business plan value add

How To Write a Business Plan for Value-Added in 9 Steps: Checklist

By henry sheykin, resources on value-added.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan

According to recent statistics, the value-added business model in the US is booming, particularly in industries such as automotive, aerospace, electronics, and medical devices. This popular model, known as original equipment manufacturing (OEM), allows businesses to provide specialized components, products, or services that are integrated into other companies' final offerings. With the complexity of the supply chain and the high demand for innovation and quality, the OEM model offers a prime opportunity for entrepreneurs to excel and gain a competitive edge.

If you're considering venturing into the world of value-added with the OEM model, it's crucial to have a well-crafted business plan in place. This plan will serve as your roadmap, guiding you through the process of establishing your unique value proposition, identifying your target market, and determining the resources and funding needed for success.

To help you get started, here is a handy checklist of nine essential steps to include in your business plan:

• Research the market and industry trends
• Define your target market and customer profiles
• Conduct a competitive analysis
• Determine your unique value proposition and positioning
• Identify the resources and funding needed
• Develop a pricing strategy
• Create a marketing and sales plan
• Outline the organizational structure and team roles
• Establish key performance indicators and goals

Each step in this checklist plays a crucial role in shaping your business plan and ensuring your venture's success. From researching the market and industry trends to outlining your organizational structure, taking the time to carefully consider each step will set you up for long-term growth and sustainability.

So, if you're ready to dive into the world of value-added business with the OEM model, follow this nine-step checklist and craft a business plan that will position you for success in a highly competitive market.

Research The Market And Industry Trends

Before you start writing your business plan for value-added, it is crucial to thoroughly research the market and industry trends. This step is essential as it sets the foundation for the success of your business and helps you identify potential opportunities and challenges.

Here are some important elements to consider during your market research:

• Target Market: Determine who your target market is and understand their needs, preferences, and pain points. This will help you tailor your value-added offerings to meet their specific requirements.
• Industry Trends: Stay up-to-date with the latest trends and developments in your industry. Identify emerging technologies, consumer demands, and regulatory changes that may impact your business. This knowledge will enable you to adapt and stay ahead of the competition.
• Competitor Analysis: Analyze your competitors to understand their strengths, weaknesses, and market positioning. Identify gaps in the market that you can capitalize on and differentiate yourself from existing players.
• Customer Feedback: Seek feedback from potential customers to gain insights into market demands and preferences. This information can help you refine your offerings and better serve your target market.
• Utilize online resources, industry publications, and market research reports to gather comprehensive information.
• Attend trade shows, conferences, and networking events to stay connected with industry experts and gain valuable insights.
• Consider conducting surveys or focus groups to gather first-hand feedback from your target market.
• Regularly revisit your market research to stay informed about evolving trends and changes in your industry.

Define Your Target Market and Customer Profiles

Defining your target market and customer profiles is a crucial step in developing a business plan for value-added. It helps you understand who your primary customers are, their needs, preferences, and buying behaviors. This knowledge allows you to tailor your products or services to meet their specific requirements, thereby increasing your chances of success in the market.

To define your target market, conduct thorough market research to identify the demographics, psychographics, and behavioral characteristics of your ideal customers. This information will help you create customer profiles that represent your target market segments.

• Demographics: Consider factors such as age, gender, income level, education, occupation, and location. These variables provide insights into the basic characteristics of your target market.
• Psychographics: Explore your customers' interests, values, attitudes, lifestyles, and motivations. Understanding their psychographic profile helps you align your value proposition with their needs and desires.
• Behavioral characteristics: Analyze your customers' purchasing patterns, brand loyalty, usage frequency, and buying decision processes. This data will enable you to develop effective marketing strategies and create products or services that resonate with their behaviors.

Tips for defining your target market and customer profiles:

• Segment your market into distinct groups based on their needs and characteristics.
• Gather feedback from existing customers through surveys or interviews to gain deeper insights into their preferences and pain points.
• Monitor industry trends and market dynamics to identify emerging customer segments or shifts in demand.
• Create buyer personas to visualize and understand your ideal customers more effectively.

Once you have defined your target market and customer profiles, you can develop marketing strategies, craft compelling messages, and design products or services that cater to their specific needs. Remember to regularly review and update your customer profiles to stay aligned with changes in the market and to ensure your business remains relevant and competitive.

Conduct A Competitive Analysis

Conducting a competitive analysis is a crucial step in writing a business plan for value-added. It allows you to gain a deep understanding of your competitors' strengths, weaknesses, and strategies, which in turn will help you identify opportunities and threats in the market.

When conducting a competitive analysis, start by identifying your direct and indirect competitors. Direct competitors are those who offer similar products or services to your target market, while indirect competitors may have different offerings but still compete for the same customers.

Next, analyze your competitors' offerings, pricing, distribution channels, marketing strategies, and customer base. Determine what sets them apart from each other and how they differentiate themselves from your proposed value-added business.

It can be helpful to create a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) for each competitor. This will allow you to visually assess their competitive advantages and vulnerabilities. Additionally, consider conducting a PESTEL analysis (Political, Economic, Sociocultural, Technological, Environmental, and Legal) to understand the external factors that may impact your competitors' businesses.

Tips for conducting a competitive analysis:

• Utilize online research tools, industry reports, and market surveys to gather information about your competitors.
• Monitor your competitors' online presence, including their website, social media profiles, and customer reviews, to gauge their brand perception and customer satisfaction.
• Attend industry conferences, trade shows, and networking events to gather insights and connect with industry experts who can provide valuable information about competitors.
• Consider scheduling interviews or focus groups with your target customers to understand their perception of your competitors and their preferences.
• Regularly update your competitive analysis to stay informed about changes in the market, new entrants, and emerging technologies or trends that may impact your business.

By conducting a comprehensive competitive analysis, you will be equipped with the knowledge needed to differentiate your value-added business and position it effectively in the market. This understanding will inform the development of your unique value proposition and help you create strategies that set you apart from the competition.

Determine Your Unique Value Proposition And Positioning

Determining your unique value proposition and positioning is crucial for the success of your value-added business. It sets you apart from your competitors and helps you create a strong and compelling brand identity. Here are some key steps to help you determine your unique value proposition and positioning:

• Identify your target market: Before defining your unique value proposition, it's essential to understand your target market. Research their needs, preferences, and pain points. This will help you tailor your value proposition to address their specific needs and stand out in the market.
• Analyze your competitors: Conduct a thorough competitive analysis to identify your competitors' strengths and weaknesses. This will help you differentiate your value proposition by offering something unique or superior to what is already available in the market.
• Highlight your competitive advantage: Determine what sets you apart from your competitors and emphasize it in your value proposition. Is it your innovative technology, superior quality, exceptional customer service, or cost-effective manufacturing? Clearly articulate your unique selling points to attract customers.
• Focus on the benefits: Your value proposition should clearly communicate the benefits your customers will derive from your products or services. Will it save them time, reduce costs, improve efficiency, enhance performance, or provide a unique experience? Highlight the value you bring to your customers and how it solves their problems or meets their goals.
• Consider the emotional appeal: Emotional appeal can play a significant role in positioning your business. Determine the emotions you want to evoke in your customers. Do you want to create a sense of trust, reliability, exclusivity, or excitement? Incorporate these emotions into your value proposition to connect with your target customers on a deeper level.

Tips for determining your unique value proposition and positioning:

• Be concise and clear in communicating your value proposition.
• Focus on your strengths and what makes you different.
• Validate your value proposition through customer feedback and market research.
• Continuously revisit and refine your value proposition to stay relevant in a dynamic market.

Identify The Resources And Funding Needed

Identifying the resources and funding needed is a crucial step in creating a successful business plan for value-added. It allows you to have a clear understanding of the financial requirements and the necessary assets to bring your business idea to life. Here are a few key considerations:

• Financial Resources: Start by assessing the financial resources you currently have available, such as personal savings or existing investments. Determine if you have sufficient funds to cover the initial costs, or if you'll need to explore additional financing options.
• Start-up Costs: Create a comprehensive list of all the one-time expenses required to establish your value-added business. This may include equipment, technology, licenses, permits, marketing materials, and any necessary legal or professional fees.
• Operational Expenses: Identify the ongoing operational costs that you'll need to cover to maintain your business. This may include rent, utilities, payroll, supplies, inventory, insurance, and other expenses specific to your industry.
• Funding Options: Explore various funding options to fill any financial gaps. This could include traditional bank loans, private investors, crowdfunding, grants, or government assistance programs. Research and assess the pros and cons of each option to determine which aligns best with your business goals and objectives.
• Be realistic when estimating your financial needs and always consider a buffer for unexpected expenses.
• Prepare a detailed budget that includes both start-up and operational costs.
• Consider seeking guidance from a financial advisor or business mentor to assist with financial planning and funding strategies.
• Research and understand the specific requirements and eligibility criteria for different funding options.
• Continually reassess your financial needs as your business evolves and grows.

By clearly identifying the resources and funding needed, you can effectively plan and allocate your financial resources, ensuring that your value-added business is positioned for success.

Develop A Pricing Strategy

When it comes to developing a pricing strategy for your value-added business, it's important to carefully consider various factors that will determine the profitability and competitiveness of your offerings. Here are some important steps to follow:

• Understand your costs: Before setting your prices, it's crucial to have a clear understanding of your production costs, including materials, labor, overhead, and any other expenses associated with delivering your value-added products or services. This will help ensure that your prices are covering your costs and allowing for a reasonable profit margin.
• Evaluate market demand and competition: Research the market to determine the demand for similar value-added products or services and analyze the pricing strategies of your competitors. Look for opportunities to differentiate yourself based on quality, expertise, or unique features, and consider how your pricing strategy can support your market positioning.
• Consider value-based pricing: Rather than simply basing your pricing on costs and competition, consider the perceived value that your offerings provide to customers. Take into account factors such as improved performance, increased efficiency, or enhanced functionality, and set your prices accordingly. This approach allows you to capture a fair share of the value you are delivering.
• Adopt a tiered pricing structure: If appropriate for your business, consider offering different pricing tiers or packages to cater to different customer segments or usage levels. This can help maximize your revenue potential and provide customers with options that align with their specific needs and budgets.
• Factor in long-term business goals: While profitability is important, also consider how your pricing strategy aligns with your long-term business goals. For example, if you are aiming to penetrate a new market or gain market share, you may need to set your prices at a more competitive level during the initial stages. On the other hand, if your focus is on providing premium value and maintaining exclusivity, a higher pricing strategy may be appropriate.

Tips for Developing a Pricing Strategy:

• Regularly monitor and analyze your pricing strategy to ensure it remains competitive and profitable in a dynamic market.
• Consider offering discounts or promotions strategically to attract new customers or stimulate demand.
• Explore alternative pricing models, such as subscription-based or usage-based pricing, to cater to evolving customer preferences.
• Continuously seek customer feedback to understand their perception of your pricing and adjust accordingly.

By following these steps and considering the unique aspects of your business, you can develop a pricing strategy that not only supports your profitability but also creates value for your customers and positions you as a competitive player in the value-added market.

Create A Marketing And Sales Plan

Once you have defined your target market and customer profiles, it is essential to develop a comprehensive marketing and sales plan to reach and engage your potential customers. This plan will outline the strategies and tactics you will use to promote your value-added business and convert leads into sales.

1. Identify your marketing channels: Determine the most effective channels to reach your target audience and allocate resources accordingly. This may include online marketing, social media platforms, traditional advertising, trade shows, or direct marketing campaigns.

2. Craft your messaging: Develop a compelling and unique selling proposition that clearly communicates the value your business offers to customers. Consider their pain points and highlight how your solution addresses their needs and provides a competitive advantage.

3. Set marketing objectives: Establish measurable goals that align with your overall business objectives. This could include increasing brand awareness, generating leads, driving website traffic, or expanding market share.

4. Implement lead generation strategies: Identify methods to generate leads and qualify prospects. This may involve content marketing, email marketing campaigns, webinars, or partnerships with complementary businesses.

5. Develop a sales strategy: Outline the steps and processes your sales team will follow to convert leads into customers. Determine the best approach for selling your value-added products or services, such as direct sales, dealer networks, or online marketplaces.

6. Align marketing and sales efforts: Ensure that your marketing and sales teams work together seamlessly. Encourage regular communication and collaboration to leverage each other's expertise and insights, ultimately driving revenue growth.

Tips for creating a successful marketing and sales plan:

• Regularly review and analyze your marketing and sales performance data to identify areas for improvement and refine your strategies.
• Stay up to date with industry trends, customer preferences, and emerging technologies to adapt your marketing and sales approach accordingly.
• Consider leveraging digital tools and automation software to streamline your marketing and sales processes and improve efficiency.
• Invest in ongoing training and development for your marketing and sales teams to enhance their skills and keep them informed about industry advancements.
• Continuously monitor and adjust your marketing and sales plan based on market feedback and changes in customer needs.

Outline The Organizational Structure And Team Roles

As you build your business plan for value-added, it is crucial to outline the organizational structure and define the roles and responsibilities of your team. This section will provide clarity on how your company will be structured and how each member will contribute to achieving your goals.

Organizational Structure: Start by determining the overall structure of your organization. Will it be flat, hierarchical, or matrix-based? Identify the key departments or functions and their reporting relationships. Clearly define the chain of command, decision-making processes, and communication channels within your company.

Team Roles: Next, identify the specific roles and responsibilities within each department or function. Clearly define the qualifications, skills, and experience required for each role. Determine the number of employees needed for each position and whether they will be full-time, part-time, or contract-based.

• Ensure that each role is clearly defined and does not overlap with others to avoid confusion.
• Consider creating an organizational chart to visually represent the structure and roles within your company.
• Identify any gaps in your team's skillset or expertise and develop a plan to address those gaps through training, hiring, or outsourcing.
• Provide growth and development opportunities for your team members to foster their loyalty and commitment to your company.
• Regularly review and update your organizational structure and team roles as your business evolves and grows.

By outlining your organizational structure and team roles, you establish a solid foundation for your business. This clarity will enable effective communication, efficient workflow, and better decision-making, ultimately contributing to the success of your value-added venture.

Establish Key Performance Indicators And Goals

Once you have completed the previous steps and have a clear understanding of your business model, target market, and marketing strategy, it is crucial to establish key performance indicators (KPIs) and goals to track your progress and measure success. KPIs are quantifiable metrics that reflect the performance and effectiveness of your business, while goals are specific objectives that you aim to achieve within a defined timeframe.

When establishing KPIs and goals, it is important to ensure they are SMART: Specific, Measurable, Achievable, Relevant, and Time-bound. This framework will help you set realistic expectations and provide clear guidance for your team. Here are some key steps to consider:

• Identify the most important metrics: Determine which KPIs are most relevant to your business and align with your overall objectives. This could include metrics such as sales revenue, customer acquisition rate, customer satisfaction, and market share.
• Set measurable targets: Establish specific targets for each KPI, such as increasing sales revenue by 10% within the next quarter or achieving a customer satisfaction rating of 90% within the year. These targets should be challenging yet attainable.
• Track your progress: Implement a system to regularly monitor and track the performance of your KPIs. This could involve using analytics or software tools, conducting surveys, or analyzing financial reports.
• Adjust and refine: Regularly review your KPIs and goals to ensure they remain relevant and aligned with your business strategy. If you find that a particular metric is not providing meaningful insights, consider replacing it with a more relevant one.

Tips for Establishing Key Performance Indicators and Goals:

• Involve your team: Seek input from key stakeholders within your organization to ensure buy-in and alignment with overall business objectives.
• Focus on quality over quantity: It is better to track a few meaningful KPIs that provide actionable insights, rather than overwhelming yourself with too many metrics.
• Regularly communicate progress: Keep your team informed about the progress towards your goals and the performance of your KPIs. This transparency fosters accountability and a shared sense of purpose.

Establishing key performance indicators and goals is an essential step in your business planning process. It enables you to track your performance, identify areas of improvement, and make informed decisions to drive the growth and success of your value-added business.

Writing a business plan for value-added using the OEM model requires careful consideration of various factors to ensure success. By researching the market and industry trends, defining the target market and customer profiles, conducting a competitive analysis, determining the unique value proposition and positioning, identifying the resources and funding needed, developing a pricing strategy, creating a marketing and sales plan, outlining the organizational structure and team roles, and establishing key performance indicators and goals, entrepreneurs can effectively plan for and execute their value-added business idea.

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6 Ways to Add Value to Your Prospects' Lives & Win Their Business

Published: November 29, 2023

“Adding value.”

I hear and read this phrase nearly every day. It’s in most motivational speeches. It’s all over LinkedIn, and it’s used in almost every book about sales , sales leadership , or sales management .

Though “adding value” is not a new concept, I saw a LinkedIn post that made me reexamine what I did as a sales rep to add value to prospects, partners, and our customers.

Table of Contents

What does value add mean?

• 6 Ways to Add Value to/for Your Customers
• 4 Value Add Examples by Companies

Don't forget to share this post!

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How to Write a Business Plan: Step-by-Step Guide + Examples

Noah Parsons

24 min. read

Updated May 7, 2024

Writing a business plan doesn’t have to be complicated. 

In this step-by-step guide, you’ll learn how to write a business plan that’s detailed enough to impress bankers and potential investors, while giving you the tools to start, run, and grow a successful business.

• The basics of business planning

If you’re reading this guide, then you already know why you need a business plan . 

You understand that planning helps you: 

• Raise money
• Grow strategically
• Keep your business on the right track 

As you start to write your plan, it’s useful to zoom out and remember what a business plan is .

At its core, a business plan is an overview of the products and services you sell, and the customers that you sell to. It explains your business strategy: how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

Most business plans also include financial forecasts for the future. These set sales goals, budget for expenses, and predict profits and cash flow. 

A good business plan is much more than just a document that you write once and forget about. It’s also a guide that helps you outline and achieve your goals. 

After completing your plan, you can use it as a management tool to track your progress toward your goals. Updating and adjusting your forecasts and budgets as you go is one of the most important steps you can take to run a healthier, smarter business. 

We’ll dive into how to use your plan later in this article.

There are many different types of plans , but we’ll go over the most common type here, which includes everything you need for an investor-ready plan. However, if you’re just starting out and are looking for something simpler—I recommend starting with a one-page business plan . It’s faster and easier to create. 

It’s also the perfect place to start if you’re just figuring out your idea, or need a simple strategic plan to use inside your business.

Dig deeper : How to write a one-page business plan

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• What to include in your business plan

Executive summary

The executive summary is an overview of your business and your plans. It comes first in your plan and is ideally just one to two pages. Most people write it last because it’s a summary of the complete business plan.

Ideally, the executive summary can act as a stand-alone document that covers the highlights of your detailed plan. 

In fact, it’s common for investors to ask only for the executive summary when evaluating your business. If they like what they see in the executive summary, they’ll often follow up with a request for a complete plan, a pitch presentation , or more in-depth financial forecasts .

Your executive summary should include:

• A summary of the problem you are solving
• A description of your product or service
• An overview of your target market
• A brief description of your team
• A summary of your financials
• Your funding requirements (if you are raising money)

Dig Deeper: How to write an effective executive summary

Products and services description

This is where you describe exactly what you’re selling, and how it solves a problem for your target market. The best way to organize this part of your plan is to start by describing the problem that exists for your customers. After that, you can describe how you plan to solve that problem with your product or service. 

This is usually called a problem and solution statement .

To truly showcase the value of your products and services, you need to craft a compelling narrative around your offerings. How will your product or service transform your customers’ lives or jobs? A strong narrative will draw in your readers.

This is also the part of the business plan to discuss any competitive advantages you may have, like specific intellectual property or patents that protect your product. If you have any initial sales, contracts, or other evidence that your product or service is likely to sell, include that information as well. It will show that your idea has traction , which can help convince readers that your plan has a high chance of success.

Market analysis

Your target market is a description of the type of people that you plan to sell to. You might even have multiple target markets, depending on your business. 

A market analysis is the part of your plan where you bring together all of the information you know about your target market. Basically, it’s a thorough description of who your customers are and why they need what you’re selling. You’ll also include information about the growth of your market and your industry .

Try to be as specific as possible when you describe your market. 

Include information such as age, income level, and location—these are what’s called “demographics.” If you can, also describe your market’s interests and habits as they relate to your business—these are “psychographics.” 

Related: Target market examples

Essentially, you want to include any knowledge you have about your customers that is relevant to how your product or service is right for them. With a solid target market, it will be easier to create a sales and marketing plan that will reach your customers. That’s because you know who they are, what they like to do, and the best ways to reach them.

Next, provide any additional information you have about your market. 

What is the size of your market ? Is the market growing or shrinking? Ideally, you’ll want to demonstrate that your market is growing over time, and also explain how your business is positioned to take advantage of any expected changes in your industry.

Dig Deeper: Learn how to write a market analysis

Competitive analysis

Part of defining your business opportunity is determining what your competitive advantage is. To do this effectively, you need to know as much about your competitors as your target customers. 

Every business has some form of competition. If you don’t think you have competitors, then explore what alternatives there are in the market for your product or service. 

For example: In the early years of cars, their main competition was horses. For social media, the early competition was reading books, watching TV, and talking on the phone.

A good competitive analysis fully lays out the competitive landscape and then explains how your business is different. Maybe your products are better made, or cheaper, or your customer service is superior. Maybe your competitive advantage is your location – a wide variety of factors can ultimately give you an advantage.

Dig Deeper: How to write a competitive analysis for your business plan

Marketing and sales plan

The marketing and sales plan covers how you will position your product or service in the market, the marketing channels and messaging you will use, and your sales tactics. 

The best place to start with a marketing plan is with a positioning statement . 

This explains how your business fits into the overall market, and how you will explain the advantages of your product or service to customers. You’ll use the information from your competitive analysis to help you with your positioning. 

For example: You might position your company as the premium, most expensive but the highest quality option in the market. Or your positioning might focus on being locally owned and that shoppers support the local economy by buying your products.

Once you understand your positioning, you’ll bring this together with the information about your target market to create your marketing strategy . 

This is how you plan to communicate your message to potential customers. Depending on who your customers are and how they purchase products like yours, you might use many different strategies, from social media advertising to creating a podcast. Your marketing plan is all about how your customers discover who you are and why they should consider your products and services. 

While your marketing plan is about reaching your customers—your sales plan will describe the actual sales process once a customer has decided that they’re interested in what you have to offer. 

If your business requires salespeople and a long sales process, describe that in this section. If your customers can “self-serve” and just make purchases quickly on your website, describe that process. 

A good sales plan picks up where your marketing plan leaves off. The marketing plan brings customers in the door and the sales plan is how you close the deal.

Together, these specific plans paint a picture of how you will connect with your target audience, and how you will turn them into paying customers.

Dig deeper: What to include in your sales and marketing plan

Business operations

The operations section describes the necessary requirements for your business to run smoothly. It’s where you talk about how your business works and what day-to-day operations look like. 

Depending on how your business is structured, your operations plan may include elements of the business like:

• Supply chain management
• Manufacturing processes
• Equipment and technology
• Distribution

Some businesses distribute their products and reach their customers through large retailers like Amazon.com, Walmart, Target, and grocery store chains. 

These businesses should review how this part of their business works. The plan should discuss the logistics and costs of getting products onto store shelves and any potential hurdles the business may have to overcome.

If your business is much simpler than this, that’s OK. This section of your business plan can be either extremely short or more detailed, depending on the type of business you are building.

For businesses selling services, such as physical therapy or online software, you can use this section to describe the technology you’ll leverage, what goes into your service, and who you will partner with to deliver your services.

Dig Deeper: Learn how to write the operations chapter of your plan

Key milestones and metrics

Although it’s not required to complete your business plan, mapping out key business milestones and the metrics can be incredibly useful for measuring your success.

Good milestones clearly lay out the parameters of the task and set expectations for their execution. You’ll want to include:

• A description of each task
• The proposed due date
• Who is responsible for each task

If you have a budget, you can include projected costs to hit each milestone. You don’t need extensive project planning in this section—just list key milestones you want to hit and when you plan to hit them. This is your overall business roadmap. 

Possible milestones might be:

• Website launch date
• Store or office opening date
• First significant sales
• Break even date
• Business licenses and approvals

You should also discuss the key numbers you will track to determine your success. Some common metrics worth tracking include:

• Conversion rates
• Customer acquisition costs
• Profit per customer
• Repeat purchases

It’s perfectly fine to start with just a few metrics and grow the number you are tracking over time. You also may find that some metrics simply aren’t relevant to your business and can narrow down what you’re tracking.

Dig Deeper: How to use milestones in your business plan

Organization and management team

Investors don’t just look for great ideas—they want to find great teams. Use this chapter to describe your current team and who you need to hire . You should also provide a quick overview of your location and history if you’re already up and running.

Briefly highlight the relevant experiences of each key team member in the company. It’s important to make the case for why yours is the right team to turn an idea into a reality. 

Do they have the right industry experience and background? Have members of the team had entrepreneurial successes before? 

If you still need to hire key team members, that’s OK. Just note those gaps in this section.

Your company overview should also include a summary of your company’s current business structure . The most common business structures include:

• Sole proprietor
• Partnership

Be sure to provide an overview of how the business is owned as well. Does each business partner own an equal portion of the business? How is ownership divided? 

Potential lenders and investors will want to know the structure of the business before they will consider a loan or investment.

Dig Deeper: How to write about your company structure and team

Financial plan

Last, but certainly not least, is your financial plan chapter. 

Entrepreneurs often find this section the most daunting. But, business financials for most startups are less complicated than you think, and a business degree is certainly not required to build a solid financial forecast. 

A typical financial forecast in a business plan includes the following:

• Sales forecast : An estimate of the sales expected over a given period. You’ll break down your forecast into the key revenue streams that you expect to have.
• Expense budget : Your planned spending such as personnel costs , marketing expenses, and taxes.
• Profit & Loss : Brings together your sales and expenses and helps you calculate planned profits.
• Cash Flow : Shows how cash moves into and out of your business. It can predict how much cash you’ll have on hand at any given point in the future.
• Balance Sheet : A list of the assets, liabilities, and equity in your company. In short, it provides an overview of the financial health of your business. 

A strong business plan will include a description of assumptions about the future, and potential risks that could impact the financial plan. Including those will be especially important if you’re writing a business plan to pursue a loan or other investment.

Dig Deeper: How to create financial forecasts and budgets

This is the place for additional data, charts, or other information that supports your plan.

Including an appendix can significantly enhance the credibility of your plan by showing readers that you’ve thoroughly considered the details of your business idea, and are backing your ideas up with solid data.

Just remember that the information in the appendix is meant to be supplementary. Your business plan should stand on its own, even if the reader skips this section.

Dig Deeper : What to include in your business plan appendix

Optional: Business plan cover page

Adding a business plan cover page can make your plan, and by extension your business, seem more professional in the eyes of potential investors, lenders, and partners. It serves as the introduction to your document and provides necessary contact information for stakeholders to reference.

Your cover page should be simple and include:

• Company logo
• Business name
• Value proposition (optional)
• Business plan title
• Completion and/or update date
• Address and contact information
• Confidentiality statement

Just remember, the cover page is optional. If you decide to include it, keep it very simple and only spend a short amount of time putting it together.

Dig Deeper: How to create a business plan cover page

How to use AI to help write your business plan

Generative AI tools such as ChatGPT can speed up the business plan writing process and help you think through concepts like market segmentation and competition. These tools are especially useful for taking ideas that you provide and converting them into polished text for your business plan.

The best way to use AI for your business plan is to leverage it as a collaborator , not a replacement for human creative thinking and ingenuity. 

AI can come up with lots of ideas and act as a brainstorming partner. It’s up to you to filter through those ideas and figure out which ones are realistic enough to resonate with your customers. 

There are pros and cons of using AI to help with your business plan . So, spend some time understanding how it can be most helpful before just outsourcing the job to AI.

Learn more: 10 AI prompts you need to write a business plan

• Writing tips and strategies

To help streamline the business plan writing process, here are a few tips and key questions to answer to make sure you get the most out of your plan and avoid common mistakes .  

Determine why you are writing a business plan

Knowing why you are writing a business plan will determine your approach to your planning project. 

For example: If you are writing a business plan for yourself, or just to use inside your own business , you can probably skip the section about your team and organizational structure. 

If you’re raising money, you’ll want to spend more time explaining why you’re looking to raise the funds and exactly how you will use them.

Regardless of how you intend to use your business plan , think about why you are writing and what you’re trying to get out of the process before you begin.

Keep things concise

Probably the most important tip is to keep your business plan short and simple. There are no prizes for long business plans . The longer your plan is, the less likely people are to read it. 

So focus on trimming things down to the essentials your readers need to know. Skip the extended, wordy descriptions and instead focus on creating a plan that is easy to read —using bullets and short sentences whenever possible.

Have someone review your business plan

Writing a business plan in a vacuum is never a good idea. Sometimes it’s helpful to zoom out and check if your plan makes sense to someone else. You also want to make sure that it’s easy to read and understand.

Don’t wait until your plan is “done” to get a second look. Start sharing your plan early, and find out from readers what questions your plan leaves unanswered. This early review cycle will help you spot shortcomings in your plan and address them quickly, rather than finding out about them right before you present your plan to a lender or investor.

If you need a more detailed review, you may want to explore hiring a professional plan writer to thoroughly examine it.

Use a free business plan template and business plan examples to get started

Knowing what information to include in a business plan is sometimes not quite enough. If you’re struggling to get started or need additional guidance, it may be worth using a business plan template. 

There are plenty of great options available (we’ve rounded up our 8 favorites to streamline your search).

But, if you’re looking for a free downloadable business plan template , you can get one right now; download the template used by more than 1 million businesses. 

Or, if you just want to see what a completed business plan looks like, check out our library of over 550 free business plan examples . 

We even have a growing list of industry business planning guides with tips for what to focus on depending on your business type.

Common pitfalls and how to avoid them

It’s easy to make mistakes when you’re writing your business plan. Some entrepreneurs get sucked into the writing and research process, and don’t focus enough on actually getting their business started. 

Here are a few common mistakes and how to avoid them:

Not talking to your customers : This is one of the most common mistakes. It’s easy to assume that your product or service is something that people want. Before you invest too much in your business and too much in the planning process, make sure you talk to your prospective customers and have a good understanding of their needs.

• Overly optimistic sales and profit forecasts: By nature, entrepreneurs are optimistic about the future. But it’s good to temper that optimism a little when you’re planning, and make sure your forecasts are grounded in reality. 
• Spending too much time planning: Yes, planning is crucial. But you also need to get out and talk to customers, build prototypes of your product and figure out if there’s a market for your idea. Make sure to balance planning with building.
• Not revising the plan: Planning is useful, but nothing ever goes exactly as planned. As you learn more about what’s working and what’s not—revise your plan, your budgets, and your revenue forecast. Doing so will provide a more realistic picture of where your business is going, and what your financial needs will be moving forward.
• Not using the plan to manage your business: A good business plan is a management tool. Don’t just write it and put it on the shelf to collect dust – use it to track your progress and help you reach your goals.
• Presenting your business plan

The planning process forces you to think through every aspect of your business and answer questions that you may not have thought of. That’s the real benefit of writing a business plan – the knowledge you gain about your business that you may not have been able to discover otherwise.

With all of this knowledge, you’re well prepared to convert your business plan into a pitch presentation to present your ideas. 

A pitch presentation is a summary of your plan, just hitting the highlights and key points. It’s the best way to present your business plan to investors and team members.

Dig Deeper: Learn what key slides should be included in your pitch deck

Use your business plan to manage your business

One of the biggest benefits of planning is that it gives you a tool to manage your business better. With a revenue forecast, expense budget, and projected cash flow, you know your targets and where you are headed.

And yet, nothing ever goes exactly as planned – it’s the nature of business.

That’s where using your plan as a management tool comes in. The key to leveraging it for your business is to review it periodically and compare your forecasts and projections to your actual results.

Start by setting up a regular time to review the plan – a monthly review is a good starting point. During this review, answer questions like:

• Did you meet your sales goals?
• Is spending following your budget?
• Has anything gone differently than what you expected?

Now that you see whether you’re meeting your goals or are off track, you can make adjustments and set new targets. 

Maybe you’re exceeding your sales goals and should set new, more aggressive goals. In that case, maybe you should also explore more spending or hiring more employees. 

Or maybe expenses are rising faster than you projected. If that’s the case, you would need to look at where you can cut costs.

A plan, and a method for comparing your plan to your actual results , is the tool you need to steer your business toward success.

Learn More: How to run a regular plan review

Free business plan templates and examples

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How to write a business plan FAQ

What is a business plan?

A document that describes your business , the products and services you sell, and the customers that you sell to. It explains your business strategy, how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

What are the benefits of a business plan?

A business plan helps you understand where you want to go with your business and what it will take to get there. It reduces your overall risk, helps you uncover your business’s potential, attracts investors, and identifies areas for growth.

Having a business plan ultimately makes you more confident as a business owner and more likely to succeed for a longer period of time.

What are the 7 steps of a business plan?

The seven steps to writing a business plan include:

• Write a brief executive summary
• Describe your products and services.
• Conduct market research and compile data into a cohesive market analysis.
• Describe your marketing and sales strategy.
• Outline your organizational structure and management team.
• Develop financial projections for sales, revenue, and cash flow.
• Add any additional documents to your appendix.

What are the 5 most common business plan mistakes?

There are plenty of mistakes that can be made when writing a business plan. However, these are the 5 most common that you should do your best to avoid:

• 1. Not taking the planning process seriously.
• Having unrealistic financial projections or incomplete financial information.
• Inconsistent information or simple mistakes.
• Failing to establish a sound business model.
• Not having a defined purpose for your business plan.

What questions should be answered in a business plan?

Writing a business plan is all about asking yourself questions about your business and being able to answer them through the planning process. You’ll likely be asking dozens and dozens of questions for each section of your plan.

However, these are the key questions you should ask and answer with your business plan:

• How will your business make money?
• Is there a need for your product or service?
• Who are your customers?
• How are you different from the competition?
• How will you reach your customers?
• How will you measure success?

How long should a business plan be?

The length of your business plan fully depends on what you intend to do with it. From the SBA and traditional lender point of view, a business plan needs to be whatever length necessary to fully explain your business. This means that you prove the viability of your business, show that you understand the market, and have a detailed strategy in place.

If you intend to use your business plan for internal management purposes, you don’t necessarily need a full 25-50 page business plan. Instead, you can start with a one-page plan to get all of the necessary information in place.

What are the different types of business plans?

While all business plans cover similar categories, the style and function fully depend on how you intend to use your plan. Here are a few common business plan types worth considering.

Traditional business plan: The tried-and-true traditional business plan is a formal document meant to be used when applying for funding or pitching to investors. This type of business plan follows the outline above and can be anywhere from 10-50 pages depending on the amount of detail included, the complexity of your business, and what you include in your appendix.

Business model canvas: The business model canvas is a one-page template designed to demystify the business planning process. It removes the need for a traditional, copy-heavy business plan, in favor of a single-page outline that can help you and outside parties better explore your business idea.

One-page business plan: This format is a simplified version of the traditional plan that focuses on the core aspects of your business. You’ll typically stick with bullet points and single sentences. It’s most useful for those exploring ideas, needing to validate their business model, or who need an internal plan to help them run and manage their business.

Lean Plan: The Lean Plan is less of a specific document type and more of a methodology. It takes the simplicity and styling of the one-page business plan and turns it into a process for you to continuously plan, test, review, refine, and take action based on performance. It’s faster, keeps your plan concise, and ensures that your plan is always up-to-date.

What’s the difference between a business plan and a strategic plan?

A business plan covers the “who” and “what” of your business. It explains what your business is doing right now and how it functions. The strategic plan explores long-term goals and explains “how” the business will get there. It encourages you to look more intently toward the future and how you will achieve your vision.

However, when approached correctly, your business plan can actually function as a strategic plan as well. If kept lean, you can define your business, outline strategic steps, and track ongoing operations all with a single plan.

Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

Table of Contents

• Use AI to help write your plan
• Common planning mistakes
• Manage with your business plan
• Templates and examples

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What is a Value-Add Strategy in Real Estate Investing?

This article is part of a series to offer some more context around each strategy – stabilization, value-add, new construction, and master-planned development. We’ll summarize the general business plan for each, discuss the opportunities and risks, and define the investor profile that may be suitable for each strategy. This article focuses on the Value-Add strategy.

HGTV hit a homerun with their hit reality show ‘Fixer-Upper.’ The show follows the husband-and-wife team, Chip and Joanna Gaines, as they help homebuyers locate and renovate ‘the worst house in the best neighborhood.’ The strategy is straightforward: acquire the home at a deep discount to the other homes around it, then use the remaining budget to finance renovations. The renovations and new family bring the home’s value in line with the rest of the neighborhood. It’s been a winner for the Gaines’ family (and HGTV) as they grow their Magnolia empire.

While Caliber’s focus is on commercial real estate, the essentials of the ‘Fixer-Upper’ strategy is the same: find an under-utilized property in a market with strong fundamentals, then raise capital to renovate to attract a key tenant. Once the tenant has been secured, sell the property, and use the proceeds to pay back our investors. It’s a great approach for investors looking to grow their retirement portfolios with less risk than a new build or land deal.

Let’s take a deeper dive into how the value-add business plan usually looks.

Value-Add Strategies in Real Estate Investing

Find an under-utilized property.

Under-utilized means the property isn’t being used to its full potential. Something needs to be changed to bring it back in line with the rest of the neighborhood or market. Making those changes is where we capture the added value for investors. The opportunity to create value generally falls into three categories: physical, operational, or structural.

Physical value means the property’s physical characteristics need to be improved. That could be as major as renovating a lobby or changing the exterior design to updating the furniture, fixtures, or equipment. These types of improvements should attract a new tenant at a higher rate, at which point, the property will start throwing off cash. Then, at that point, we can look to sell.

Structural value refers to the organization of the property. It can take a lot of money to acquire and manage commercial real estate, so most commercial properties have multiple partnerships and complex funding structures. We can create structural value for our investors by restructuring overleveraged properties or resolving partnership issues. The property itself may be physically outstanding, but the organization underpinning the property could present opportunities.

Operational value means addressing issues with the property management team, specifically related to the property’s financial performance. For example, we can unlock operational value by identifying properties or property types with high costs we know how to reduce or eliminate. Cutting costs while boosting rent means a higher margin, which can improve the building’s final sale price and generate higher cash flow during the hold period.

These three areas of value are not mutually exclusive.

It’s common for one property to have all three as part of its business plan! For instance, it may be that we learned that a property slated for renovations is about to come on the market because the partners had a falling out. We can pick up the property (ideally before it hits the market), address the partnership issues, then renovate the property.

Once the renovations are complete, we’ll install a property management team, then put the property back up for sale. After the property closes, we tally everything up and distribute the final proceeds to our investors. The whole process can take anywhere from five to seven years.

Look for strong fundamentals in a value-add real estate investing strategy

Fundamentals refer to the property’s characteristics both tangible and intangible.

Tangible fundamentals include things like the property’s construction quality and the condition of its furniture, fixtures, and equipment (like HVAC units), as well as its physical location and surroundings.

Intangible fundamentals include the market’s trends in pricing (rising or falling), demographics (getting younger or growing older), and development (competitive or idle). A property is a good value-add candidate if the intangible fundamentals imply a market with a lot of potential in the next few years, even if the tangible fundamentals need work.

Raise capital

Once the work is done to identify a good value-add candidate, we’ll package that together and present the plan for investors to consider. Commonly, we’ll bundle several value-add properties into one fund.

The fund approach helps diversify the risk that investing everything into just one property carries. Next, we’ll lay out the profile of the properties we’re seeking to acquire for the fund, how much in total capital we need, and the potential returns you could enjoy for participating in this venture.

Secure a key tenant

The value-add strategy depends on attracting or retaining key tenants at higher rents to potentially generate higher profits for our investors. Unless the key tenant has already agreed to stay through the renovations, we’ll need to secure a new tenant. That means leaning on our brokerage leasing team to attract new tenants through marketing efforts and lease negotiation. They play a big role in boosting the final value of the property.

The last step of the value-add strategy is to sell the property and pass the proceeds to our investors (and cover the renovation costs). The final sale price is where most of the value comes from in a value-add deal.

What are the risks in a value-add strategy?

A deterioration in economic conditions is the principal risk to any value-add strategy’s success, otherwise known as ‘economic cycle risk.’ The average economic cycle lasts 64.2 months (just over five years) ; it typically takes between five and seven years for a value-add strategy to run its full course. So, the risk is that you invest in a value-add strategy just in time for the next recession.

Can economic cycle risk be mitigated? Risk cannot be fully eliminated, but it can potentially be mitigated through prudent portfolio construction. For example, diversifying amongst project length, business plan, geographic location, or property type can potentially reduce economic cycle risk.

It also helps to invest with a partner who has a track record of executing value-add strategies and has managed investor capital through a recession. At last count, value-add represents over 60% of Caliber’s property portfolio, and we now have two recessions under our belts.

Click to listen to Caliber’s CEO Chris Loeffler discuss how Caliber managed the business through the pandemic-induced recession.

Who is a value-add strategy right for?

Value-add deals take some time to put together and execute, but they can be well worth the wait. Returns are historically higher than stabilized cash-flowing properties, without as much risk as new construction projects or land deals.

Value-add investors should expect to see most of their return on invested capital following the sale of the property. So, it’s a strategy that’s best suited for someone with a time horizon between five and seven years with a moderately aggressive risk tolerance.

Learn About Caliber. Check Out Our Investment Funds Today

Our story is rooted in a set of investment principles that are now the company’s foundation.  These principles were created naturally during our first formal year of operations, raising $18 million from investor-partners and buying, renovating, and selling over 150 single-family homes in 2009.

We offer multiple investment solutions from monthly income to aggressive growth, while also serving as one of the premier qualified Opportunity Zone Fund sponsors in Southwestern, USA.

Click here to see Caliber’s current property portfolio .

With Caliber, all our investments are structured so you profit first. Additionally, we’re an expert on middle-market investments in the Southwest & Mountain West regions of the U.S.—focusing on Arizona, Colorado, Idaho, Nevada, Utah and Texas. With years of experience in this market, we have specialized access to numerous unique groups, politicians, and local businesses that potentially create better processes and greater deal flows for our investors.

As an investor, you can count on Caliber’s long-term track record, our mission of communication and transparency, and expertise in real-estate investment practices to help you potentially grow your wealth.

Now is the time to build your wealth and transform communities today. Contact us at [email protected] to learn more about your investment opportunities today.

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How to Create an Effective Value Proposition

• 28 Jul 2020

Starting a business comes with many unknowns, but the value of your brand shouldn't be one of them.

Before launching a venture, all entrepreneurs should determine what market need their product or service fulfills, and what separates their offering from other available options. Without this differentiation and definition of opportunity, a new business isn't likely to succeed.

To communicate the need your product fills and its differentiating factors, you need to create an effective value proposition.

Before diving into how to craft yours, here's a look at what a value proposition is and why it's important for your business.

Access your free e-book today.

What Is a Value Proposition?

A value proposition is a statement that conveys what a brand does and how it differs from competitors. It's typically developed as part of a broader marketing strategy and no more than a few sentences long. The initial proposition can be bolstered with statistics and facts that prove the brand's stated value.

Having a value proposition is important because it clearly and concisely communicates what customers can gain from selecting your brand over that of your competitors. This statement can be used in several ways, including:

• On your company's website to help convert potential leads into customers
• When pitching your company to investors
• As an answer to the question, "So, what exactly does your company do?"

As an entrepreneur, it's your job to be your organization's number one advocate and garner the support of others. A short, clear value proposition can stick in the minds of investors, potential customers, friends, and relatives, ensuring your brand's value isn't lost in translation.

To begin crafting your brand's value proposition, start with an understanding of the jobs to be done theory.

Related: 6 Questions to Ask Before Starting a Business

Understanding Your Customers' Jobs to Be Done

The jobs to be done theory was developed by Harvard Business School Professor Clayton Christensen. It asserts that customers "hire" products and services to get "jobs" done, rather than purchasing them based on their attributes and buying behaviors.

"A 'job to be done' is a problem or opportunity that somebody is trying to solve," Christensen says in the online course Disruptive Strategy . "We call it a 'job' because it needs to be done, and we hire people or products to get jobs done."

One example of a successful brand that's used this framework is Warby Parker , founded in 2010 by Neil Blumenthal, Dave Gilboa, Andy Hunt, and Jeff Raider.

The eyeglass company got its start when one of the founders lost his glasses on a backpacking trip. Unable to swing the steep price of a new pair, he spent the next semester " squinting and complaining " to three of his friends, who realized they had been in similar situations.

"We were amazed at how hard it was to find a pair of great frames that didn't leave our wallets bare," Warby Parker states on its website . "Every idea starts with a problem. Ours was simple: Glasses are too expensive."

This statement describes the job to be done discovered by Warby Parker's founders. They realized people had a need to purchase affordable eyewear and, after some research, found there weren't many options in the market.

"Understanding that the same company owned LensCrafters and Pearle Vision, Ray-Ban and Oakley, and the licenses for Chanel and Prada prescription frames and sunglasses—all of a sudden, it made sense to me why glasses were so expensive," Gilboa explains in an interview with Forbes .

The team decided to take things one step further by adding a social justice component to their business model. For every pair of eyeglasses purchased, Warby Parker donates a pair to someone in need.

"There's nothing complicated about it," the company states on its website . "Good eyewear, good outcome."

This satisfies another job to be done: providing customers with a convenient means of helping others. This dual-pronged jobs to be done framework proved to be a success, as the team hit its first-year sales goal in just three weeks .

Warby Parker continues to build its value around jobs to be done and can expect its customers' needs to "purchase affordable eyewear" and "help others in a convenient way" to endure.

"Because a job to be done remains stable over time, it provides a North Star in innovation," Christensen says.

When crafting your brand's value proposition, think about the job to be done it addresses. How does its value center on a persisting need you can fill in a unique way? It's this positioning that can allow your brand to provide the same value for customers as the market advances.

Related: Jobs to Be Done: 4 Real-World Examples

Creating a Value Proposition

You can use the jobs to be done framework as a starting point to craft your brand's value proposition.

Ask yourself:

• What is my brand offering?
• What job does the customer hire my brand to do?
• What companies and products compete with my brand to do this job for the customer?
• What sets my brand apart from those competitors?

For example, Warby Parker's founders could answer these questions as follows:

• Warby Parker offers affordable designer eyewear, including contacts.
• Customers hire Warby Parker to provide high-quality eyewear at affordable prices and give back to the community in a convenient way.
• All other eyewear brands compete with Warby Parker.
• Warby Parker's commitment to giving back to the community and its affordable prices set it apart from competitors.

Next, summarize your points in a clear, concise value proposition. Continuing the example above, Warby Parker's value proposition, as published on its home page , is:

“Buying eyewear should leave you happy and good-looking, with money in your pocket. Glasses, sunglasses, and contacts—we’ve got your eyes covered.”

This value proposition is reinforced throughout the company's website, along with its stated commitment to social justice :

“Warby Parker was founded with a rebellious spirit and a lofty objective: to offer designer eyewear at a revolutionary price, while leading the way for socially conscious businesses.”

To ensure your value proposition is effective, consider running it by a few people who are unfamiliar with your business. If confusion arises, edit your statement to address those points.

Once you have a value proposition you're proud of, make it known. Publish it on your website, incorporate it into your marketing materials, and memorize it for sharing during networking events, pitch opportunities, and dinner conversations.

Related: 3 Disruptive Strategy Skills For Entrepreneurs and Business Leaders

Setting Yourself Up for Success

By positioning your brand as a solution to a job to be done, you can set your company up for success. Creating a value proposition is a reflective exercise that prompts you to take stock of the need your brand fills, who your competitors are, and how you provide a different experience from other products and services.

Condensing these reflections into a succinct value proposition can enable you to convert leads into customers, effectively pitch to investors, and communicate the value of your brand at scale.

Do you want to craft winning, innovative strategies? Explore Disruptive Strategy , one of our online entrepreneurship and innovation courses . If you aren't sure which course is the right fit, download our free course flowchart to determine which best aligns with your goals.

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How to write a value proposition for a business plan

Table of Contents

What is a value proposition?

Aspects that make up your value proposition, how to write a value proposition for a business plan (and everywhere else), value proposition canvas, customer profile, the steve blank formula, tips to create a value proposition that converts, take your business to new heights with countingup.

A value proposition is an articulate description of why customers should choose your business over others. In other words, your value proposition is the foundation of your competitive advantage. So it’s important to highlight it in your business plan to show potential investors and other stakeholders that you’re worth their time and money.

This guide will show you how to write a value proposition for a business plan. We’ll cover the following topics:

• Why you need to include a value proposition
• Tips to write a value proposition that converts

In a business plan, your value proposition comes after your executive summary and company description, meaning readers already have a general understanding of your business. If you’re unfamiliar with the term, a value proposition describes the value you promise to deliver to your ideal customer or client. 

Basically, you use your proposition to explain why someone would invest in your business and solution over anyone else. You already know why your business is special, but the key is to make it clear to anyone who reads your business plan. 

Your value proposition is only a simple statement rather than a long message, such as Grammarly ’s “Great writing, simplified” or HelloFresh ’s “Take the stress out of mealtime ”. Both these companies tell you how they help you in just a few words. 

But don’t let the simplicity keep you from coming up with a good value statement in the first place. The important thing is that your statement answers the following questions:

• What problem or pain point does your business solve?
• What are the benefits people get from your solution?
• Why should someone invest in you rather than your competitors? 
• What’s your advantage over other companies?

When developing your value proposition for your business plan, make sure you consider and include the following elements:

• Vision – this describes the ‘why’ of your business, meaning why you do what you do. Your vision shares your aspirations and how they help guide your efforts.
• Mission – this is where you explain what you do and how you do it. Describe the strategies you use to achieve your vision. 
• Values – here, you describe your values as a business and what characteristics clients thank you for (or will thank you for). 
• Unique selling point – your unique selling point (or USP) is the distinct advantage you have over your competitors that makes you stand out in the market. It can be your price, quality, design, selection, or even words. Or perhaps you offer a highly efficient service because you have a system like Countingup that speeds up many of your internal processes?
• Ideal client – you need to know who your ideal customer/client is to clearly communicate why they need your solution specifically. Try creating an ideal customer profile where you add all the relevant information you have about your ideal client. The more specific your profile, the easier it will be to explain your solution’s value to that group of people.

There are a few ways you can create a value proposition for your business. Here are some methods you can use.

This visual tool helps you position your solution around your customers’ needs. You can use the value proposition canvas to build your first statement or to enhance the one you already have. The canvas has two components: the customer profile and the value map. Let’s look at the parts that make up each component.

• Gains – the benefits your customer expects and needs that will increase the likelihood of attracting them to a value proposition.
• Pains – the negative experiences, emotions and risks customers want to escape.
• Customer jobs – the tasks customers try to perform, needs they try to satisfy, or problems they try to solve.
• Gain creators – how your solution helps create customer gains and satisfy their needs and expectations. 
• Pain relievers – how your solutions help eliminate customer pains.
• Products and services – the products and services you provide that create customer gains and relieves their pains. 

Explore each section from your customers’ perspective, imagining how each benefit increases pleasure or decreases pain for the person using your solution. 

For example, every self-employed person has financial management tasks they need to complete. By using Countingup , they can manage their finances from one simple app and minimise their time spent on these tasks. They’ll feel less stressed and more inspired to move their businesses forward. 

If you think the value proposition canvas is too complicated, you can try the simple formula by entrepreneur Steve Blank . He noticed many startup founders focus on features instead of benefits when attempting to create their value proposition. Instead of summarising how their company offers value to customers, leaders get stuck trying to choose which features to highlight. 

The Steve Blank formula gives you a way to transform your ideas into a simple sentence. Simply write down your ideas like this:

We help (X) do (Y) by doing (Z)

Let’s look at each component a little closer:

• We help X = Who is your ideal client, and what problem or pain point do they suffer with? 
• Do Y = Where does your ideal customer want to achieve by using a solution like yours?
• by doing Z = What value does your business deliver to the customer, and what makes you unique from your competitors?

When using this formula to come up with your value proposition, remember to go with your gut. Sometimes the first thing that comes to mind is the best. 

For example:

Countingup helps self-employed entrepreneurs manage their businesses efficiently by streamlining key financial processes. 

To wrap up, here are a few quick tips to help you create a value proposition that will inspire investors to keep reading your business plan and convert leads to customers. 

• Keep it short and concise – your statement needs to instantly tell people why they should buy from you. 
• Be precise – your value proposition should offer targeted solutions to specific needs.
• Focus on the customer – your goal is to prove how you solve customers’ problems, not your own. 
• Value takes many shapes – there are a bunch of ways you can deliver value to your customers, including money, convenience, time, and superior quality or service.

Countingup is the business current account and accounting software in one app. It automates time-consuming bookkeeping admin for thousands of self-employed people across the UK. 

Save yourself hours of accounting admin so you can focus on growing your business. 

Start your three-month free trial today. 

Apply now .

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Driving Organizational Excellence with Business Value Added Initiatives

Updated: July 14, 2023 by Michael Watts

During an audit, the quality engineer asked the production worker question after question related to their job.

“My goodness,” the operator sighed. “When will these endless questions be over so I can get back to doing real work?”

“Not much longer. We just need to be sure the process is being followed as intended.”

“I haven’t had an error in six months. This is a waste of time.”

Understanding the frustration in the operator’s voice, the engineer calmly expounded, “I realize this seems like wasted time not being used to build, but I assure you there is a clear purpose. These audits are here to help us avoid large, costly mistakes over time. These audits may not be value-added in nature, but they are business value added.”

An overview: What is business value added?

Business value added (BVA) refers to any part of a process that’s necessary to stay in business but is not directly contributing to the product or service, or directly valued by the customer. At first glance, these steps may come across as non-value added , as these steps are not performing a form, fit, or function change on a product or service. Upon closer inspection, it is determined that the deletion of these steps would lead to bad results.

For example, safety requirements can be viewed as business value added. The time spent putting on safety equipment does not actively add value to the goods or services and is not something recognized by the customer when they receive their goods and services. Instead, the preventative actions help minimize time lost due to injury, and injury that may or may not ever happen. There are cases when only looking at the financials involved, it may be cheaper to forgo safety equipment and let the occasional worker get hurt. Of course, the issue here is not financial but moral. It is both a moral and legal obligation to provide employees with a safe working environment.

A second example involves legal requirements. Governments require businesses to provide information such as patent and copyright information, employment relationships, sales transactions, real estate, and more. The costs of providing this information cannot be described as value-added, yet to ignore these actions is to risk fines or being barred from doing business within the country.

3 major benefits of attending to business value added

Safety-related BVA activities make for a workplace in which people want to work. No one wants to work in an environment where their short- or long-term health is at risk. These safety-related BVA actions also help keep organizations such as OSHA from handing out fees or shutting down the company for egregious safety violations.

There are government requirements for every business. By making sure your specific country’s legal requirements are met, and that the right information is provided to the government, you minimize risk of government interference with your operations. Be careful not to overperform your legal requirements, as the extra work now counts as non-value added. And pay your taxes, as it is a rare government that overlooks tax evasion.

Preventative

Preventative actions , such as quality checks and audits, are business value added. These steps cost money without changing form, fit, or function. Human beings are imperfect machines, so steps that help prevent or help identify human error early in the process will, over time, cost less than performing rework for errors found late in the process, or errors that reach the customer.

3 business value added best practices

• Regarding safety equipment, be sure to minimize the set-up time by placing the equipment as close to the work as makes sense for the situation. Sometimes the equipment may have issues, and it will save time when needed to change the equipment.
• Have a solid understanding of the laws in the countries in which you are doing business. International companies may find that one rule in your home country is completely different in a country you’re expanding into.
• Be sure, when justifying BVA actions, to demonstrate how, over time, they will save the company money. If preventative, show examples where the company lost major amounts of money or business because the steps weren’t in place. With safety and legal situations, there are many excellent examples on the web of companies failing to meet legal requirements and the corresponding penalties.

Frequently Asked Questions (FAQ) about business value added

These preventative measures seem like a waste of time. how do i know if they’re truly bva.

As BVA is not value-added, it’s important to review your BVA process steps over time. Always fight for preventative measures, but be confident that these actions are still serving their purpose. As processes and conditions change over time, you may find that your preventative actions are no longer relevant. BVA steps may turn into a true non-value-added step as the situation changes over time.

Are BVA activities unavoidable evils I should ignore?

Business value added activities should never be ignored. Review the processes involved, and try to minimize the work performed as much as possible. Just because you cannot eliminate the work doesn’t mean you can’t streamline the activity or make it more efficient.

I cannot clearly quantify the benefits of the actions, so my company wants to ignore them. What can I do?

There are times when management will try to ignore performing business value added activities. It is key to make sure that management possesses the correct risk analysis information before they decide to take that path. There are situations where a management team will take a risk due to other business factors, and taking that risk may be the right answer.

From a moral standpoint, though, if that risk involves the blatant disregard of human life and safety, it’s not acceptable. It will be up to you and others to determine the right course of action. In the worst situations, a whistleblower may be required, though this should be the last course of action as you are placing your career at risk.

BVA needed even though not value-added

Business value added activities, while not value-added , are critical if a company expects to stay in business. Preventative actions need to save more money than they cost, legal realities will always be intertwined with business activities, and every single employee deserves a safe work environment.

3. Preventative

About the author.

Michael Watts

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Outcompete: 70 Ways Great Businesses Add More Value

If you want to build trust with your audience, give them something valuable. If you want to outcompete, you have to add more value (for the price) than your competition. According to researchers, there are 70 ways great businesses add more value for their customers.

What Is Value?

You may have heard that you need to create a value proposition for your company. A value proposition is a statement of the benefits delivered by the brand that provides value to the target customer. By default, all products and services are designed to deliver value in one or more ways. Value can be defined as all the benefits minus the costs. 

Value created for customer = benefits – cost

This makes sense because the more benefits a customer gets, the more they are willing-to-pay. And the more you get for your money, the more “worth it”, or valuable, a purchase becomes. For a customer, the costs are pretty straightforward. They include things like actual price paid as well as time and effort to make the purchase. But the benefits are much broader. They can range from a plastic tray helping you organize your silverware to a yoga retreat fundamentally changing your worldview, and everything in between.

That may seem straightforward–even obvious. The idea of value is inherent in the decisions we make every single day. What isn’t quite so clear is how businesses create value. It seems like the possibilities are endless!

How do you create value?

Bain & Company and Harvard Business Review created two pyramids (below) that define the core elements of value for business-t0-consumer (B2C) and business-to-business (B2B) companies, rooted in psychologist Abraham Maslow’s hierarchy of needs. The elements at the bottom are more objective and those at the top are more subjective. Likewise, the potential emotional impact of the elements increase as you move up the pyramid.

For B2C businesses, these 30 elements of value fall into four categories: functional, emotional, life changing, and social impact. Here are some examples of how B2C brands offer these elements of value:

• With their slogan “15 minutes could save you 15% or more on car insurance”, GEICO reduces cost and their humorous commercials offer an element of fun
• Nike provides quality shoes and apparel, increased attractiveness because of their brand’s cool-factor, motivation through their “Just Do It” mindset and affiliation /belonging with their Nike Run Club.
• Google’s search engine saves time & reduces effort in finding information, informs , connects people, businesses and data and provides access to information.

For B2B businesses, the elements of value fall into five categories: table stakes, functional, ease of doing business, individual, and inspirational. Here ‘s an example:

Salesforce hits all of the tablestakes (the bare minimum), but also offers scalability , innovation, product quality and almost every element in the “Ease of Doing Business” category. As a result, their customers experience growth & development, reduced anxiety, network expansion, and maybe even a renewed vision for what their company can achieve. It’s no wonder Salesforce has been invaluable for millions of businesses.

With 70 Ways to Add Value, How Much Is Enough?

No company could add value in 70 ways. But that is not the goal. In fact, it doesn’t take as much as you might think to be successful.

Brands that add significant value in four or more ways grew 4x more than companies with only one element of value. HARVARD BUSINESS REVIEW

Why Does Value Creation Matter to Your Brand?

Value creation is at the heart of branding and entrepreneurship. It is how brands differentiate from their competitors and appeal to customers. The impact of value creation cannot be understated. For middle market companies, for example:

Companies that can articulate the value they offer grow 2x as fast as companies that can’t. National Center for Middle Market Growth

The more value you create for your customers, the more irreplaceable your product becomes. It’s how you beat your competition, build enduring customer loyalty, and grow your business to new heights.

How Can Your Brand Add More Value?

Your brand is probably already adding value in at least one of these ways. But how do you know? And where should you focus your value-add efforts?

Talk to Your Customers

All of the research you conduct to get to know your customer can also help you identify the ways in which you do add value now and identifies to add more in the future. By asking the right questions , you can discover which of the Elements of Value are most important to your customer and which you can fulfill for them.

Talk to Your Employees

Often, members of your team are full of ideas for how to make things better—especially those closest to your customers and your offering. Solicit their input on how you can be even more valuable in the future.

Value creation doesn’t happen by accident. It is the result of a deliberate strategy and thoughtful execution. This process may involve going above and beyond your day-to-day business operations, or evolving your product or service itself.

Start with one of the values you wish to fulfill and begin to brainstorm. Be as creative as possible. No idea is too big. Focus on the ideas that align with your purpose, core values, customer experience and culture. Set a generous budget that accounts for the loyalty you are building with your core audience and explore the top ideas that fall within your budget. Begin to flesh out the details of your strategy. Gain input from key stakeholders or even use focus groups to test your ideas. When you’ve landed on the right approach, assemble your dream team and build your execution plan.

If you’re not adding any value, you’re not winning customers and you’re certainly not growing.

Common Value-Add Tactics

Content creation.

Content creation is a broad category that includes creating educational, informative, or entertaining articles, videos, tools, resources, etc. that benefit your customer. Some examples include robust training materials, documentation or courses, lifestyle blogs and magazines or YouTube channels with DIYs, tips & tricks or original content.

Thought Leadership

A type of content creation, thought leadership is a common B2B tactic that involves providing expert insights, research and analysis that help your customer.

Co-Creation

Co-creation brings your users into the creative process. This could range from enlisting influencers as guest authors on your company blog to launching a customizer tool that allows your customers to create a one-of-a-kind version of your product.

Giving Back

Many companies do some sort of charitable giving. By bringing your customers into the process, you can add value while doing good. For example, when someone purchases a pair of TOMS shoes, another pair is given to someone in need.

Customer Service

Incredible service, like Nordstrom or Four Seasons, can not only provide functional value, but emotional value as well.

Tribes & Fandoms

Your most loyal customers are already your best brand advocates. Nurture this community by building close relationships with them, providing exclusive perks and experiences, or giving them a platform to interact with each other.

Brand Messaging

Every one of the elements of value falls under the brand umbrella, but brand messaging is how you communicate the value you provide. It can be an incredibly powerful and simple way to add value. For example, the same airline ticket can be positioned as a low-cost, no frills fare or as the first step on a journey to self-discovery. The product hasn’t changed; just the message.

Looking at these 70 ways great businesses add more value, the sky is the limit for your businesses. Every part of your entire customer journey is a new opportunity to add value and set yourself apart from your competition. Get brainstorming today!

Need help building a value creation strategy? Or articulating your value proposition? Liz Marie has got you covered. Reach out to set up a quick and easy consultation today .

Almquist, Eric, et al. The 30 Elements of Consumer Value: A Hierarchy. Harvard Business Review, Sept. 2016, hbr.org/2016/09/the-elements-of-value .

Almquist, Eric, et al. What B2B Buyers Really Care About. Harvard Business Review, 5 Dec. 2018, hbr.org/2018/03/the-b2b-elements-of-value .

Strategic Planning for Growth. National Center for Middle Market Growth, 2018, www.middlemarketcenter.org/middle-market-research-reports-full-research/strategic-planning-for-growth .

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Value-Add: Term Meaning and Usage in Business

Business Definition of “Value-add”

The term value add is commonly used in the startup and corporate setting to describe anything that makes a given product, service, feature, or other topic of discussion objectively or subjectively better. Anything that enhances the value of an existing value proposition.

What is the formula for Value-add?

The equation typically used to establish added value is the difference between a product or service’s final selling price and the direct and indirect expenses incurred in providing that good or service.

In other words, Added Value = The selling price of a product or service - the cost of materials, labor and other related expenses (utilities, wrapping paper, software, etc.)

What Does “Value-add” Mean?

“Value-Add” or “Value Added” are terms that describe special improvements, often intended to generate increased revenue, that a company makes to a product or service.

Sometimes referred to in everyday terms as “bang for the buck,” Value-Add is a term that addresses special features or improvements added to a product or service to increase its monetary value and desirability to consumers.

Often this approach is used to distinguish a product from market competitors or increase profit-margin by finding new uses for a company’s staple goods and services.

Use by Marketers

Generally, there is an implication that whatever is being done will increase the value of a product or service, making the amount of money that can be charged for that thing larger. This is good for businesses, as it allows them to increase their “value capture,” meaning the amount of money they can charge based on the value they create for their target customer(s).

In practice, the term “value add” or “value added” is used in an unspecific manner, used to describe pretty much anything that improves anything, regardless of whether or not that thing produces economic value.

The term is commonly used by marketers to describe the process of offering “free” items such as ebooks, blog posts, etc, with the assumption that this will make it easier to ask the audience to pay for something in the future.

Understanding Value-add

Value-Add is a term that refers to special features or improvements added to a product or service to increase its desirability and monetary value to consumers. Value added features are commonly used to distinguish a product or service from market competitors, or to increase profit-margin by finding new uses for a company’s staple goods and services.

While terms like “upgraded” and “enhanced” can be used as synonyms for Value-Added, it is important to keep in mind that what makes a good or service Value-Added is not just cosmetic changes. In order for a change to be a Value-Add, it must be initiated deliberately with the intention of adding an improvement, and it must measurably increase the product or service’s desirability and financial value to the customer.

This aspect of keeping benefit to the customer central to the business’ thinking is part of the Value-Add concept. For instance, an airline may save money by reducing the portion size of airplane meals – and sometimes those choices must be made – but it is not a Value-Add to the consumer. However, offering an on-flight subscription meal plan with high-end options for regular fliers may be a Value-Add for which consumers are willing to pay.

Furthermore, the calculation on which Value-Adding is built requires that direct and indirect costs associated with the improvement be subtracted from the final purchase price of the product or service. The difference remaining is an assessment of the “value” the modification added.

Taking this into consideration, it is necessary that those seeking to add value to a product or service gain a clear picture of whether a change truly benefits the bottom line. Some direct and indirect expenses that a company may want to consider in their Value-Add formula are as follows:

Indirect Expenses :

• Administrative salaries
• Office expenses
• Security expenses
• Telephone expenses

Direct Expenses :

• Production machinery

What is an example of a value-added product?

A Value-Added product can be any product or consumer good that has been enhanced in a way that increases profit margin for the company. However, the term is becoming increasingly common in organic farming.

An example of a Value-Added product in organic farming is one in which products may be packaged or modified in a special way to add value to the original product. An apple farmer who begins making organic cider, or a farmer who bundles vegetables into salad mixes, has transformed an original product into a consumer good for which they can charge significantly more.

What are some synonyms for Value-Add?

Synonyms for Value-Add or value added include: upgrades, improved, enriched, expanded, modernized, augmented, “bang for the buck,” and advanced.

What is a Value-Added reseller?

A Value-Added reseller is an individual or business that adds components or services to an existing product which are intended to improve its benefits to the consumer. The value-added reseller then makes the modified product available as part of package.

An example of a value-added reseller would be a technology company which sells currently existing hardware, bundled with their own installation and customization services, as one product bundle.

What are Value-Added activities? The term Value-Added activities can be used to describe any actions that modify a good or service to bring increased value to the customer, and profit to the company. That said, every addition to a product or service does not necessarily add value.

Three criteria are often considered when determining if a behavior can be considered a value added activity:

• The activity moves the product or service closer to completion
• The step is done correctly and deliberately (it is not an accident or a correcting of a previous mistake)
• The activity increases the product or service’s desirability and financial value to the customer

An example of a Value-Added activity would be a car repair shop that offers to perform basic services at your job or at your home. This activity increases the ease and convenience of car maintenance services, and is a benefit for which many consumers would be willing to pay.

Origin of the term “Value-add”

Initially the term Value-Added appeared as a concept in economics, but by the 1990’s it had spread to business, software, and even education.

The popularity of the term has grown in conjunction with business and technology communities’ increased interest in Lean Six Sigma methodology. Six Sigma is a business framework that seeks to eliminate wasteful processes and understand the “value” or return-on-investment for all possible goods, services and activities.

This understanding of what programs, goods, and activities add value, and how they add it, can help a business make wise investments in time and energy. However, in many business circles, the term Value-Add is used less formally, and is intended to reference product or service enhancements that increase the customer appeal, or monetary value, of a consumer good.

Synonyms and variations of Value-add

• Value-added

When tempted to say Value-add, consider replacing it with the following which may express your meaning with greater clarity:

Beneficial, useful, extra service, bonus feature.

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Value Proposition: How to Write It With Examples

What Is a Value Proposition?

A value proposition in marketing is a concise statement of the benefits that a company is delivering to customers who buy its products or services. It serves as a declaration of intent, both inside the company and in the marketplace.

The term value proposition is believed to have first appeared in a McKinsey & Co. industry research paper in 1988, which defined it as "a clear, simple statement of the benefits, both tangible and intangible, that the company will provide, along with the approximate price it will charge each customer segment for those benefits."

Key Takeaways

• A company's value proposition tells a customer the number one reason why a product or service is best suited for that particular customer.
• A value proposition should be communicated to customers directly, either via the company's website or other marketing or advertising materials.
• Value propositions can follow different formats, as long as they are "on brand," unique, and specific to the company in question.
• A successful value proposition should be persuasive and help turn a prospect into a paying customer.

Investopedia / NoNo Flores

Understanding Value Propositions

A value proposition stands as a promise by a company to a customer or market segment . The proposition is an easy-to-understand reason why a customer should buy a product or service from that particular business. A value proposition should clearly explain how a product fills a need, communicate the specifics of its added benefit, and state the reason why it's better than similar products on the market. The ideal value proposition is to-the-point and appeals to a customer's strongest decision-making drivers.

Companies use this statement to target customers who will benefit most from using the company's products, and this helps maintain a company's economic moat . An economic moat is a competitive advantage. The moat analogy—coined by super-investor  Warren Buffett of Berkshire Hathaway—states that the wider the moat, the bigger and more resilient the firm is to competition.

A great value proposition demonstrates what a brand has to offer a customer that no other competitor has and how a service or product fulfills a need that no other company is able to fill.

Components of a Value Proposition

A company's value proposition communicates the number one reason why a product or service is best suited for a customer segment. Therefore, it should always be displayed prominently on a company's website and in other consumer touch points. It also must be intuitive, so that a customer can read or hear the value proposition and understand the delivered value without needing further explanation.

Value propositions that stand out tend to make use of a particular structure. A successful value proposition typically has a strong, clear headline that communicates the delivered benefit to the consumer. The headline should be a single memorable sentence, phrase, or even a tagline. It frequently incorporates catchy slogans that become part of successful advertising campaigns .

Often a subheadline will be provided underneath the main headline, expanding on the explanation of the delivered value and giving a specific example of why the product or service is superior to others the consumer has in mind. The subheading can be a short paragraph and is typically between two and three sentences long. The subheading is a way to highlight the key features or benefits of the products and often benefits from the inclusion of bullet points or another means of highlighting standout details.

This kind of structure allows consumers to scan the value proposition quickly and pick up on product features. Added visuals increase the ease of communication between business and consumer. In order to craft a strong value proposition, companies will often conduct market research to determine which messages resonate the best with their customers.

Special Considerations

Value propositions can follow different formats as long as they are unique to the company and to the consumers the company services. All effective value propositions are easy to understand and demonstrate specific results for a customer using a product or service. They differentiate a product or service from any competition, avoid overused marketing buzzwords , and communicate value within a short amount of time.

For a value proposition to effectively turn a prospect into a paying customer, it should clearly identify who the customers are, what their main problems are, and how the company's product or service is the ideal solution to help them solve their problem.

Frequently Asked Questions

What is the purpose of a value proposition.

A value proposition is meant to convince stakeholders, investors, or customers that a company or its products or services are worthwhile. If the value proposition is weak or unconvincing it may be difficult to attract investment and consumer demand.

What Is an Employee Value Proposition?

An employee value proposition (EVP) applies to the job market. Here, a company that is hiring will try to frame itself as a good place to work, offering not only monetary compensation but also a range of benefits, perks, and a productive environment. In return, the job candidate will need to convince the hiring company that they have the appropriate skills, experience, demeanor, and ambition to succeed.

What Happens if a Value Proposition Fails?

If a company cannot convince others that it has value or that its products or services or valuable, it will lose profitability and access to capital and may ultimately go out of business.

Lanning, Michael J., and Edward G. Michaels. "A business is a value delivery system."  McKinsey staff paper  No. 41. July, 1988.

CNBC Warren Buffett Archive. " Morning Session - 1995 Meeting ."

Alexander Osterwalder et al. " Value proposition design: How to create products and services customers want. Vol. 2." John Wiley & Sons, 2015.

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• Mastering Value Add Analysis: Streamline Your Business Processes with Lean Six Sigma

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• Process Waste

In today’s fast-paced business world, staying ahead of the competition requires efficiency. The ability conduct value add analysis to identify and eliminate waste, or non-value-added activities, in your processes can result in significant cost savings and increased customer satisfaction. Lean Six Sigma, a powerful methodology that combines Lean and Six Sigma principles, aims to accomplish precisely that. In this blog post, we’ll look at Value Add Analysis, a key component of Lean Six Sigma that focuses on process optimization by identifying and eliminating waste.

We’ll go over the different types of activities (value-adding, necessary non-value-adding, and non-value-adding), why analyzing processes is important, and how to analyze and identify waste in a process step by step.

Table of Contents

When we are thinking about the Lean part of Lean Six Sigma, we are thinking about how we can make the process as efficient and value-adding as possible, removing or reducing waste or also known as non-value-adding activities from the process.

Waste in our process costs money because it is seen as unnecessary time, material, or labour in the process. Waste is also referred to in continuous improvement as Muda, which is the Japanese word for waste. It describes the concept of being idle, unnecessary, or useless. Muda is also referred to as Non-value added tasks (NVA) within a process.

What is Value add analysis?

When conducting a lean improvement of a process we analyze the process in detail listing all the activities that happen in the process. Part of this analysis should be focusing on what value is each step bringing to the process. Is value-adding? Necessary but not adding any value? or is it a pure waste that is in the process and creates no value for the customer?

No matter the process you are looking at you are certain to find waste. Most business processes are only an estimated 5% to 10% value-adding. whereas a world-class manufacturing company like Toyota rarely exceeds 20%

Value Add Activity

Value-added activities are activities conducted in a process that customers are willing to pay for. They should settle all three of the below criteria to be classified as Value adding.

• Transformation of information materials or people.
• Done right the first time
• The customer wants it.

If it does not meet all three of the above, it is either necessary non-value adding or non-value adding and should be reduced if it cannot be eliminated.

The aim should be to maximise the percentage of the process that is value-adding.

Essential Non-Value Add / Value Enabling

Essential non-value adding or also referred to as Necessary non-value adding tasks are tasks that do not add any value that the customer is willing to pay for and don’t transform information, materials, or people. However, they are not pure waste as they are deemed necessary for the process.

What makes an activity necessary non-value add rather than just nonvalue add? These are process steps that are required for a range of reasons such as regulation/compliance or audits and control that are required.

These steps can only be eliminated from the process if they go further than the regulations require which could make them non-value add to an extent. However, the focus for these types of steps should be to reduce them as a portion as much as possible by streamlining the process steps to process less waste such as taking less time to complete.

Non-value add / Pure waste

Finally, the third category of value-add analysis is non-value add. These steps create no value in the eyes of the customer or is meaningless and non-essential activities that do not add value to the work or enable value to be added. These are muda, and the focus should be to remove these steps from the process where possible if not possible to remove the secondary focus should be to reduce these steps as much as possible.

Why analyze processes?

Some forms of Muda are easier to identify than others, which is why Lean Six Sigma deploys tools such as Value Stream Mapping (VSM) and Value analysis tools. These tools allow you to critically analyze the processes and review the value each step is providing.

By analyzing each process step you will find many process steps are Muda or waste and can start to assess if they can be removed from the process or reduced within the process. This can result in reduced process cycle times, increase production throughput, and reduce customer lead times among other benefits. Overall these improvements to the process will result in savings for the business and can increase margins and competitiveness of the business in its industry.

How to Analyse and identify waste in a process?

Analysing waste in a process is generally carried out after the process mapping stage of a project.

The steps to conducting a value add analysis are:

• If the process is infrequent and you want to review it in detail it can be useful to video record the process to watch it multiple times to collect data and analyse it.
• How long did the process take
• How many people are needed for the process step
• Was it value-adding, non-value adding or necessary non-value adding
• The total process time
• The total Value add timeThe total non-value add time
• The total necessary non-value add time
• The value add percentage of the process is then Value add time divided by total time. This is your benchmark for making improvements to the process
• Next, identify the non-value add steps and what type of waste are they. See 8 Wastes (TIMWOODS) for categories of wastes.

These steps allow you to analyze your process and understand the waste in the process and what needs to be improved. Building on this the project team can develop solutions to address the identified wastes. Lean tools such as SMED , Poka Yoke , 5S , Visual Management and Andon may be useful to address many of these issues.

Free Process map waste analysis template

To help you analyze and measure waste in your process we have included this free process map waste analysis template you can use. It helps to break down the process step by step and measure how much time in the process is VA, NVA or NNVA for a starting point and provide an understanding of what percentage of the process is wasted for a baseline to create a SMART target for the future state of the process

In conclusion, most processes in business are made up of mostly wasteful steps including world-leading lean organisations, but that does not mean we should not attempt to make out processes lean. We should seek to remove or minimise non-value adding and necessary non-value-adding steps to free up capacity and resources, improve profitability and importantly increase value to the customer!

Mapping out the current state of the process allows an understanding of how much waste is in a process, we can then analyse and identify how we can remove or reduce waste in the business using lean tools such as Poka Yoke , SMED and 5S .

What’s Next?

Now that you have an understanding of how to identify waste in the process and remove or reduce non-value-adding (NVA) steps and minimize necessary non-value-adding steps (NNVA) Check out the next article in this Lean Six Sigma Yellow Belt series on the different categories of waste in a process and the 8 wastes (TIMWOODS) .

Daniel Croft

Daniel Croft is a seasoned continuous improvement manager with a Black Belt in Lean Six Sigma. With over 10 years of real-world application experience across diverse sectors, Daniel has a passion for optimizing processes and fostering a culture of efficiency. He's not just a practitioner but also an avid learner, constantly seeking to expand his knowledge. Outside of his professional life, Daniel has a keen Investing, statistics and knowledge-sharing, which led him to create the website learnleansigma.com, a platform dedicated to Lean Six Sigma and process improvement insights.

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7 Ways To Add Massive Value To Your Business Brian Tracy shares his seven secrets to adding value in your job, business or products for greater success.

By Brian Tracy Oct 19, 2016

Opinions expressed by Entrepreneur contributors are their own.

There are seven secrets to add value in your job and in the world around you. Any one of these ideas or concepts can be sufficient for you to become financially successful. When you begin to combine these ideas together, you'll begin to move ahead more rapidly in your financial life than you ever have before.

1. The Faster The Better

The first way to increase value is simply to increase the speed you deliver the kind of value people are willing to pay for.

Successful people know everybody is impatient. A person who didn't realize that they wanted your product or service until today, now wants it yesterday. People perceive a direct correlation between speed and the value of your offering.

A person who can do it for you fast is considered to be a better and competent person offering a higher level of quality than a person who does it slowly, or whenever they get around to it.

2. Offer Better Quality

The second key to creating wealth is by offering better quality than your competitors at the same price.

And remember, quality is whatever the customer says it is. Total quality management can best be defined as: "Finding out what your customer wants and giving it to him or her faster than your competitors."

Quality does not just mean greater durability or excellence in design. Quality refers, first of all, to utility, to the use that the customer needs to put the product or service. It is the customer's specific need, or the benefit that the customer seeks, that defines quality in his or her mind.

3. Add Value

The third way that you can become wealthy is by looking for ways to add value to everything you do.

Remember, if everyone is offering the same thing, these factors of the product or service become the basic minimum, or the expected norm in the market.

If you want to stand out as a person or as a producer, you have to "plus" whatever you are doing so that your customer perceives you and your offering as being superior to that of your competitors.

You can add value to a product or service by improving the packaging or the design. You can increase its value by simplifying its method of use.

Apple transformed the entire world of computers by making them easy to use for the unsophisticated person.

Simplicity became an enormous source of added value for Apple, and for countless other companies that have followed the same route.

4. Increase Convenience

The fourth way of increasing wealth is by increasing the convenience of purchasing and using your product or service.

Fast food stores by the thousands are a simple example of how much more people are willing to pay for convenience than they are if they have to drive across town to a major shopping center or a major grocery store.

5. Improve Customer Service

A fifth way of creating value and increasing wealth is by improving customer service. People are predominantly emotional.

They are greatly impacted by the warmth, friendliness, cheerfulness and helpfulness of customer service representatives. Many companies are using customer service as a primary source of competitive advantage in a fast changing marketplace.

6. Changing Lifestyles

The sixth key to creating wealth is changing life styles, and the impact they are having on customer purchasing patterns and behaviors throughout the country.

There is a national trend toward cocooning, or staying at home more and to making the home environment more enjoyable. People's tastes are very different from the tastes of people a generation ago.

More people want to travel and take vacations, thereby creating a boom in the travel, leisure, resort and cruise industries.

Changing lifestyles and demographics can create opportunities that will enable you to offer a product or service to a clearly identifiable market that can make you wealthy in a short period of time.

7. Offer Planned Discounts

The seventh key to creating to wealth is just planned discounting. This involves finding ways to sell higher and higher volumes of products and services to more and more people at lower and lower prices.

You've heard it said that, "If you want to dine with the classes, you have to sell to the masses."

How could you offer a product or service of good value at an even lower price? How could you squeeze out the costs of getting that product or service to the customer and pass the savings onto him or her?

When you begin thinking of increasing the speed at which you deliver your product or service, improving the quality, add value at every stage of production, increasing the convenience for your customers, giving better customer service, catering to changing lifestyles and trends and finding ways to reduce the actual cost, you will be astonished at the incredible number of ideas and possibilities that exist around you.

And remember, one idea of insight for benefiting customers in a way that no one is currently offering can be the springboard that launches you into a life of financial success and achievement.

Looking to take the next step in your business and map out your path to success? Download my One-Hour Business Plan here .

Brian Tracy is Chairman and CEO of Brian Tracy International, a company specializing in the training and development of individuals and organizations. He is the top selling author of over 70 books , including Eat That Frog , a New York Times Best Selling book. In addition, he has written and produced more than 500 audio and video learning programs, including the worldwide, best-selling Psychology of Achievement , which has been translated into more than 28 languages.

Chairman and CEO of Brian Tracy International, Speaker and Author

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What is Value Add vs. Non-Value Add?

How to identify what adds value in a process and eliminate what does not.

Those who have read about Lean know the whole point is to cut waste or non-value adding operations and actions within a process. This can involve everything from workers having to take too many steps on the manufacturing floor to office workers duplicating paperwork.

Eliminating waste works. But it requires careful examination of the process to identify exactly how a current process works. There are Lean tools to accomplish this, but the question for some is:

When it comes to value-added vs. non-value-added operations, how can I tell the difference?

This question is often hard to answer. Many processes are complicated, involving many people. Just creating a process map or value stream mapping the current operation can seem an interminable task.

However, Lean provides ways to identify areas of non-value-added and value-added actions.

The Eight Wastes

The first thing to remember with the following – in fact, with anything involving Lean – is that every action in a process is evaluated in the context of whether it leads to improved value for the customer. If not, then it needs to go.

The following eight wastes rank as the biggest areas of non-value-adding activity. These are easy to remember – just think of the acronym DOWNTIME.

• Defects – Products or services that are not acceptable to customers
• Overproduction – Making products faster, sooner or in greater number than needed
• Waiting – Employees waiting for products to be worked on or for information to be processed
• Non-utilized talent – Not using everyone’s talent to solve challenges – or even worse, not consulting them at all
• Transportation – Transportation as a waste means that products are moved from Point A to Point B without adding any value
• Inventory – This term covers materials, information, work in process and finished goods that are not stocked and supplied in the most efficient way possible
• Motion – Wasted motion, or requiring too much motion to add value
• Extra processing – Doing more steps than required within a process, or more than what customers will pay for. Having to redo part of a process is a typical example of this

Value vs. Non-Value

For Lean to work, you must define what adds value. While the wastes above are non-value-adding, it takes more information to get into the step-by-step process to determine what is adding value and what isn’t.

Lean provides straightforward guidelines. For something to be add value, three things must happen:

• The step must change the form or function of the product or service
• The customer must be willing to pay for the change
• The step must be performed correctly the first time

Anything that doesn’t accomplish this is a waste – or a non-value added. It should be reduced or eliminated. The Japanese word for this is “muda,” which can mean be translated into “uselessness.” That gives you some idea of the view on waste.

Two other terms also refer to waste: mura and muri . Mura refers to unevenness or non-conformity in a process. Muri refers to a process or step that is too difficult or excessive.

Looking at the Process

Now that you know what you are looking for, what’s needed are tools that can help breakdown a process in a way that you can analyze each step in detail. Again, this becomes a complex challenge in a complicated process involving many people.

Value stream mapping is considered one of the powerful tools in Lean Six Sigma for this very reason. Project teams can place the eight forms of waste on one diagram, so they are always clearly in mind. The map then is used to plot out a detailed, step-by-step guide to a process where everyone can see the entire operation clearly.

Value stream mapping works for any kind of process, whether in production or handling front office administrative duties. It essentially allows everyone to take the time to see a process in its granular detail – enabling them to see what adds value and what doesn’t.

Another area to look at closely is cycle time, or the time it takes from beginning to end of each process. Typically, this is considered value adding, However, there can be non-value-adding steps within cycle time.

Improvement is possible in most cycle times. Typically, less than 10% of cycle time during a process is actually adding value . Steps can be taken within each cycle to reduce the time to where it all goes toward adding value, dramatically improving a process.

For example, the Engineering Contracting Company recently won an award from the Lean Gulf Institute for reducing non value-adding steps by up to 60% in some parts of the operation. They started the process by using the four steps of Plan, Do, Check, Act (PDCA), which takes an organization through planning changes, doing them and then adjusting as needed.

It also means a commitment to Lean principles on an ongoing basis, one of the keys to success.

Finding what steps within a process do or do not add value is a crucial step to take. With the tools available in Lean, it can make this seemingly impossible task much easier to handle.

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Better Knowledge. Your Insight Is Sharper

Examples on How Businesses Add Value to Products

May 5, 2024

What’s it:  Adding value means widening the difference between the input price and the selling price of the output. Business activities are basically to add value, namely by processing inputs into higher value outputs. For example, a furniture company buys wood from loggers and processes it into various household appliances. To do so, it requires manpower and machines to run the production process.

Businesses add functional benefits to their  products ; for example, smartphone manufacturers use 5G technology for their products. Some companies have also developed emotional and self-expression benefits, increasing functional benefits and making customers willing to pay more. Of course, they do it all to make a profit and money.

However, adding value does not always make a company successful and profitable. It depends on other factors, namely competition and consumer tastes and preferences. Companies must face competitors in the market to satisfy customers. To be successful in generating profits and encouraging consumers to continue to buy, they must be competitive. Otherwise, the money goes to competitors, not to them.

Competitive companies must outperform competitors to generate sustainable profits. Sometimes they succeed, but not a few also fail.

Competitors may develop competitiveness and offer better-added value, making consumers prefer competitors’ products. If that happens, of course, what the company has to offer becomes non-sellable and therefore non-profitable. As a result, it failed to achieve success and  competitive advantage .

Then, companies must also face the changing tastes and preferences of consumers. It also affects consumer interest in buying products.

Take the increasing public awareness of health and the environment as an example. It’s getting more and more popular lately. As a result, many consumers shift demand to products they consider safe for the environment and health. In this case, the company can offer added value by offering environmentally friendly products. Producing organic food is another way to add value.

How to add value

Michael Porter provides useful insights into how companies can add value. He presents the value chain concept to explain where companies can do it. He grouped company activities into two categories: primary activities and support activities.

By definition, creating added value is about widening the gap between price and input costs. Companies can increase added value in two ways. First, they create incentives for customers to be willing to pay higher prices. Second, they lower costs.

And in each of the activities in Porter’s value chain, companies can manage costs optimally, enabling more efficient business, lower total costs, and higher profit margins. In addition, companies can also stimulate customers to be willing to spend more, such as through branding.

Added value to main activities

The main activities are divided into five and how companies can create value; here are examples:

• Inbound logistics  – ensuring inputs arrive at the factory site as specified and on time, reducing waiting time for the production process.
• Operations management  – designing more flexible production systems to allow customization.
• Outbound logistics  – ensuring product quality is maintained when it reaches consumers and on time when consumers need them.
• Marketing and sales  – branding, decorating the store as attractive as possible and developing the right  marketing mix .
• Service  – providing reliable after-sales support and offers a repair warranty.

Added value to supporting activities

Support activities cover four subcategories, and within each, companies can add value, for example by:

• Firm infrastructure  includes accounting, legal, finance, public relations – providing lenient credit policies to customers to keep them interested.
• Human resource management  – ensuring those in direct contact with customers have adequate skills and expertise.
• Technology  – developing an integrated information system in the value chain.
• Procurement  – maintain good relations with suppliers, allowing the company to obtain discounts and more lenient purchase credits.

Example of how to add value

If in the previous section, we discussed how companies can add value along the value chain, in this section, we look at specific examples of value creation for the company’s products and  marketing functions :

Additional features or functions

Adding new features and functions can increase the functional benefits of the product. For example, smartphone manufacturers add high-resolution cameras to their products.

Another example, software manufacturers provide various additional functions to make it easier for consumers to use them. For example, Google added a document translation feature to its Google Translate. Or, the company adds a TAG Locations feature to its Google Maps.

As another example, car manufacturers offer acceleration rate, maximum speed, and fuel consumption per mileage to create value.

Such additional elements can meet consumer expectations and make consumers pay extra.

Convenience

Consumers like convenience when using the product. It makes them more relaxed or enjoy what they are buying.

For example, restaurant visitors not only come to enjoy the food menu but also look for the atmosphere in it.

Another example, many hotels are located near tourism to provide convenience for visitors while enjoying their leisure time.

Another example is choosing a store location close to consumers. It reduces their cost, effort, and time to buy the things they need.

Customization

The company may offer products with attributes and features that are standard and relatively the same as competitors. But, they offer customization to customers. For example, they can choose the color or design they like.

Or, even specifications, some manufacturers offer customers to be able to customize what they will buy. Many fashion houses provide such services to their loyal customers, making them willing to pay high prices.

Customer service

Companies provide free delivery service, thereby saving customers time and costs. Then, they deliver the goods to the customer’s house. So, customers just have to wait in front of the door for the goods to arrive.

Offering free installation at home also adds value. Customers also save time and don’t worry too much about technical issues to get product benefits. Finally, they are reluctant to switch to competing products if they do not get similar services.

Saving time

Many people buy fast food because it saves them time. As a result, they don’t have to linger in the kitchen just to prepare their food.

Take software companies as another example. They launched an enhanced version to allow their product to run faster in executing orders.

Branding adds emotional benefit to the product. It affects consumers’ perceptions of the product’s value. Clothing from fashion houses and non-fashion houses may be similar in quality, but the two can have very different prices.

The company also creates a recognizable brand name and identity. So, when consumers need product benefits, they immediately know what brand they need. It saves their time and effort instead of having to search and choose the right brand from various alternatives.

Customer service quality

A memorable experience with sales staff can be a plus for customers. In addition, their friendliness and knowledge when offering products and interacting with customers can be the main consideration for customers to use its products in the future.

This aspect is essential for service businesses such as hotels, restaurants, and consulting services, where company staff have direct contact with customers. Their satisfaction depends on how they are served by the staff.

Advertise products

Advertising, one of its aims, is to promote product awareness to consumers. When it is successful, it will bring more new customers to the company.

For example, you see an ad at a glance and remember it. Then, one day, you need the product. And because you remember the ad, you know what product you need and don’t have to spend more time searching.

Delivery speed

Speed is important because consumers like it when products are available at the right time when they need them. Take Amazon.com as an example. Its integrated logistics system allows products to be available and delivered on time.

Shipping and postal services also rely on the speed of delivery to create superior value for their customers.

Speed of delivery requires companies to manage the flow of information and goods effectively. Information technology support and effective processes among activities in the value chain are very important to ensure that.

Product diversity

A broad and in-depth product line allows us to have many choices. Therefore, it is highly strategic for the retail business.

When we shop at a brick-and-mortar or e-commerce store, many products make us more comfortable. We don’t have to visit other places just to buy other products beyond what we previously planned to buy.

Likewise, having more options allows us to compare prices, specifications, and quality to get the most suitable one.

Company image and reputation

Take credit card services, for example. To facilitate payments, we only choose trusted and reputable companies. For example, they have the best security, allowing our data to be safe.

An eco-friendly reputation is also gaining popularity these days since consumers are increasingly concerned about environmental issues. Thus, they are only willing to buy products from companies with a reputation for being environmentally friendly because they fit their values and principles.

Companies can add value by offering free products to include with core product purchases. For example, a soap manufacturer might offer their shampoo product for free every time a customer purchases their soap product.

Free gifts keep consumers interested and happy. They get more for the money in their pocket.

In addition to free gifts, companies can also offer other  sales promotions . For example, they offer coupons or discounts using released loyalty cards.

Unique packaging and design

Design and other aesthetic aspects are alluring aspects when we see the product for the first time. For example, when choosing a smartphone, perhaps the first consideration may be their design before looking further into their specifications and features.

Likewise, packaging design is also another consideration. Manufacturers can add aesthetic aspects to make it attractive while also focusing on its main function to protect the product inside.

Offers simplicity

We love the ease with which we use the product. We avoid the hassle.

Computers and software are great examples where we take ease of use into consideration. For example, we like software with specific buttons to execute commands rather than having to write code to execute commands.

More From Forbes

20 strategies to increase your company's marketplace value.

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Increasing your organization’s marketplace value is crucial for long-term success and investor confidence. Strategies such as investing in product development, improving operational efficiency and enhancing customer experience can help you reach this goal.

In addition to boosting your market share, these approaches can also help you build a stronger, more resilient brand. To that end, 20 Forbes Finance Council members share key strategies that can help drive growth, attract investments and raise your company's valuation.

1. Build A Strong Brand Identity

One strategy that an organization can implement to increase its marketplace value is to focus on building a strong brand identity. This strategy works because a strong brand can command higher prices, foster customer loyalty and differentiate its offerings from competitors. Increased value contribution to your customer means higher market value in the long run if sustainability is achieved. - Ivan Gjurovski , OTB.services

2. Expand Your Digital Presence

A company can focus on expanding its digital presence and e-commerce capabilities. This covers investing in online platforms, marketing efforts and enhancing the overall online shopping experience. This way, a company can reach a wider audience and invent new markets. - Asli Erem , Various

3. Attract And Retain High-Performing Talent

Be thoughtful about add-on acquisitions. If you can acquire capabilities and then grow the business and realize revenue synergies, that can significantly increase enterprise value. Additionally, growth companies attract and retain high-performing talent, so there are incremental opportunities that can arise. - Anisha Madan , Medquest

When Is The Voice Season 25 Finale All About The Star Studded Event

Sam altman apologizes to scarlett johansson over openai chatbot voice she called ‘eerily similar’ to hers, donald trump jr attends father s hush money trial as melania and ivanka avoid it here are the other trump allies in court, 4. create and implement a strategic plan.

Develop a culture of execution and accountability. Create a strategic plan driven by mission, vision and values. Objectives should cover five areas: financial goals, customer needs, employee satisfaction, operational excellence and a big, new idea. Assign tasks to leaders, such as working on three to five deliverables per area, tracked quarterly against the annual plan. Following this playbook will grow market value. - Alan Chaffee , Turning Point Strategic Advisors

5. Fixate On Performance

Private companies, particularly PE-backed companies, have ignored margin growth as a driver of value over the last decade and have been carried by multiple expansions. Companies can no longer rely on multiple arbitrage. Instead, they must fixate on performance to meaningfully move EBITDA. They can do so by focusing on both financial and operational value-creation strategies for revenue growth. - Nick Leopard , Accordion

Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?

6. Develop Strong Value Propositions For Customers

Focus on developing a strong value proposition for your key, most valuable customers. Focus on the features they need and price according to the value provided. Develop a strong positioning within a niche and serve it very well, ensuring high levels of customer support. Innovate, adapt and always improve how you serve your ICP. - Ximena Alvarado , Relay Investments

7. Always Answer The Phone

One strategy would be always answering the phone. In today's environment, clients want to know they are talking to a real person and not an AI chatbot. Ensuring you have a live person answering the phone in real time and listening to clients' requests and comments, instead of transferring only to voicemails, is key to a great client experience. - Jeremy Jacques , Jacques Financial, LLC

8. Invest In Innovation And Product Development

Investing in innovation and product development is a key strategy to increase a company's market value. By introducing new, high-quality offerings that meet customer needs, a company can gain a competitive edge, boost brand reputation and drive profitability, ultimately enhancing its market value. - Nathan Gauvin , Blackridge Investment Management

9. Don't Lose Touch With The Customer

Never lose the sense of customer-centricity. So many times, we see companies growing and losing touch with their customers. Instagram Support, for example, is known in the modern day as a dead end, where so many businesses have lost their accounts with no return. But that's just one example. Any industry needs to always remember the people who pay them, which automatically adds more value. - Mara Garcia , Phonexa Holdings, LLC

10. Embrace Digital Transformation

Embrace digital transformation — such as streamlining operations, enhancing how you connect with customers and crafting innovative business models. Through smart use of data, automating your routine and expanding your digital footprint, it's not just about saving costs but opening up new avenues for growth. This can be implemented to increase an organization's marketplace value. - Frankie DiAntonio , Lexington Capital Holdings

11. Measure The Metrics That Matter

Measure the metrics that matter. Know what metrics drive value in your industry (Growth? Profitability? Rule of 40?) and set organizational goals to drive improvements that demonstrate the effectiveness and efficiency of your business model, as well as the product or market adoption and customer stickiness. - Michelle DeBella , JumpCloud

12. Invest In Mergers And Acquisitions

Increase value through strategic go-to-market partnerships and mergers and acquisitions. Instead of spending thousands or millions of dollars on a marketing campaign, investing in partners or mergers and acquisitions activity that leverages technology—particularly new generative AI models—can lead to more sustainable customer (and revenue) growth. - Omar Choucair , Trintech

13. Foster A Culture Of Innovation

Foster a culture of innovation. Encourage employees to think creatively, embrace calculated risks and challenge the status quo. This approach drives continuous improvement, fuels product or service differentiation and enhances customer satisfaction. By nurturing innovation, we attract top talent, stay ahead of competitors and adapt swiftly to market dynamics. - Robert W. Bache , AmeriLife

14. Adapt To Change

If a company wants to increase its value, it needs to be able to adapt to change. AI helps improve processes and systems to quickly respond to changes in consumer preferences and take advantage of technological advances. By adapting, a company can increase its chances of survival during downturns, reduce costs and maintain a competitive edge. - Letitia Berbaum , The Zandbergen Group

15. Adopt A Diversified Position

Adopting a diversified position across multiple industry verticals, revenue streams and customer bases—each with a significant TAM, SAM, and SOM—can boost value. This allows the company to make strategic pivots to capture emerging trends and to respond to market shifts (including global events). It ensures durability and growth by allowing the company to adapt to changing conditions. - John Garcia , Solyco Capital

16. Invest In Employee Experience

Invest in and prioritize employee experience. Empowered, valued employees will go the extra mile for the customer adding to the overall valuation as customers stay and expand their spend. Prioritizing employee experience will attract and retain talent, which reduces turnover spend and improves profitability. Listening and actioning employee input as to how best to get work done will improve valuation. - Shannon Power , Scope AR

17. Build Compliance And Risk Management Into Your Business Plan

Regulatory missteps are becoming increasingly more complex and costly. Build compliance and risk management into your business plan from its foundation. It’s much more cost-effective and practical to build around a culture of compliance instead of retrofitting once something goes wrong. By instilling a culture of compliance, you’re mitigating an enduring range of risks and costs by “walking the talk.” - Jonny Frank , StoneTurn

18. Implement A Triple-Bottom-Line Strategy

The organization should consider implementing a triple-bottom-line strategy that informs the broader marketplace of its shared commitment to social causes, environmental and sustainability concerns and profitability. The three bottom lines refer to people, planet and profit. This strategy may result in retaining employees, boosting sales from ESG-interested customers and gaining operational efficiencies. - David Samuels , DrFirst, Inc.

19. Prioritize Customer Service

Exceptional customer service drives customer loyalty, which ensures growth in market value and a powerful foundation for scale and success. The customer experience is comprised of their interactions with the company, their use of products and their perceptions of available alternatives. Loyal customers purchase more frequently, spend more per purchase and recommend the company to others. - Greg Bassuk , AXS Investments

20. Invest In Public Perception

Invest in public perception and brand recognition. Engaged associates who promote the company via social media build marketplace value through recruiting, product promotion, knowledge sharing, expert articles and so on. In consulting, our value is in our people and their skills. Marketplace perception of our people is everything. - Cynthia Hemingway , Fourlane, Inc.

The information provided here is not investment, tax, or financial advice. You should consult with a licensed professional for advice concerning your specific situation.

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Former British Marine gets into business of fitness in UAE, after accident

Dubai resident, 38, goes from fitness trainer to multi-million gym owner in 11 years

Dubai: For former British military commando Cyrus Rustom, 38, it was inevitably his previous job that demanded he remain fit. But on hindsight, he feels it was a near-death accident when he decided to make fitness his full-time career and later his entrepreneurial choice.

“In 2006, I was smashed between two military trucks in Afghanistan and severely hurt with skull and joint injuries. I was hospitalised in intensive care for two weeks and then six weeks recovering in a hospital in Oman,” Rustom recalled, when asked what made him pursue entrepreneurship.

"This was when I met a gentleman who checked on me when visiting his son in the hospital room I was in. I learnt later he had just lost his wife and daughter in the same car accident that disabled his son. His attitude helped me change my perspective and deal with fear positively.”

After a five-year stint with the British Navy’s Royal Marines Commandos, Rustom has been in the fitness industry for 16 years, first as a personal trainer and later as an owner of a fitness facility that makes Dh4 million per year now.

From fitness trainer to gym owner

"I eventually developed mental resilience and realised that pushing beyond mental and physical endurance limits was essential to reach my goals. So when I moved to Dubai in 2013, I started working for Fitness First.”

However, when working his first job in the fitness industry, which paid him a monthly salary of Dh4,000, Rustom realised training one person per hour as a personal trainer would never allow him to make the income he desired. “I needed to open my own business and evolve," he said.

In September 2020, a few weeks after the lockdown, he started a fitness gym. He and his business partner initially invested Dh1 million each in the fitness gym, which currently makes 30 per cent profit.

"I had half the amount needed from my savings and borrowed the remaining money from my dad. Our fit out and equipment were Dh1.6 million, and then expenses on rent, staff, etc. But running a business during lockdown proved challenging and taught me how to adapt,” Rustom added.

Tip: Be prepared to adapt and modify your business plan to meet changing market needs

A few weeks after the lockdown, Rustom went on to describe how important it was as a business owner to be flexible when many facilities closed for good. He said, "We opened a fitness studio when everybody was scared and unsure of being close to others.

"We initially planned to have 30 people in a class, but later when COVID-19 guidelines restricted us from having more than eight people in a class, we were haemorrhaging money. A big problem in the fitness space is people do not want to turn to a new studio or class.

“We broke down those barriers by creating a space that's safe, and eventually led to the fitness facility expanding extensively since that initial studio. It now has a coffee and smoothie bar, an indoor cycling studio, and 6,000 sqft of outdoor training space,” he detailed.

Kept reinvesting back into the company

After the Dh2 million investment initially, Rustom expanded and spent another Dh1.7 million on a café, cycling studio and two outdoor training spaces. “This continuous reinvestment has allowed us to have 600 unique visitors per month and rising, versus 75 visitors per month initially," he said.

They have expansion plans to upgrade the main boxing and fitness studios. "Technology has changed since we opened, and we will revamp the main studio completely. I'm super excited to launch this for our members after the summer.

“The new business improvements will allow us to expand more quickly in the future. We are building something that can expand into multiple locations around the Middle East," Rustom revealed when asked about his future plans.

Tip: Focus on building income by creating value-added products or services

However, he revealed the initial days of starting a business involved living on a budget. "When I was finding my feet in business, and my wife was still working, we saved 50 per cent of our earnings. But this allowed me to invest in my current business without taking on investment.

"When my income was low earlier, I could save and invest less. I focused on how I saved every dirham, living frugally, driving a cheap car, living in an affordable apartment, etc. I believed for years that I could budget my way to wealth. That gave me a limiting mindset and didn't allow me to focus on what matters most: building my income,” he said.

"As a single parent, my father gave me £60 (AED 281) pounds per month in pocket money; it was the exact amount he would receive from the government for being a single parent. With that money, I had to manage, and it was a great lesson. My father gave me the environment to make my own decisions, whether right or wrong and learn from my mistakes."

Now, Rustom’s focus is on creating value and building income. “I stopped living a frugal life, owning a nice car and a bigger house, and pushed myself to earn more by creating value for many people. I work for my family's future while being a present Dad. I put most of my spare income into Bitcoin.

“We have a generational opportunity to exploit the growth of this new technology. If you want to make life-changing money, you must take a risk. I went all in on my business, and it paid off; I am now all in on Bitcoin, and I believe it will pay off big time in the next 5 to 10 years."

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Instagram's desperate move

Gen Z is fleeing the social media platform. Meta has a dumb new plan to win them back.

Instagram would super-duper like everyone to post more, especially creators. In a landscape where people are posting less and less on social media overall, making the platform seem active and vibrant is crucial to keeping people's attention. So Instagram is pulling out all the stops, or at least some stops, to get users to share, some of which may be more worthwhile than others.

I've recently noticed that the company has been giving people with creator and business accounts virtual rewards for certain "achievements" or milestones on the platform. If a user adds to their stories at least seven days in a row or gets a certain number of plays of their reels, they receive a badge that amounts to a digital "woo-hoo." While the feature has been around since late last year, Instagram promoted it in a blog post early this month. It also included some tips on making the most of the feature and succeeding on the platform, including tracking "achievement" progress, posting regularly, and encouraging followers to interact — the thing that makes the whole social-media machine work.

Plenty of apps are gamified to try to get people to engage and stick around, even if the rewards they get for playing along are meaningless. Fitness apps congratulate you for working out X number of days in a row or getting your steps in. Wordle lets you track your streaks, as does the language-learning app Duolingo . Gamification can be fun — it feels kind of neat to get a little congrats for getting your steps in. But it can also be icky. It can distort behavior, putting focus on getting whatever achievement instead of accomplishing the task at hand. It may even make people who don't hit certain goals feel like they're lesser, especially if their shortcomings are visible to others. (Instagram's new badges are private unless creators choose to share them.)

The badges aren't a stick, but they're not exactly a carrot, either — well, maybe one of those soggy baby carrots at the bottom of the bag in the back of your fridge.

From a business perspective, Instagram's move makes some sense. Instagram is a key part of Meta's overall business and a major revenue generator. Court filings that came out earlier this year revealed that Instagram generated $32.4 billion in ad revenue in 2021, 27% of Meta's total revenue and more ad revenue than YouTube brought in. In a business landscape where Meta has been dumping tons of money into the metaverse and artificial intelligence, Instagram's continued success is vital.

"You could talk to a lot of people and they would suggest that essentially most or all the company's growth more recently has come from Instagram. And so they're obviously trying to think of ways not only to keep people engaged, but I think they're very cognizant of pretty constant competitive threats," Scott Kessler, the global sector lead of technology, media, and telecommunications at Third Bridge Group, said. That includes direct rivals such as TikTok and Snapchat, as well as all the other things on and off the internet that are contending for people's attention at all times.

In particular, Instagram needs to keep Gen Z and people even younger coming back to the platform, even if it's not always great for their mental health and well-being . Doing that requires a constant flow of new content so the platform doesn't become just a sea of ads and irrelevant, boring stuff. Instagram's parent company, Meta, doesn't want it to go the way of Facebook, which for many people, serves as a tool for birthday reminders and seeing what their one weird aunt is up to, if they ever sign in at all.

While it is understandable why Instagram would do this, whether it will work is another question. People are already posting for likes, attention , and clout. Adding a little badge to show one's personal achievements makes the endeavor feel more official, but it's not clear how much it will make a difference.

I don't see badges being the solution to increase posting cadence.

Ali Grant, a partner and the chief marketing officer at the Digital Dept., an influencer-management company, told me she understood the idea of trying the gamification concept — she sees it all the time in corporate. She has her doubts about how effective this will be, though.

"What creators want on the platform is reach and engagement," she told me. "When that's lacking, the motivation to post dwindles, and they seek it elsewhere. I don't see badges being the solution to increase posting cadence."

The number of posts being added by content creators, or really anyone for that matter, seems to be at an all-time low, Grant said. The creators who post consistently are the ones who see more growth and engagement, but regularity still doesn't guarantee success, and there's no clear rhyme or reason to what ends up getting the most attention.

"There's this pressure to create aesthetically elevated content for Instagram, and that deters people from posting as much as they might on stories or on TikTok, which is less curated and more of the moment," Grant said. "It's a mix of bandwidth issues and pressure for the type of content required for in-feed Instagram posts."

Alixandra Barasch, a marketing professor at the University of Colorado Boulder's Leeds School of Business who studies how new technologies influence consumer behavior, was also dubious of this whole Instagram badge situation. People like setting and achieving goals, including keeping a streak , which becomes a goal in and of itself. But an Instagram posting streak is different from, say, exercising every week for a year or doing a language lesson daily, both of which have intrinsic value. There's enjoyment and satisfaction in the action itself beyond the extrinsic reward. You feel good about trying to get in shape or practicing Spanish no matter who sees; that's not the case for Instagram posting.

"Language learning is a goal people have in and of itself, and so having a badge and being rewarded for doing that, I'm intrinsically happy about that badge," Barasch said. "But to post on Instagram, I'm not like, 'Wow, I'm a great poster.'"

The trade-offs are that I'm putting myself out there. I might not get a lot of likes. People might judge me. There are so many social dynamics

Barasch said people seeing their own little badges may help in the short term, but it's hard to imagine a long-lasting impact unless it comes with some other perk or reward.

"The trade-offs are that I'm putting myself out there. I might not get a lot of likes. People might judge me. There are so many social dynamics," Barasch said.

A spokesperson for Meta acknowledged that the tools wouldn't be useful for every creator but said they'd seen them help creators who are just getting started and that, overall, Instagram wanted to do more to give creators guidance to achieve their goals. On the gamification front, the spokesperson said the "last thing" the company wanted to do was add more pressure on creators and emphasized that the features were optional, private, and relatively low stakes.

"This is very much a feature that's meant to help creators set goals within the app since we see creators already doing this on their own when they set their own personal challenges," the spokesperson said. "We want to help guide creators with the right goals and milestones that we believe will help them succeed on the platform."

Ultimately, the Instagram badges aren't the end of the world. At best, they're a nothingburger. At worst, they seem a bit lame and add to the vibe that Instagram is becoming a platform for olds. Grant sent me a screenshot of her achievements, none of which she has earned yet, and noted she'd never looked at them before I asked her about them. I texted my most Instagram-aware friend — who has a business account — to ask about her badges, and she sent me a screenshot of something different because she didn't know what I was talking about.

The Instagram badges aren't widely available for all users yet, and a spokesperson for Meta said they had nothing to share on whether they eventually would be. In the meantime, the badge thing seems pretty neutral to negative. Of all the achievements to care about, posting a story seven days in a row isn't a particularly aspirational milestone, and it's hard to gamify a social-media landscape that is already, by and large, a game.

Emily Stewart is a senior correspondent at Business Insider, writing about business and the economy.

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FACT SHEET: President   Biden Takes Action to Protect American Workers and Businesses from China’s Unfair Trade   Practices

President Biden’s economic plan is supporting investments and creating good jobs in key sectors that are vital for America’s economic future and national security. China’s unfair trade practices concerning technology transfer, intellectual property, and innovation are threatening American businesses and workers. China is also flooding global markets with artificially low-priced exports. In response to China’s unfair trade practices and to counteract the resulting harms, today, President Biden is directing his Trade Representative to increase tariffs under Section 301 of the Trade Act of 1974 on $18 billion of imports from China to protect American workers and businesses.   The Biden-Harris Administration’s Investing in America agenda has already catalyzed more than $860 billion in business investments through smart, public incentives in industries of the future like electric vehicles (EVs), clean energy, and semiconductors. With support from the Bipartisan Infrastructure Law, CHIPS and Science Act, and Inflation Reduction Act, these investments are creating new American jobs in manufacturing and clean energy and helping communities that have been left behind make a comeback.   As President Biden says, American workers and businesses can outcompete anyone—as long as they have fair competition. But for too long, China’s government has used unfair, non-market practices. China’s forced technology transfers and intellectual property theft have contributed to its control of 70, 80, and even 90 percent of global production for the critical inputs necessary for our technologies, infrastructure, energy, and health care—creating unacceptable risks to America’s supply chains and economic security. Furthermore, these same non-market policies and practices contribute to China’s growing overcapacity and export surges that threaten to significantly harm American workers, businesses, and communities.   Today’s actions to counter China’s unfair trade practices are carefully targeted at strategic sectors—the same sectors where the United States is making historic investments under President Biden to create and sustain good-paying jobs—unlike recent proposals by Congressional Republicans that would threaten jobs and raise costs across the board. The previous administration’s trade deal with China  failed  to increase American exports or boost American manufacturing as it had promised. Under President Biden’s Investing in America agenda, nearly 800,000 manufacturing jobs have been created and new factory construction has doubled after both fell under the previous administration, and the trade deficit with China is the lowest in a decade—lower than any year under the last administration.   We will continue to work with our partners around the world to strengthen cooperation to address shared concerns about China’s unfair practices—rather than undermining our alliances or applying indiscriminate 10 percent tariffs that raise prices on all imports from all countries, regardless whether they are engaged in unfair trade. The Biden-Harris Administration recognizes the benefits for our workers and businesses from strong alliances and a rules-based international trade system based on fair competition.   Following an in-depth review by the United States Trade Representative, President Biden is taking action to protect American workers and American companies from China’s unfair trade practices. To encourage China to eliminate its unfair trade practices regarding technology transfer, intellectual property, and innovation, the President is directing increases in tariffs across strategic sectors such as steel and aluminum, semiconductors, electric vehicles, batteries, critical minerals, solar cells, ship-to-shore cranes, and medical products.   Steel and Aluminum   The tariff rate on certain steel and aluminum products under Section 301 will increase from 0–7.5% to 25% in 2024.   Steel is a vital sector for the American economy, and American companies are leading the future of clean steel. Recently, the Biden-Harris Administration announced $6 billion for 33 clean manufacturing projects including for steel and aluminum, including the first new primary aluminum smelter in four decades, made possible by the Bipartisan Infrastructure Law and the Inflation Reduction Act. These investments will make the United States one of the first nations in the world to convert clean hydrogen into clean steel, bolstering the U.S. steel industry’s competitiveness as the world’s cleanest major steel producer.   American workers continue to face unfair competition from China’s non-market overcapacity in steel and aluminum, which are among the world’s most carbon intensive. China’s policies and subsidies for their domestic steel and aluminum industries mean high-quality, low-emissions U.S. products are undercut by artificially low-priced Chinese alternatives produced with higher emissions. Today’s actions will shield the U.S. steel and aluminum industries from China’s unfair trade practices.   Semiconductors   The tariff rate on semiconductors will increase from 25% to 50% by 2025.   China’s policies in the legacy semiconductor sector have led to growing market share and rapid capacity expansion that risks driving out investment by market-driven firms. Over the next three to five years, China is expected to account for almost half of all new capacity coming online to manufacture certain legacy semiconductor wafers. During the pandemic, disruptions to the supply chain, including legacy chips, led to price spikes in a wide variety of products, including automobiles, consumer appliances, and medical devices, underscoring the risks of overreliance on a few markets.   Through the CHIPS and Science Act, President Biden is making a nearly $53 billion investment in American semiconductor manufacturing capacity, research, innovation, and workforce. This will help counteract decades of disinvestment and offshoring that has reduced the United States’ capacity to manufacture semiconductors domestically. The CHIPS and Science Act includes $39 billion in direct incentives to build, modernize, and expand semiconductor manufacturing fabrication facilities as well as a 25% investment tax credit for semiconductor companies. Raising the tariff rate on semiconductors is an important initial step to promote the sustainability of these investments.   Electric Vehicles (EVs)   The tariff rate on electric vehicles under Section 301 will increase from 25% to 100% in 2024.   With extensive subsidies and non-market practices leading to substantial risks of overcapacity, China’s exports of EVs grew by 70% from 2022 to 2023—jeopardizing productive investments elsewhere. A 100% tariff rate on EVs will protect American manufacturers from China’s unfair trade practices.   This action advances President Biden’s vision of ensuring the future of the auto industry will be made in America by American workers. As part of the President’s Investing in America agenda, the Administration is incentivizing the development of a robust EV market through business tax credits for manufacturing of batteries and production of critical minerals, consumer tax credits for EV adoption, smart standards, federal investments in EV charging infrastructure, and grants to supply EV and battery manufacturing. The increase in the tariff rate on electric vehicles will protect these investments and jobs from unfairly priced Chinese imports.   Batteries, Battery Components and Parts, and Critical Minerals   The tariff rate on lithium-ion EV batteries will increase from 7.5%% to 25% in 2024, while the tariff rate on lithium-ion non-EV batteries will increase from 7.5% to 25% in 2026. The tariff rate on battery parts will increase from 7.5% to 25% in 2024.   The tariff rate on natural graphite and permanent magnets will increase from zero to 25% in 2026. The tariff rate for certain other critical minerals will increase from zero to 25% in 2024.   Despite rapid and recent progress in U.S. onshoring, China currently controls over 80 percent of certain segments of the EV battery supply chain, particularly upstream nodes such as critical minerals mining, processing, and refining. Concentration of critical minerals mining and refining capacity in China leaves our supply chains vulnerable and our national security and clean energy goals at risk. In order to improve U.S. and global resiliency in these supply chains, President Biden has invested across the U.S. battery supply chain to build a sufficient domestic industrial base. Through the Bipartisan Infrastructure Law, the Defense Production Act, and the Inflation Reduction Act, the Biden-Harris Administration has invested nearly $20 billion in grants and loans to expand domestic production capacity of advanced batteries and battery materials. The Inflation Reduction Act also contains manufacturing tax credits to incentivize investment in battery and battery material production in the United States. The President has also established the American Battery Materials Initiative, which will mobilize an all-of-government approach to secure a dependable, robust supply chain for batteries and their inputs.   Solar Cells   The tariff rate on solar cells (whether or not assembled into modules) will increase from 25% to 50% in 2024.   The tariff increase will protect against China’s policy-driven overcapacity that depresses prices and inhibits the development of solar capacity outside of China. China has used unfair practices to dominate upwards of 80 to 90% of certain parts of the global solar supply chain, and is trying to maintain that status quo. Chinese policies and nonmarket practices are flooding global markets with artificially cheap solar modules and panels, undermining investment in solar manufacturing outside of China.   The Biden-Harris Administration has made historic investments in the U.S. solar supply chain, building on early U.S. government-enabled research and development that helped create solar cell technologies. The Inflation Reduction Act provides supply-side tax incentives for solar components, including polysilicon, wafers, cells, modules, and backsheet material, as well as tax credits and grant and loan programs supporting deployment of utility-scale and residential solar energy projects. As a result of President Biden’s Investing in America agenda, solar manufacturers have already announced nearly $17 billion in planned investment under his Administration—an 8-fold increase in U.S. manufacturing capacity, enough to supply panels for millions of homes each year by 2030.   Ship-to-Shore Cranes   The tariff rate on ship-to-shore cranes will increase from 0% to 25% in 2024.   The Administration continues to deliver for the American people by rebuilding the United States’ industrial capacity to produce port cranes with trusted partners. A 25% tariff rate on ship-to-shore cranes will help protect U.S. manufacturers from China’s unfair trade practices that have led to excessive concentration in the market. Port cranes are essential pieces of infrastructure that enable the continuous movement and flow of critical goods to, from, and within the United States, and the Administration is taking action to mitigate risks that could disrupt American supply chains. This action also builds off of ongoing work to invest in U.S. port infrastructure through the President’s Investing in America Agenda. This port security initiative includes bringing port crane manufacturing capabilities back to the United States to support U.S. supply chain security and encourages ports across the country and around the world to use trusted vendors when sourcing cranes or other heavy equipment.   Medical Products   The tariff rates on syringes and needles will increase from 0% to 50% in 2024. For certain personal protective equipment (PPE), including certain respirators and face masks, the tariff rates will increase from 0–7.5% to 25% in 2024. Tariffs on rubber medical and surgical gloves will increase from 7.5% to 25% in 2026.   These tariff rate increases will help support and sustain a strong domestic industrial base for medical supplies that were essential to the COVID-19 pandemic response, and continue to be used daily in every hospital across the country to deliver essential care. The federal government and the private sector have made substantial investments to build domestic manufacturing for these and other medical products to ensure American health care workers and patients have access to critical medical products when they need them. American businesses are now struggling to compete with underpriced Chinese-made supplies dumped on the market, sometimes of such poor quality that they may raise safety concerns for health care workers and patients.   Today’s announcement reflects President Biden’s commitment to always have the back of American workers. When faced with anticompetitive, unfair practices from abroad, the President will deploy any and all tools necessary to protect American workers and industry.  

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Bankruptcy judge approves Genesis Global plan to refund $3 billion to creditors, crypto customers

A bankruptcy court judge has approved a plan by the cryptocurrency lender Genesis Global to return about $3 billion to its creditors and investors, including thousands of people who New York regulators say were defrauded by the company

ALBANY, N.Y. — A bankruptcy court judge has approved a plan by the cryptocurrency lender Genesis Global to return about $3 billion to its creditors and investors, including thousands of people who New York regulators say were defrauded by the company.

The plan and settlement approved Friday by Judge Sean H. Lane includes up to $2 billion to settle a lawsuit by New York Attorney General Letitia James, who said the company misled investors about the risks of putting their money into a company program known as Gemini Earn.

“This historic settlement is a major step toward ensuring the victims who invested in Genesis have a semblance of justice,” James said in a statement Monday. “Once again, we see the real-world consequences and detrimental losses that can happen because of a lack of oversight and regulation within the cryptocurrency industry.”

Creditors whose claims were in U.S. dollars will be receiving 100% of their loan balances by the firm, which filed for bankruptcy last year. Those with claims in cryptocurrency will see some short of shortfall, according to the decision.

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The settlement includes a victim fund for Genesis’ creditors to help recover some of their losses, James’ office said.

“We look forward to putting the Plan into effect and making distributions as expeditiously as possible,” Genesis Interim CEO Derar Islim said in a statement on Friday.