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THE 4 Cs OF EVERY SUCCESSFUL BUSINESS

What value does your business bring to your customers? And what makes your business stand out from others?
 
It is possible that 80% of your company's value falls within the four intangible capitals, otherwise known as the 4 Cs.
 
The four Intangible Capitals are Human, Social, Customer, and Structural Capital.
 
Learning more about the 4 Cs can help you build value within your business.
 
#1: HUMAN CAPITAL
 
The Human Capital of your business can sometimes be the hardest to manage because it's the most important. People are everything.
 
Exit Planning Institute President Scot Snider says, "I don't care how good your product or processes are, if you don't have the right people - you're screwed."
 
Human Capital is the measure of talent on your team. Many business owners admit that finding and retaining top talent is a major challenge. To make things easier, you can follow a series of steps when working on your employee development plans. These will help you encourage growth in both your employees and your business.
 
  • RECRUIT- Think about why talented people would want to work for you. Is your business attractive to those looking for a job? Can you articulate your core values to the people you're recruiting? Which characteristics do you most value in an employee?
  • MOTIVATE - Most people want more than just a job, they want to feel like they are a part of something. Inspire your team with the right incentive program to keep them feeling motivated.
  • RETAIN - If you have incredible talent in your company, but have a high rate of turnover, you're losing valuable people. Make sure you provide a path for professional growth, as well as retention for your top employees.
  • EVOLVE - Businesses grow when teams evolve. Try promoting talent from within your organization. This way your leadership team will grow as your business changes.
 
#2: SOCIAL CAPITAL
 
Another term for Social Capital is company culture. It embraces the people, and is the heartbeat of the organization.
 
Key components of a company's culture include how they communicate, what they believe in, and how they operate both internally and externally.
 
Culture can bring people together. It represents your brand, your team, and how you interact with your customers. Social Capital can be hard to figure out as a new business owner. When you're working on your exit plan, consider whether or not your culture fits the organization acquiring you.
 
#3: CUSTOMER CAPITAL
 
Customers are what bring business. Moving customers from a state of engagement to entanglement can be a challenge. It's important to figure out what your business does so well that your customers will consider you indispensable.
 
By building value in your business, you'll effectively strengthen your Customer Capital. Try to think of your business through your customers' eyes. This will help you address their needs.
 
#4: STRUCTURAL CAPITAL
 
The strongest of all the intangible is Structural Capital, which includes everything that allows your company to work efficiently. This may include the process, training programs, technology, tools, equipment, and real estate.
 
With structural capital comes a success that's not dependent on any single person's ability to perform a specific job. This ensures relationships are transferrable.
 
The 4 Cs help business owners with their exit planning strategies. When they evaluate the 4 Cs on a daily, quarterly, and annual basis, it results in happier people, more profits, and higher valuations.
 
When it comes to move into the next phase of life, exit planning can help harvest your business for the next phase. It creates a significant company.
 
Looking for assistance in planning your exit strategy? Contact Erik D. Roemer, CFP®, CEPA with Gerber if you have questions or need more information.


INDEX
  • WHEN SHOULD I HIRE A PRESIDENT?
  • WHEN SHOULD I HIRE A CHIEF PEOPLE OFFICER?
  • WHEN SHOULD I HIRE A CHIEF MARKETING OFFICER?
  • WHEN SHOULD I HIRE A COO?
  • HOW TO EXIT YOUR BUSINESS WHEN YOU DON'T HAVE A BUYER
  • WHEN SHOULD I HIRE A CHIEF FINANCIAL OFFICER?
  • IT'S NOT THE GREAT RESIGNATION; IT'S THE GREAT REALIGNMENT
  • WHEN SHOULD I HIRE AN HR MANAGER?
  • WHY YOUR BUSINESS NEEDS A PRICING STRATEGY
  • THE 4 Cs OF EVERY SUCCESSFUL BUSINESS
  • WHAT IS A CEPA ADVISOR AND HOW CAN ONE BENEFIT YOUR BUSINESS?
  • THE FALLOUT ON CULTURE WHEN YOU DON'T HIRE A PLAYERS
  • THE ROLES OF SALES IN YOUR SMALL BUSINESS
  • FINDING THE PERFECT GIFT FOR THE ENTREPRENEUR IN YOUR LIFE
  • THE BENEFITS OF OWNING A SMALL BUSINESS
  • WORKFORCE IN MOTION
  • GOAL SETTING FOR 2022: WHAT TO DO NOW TO BE SUCCESSFUL NEXT YEAR
  • LESSONS LEARNED AFTER PUBLISHING MY FIRST BOOK
  • WHY YOUR BUSINESS NEEDS INNOVATION
  • THE COVID-INSPIRED SPIKE IN ENTREPRENEURIALISM
  • THE PROS AND CONS OF OUTSOURCING YOUR FINANCE AND ACCOUNTING SERVICE
  • HOW TO SET GOALS IN 2021
  • THE LEADERSHIP EVOLUTION OF YOUR BUSINESS
  • HOW TO GET THE MOST OUT OF YOUR ADVISORY BOARD
  • THE PANDEMIC-INDUCED INNOVATION OF MEETINGS
  • HOW TO USE THE 8 P'S OF MARKETING TO GROW YOUR BUSINESS
  • BEST PRACTICES FOR COLLEGE FINANCING
  • SCALING A BUSINESS - ARE YOU READY?
  • THE HALFWAY POINT: IT'S TIME TO REVISIT THOSE BUSINESS GOALS
  • GROWTH WITH PURPOSE: SUCCESSION PLANNING
  • GROWTH WITH PURPOSE: EVOLUTION OF FAMILY LIFE
  • GROWTH WITH PURPOSE: FINANCIAL RISK
  • GROWTH WITH PURPOSE: INTEGRATION
  • GROWTH WITH PURPOSE: WHY ARE YOU GROWING YOUR COMPANY?
  • GOAL SETTING 2020: HOW TO KEEP YOUR GOALS FRONT AND CENTER ALL YEAR LONG
  • ASK GERBER: HOW TO STAY LASER FOCUSED DURING THE HOLIDAYS
  • Ask Gerber: How to Identify Your Business's Culture When You Don't Think You Have One
  • Ask Gerber: When Should I Hire a Professional Manager?
  • Ask Gerber: Should You Mix Business with Friendship?
  • ASK GERBER: HOW DO I ESCAPE THE ENTREPRENEURIAL SLUMP OF FEELING TRAPPED IN MY BUSINESS?
  • ASK GERBER: HOW CAN ENTREPRENEURS CREATE SHARED EXPERIENCES WITH THEIR CHILDREN?
  • Ask Gerber: How Can I Recognize Permanent Failure as an Entrepreneur?
  • Ask Gerber: How Can I Recognize and Overcome Temporary Failures?
  • ASK GERBER: HOW DO I HELP EASE EMPLOYEE STRESS DURING BUSY SEASON?
  • ASK GERBER: DO I NEED TO HIRE HR?
  • ASK GERBER : DO I NEED A CEO?
  • ASK GERBER: DO I NEED TO HIRE A COO?
  • ASK GERBER: DO I NEED TO HIRE A CMO?
  • ASK GERBER: DO I NEED TO HIRE A CFO?
  • ASK GERBER: HOW DO I KEEP PASSION AND PROFITS TOP OF MIND IN MY BUSINESS?
  • ASK GERBER: WHY DO I NEED TO INVEST IN HOSTING AN ANNUAL RETREAT FOR MY TEAM?
  • ASK GERBER: HOW CAN I ENGAGE WITH MY CLIENTS/PROSPECTS WITHOUT BREAKING THE BANK?
  • ASK GERBER: WHAT IS A CLIENT SERVICE MATRIX? PART DEUX
  • ASK GERBER: WHAT IS A CLIENT SERVICE MATRIX? PART ONE
  • ASK GERBER: THE HIRING PROCESS. WHY IS IT SO DAMN HARD?
  • ASK GERBER: WHY IT'S IMPORTANT TO KNOW AND GROW YOUR COMPANY CULTURE
  • ASK GERBER: HOW DO I ACHIEVE THE WORK/LIFE BALANCE AS A BUSY ENTREPRENEUR?
  • ASK GERBER: HOW DO I PREPARE MY FRIENDS FOR LIFE AS AN ENTREPRENEUR?
  • ASK GERBER: FIRST GENERATION ENTREPRENEURS AND BUSINESS EXECUTIVES, HOW ARE THEY DIFFERENT?
  • ASK GERBER: I PUT SO MUCH OF MYSELF INTO MY BUSINESS THAT I WORRY I AM FALLING SHORT AS A SPOUSE AND PARENT. WHAT CAN I DO?
  • ASK GERBER: ARE CHILDREN OF FIRST-GENERATION ENTREPRENEURS MORE LIKELY TO BE SPOILED?
  • ASK GERBER: WHAT'S YOUR STANCE ON REMOTE ACCESS FOR EMPLOYEES?
  • ASK GERBER: WHEN DO I NEED TO HIRE AN ADMINISTRATIVE ASSISTANT?
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