Management & Growth
Once a value generation pattern is established and there is a customer body of satisfied and returning customers, the firm seeks stabilizing factors, and some aspects of entrepreneurship become factors to be managed.
When a venture or project begins to mature, with, for example, indications of target levels of customer value and some reliability to cash flow, the entrepreneurial team can turn to management. This means continuous improvement, innovation and change. The entrepreneurial journey of facilitating value never stops or slows down. The entrepreneurial business never stops learning.
Structure can impede growth in cases where it no longer reflects the market and is a barrier to change, and restructuring is the option in such cases.
Asset Reallocation / Capital Recombination / Disposition
The asset combinations that were best for generating customer value at an earlier stage may require change and readjustment at any point in time, and asset combinations should be so arranged s to make this flexibility relatively easy to implement. At a certain point in time, founders or owners, or corporate managers of a portfolio of businesses / services, may seek to sell or facilitate a liquidity event.
Production takes time to generate customer value in the future and requires financing. Cash flow is the best source; other sources should be carefully matched to the stage and type of business form and its development.
Growth Strategy / M&A
What works and what doesn’t to generate greater customer value? What parts of the portfolio can be grown? What are the drivers of growth? Acquiring services from other firms is not excluded.
Improvement and Innovation
There are levels of improvement (operating in the existing solution space to improve value delivery) and innovation (operating in the opportunity space to generate new value); entrepreneurial firms pursue value in both areas.
Organizational Change / Employee Management
Organization design should reflect the needs of the market, and should be regarded as flexible and adaptive, not rigid. Organizational change can unleash new streams of value generation, as can new ways of empowering employees.
Product and Service Portfolio
A portfolio viewpoint enables a balance of value generation. While there is no reduction in uncertainty, its distribution is affected by portfolio make-up.
Value-Generating Business Tools
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Blog Posts & Articles
Long-form news and commentary on current business events through the lens of Austrian economics.