Business Valuation Essentials: Customer Satisfaction and Key Person Considerations
Summary:
In this video, Kerry delves into two critical aspects of business valuation – customer satisfaction and the role of key personnel. She introduces the “Net Promoter Score” (NPS) as a valuable metric for assessing customer satisfaction, emphasising that businesses aiming for a score above 50 are considered among the best globally.
Kerry advocates for regular surveys to gauge customer sentiment. Additionally, she stresses the importance of not being the sole linchpin in the business, pointing out that reliance on a single key person, particularly the owner, can hinder the potential for a sale. The video serves as an insightful guide for entrepreneurs looking to enhance their business’s overall value.
Transcript:
Customer satisfaction… Who knows their Net Promoter Score? Anyone done an NPS survey? You need to know that you need to do regular surveys and if you get above 50, then you’re one of the top in the world. The challenge is that if you are the business and the business can’t exist without you, then you can never sell your business.
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