Three Windows of Opportunity to create value.

In this dynamic world of business, success lies not only in analyzing past performance but more and more in proactively preparing for the future. While many organizations spend significant time understanding past sales figures, there are two other important windows that deserve even more attention: the order book and sales leads. By recognizing the significance of these three windows, you can unlock multiple opportunities for growth and steer your businesses toward long-term success and increased value. In this article, we will delve into each window's importance and shed light on how embracing them can pave the way for a thriving business.

Window 1: Past Sales - Learning from Experience:

The first window represents past sales as reflected in your financial statements, reflecting the actual performance and products or services sold in previous months. Analyzing this window provides valuable insights into what has worked well and what hasn't. One can extract important lessons from past margins, identifying areas that require improvement or attention and strategies that yield positive results. While crucial to learn from the past, spending excessive time in this window limits a business's performance and growth potential. Therefore, explore the opportunities offered by the remaining windows.

Window 2: Orderbook - Anticipating Future Performance:

The second window, the order book, offers a glimpse into the short-term future. It highlights what will be reflected in the upcoming months' income statements (albeit depending on the industry). By closely monitoring the order book, we can assess whether there is an upward or downward tendency in sales. We can also analyze the product mix and margins, allowing us to make informed decisions about how to better manage and plan for short-term (future) performance. Although the order book provides valuable information, it is essential to recognize that once the orders are in, there is little that can be done to change them. Therefore, while it is crucial to optimize efficiency, focusing solely on this window can limit your business's growth potential and direction.

Window 3: Sales Leads - Embracing Future Opportunities:

The third window, sales leads, is where all of us should devote significant attention. This is also where the fun starts. By evaluating the tendency, products, and margins of potential leads, you can ensure your business is following your intended value-creation strategy. This window is about looking ahead, allocating resources accordingly, and aligning strategies with the desired outcomes for sales or markets. You can also assess the quality of leads and their success rate, providing insights into the attractiveness of your offerings and whether you are targeting the right customers. Embracing this window allows businesses to be proactive, adapt to changing market dynamics, and consistently achieve sales growth. By spending time in window 3, you simply remain a step ahead! It is therefore remarkable that so few businesses have sophisticated and integrated this powerful instrument.

The Power of Embracing All Three Windows:

While traditional businesses may gravitate towards spending most of their time in the past sales window, modern businesses, particularly those in the tech industry, understand the significance of embracing all three windows. This I learned from the time I spent in SaaS businesses. By shifting the focus toward sales leads and the future, these businesses achieve consistent growth and stay ahead of the competition. Even in more traditional industries like building materials - where I spent a lot of my time - businesses should benefit more from adopting this mindset.

Conclusion: In the pursuit of professional success, it is essential to strike a balance between learning from the past and preparing for the future. The three windows of opportunity—past sales, the order book, and sales leads—provide invaluable insights that can reshape the future valuation of a business.

If you want to know more, do not hesitate to contact us. See for yourself how the EquityBuilder program can help you benefit from these 3 windows of opportunity for value creation.

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