By Paul Latham
We believe that 80% of straightforward, no nonsense, strategic advice can be summed up in just 6 Key Areas of Business Advice.
In Part 4 of this 6 part series of blogs – we are asking the question – Are you Using the Right Resources to deliver future business growth?
We believe that this question represents the biggest single business change in terms of business strategic advice in the last quarter century.
There was a time – in the 20th Century – when the answer to that question was obvious. If you wanted to grow your business then you used more physical or tangible resources – like machinery and buildings and you employed people. That was how businesses delivered growth.
Today – in the 21st Century – the answer is usually different. There has been a huge shift towards the use of intangible resources to deliver growth.
We now have “virtual people” – we sub-contract expertise, we have “virtual management” – we outsource our CFO or CMO.
Our most important resources are intangible – we work from home in “virtual offices” making better use of technology. Technology itself is a virtual resource, it’s “very difficult to touch”. These intangible resources make a business delivery more efficient and more effective.
Intangible assets include things like data and brand and processes and knowledge and relationships. These resources make a business more valuable. Today it’s a fact that 80% of average business value is intangible.
However we need to work at making those intangibles more “solid” and less “fluid” if we really want to maximize business potential and grow long-term capital value.
The evidence is all around us. Think about businesses like Amazon, Uber or Airbnb, but many smaller business owners remain rooted in a 20th Century mindset.
If you want to significantly grow your business then don’t be content to make your first consideration increasing traditional resources – instead think virtual – think outsource – think intangible.
Are you using the right resources? It’s a key question in the 21st Century. By making the right decisions today about improving the effectiveness of your future growth delivery you can dramatically increase your chances of Maximizing Business Potential.