The Asset of Value Strategy Series

The Asset of Value Strategy Series

Welcome to the Asset of Value Series. As part of the Nedbank Business Accelerator Campaign with 702 this year, our CEO Pavlo Phitidis, had the opportunity of producing a podcast series to help successful, established entrepreneurs get to the next level. We do this by giving business owners like yourself the opportunity to share your stories and insights, and in turn, we work with you as the business owner to drive key changes necessary to accelerate your business. In the Asset of value series, we explore your journey to building your business into an Asset of Value. 

Episode 1: Building your business into an Asset of Value

Every business owner invests time, money and effort into building their business. Whilst passion is important in achieving this, it's not enough. The purpose behind this investment should be clearly stated and that is to build your business into an Asset of Value. What is an Asset of Value, why is this important, how do you do it and what will you gain from it! 



Episode 2: Measuring your Asset of Value

When you build your business into an Asset of Value, understanding how to measure your progress towards this goal is important. To do this, you need to understand how your business would be valued by a buyer. This could be a private buyer or corporate buyer, an investor or, if passing it onto the next generation, family or staff through a management buy-out. Understanding how valuation works, gives you control over the future value of your business. There are three levers that you can "pull" to get your business valuation right. What are these levers, how to I build them into my business and what impact will they have on building my Asset of Value.



Episode 3: Creating a customer centric business

The first lever of valuation, how far into the future will my business generate revenues, is answered by defining who the customer you serve is! How do you find these customers and more importantly, once you find them, how do figure out how to get them to buy and stay with you?



Episode 4: Building a systems-driven business

Are you building a business asset or have you simply built your business into a job for yourself? It's easy to test. If your business cannot function without you being there, that's a job. If it can function without you for 3 or 4 weeks, it's likely an asset. The difference between them are business systems. The activities that enable your business to generate customers' enquiries, win over customers and serve them in a manner that they stay are examples of systems. This is called a System of Delivery and its impact on your business valuation is profound.



Episode 5: Developing a risk managed business

Putting all your eggs into one basket is not a wise business strategy. The environment of business today is so unpredictable, one stumble and you trip and fall - all your eggs are broken. A risk managed business is one that has multiple customers, that enjoy being served by your business and are found in different sectors. Should one sector struggle, the customers in the other sectors keep you going. It's also business that has no customer responsible for more than 10% of your revenues. Should they stop using you for whatever reason, your business continues. Imagine if they were responsible for half your revenues? With a risk managed revenue profile in play in your business, it makes you a price maker, rather than a price taker in the event of a sale and has a huge impact on your business valuation.



Episode 6: Employing the right people in your business

Once you have a clear sense of who your customers are, how to service them and a System of Delivery in place, you are ready to employ responsibly and effectively. Think about it, we mostly employ people to do a job. What is that job, what are the activities that that job should perform, can they be measured, what's a fair salary for that job? These questions are seldom asked and answered when we, under pressure with too many things to do, reach out for help and employ someone who we hope is right. And they are often wrong. How do you employ the right people to do the right thing at the right time and at the right price when you build your business into an Asset of Value?

Delegate, you must: if you want to sell your business one day
Asset of Value Sales Business Exit

Delegate, you must: if you want to sell your business one day

Despite what you may think or feel, doing it on your own won’t set you on a pathway to success. You can’t build a business...

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Building successful and sustainable innovative technology businesses
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Building successful and sustainable innovative technology businesses

Aurik CEO and co-founder Pavlo Phitidis was the keynote speaker at the Innovation Bridge event in Midrand recently. With...

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Think big with an Asset of Value framework
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Think big with an Asset of Value framework

Thinking and building big right from the start with an Asset of Value framework, enabled Atomic Oil to achieve a R60m valuation...

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Business Is a Bloody Sport: Why Risk Management is Important
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In 2008, determined entrepreneur, Karabo Songo, established Olive Communications. I first met Karabo during the 2013 Business...

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Spend more time on your business and less time in it with improved business systems
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We have seen a common theme emerging in our recent meetings with various entrepreneurs. As a business owner, you might be...

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How effective business systems can ready your business for sale
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People sell their businesses for many reasons. Fatigue from too many years in the game is one of the most common. They might...

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The Asset of Value Strategy Series
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The Asset of Value Strategy Series

Welcome to the Asset of Value Series. As part of the Nedbank Business Accelerator Campaign with 702 this year, our CEO Pavlo...

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Assessing Franchise Opportunities
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Assessing Franchise Opportunities

Building your business into an asset of value may include expanding through franchise opportunities. This week, on The Money...

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A Business Strategy to Turn a Dreadful Year into a Success
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A Business Strategy to Turn a Dreadful Year into a Success

This year has been tough for everyone, and there are just 12 weeks left before world of business winds up for 2017. There...

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How to avoid a horror story when buying software for your business
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How to avoid a horror story when buying software for your business

Technology is both a driver and frustration for every person and business. Every business no matter what business you are...

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Grow your ideas with business innovation
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Grow your ideas with business innovation

South Africa is lagging behind when it comes to innovation, according to a recent World Bank report. But why is innovation...

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Play to your strengths – how the epic Mayweather-McGregor fight can take your business to the next level
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Play to your strengths – how the epic Mayweather-McGregor fight can take your business to the next level

Undefeated welterweight world champion Floyd Mayweather Jnr met mixed martial arts world champion Conor McGregor in Las Vegas...

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Part 2: How to protect your growing business from big business theft
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Part 2: How to protect your growing business from big business theft

The tender trap   After the launch of the BLSA, and the commitments made by big business to entrepreneurs, it sparked...

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Part 1: Big business commitments to small business with the launch of the BLSA
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Part 1: Big business commitments to small business with the launch of the BLSA

I attended the launch of Business Leadership South Africa (BLSA) – which is headed by former Shell CEO Bonang Mohale – last...

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ANN7 sale should have entrepreneurs asking themselves what their business is worth
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ANN7 sale should have entrepreneurs asking themselves what their business is worth

On Monday, 21 August, we spoke to Bruce Whitfield on The Money Show on Radio 702 and Cape Talk of that day’s R450 million...

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Shining a light on the business blind spot
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Shining a light on the business blind spot

Smart and successful businessmen have faith in their vision for their companies, but they need to be aware of their limitations...

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How to Turn a Struggling Business Around
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How to Turn a Struggling Business Around

By Pavlo Phitidis  Turning a struggling business around isn’t easy, but it’s not impossible. Currently, many businesses...

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How changing the way you look at customers creates the opportunity to build a scalable business
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How changing the way you look at customers creates the opportunity to build a scalable business

By Pavlo Phitidis Ultimately, the way you look at the world is the way that the world will turn out to be for you. Just...

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Building or breaking your brand and company value through reputation
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Building or breaking your brand and company value through reputation

By Pavlo Phitidis Over the past few weeks, we’ve been shocked by the news, as McKinsey, SAP, KPMG, Bell Pottinger and so...

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How to choose the right business partners
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How to choose the right business partners

By Pavlo Phitidis Spats between shareholders can signal the beginning of your business’ end, just as it seems to have been...

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Insights from Amazon's acquisition of Whole Foods to build our own businesses
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Insights from Amazon's acquisition of Whole Foods to build our own businesses

By Pavlo Phitidis   Online digital retailer, Amazon spent $13. 7 billion to buy 401 brick-and-mortar Wholefoods grocery...

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 Adapt to changing customer behaviour or die
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Adapt to changing customer behaviour or die

By Pavlo Phitidis A 159-year old icon of retail in South Africa closes shop on 01 August. Failing to evolve in a changing...

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Building a positive frame of mind and action in a negative environment
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Building a positive frame of mind and action in a negative environment

By Pavlo Phitidis We live in unstable times, and a brief look at the news headlines is almost always disheartening. Constant...

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 How not taking action at the right time can lead your business to failure
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How not taking action at the right time can lead your business to failure

By Pavlo Phitidis Your appetite for action, or tendency towards inaction, will save or sink your business. This week, on...

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