LEVEL 1 STRATEGIC CAPACITY ANALYSIS:

How are you set up for growing profits and value, and for making your business easier to run? Rate yourself on these traits of top-performing companies.

1.

Effective Senior Leadership
You have an effective leadership team and the business can run smoothly in your absence.
People: Productive and Loyal
Your employees are productive and loyal.
High Percentage of Recurring Revenue
You have a high percentage of recurring revenues.
Strong Margins
You generate gross and net margins above the industry norm.
Financial Reporting Processes
You have strong financial reporting processes.
Scaleable Sales Process
You use a documented sales process.
Strong SOPs
You have documented operational processes.
High Customer Satisfaction
You track customer satisfaction.

2.

Strategic Vision, Planning, and Execution
You have a written vision, mission and strategy with the capacity to execute.
Strategic Culture
You have a strong culture that you actively nurture.
People: Hiring and Training
You can easily hire and train new employees.
Large Market Size
The market supports significant growth of your business.
Unique Products/Services
Your products and services are unique.
Scalable Marketing Process
You use a documented marketing process.
Financial: Budget, Forecast, Actuals
You manage the business using a budget.
Innovation Creates a Competitive Advantage
You foster innovation in every area of the business.

3.

Strategic: Business Story
You have a document a lender or investor could read and get a complete understanding of your business.
Financial: Accurate and Credible Financial Reports
Your business financial reports and filings are accurate.
Legal: IP, Contracts, Governance and Litigation
Your legal house is in order.
High Growth Compared to Market
Your business is growing faster than its competitors.
Large Market Share
You have defined your market and niche and have data showing you have dominant market share.
Broad Customer Base
Your business generates revenue from a large number of customers.
Defensible Market
You can defend your market and future revenues from new competitors.
Strong Brand
Your brand is a valuable competitive tool.
Bonus: Strength of M&A Market
Bonus: The market for selling your business is strong.

Where shall we send your results?

Your top business goals: (check all that apply)

Now, what’s your #1 Goal? This is your strategic intent:

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See what your business is worth, and how your margins compare to the competition

Range of Multiples

Best-in-class operations have high Strategic Capacity. Here is how your business scores.

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.

Prepared for: John Foster
Business Name: Foster Co.
Industry: Manufacturing
Gross Revenue : $10,000,000
Profit : $8,00,000
Headcount 82
Email: John@foster.com
Mobile Phone: 603-359-5894

Goals :

  • Stabilize Cashflow
  • Grow Revenues
  • Prepare for Sale
  • Make Business Easier to Run

#1 Priority :

  • Stabilize Cashflow
  • Grow Revenues
  • Prepare for Sale
  • Make Business Easier to Run

Your top bottleneck :

We can't seem to get past $5 million a year

Strategic Capacity Report

How your business is performing in the 3 Dimensions of Business Growth

STRATEGIC Capacity Report

Strategic Capacity : 58

  • ✓ Become a best-in-class competitor by increasing your strategic capacity
  • ✓ You will create a business engine that delivers predictable profits and growth, with high transferable value
  • ✓ Leading your business to become a best-in-class competitor also generates wealth and peace of mind

STRATEGIC CAPACITY AND POTENTIAL BUSINESS VALUE

STRATEGIC CAPACITY AND POTENTIAL BUSINESS VALUE

Here’s how your Strategic Capacity impacts your
business value.

GROWTH Capacity

Growth Capacity : 67

Growth Capacity scores your business' current ability to deliver sustainable growth compared to best-in-class operations.

VALUE Capacity

Value Capacity : 67

Value Capacity predicts M&A transaction readiness. Value Capacity scores your business' current ability to monetize equity value.

Strategic Capacity in the 3 Dimensions of Business Growth
Capacity to Deliver Predictable Profits & Cash Flow
  • Under Performing
    63
  • 63
  • Top Performing
    63

Your business' ability to deliver predictable profits & cash flow compared to best-in-class operations.

Capacity to Deliver Predictable Sustainable Growth
  • Under Performing
    69
  • 69
  • Top Performing
    69

Your business' ability to deliver predictable profitable growth compared to best-in-class operations.

Capacity to Deliver Predictable Transferable Value
  • Under Performing
    44
  • 44
  • Top Performing
    44

Your business' ability to deliver predictable transferable value compared to best-in-class operations.

  • Underperforming
  • Moderate
  • Strong
Range of Business Value:
Transferring value at the high multiple requires top 5% performance in all 3 Dimensions of Business Growth
Value at Low Multiple Value at High Multiple
$11,655,000 $23,485,000
IMPACT OF CAPACITY ON TRANSFERABLE VALUE
High
Value
Capacity
Score >85 		N/A $23,485,000 $23,485,000
Moderate
Value
Capacity 		$14,091,000 $17,570,000
Low
Value
Capacity 		$ 0.00 $6,993,000 $11,655,000
score < 40 Low
Growth
Capacity		 Moderate
Growth
Capacity		 High
Growth
Capacity
Score >85

Your Survey Highlights:

Current Best Practices:
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Growth Killers:
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Deal Killers:
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