Building Value in Your Business While Growing with Jill Simonds
Nov 13, 2024In the latest episode of "Keep What You Earn," Shannon talks with business strategist Jill Simonds to explore the dynamics of building and sustaining value in a business. They emphasize key factors such as human and social capital, and the holistic measures essential for long-term success.
Shannon and Jill begin by discussing the challenges of measuring intangible indicators like customer loyalty and retention. Jill explains that recognizing negative indicators early on helps manage risks effectively. They highlight that human capital—the expertise within a team—is crucial for generating sustainable revenue independently of the founder, which allows for efficient scaling and profitable processes.
Moreover, social capital, including customer relationships and employee alignment with company values, plays a significant role. Jill warns that misalignment can lead to structural deficits, like losing loyal employees and customers. She shares an example where a tenured employee's departure, coupled with a lack of systematized processes, negatively impacted the company’s revenue. This illustrates the importance of having well-documented procedures and cross-training to ensure consistency and mitigate risks tied to individual employees.
Customer loyalty programs also come into focus as major drivers of revenue growth. Jill argues that focusing on nurturing existing customer relationships and leveraging word-of-mouth referrals is more beneficial than constantly seeking new revenue streams. Continuous engagement, especially in fields like business coaching, significantly enhances customer loyalty and lifetime value.
Furthermore, Jill advises leveraging existing competencies and forming strategic partnerships to meet client needs without veering beyond one’s expertise. Shannon concurs, noting that partnerships not only reduce business risk but also provide a valuable avenue for customer acquisition and retention.
Adopting an investor’s perspective is another highlighted point. Jill and Shannon stress the importance of risk mitigation and understanding potential pitfalls, likening business investments to home investments. By recognizing hidden opportunities and making deliberate improvements, businesses can enhance their value.
Internal culture and core values are central to their discussion. Both Shannon and Jill emphasize that a strong, cohesive internal culture aids in attracting and retaining like-minded individuals. This alignment impacts retention rates, hiring practices, and the ability to attract top talent, transcending immediate financial metrics and affecting long-term profit margins and cash flow.
Shannon uses a health analogy to illustrate the importance of focusing on intangible business factors. Just as true health is more than physical attributes like weight, true business health includes factors such as company culture, employee satisfaction, and internal structures. Jill adds that a holistic focus on these aspects will lead to a more enjoyable and robust business environment.
As the episode concludes, Shannon invites listeners to reflect on their business practices and identify gaps to address based on the discussion. Jill encourages business owners to visit the Savvy Strategic Partners’ website for a free business assessment.
This episode of "Keep What You Earn" reveals that true business growth extends beyond immediate financial metrics to embrace a holistic, sustainable approach. From human and social capital to strategic partnerships and core values, reflecting on these multifaceted aspects provides a strong foundation for long-term success.
Jill is founder/CEO of Savvy Strategic Partners, a full-service fractional C-Suite executing vision, increasing business value, and helping founder owners realize freedom. Savvy serves business owners with an experienced collective of outsourced executive leaders across the functions of operations, revenue, and finance.
Website: https://savvystrategicpartners.com/
What you'll hear in this episode:
04:56 Offer continuation programs to increase client loyalty.
08:08 Intangible relationships reduce risk for investors.
12:32 Focus on intangibles for a thriving business.
14:52 Superficial metrics overshadow deeper values in business.
16:21 Analogies clarify business concepts using body examples.
21:57 Human capital enhances revenue growth and efficiency.
23:22 Vision clarity and unity are crucial for success.
26:12 Customer loyalty deficit negatively impacting company revenue.
30:19 Delegating tasks opens opportunities for business growth.
If you like this episode, check out:
What We Learned From "Un-Scaling" This Year
3 Ways to Become a Better Small Business Customer
Don't Make This Huge Mistake with Goal Setting
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