The Value Builder Score is a diagnostic tool designed to assess the health and value of a business. These questions are carefully crafted to evaluate 8 key drivers that significantly impact a company's overall value; but which questions affect which specific driver?
Listed below is a breakdown of the 8 Key drivers and the questions that impact them within the Value Builder Score. You can use Ctrl + F to search the article for a specific question number.
Note: You can also use the Action Planner tool (Module 1) within the Value Builder Engagement Program to see the questions that affect each driver.
1. Financial Performance
- 17. In the next 12 months, do you expect your revenue (i.e. sales / turnover) to:
- 27. What was your profit margin (before tax) in your most recent completed financial year?
- 28. What was your company´s annual revenue (i.e. sales / turnover) in USD last year?
- 29. When comparing your most recently completed financial year with the previous year, did your revenue (i.e. sales / turnover):
- 30. Which of the following best describes your approach to financial record keeping?
2. Growth Potential
- 2. Would you say that your industry is:
- 4. Thinking about the market share for the products / services that you sell, do you sell to:
- 6. Which of the following best describes the typical level of customization which you offer your customers?
- 10. Which of the following best describes your business model?
- 18. Which of the following best describes the possibility of your company selling more to your existing customers?
- 19. If customers were lined up at your door to buy, would you find delivering FIVE times the current volume of what you sell:
- 20. Would replicating your business to serve a new geographical area be:
- 33. Please estimate your influence by calculating the total number of people who have opted in to receive information from you and/or your company in the form of signing up for your website (e.g. e-newsletter, email mailing list or blog), Facebook "Fans", Twitter, LinkedIn, Instagram, Pinterest "Followers", and RSS subscribers.
3. The Switzerland Structure
- 12. What percentage of your overall revenue did your largest customer represent last year?
- 13. Which of the following best describes the potential impact of losing your largest customer. Would your business:
- 16. Please think of the person who contributes the most to each of the following areas of your business. How easy or difficult would it be to replace them? For section a) and b) if this person is YOU, select IMPOSSIBLE.
4. Valuation See-Saw
- 11. How do you typically get paid by your customers?
- 31. What is your typical gross profit margin? Gross profit margin is defined as the proportion (percentage) of money left over from sales (i.e. turnover/revenue) after accounting for the cost of goods sold. (For example, if your company sells a product for $200 and it costs your business $80 to buy the raw materials and direct labor costs to make your product then your gross profit would be $120 and your gross profit margin would be 60%).
- 32. Please select which of the following statements best describes your cash needs:
5. The Hierarchy of Recurring Revenue
- 14. What percentage of your sales/revenue (i.e., turnover) is “recurring”? Recurring is defined as subscriptions, maintenance contracts, or annuity streams that your customer must proactively turn off or cancel in order to stop receiving the product or service. (i.e. not "repeat" or "regular" customers)
6. Monopoly Control
- 3. And which of the following best describes the exclusivity of your business to your customers:
7. Customer Satisfaction
- 7. Please estimate the percentage of your customers who are VERY SATISFIED with the services/products which your company provides
- 8. How often, if at all, do your existing customers refer your company to their friends and colleagues:
- 9. In the last 12 months, what proportion of your customers complained in writing (e.g. email, letter, submission to your website)?
8. Hub & Spoke
- 5. Which of the following best describes your personal relationship with your company's customers?
- 15. What percentage of your company's revenue (i.e. sales / turnover) is undertaken personally by you or your fellow equity holders?
- 21. How would your business perform if you were out of action for 3 months and unable to work? Would it:
- 26. Which of the following best describes your management team?
Which Questions within the Value Builder Score do not affect a driver?
- 22. If you could achieve just ONE of the following goals in the next 12 months, which one would it be?
- 23. Which of the following describes your biggest fear when it comes to selling your business?
- 24. Which of the following best describes your long-term goal for your business? I plan to:
- 25. Which of the following best describes your company’s current approach to using artificial intelligence (AI)?
- 34. Please estimate your pre-tax profit (or loss) for the last three years.
- 35. Have you received a written offer (Letter of Intent, Expression of Interest) to buy your business in the last year?
- 37. Which of the following best describes your industry:
- 38. In which year did you start your business?
- 39. How many years do you plan to continue operating your business?
- 40. Finally, please indicate the year in which you were born?