How
does Rampworth help create value?
3 Step
Path /
Repeatability /
Believability
/ Perceived Risk
Before we
get into specifics, let’s start with a dose of reality...
nobody's going to wave a magic wand and instantly make the corner store worth as
much as Microsoft. Some companies are simply more valuable than others. But miracles aside, it’s
also a fact that the value of every business has range, from low to high, and
helping entrepreneurs move their business to the top of the range is what Rampworth is
all about. Above all else, we believe that value enhancement is a
conscious act, not an accidental windfall.
While we're on the subject
of reality, let's face one other fact... most entrepreneurs are either too busy or lack sufficient expertise
to know where to start in the value process. It's not a measure of
intelligence, its simply a reality of running a business. There is too
much 
to
do to be expert in all areas. To those companies who anticipate the
need to raise funds or to sell shares, Rampworth functions as an in-house
expert... a sort of “On Demand VP of Value” who's job is to uncover opportunities for exponential
gains, and provide the methodology required to help a company get there in
the most efficient way possible.
3-Step
Value Path
To
simplify the process
and
"ramp-up” your company value, Rampworth has developed a 3-step Value Path. The
specific order of attack and areas of focus
tend to shift somewhat from company to company (depending on which pieces are
already in place) but the basic principals remain the same.
top
1. Build Repeatability
At its most basic form, business value
(that is, the amount
of money that someone will pay you for your business),
is derived from the belief that a
companies critical success factors will continue to occur into the future with a certain element of
reliability. In other words, all things being equal, the more activities
and outcomes that are repeatable, the higher a companies value
(conversely, the fewer repeatables, the lower the value).
At its heart, the
Rampworth Value-Creation process is based on the act of uncovering critical
actions and outcomes, identifying & prioritizing the repeatability gaps and
executing on the opportunities uncovered. Armed with clarity about the
repeatability gaps, a company can often drive up value without even adding any
new resources, simply by aligning tasks, measuring outcomes,
and remunerating in a slightly different way.
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2. Build Believability
Believability
is the cornerstone of trust, and a “Platform
of Trust” is the cornerstone of the Rampworth Value-Creation process. 
Why
do we feel so strongly about trust? Because we believe that no legitimate
investor would ever give money to a company that they couldn't trust… and
if you can’t attract
capital, you can't build value.
At the same time that our methodology uncovers opportunities for enhanced
repeatability, it focuses on building a sustainable "Platform of Trust". The key
elements of trust are no great secret
(ask any sophisticated investor),
which means that any company can promise enough disclosure to convince an unwary
investor, but what matters in the end is living up to those expectations.
Bitter investors destroy value, but sustained trust requires that a
companies processes, ongoing controls, measures and reporting are all
robust enough to back-up
the promises, and efficient enough not to squander the companies resources in
the process.
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3. Reduce Investor Risk
Finally,
the Rampworth value creation process focuses on uncovering opportunities for reducing investor risk. Portions of this step are
commonsense, while other portions are unique to
Rampworth, but the thrust of the effort is as simple as pre-thinking
the Due Diligence (DD) process as it applies to the Company. Here we use a
proprietary approach to fast-track the job of identifying the gaps in a companies
DD preparedness, which enables us to provide some early wins that quickly give
our clients a feel for the scale of wealth that can be generated through a value
focus.
