Increase Your Enterprise Value by Over $10Million in Less Than 12 Months, While Working Less Hard, Standing Out From Your Competition and Living More!
Sebastian Schelper
CEO & Founder of bq.Capital | Strategic Innovation Advisor & Investor | 25 Years Spearheading Mobility Innovation at BMW and Silicon Valley autonomous driving companies
What if you could increase your enterprise value by over $10 million in less than 12 months, all while working less hard, standing out from your competition, serving your customers better and spending more quality time with the people you value most?
At bq.Capital, we believe the key to this transformation lies in one thing:?out-innovating?your competition rather than?out-competing?them. By leveraging the exponential power of incremental improvements—what we call?compounding innovation—you can dramatically enhance your business outcomes, increase profitability, and elevate your impact.
Out-Innovating vs. Out-Competing
Too often, businesses focus their energy on beating their competitors in head-to-head competition, engaging in the exhausting back-and-forth of comparing features, prices, and services. But there’s a better way: out-innovate your competition by serving your ideal client in a uniquely outstanding way.
“Reflect on your business, how do you currently win over your competition, going head-to-head or uniquely standing out?”
Looking at how a global premium brand like Apple wins in the marketplace. Apple does not fight with competitors on features—they focus on?delivering a uniquely outstanding experience?to their ideal customers. They may not always be the first to innovate (there were mp3 players before the first iPod and smart watches before the Apple Watch), but they are masterful at being the?best?for their chosen audience.
We invite you to implement the same principle in your business by identifying your ideal customer’s deepest needs and creating a solution that perfectly matches their desires. This way you can rise above the competition and?Thrive with Joy, instead of competing with pain.
Identifying the Needs of Your Ideal Client
To effectively out-innovate your competition, you need to understand the human needs that subconsciously drive your ideal clients. Tony Robbins identified six fundamental human needs: certainty, variety, significance, love/connection, growth, and contribution.
At bq.Capital, we group these into three pairs of balancing qualities:
Your brand and business strategy should focus on the top three needs that your ideal clients have. For example, if your business caters to the client’s needs of significance and variety, like BMW, you would prioritize innovation that enhances your clients' tailored experience, such as personalized driving modes or the ability to customize the car to individual tastes.
In contrast the similarly successful Mercedes Benz prioritizes the need for certainty next to significance, which makes it a completely distinct brand in the perception of the customers and it is, because it communicates to a different ranking of the needs of the customer - subconsciously. That’s the power of choosing the top needs of the ideal customer that you WANT to serve.
“Quickly ask yourself, what are the top two needs that you cater to in the customer with your brand?
How would your brand feel & communicate differently if you were to swap out the second need for the opposite in that pair?”
For bq.Capital, our ideal clients are entrepreneurs that choose to stand out from their competition (SIGNIFICANCE),?value GROWTH?(in their Business & in their personal Life),?and give more to those they care about (LOVE/CONNECTION with customers, team, community and family & friends). This is the exact audience we choose to cater to in our approach, which blends passion and strategic innovation to deliver exponential results.
The First Step – Optimizing Your Marketing & Sales Funnel
When we start working with clients, they often say: "I understand the need to out-innovate, but I can’t afford it."
Our response is simple: let’s begin by optimizing your marketing and sales funnel. This is often cost-neutral and has the potential to free up substantial cash flow to reinvest in product & service innovation.
Let’s take an "easy-math" example to follow along, calculating the numbers in our mind: Imagine a company with a $2,000 sales price per transaction and a 50% gross profit margin. Out of 1 million potential qualified leads, each step in the sales funnel cuts that number by half until you're left with $125 million in revenue.
Now, by having the clarity of focus about your ideal client, their needs and how your brand messaging addresses them, there is a multitude of actions you can take that won’t cost, but often even save expenses by a more focused resource allocation. Let’s assume an increase of a mere 10% in qualifying leads and incrementally improving each step in the funnel by just 3%. This moderate increase in leads and conversion rate, produces a 39% increase in revenue—from $125 million to $174 million and elevates the gross profit by $25 million.
This?compounding effect?on your revenue creates free cash flow, which can then be invested into innovation, propelling your business into the next phase of growth.
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1) “What are the conversion rates along your sales funnel?
2) How would your revenue change if you were to apply the same 10% increase in leads and 3% improvement in conversion rate across your 4-Step sales process?
3) What would be the additional cash-flow generated?”
The Second Step – Reinvesting in R&D to Increase Perceived Value
Once your marketing and sales funnel is optimized, the next step is reinvesting the free cash flow into research and development. In our example, we take the additional $25 million generated from the first step and invest it into two key areas:
By enhancing both perceived value and reducing costs, your profitability skyrockets. In the same example, the increase in revenue leads to an 81% growth in gross profit, resulting in a bottom-line EBITDA of $62.5 million—effectively boosting the company’s value from $50 million to $250 million.
"What is the elevation in Enterprise Value for your business by compounding 3x 10% improvements and 4x 3% higher conversion rate?”
Focused Investment – Building Your Peak
Innovation must be intentional. At bq.Capital, we visualize your solution as a?golden ball, with the upper half representing perceived value and the lower half symbolizing intended value, supported by R&D. The goal is to align these two aspects to perfectly serve the needs of your ideal clients (ranked golden triangles of needs & desires), with a uniquely outstanding solution (ranked blue triangles of solution elements: excellent, outstanding, unique) that also reflect the passion and strengths of your team.
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By focusing on your core competencies and the true desires of your clients, you can stop being reactive to competitors and start standing out. This is what it means to build your?PEAK—moving beyond excellence to a place of unique differentiation.
The Power of Compounding Innovation
Compounding innovation is not just about incremental growth—it’s about creating a flywheel of continuous improvement that transforms your business. At bq.Capital, we help businesses like yours achieve this transformation by leveraging our proven framework to unlock exponential results.
"Would your resource allocation in Marketing & Sales be more effective if you had a clearly defined ideal client?"
"Would your achievable sales price be higher if your Research & Development had crafted a solution that uniquely caters to the specific conscious desires and subconscious needs of your ideal clients?"
"How would you feel if you had managed to uniquely stand out in your ideal niche market with increased profitability, elevated company value and a more fulfilled customer?"
We are not for everyone but if your business generates more than $2 million in EBITDA and $5 million in revenue, is offering products or services direct-to-consumer and you’re ready to step into a future of “Winning With Compounding Innovation”, please feel free to send me a direct message. My team will then get in touch with you to ask some simple questions that are specific to your business, in order to set up an outcome-focused exploration call.
When is NOW a good time to start your journey and reach your NEXT Million Dollar milestone and Thrive with Joy?
Investor | Mentor | Brand Developer | Creating predictable growth strategies for mission driven organizations
2 周Great article Sebastian. We are aligned in so many ways.