Value Driver 3: Systematizing Internal Operations in your Home Care Business

Value Driver 3: Systemizing Internal Operations in your Home Care Business*We have been discussing various methods business owners use to build value in their home care companies to achieve their post-exit goals.  Foremost in this process is creating a written value-building plan, which includes four important value drivers, today we discuss Value Driver Three, Systemizing Internal Operations in your Home Care Business

The systematization of internal operations is a common feature of highly successful companies-especially those targeted for mergers and acquisitions. But because there are so many activities that fall under the scope of internal operations, business owners can become so overwhelmed they fail to address any of them.  We will limit our current discussion to two vital areas and how each can be systematized:

1.  Collection and Utilization of Customer Feedback

2.  Diversification of Vendor and Supplier Relationships

Systemizing the Collection and Utilization of Customer Feedback– How are customer concerns and suggestions addressed within your company?  If you handle customer feedback haphazardly, you risk your entire team losing focus as disparate methods are suggested and tested.  Conversely, if you address customer feedback efficiently and in an organized manner, you will achieve a competitive advantage over your rivals.  Strategic use of customer ideas, suggestions, and expectations will generate strength, stability, and soaring business valuation.

Systemizing the Diversification of Vendor and Supplier Relationships– Can you quickly identify those vendors who are most vital to your business operations?  What if a primary vendor or supplier were to abandon your relationship for that of your competitor, go out of business, change its payment structure, revamp its quality standards, or discontinue one of your business-critical products or services?  Would you experience significant short- or long-term disruptions, and if so do you have a plan in place to address those disruptions?  Reducing the risks associated with often unpredictable vendors and suppliers is essential in exit planning, stabilizing operations, and building value for when it comes time to sell.

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About Risa Baker

Risa is Managing Director of PARTNERS 31. Her natural enthusiasm and years of industry experience will successfully guide your business, whatever its size or specialty, through every aspect of exit planning, from strategy to sale.

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