Everyone has their own opinion on how to maximize value. But while it’s true that every business is inherently different, there are some general guidelines that can be applied universally to all businesses. Below are four critical questions you should be asking yourself to help determine if your company’s value is being maximized.

1. Do I understand my customer’s needs and wants?
Most businesses assume that just because people are buying a product or service, it means that they have what the customer needs or wants. But, what happens when a competitor enters the market with a far superior product or service that happens to satisfy your customer’s needs or wants better than you can? Most often, businesses have a hard time innovating and do not spend enough time listening to the consumer. Listening to your customers is the easiest way to help you innovate your product / service and make it competitor resistant.

2. Is my product / service meeting demand?
Too much excess inventory or too little inventory turnover can signal that your product / service has either gone stale, or is priced higher than the value perceived by the customer. Conversely, large amounts of inventory turnover might indicate that your product is priced far below what your customer believes its value to be. Additionally, manufacturing or service inefficiencies could either cripple your ability to meet demand or cause you to exceed demand, wasting critical resources. To maximize value, pricing strategy should not be taken lightly and your business should be optimized to meet demand.

3. Is this market right for my company and product / service?
You wouldn’t sell a winter coat in the Bahamas or open a steakhouse in a predominately vegetarian community would you? Consumer buying habits, age, income, ethnicity, gender, and education are just some of the many consumer demographics that you should consider when evaluating the market for your company. Every product / service has a greater demand in certain demographic categories than others. Knowing which demographics your product / service best serves will determine whether you will feast or famine.

4. Do I have the right people?
This is a difficult question, but it’s a critical one business owners often ignore. Your staff may be doing their job but are they the right people for the job? Will these people help the business grow? If there is one piece of advice that I have received over the years that I would pass along to anyone, it would be “you don’t have to be the smartest person in the room, but rather surround yourself with people that make you look smart.” It is imperative to specifically identify your weaknesses and hire to fill those gaps.