VALUE CREATION PLANS

A value creation plan is a strategic document that outlines how a company intends to increase its value. It typically includes a detailed analysis of the company's current financial performance, as well as a roadmap for how the company plans to improve its performance in the future. Value creation plans can be used by companies of all sizes, in all industries. There are many different ways that a company can create value. Some common value creation strategies include:

Reducing costs: Companies can increase their value by reducing their costs. This can be done by streamlining operations, negotiating better prices with suppliers, or outsourcing non-core functions;

Increasing revenue: Companies can also increase their value by increasing their revenue. This can be done by expanding into new markets, developing new products or services, growing sales channels, or increasing prices;

Improving efficiency: Companies can increase their value by improving their efficiency. This can be done by investing in new technology, streamlining processes, reducing non-profit making SKUs, improving working capital including cash collection of overdue debt, improving employee productivity, etc;

Building a strong brand: Companies can also increase their value by building a strong brand. This can be done by investing in marketing and advertising, providing excellent customer service, or developing a reputation for innovation;

Value creation plans are an important tool for any company that wants to increase its value. By carefully considering all of the potential value creation strategies, companies can develop a plan that is tailored to their specific needs and goals. Here are some of the benefits of having a value creation plan:

It can help you identify and prioritise opportunities for improvement;

It can help you track your progress and measure your results;

It can help you communicate your strategy to your stakeholders;

It can help you attract new investors and partners;

It can help you prepare for a sale or merger;

If you are not already using a value creation plan, we encourage you to consider developing one. It could be the key to unlocking your company's full potential.

Strategas Management Consultants has helped several companies turn a corner from a period of declining revenues and profits including Arco Group in 2023, a £300m experts in safety company based in Hull where we led a team of over 40 colleagues in their first phase of value creation planning (see testimonials) . Rest assured we are here to help and minimise the impact within your business wherever possible.

If you would like to learn more about how Strategas Management Consultants can help your organisation flourish, become more efficient and ultimately more profitable in the 21st century please call or email us at info@strategas.co.uk to submit a query and we will come back to you as soon as possible.