There’s gold in your business - if you know where to look

by Graeme McKellar, Managing Director – IFL Ventures



Understanding the value of your business is like looking at a mosaic.

You can stand back and see the image as the sum of its parts (that is, your business as a single entity that generates revenue).

Or you can look more closely to make out the individual tiles: the colours, shapes and textures that group together to form an eye or the lips on a face.

Applying this ‘closer look’ concept to your business is important, because it helps you see the contributions each element makes to your overall profitability and value.

For example, IFL Ventures, the company I head, is a newly formed division within InterFinancial set up to focus on intellectual-property-rich SMEs. We work with businesses that are underpinned by IP or have an IP adventure on the go. 

When it comes time to value a business as a whole – typically to raise capital, navigate a merger or consider buy-side or sell-side strategic options – we must value each tile.

For a start, IP-related revenue is assessed separately from non-IP aspects (such as consulting, implementation and support services).

Breaking down a business into logical elements like this is when you find the golden tiles.  These are the segments, departments or offerings that you may not have realised have tremendous potential or value, or that may be obscured in your market positioning.

This process can often be exciting and, sometimes, even quite shocking for a business owner. It’s like seeing your business in an entirely new light. But it helps you understand where your true value is coming from, rather than discounting any part of your business with that single-valuation approach.

Because, once you know which of your tiles are the gold ones, you’ve got a great starting point for your future strategies or growth plans.

Start thinking about where the real value is in your business by finding the tiles that apply to you in our Business Mosaic.

Should you wish to explore this further, please contact graeme@iflventures.com


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