassing wealth. But this decision cost him the equivalent of an opportunity to own expansive acres of diamonds. Thus, it is important to take into consideration how to avoid overlooking value in your business.

You are Your Greatest Asset 

In any business venture, the business owner represents the vast acres of diamonds. Thus, as a business owner, you possess valuable expertise, resources, and knowledge. So, once you have an understanding of the art of harnessing your personal strengths, you can easily become the pivotal point for driving growth to your business.
 
Before you decide to sell your business, you should ask yourself these questions: What is the reason or motivation behind selling your business? Could it be a result of boredom? Does it align with your grand investment plan for your company? Or perhaps it was prompted by an underlying situation?
 
Making decisions in business requires thoughtful analysis and strategic thinking.
Making decisions in business requires thoughtful analysis and strategic thinking.
 
 
These are all good reasons. However, it is important to state that the intention here is not to discourage entrepreneurs from selling their businesses. Instead, this proverb aims to ensure business owners avoid the urge to hastily sell their businesses because they have failed to see the value in them. Most people overlook the value in their business because they cannot take the time and effort to refine their potential and most importantly practice least resistance.
 
Christopher Wick, the founder of Say Yes! Enterprises, once sold a business because according to him, it was time-consuming. However, in a matter of months, the new owner found a way to accomplish the same tasks within half the original time.
 
While the business itself did not undergo any change, the new owner’s approach significantly increased the value of the business. A business capable of yielding profits in half the usual time is undeniably a profitable venture. Thereby making it an easy money-making enterprise
 
Because the new owner operates the same business more efficiently, he automatically gets greater value and benefits from it. This is not because he got some dream client or a top-notch system. All he did was look inward to devise strategies to fix the problem.
 
The most valuable investment in any business is the investment in oneself. Commit yourself to learning as much as you can. Develop and enhance your expertise in both the soft and hard skills needed to manage a business. Enroll in educational programs, seek mentorship, or read books. These investments do not need to be all financial based. Sometimes all you have to do is to dedicate your time to seek direction and knowledge from a network of successful colleagues who lead by example.
 
Business colleagues
Business colleagues can help foster innovation and enhance productivity.
 

The Cost of Overlooked Value

As noted earlier, the proverb on the “acres of diamonds” is not to be interpreted as a warning against selling your business. Instead, it emphasizes the need and importance of getting the most value from your business. Had the farmer-turned-miner known the true value of his land, he would have held on to the path of resistance and could have made much more money on its sale. Unfortunately, his lack of awareness led him to undersell his business for a far lesser sum than its actual worth.
 
In the course of running your business, you will encounter the challenge of identifying and highlighting your assets. You have to take into consideration every aspect of your business that can be of interest and value to an investor. No detail is too small.
 
Say Yes! Enterprises attach value to intangible assets, like a large social media following or email subscriber list. Say Yes! Enterprises have a proven and reliable strategy for converting subscribers into customers. With a list in place, the process of generating additional profit becomes more straightforward.
 
Never underestimate the influence of expertise in running a business. For an investor, access to information, streamlined processes, and comprehensive step-by-step guides mark the difference between owning an asset and buying a new job.
 
Furthermore, established relationships are valuable. Although it might be considered inappropriate to advertise private agreements in a business listing, however, there is a point in the process where it becomes entirely reasonable to disclose to a sincere buyer, relationships that make your business more valuable. Has a key supplier granted your business privileged access into legacy pricing? Now, that is a diamond worth sharing.

How to Find Diamond in Your Business? 

You may need some extra guidance to discover the diamonds in your business. And that is precisely what Say Yes! Enterprises offer through its Growth Acquisition Partnership G.A.P. Partner Program.
 
Growth Acquisition Partnership
Business programs can help owners in decision-making and strategy development.

 

Many business owners are not fully prepared to sell, but they do acknowledge that their businesses could be performing better. The objective of G.A.P is to help these owners tap into the hidden potentials of their businesses. G.A.P. increases the value of your business, whether for the benefit of an investor or your personal gains.

Here are a few diamonds you never knew could be hidden in your business:

Here are a few diamonds you never knew could be hidden in your business:

SMS Marketing:

Advertising to customers who have subscribed to your services through text messages has proven to be a highly effective and cost-efficient method of digital marketing. You should explore the option of SMS marketing if you haven’t.

Consider increasing your prices:

 The rise in inflation automatically causes an increase in expenses. Instead of compromising on quality to manage these costs, you can pass some of these expenses to your customers. This will result in an immediate increase in your profit. All members of the Say Yes! Enterprises G.A.P Partner Program increase their prices within the first month of the partnership and so far this action does not have a negative impact on any business.

Consider increasing your prices
Increasing prices in business can impact profitability and customer satisfaction.
 
 

Conduct surveys on your customers:

This will help you get a profound understanding of the needs of your customers and devise methods to meet those needs. It is a cost-free and easy way to increase profits and create customer loyalty.

 
Say Yes! Enterprises offer templates and processes to help businesses utilize this tool effectively. This equates to finding a secret gold mine without having to alter your products, processes, or procedures. This way, you can earn more and increase the value of your business by utilizing the resources you already have.

Tips on How to Stay on the Path of Least Resistance

Once you have made up your mind to sell your business, the next step is to engage with potential buyers. Experienced investors know enough to understand that the process of acquiring a business is more of a partnership than a mere transaction that involves months of cooperation.
 
Before investors will acquire your business, they will take the time to assess the value of the business and their compatibility with you. That is they also consider how seamless or stressful doing business with you can be and if it’s a risk worth taking.
 
As a business owner looking to sell your business, it’s important to note that it is entirely possible to protect your interest without coming off as aggressive and uncooperative. Consider the investor as a partner working with you to achieve a mutual goal and not as your enemy or rival.
 
Some people believe that it is best to take an adversarial and hostile approach while dealing with the other party in the sale of large assets. However, this mindset can hinder business acquisition. Say Yes! Enterprises do not condone this attitude as they constantly turn down lucrative deals when business owners prove to be difficult to work with.
 
Also, business owners have to take into consideration the fact that investors are often interested in acquiring more than one business at the same time. Many of them do not have the time or energy to focus on unnecessary arguments, disrespect, and dishonesty. Negotiation with investors is important, but it should be carried out with utmost courtesy and professionalism.
 
Establishing a strong rapport with investors can have its downsides. Investors prefer to work with only level-headed and trustworthy individuals who can provide accurate information. If you come across as overly accommodating or too flattery, it could arouse suspicions. Investors will begin to question the motive behind the sale, is there an underlying problem with the business? Is there a long list of potential investors who have turned you down?
 
Potential investors
A good strategy to build relationships with investors is needed for long-term financial stability and growth.
 
 
You should expect an investor to inquire about the reason behind selling your business. Take your time to reflect deeply before you reply. In some cases, keeping the business in operation already feels like a burden to the owner. So they resort to selling it before moving to the next big phase of their life.
 
For example, if out of tiredness and desperation, you present your business as tough to manage, time-consuming, or requiring too much money to run, investors are likely to dismiss the notion of considering your business. Framing your business as a problem will only drive away investors as no one is ever interested in buying problems.
 
This is why you need to constantly look for the diamond in your business. Take a look inward to have an in-depth survey of your farmland and find the value in your business.

A Final Thought on Overlooked Value

“Overlooked value is a huge expense. Many business owners make impulsive decisions because of the fear of missing out on the big opportunity that everyone else is taking. However, it is far wiser to have a healthy fear of overlooking the value in the resources you already have, whether that be yourself or your business. Improving the asset you already have is often the path of least resistance and most profit.” – Christopher Wick

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Akbosh Investment Group is an investment management company that acquires, scales, and sells companies that benefit all stakeholders at large.

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