There a two different ways to add a new client or prospect. 

1. Click "Add new client" or "Add new prospect" from the Dashboard - this will NOT send them an email. Please either personally invite them to a meeting to run an assessment with a phone call or a message from your secure email provider.

2. Send an "Invite to Discover Link" to your client or new prospect - Copy the link from the bottom of your dashboard and email your business owner prospect or client your specific link with clear instructions. Do NOT try to copy this secure link from a URL in your browser.

While the best practice is still considered running the Discover Assessment with your business owner client, it is possible to send them the 'Discover Link' to complete independently.

1. As usual, sign into your ValuCompass account.

2. Navigate from your ValuCompass dashboard to the "Marketing" tab found at the top of your screen.

3. Under the button that says "Start Discover" you will want to "Copy Discover Link".

4. Once you have copied the link to your computers RAM (it will say "Copied to Clipboard!") you can paste it where you want; a webpage, social media page, or an email.

5. No matter where you decide to paste your Discover Link you will want to embed the ugly looking link into more professional-looking text (such as these examples):

6. Then you are all set to send out your Discover Link!
   
   Anyone who completes the Discover Assessment will show up in your Prospects section on your Dashboard. You will also get an email notification that they have completed the assessment. 
   
   Keep in mind that the Discover Assessment will yield the best results with business owners who recognize where the link is coming from - due to the sensitive information that is being asked.
   
   Note: If no email address is entered then the assessment will not register as "started".  Everyone who completes the Discover Assessment automatically will be able to view the report!

Operational performance -- What a company 'does' to generate revenue and profit.  On the surface, ValuCompass is an elegantly simple tool. Underneath, are complex algorithms,  vetted by thousands of businesses, advisors, and academics over 30 years. The result gives companies the data and tools necessary to build sustainable and transferable Enterprise Value. 

Click here for a one-page document on Enterprise Value

How ValuCompass Works

Business owners provide basic information about their company including industry type, annual revenue, and profit.  Next,  we ask a series of questions around 18 Value Drivers so we may compare the company’s status relative to best practices.  This is what we call a Discover

Each level of  ValuCompass asks more detailed questions about the Value Drivers. In all, we offer a 239‐point assessment.  Scores are applied and ratings are calculated, based on the answers provided. We then plot the company’s Enterprise Value and compare it against an industry norm to create a value gap. This identifies a company's strengths, risks, and vulnerable areas,  and how much value is being left on the table due to operational and market efficiencies. 

Our algorithms measure the risk to future revenues presented by the company's current operational processes and procedures and calculate  Enterprise  Value for the company based on that risk.  ValuCompass then calculates the increase in  Enterprise  Value that can be realized if operational performance is improved and risk lowered.  

Red Flags identify those risks which may prevent the monetization of some, or all, of the company’s Enterprise Value.   Tasks are suggested to further strengthen performance and value and reduce risk. 

Talking Points: The algorithms are based on research at the Massachusetts Institute of Technology (MIT), the premier engineering university in the US,  and proven in the market for over 30 years. The research includes the development of a set of private business standards (think GAAP for Operations) that are recognized as 'best practices' for each of the 18 areas measured. CoreValue's patented methodology has been used with over ten thousand companies to capture and grow $7B+ in Enterprise Value. The algorithms can be broadly explained as comparing the respondent company's due diligence performance with the due diligence checklists from approx. 5,000 closed transactions. CoreValue benchmarks the subject company against the real world. Vetted by hundreds of professionals, including top US bank Morgan Stanley, Mass Mutual, the NACVA and one of the nation’s leading valuation teams, Business Valuation Center, the algorithms have proven accurate and the methodology is accepted as effective. Our algorithms focus on operational performance, and a company's ability to prove it will produce and increase financial output ‐ revenues, profits - into the future, just as due diligence does. In contrast, straight valuation algorithms use only financial data (yesterday's performance) to give a number that is largely dependent on its purpose (e.g., divorce settlement, tax valuation, estate planning).

The ValuCompass 'Enterprise Value' is not a substitute for a formal financial valuation; it is intended as a guide for the owner to enable better planning, strategy, and tactical execution in pursuit of growth opportunities and building value into the company.

A critical part of securing successful engagements with business owners is begin able communicate your process and the value you will deliver in a clear and concise manner.

Below is a sample script that helps communicate your value, and the value of the ValuCompass process. Take this sample, make it your own, and practice it so that you are ready whenever an opportunity arises!

Sample Scripts

Owner/Other Professional:

What do you do?

Advisors (Example):

We help private business owners protect what they have built so they can grow and transition their business on their terms.

Owner/Other Professional: 

That is interesting, what is your process for doing that?

Advisor (Script – Short Version):

We go through a series of assessments that starts be getting an estimate of today’s value of your business and connects that business asset to you personally. We then dive deeper into your business and look at how the business as an asset connects to your personal financial planning to ensure that you're protected, your family is protected and that your business and personal planning goals are fully integrated for success.

Advisor (Script – Long Version):

The first step is for us to have a conversation about your business and your goals. To do that, I use a simple assessment - It's about 20 questions. From the assessment we will get an understanding of today's value of the business, the potential future value of the business, and what areas of the business are strong and the areas that may require some attention to improve the business value.

If we are the right fit for you, the next step is to engage in an integrated business and personal planning process. In that process, we take a deeper dive into the business to understand some actionable items that can help improve the value. We also look at how the business as an asset connects to your personal financial planning to ensure that you're protected, your family is protected and that your business and personal planning goals are fully integrated for success.

This planning process creates a roadmap for our continued work together to ensure we make decisions that connect your business planning to your personal planning and that we protect what you have worked hard to build.

It happens... whether your card has expired or you simply need to change the payment information for your subscription things change. Since ValuCompass does not store your credit card information you'll have to contact us directly.

But we can easily jump on a call and safely enter your new your credit card information within our payment processor.

As with most matters of finance and money, we want the situation handled carefully and securely. For this reason, please do not email or text any of your personal information.

Please reach out to support (either via an email message or using our support desk phone number) and one of our support team members will get back to you shortly.

Our algorithms measure the risk to future revenues presented by the company's current operational processes and procedures and then calculate Enterprise Value for the company based on that risk. ValuCompass uses dollars as the yardstick to help business owners understand, manage, and monitor the intangible drivers behind their business. Thus its ability to perform, be sustained, and ultimately be transferred for the benefit of the owner, employees and community.

There is more than one algorithm powering ValuCompass: We know the algorithms work because outside valuation experts have thoroughly vetted them. When compared with formal financial valuations, ValuCompass enterprise value estimates are within 5---10%. But ValuCompass (unlike financial valuations), also measures the drivers of enterprise value. This means that we are looking into the future of operational value through the lens of best practices instead of just using historical data.

For a more in-depth look at how our algorithm is compluted see our Enterprise Value Explained document.

If you know how to "update" a business owner from your dashboard, then removing them from your dashboard is easy. Though be careful. You aren't really deleting this business owner. Since our system is based on emails, we store every business owner in our private database. So you aren't actually deleting them - just removing them from your dashboard.

From your Client tab, find the edit button to the right of the business owner you want to remove:

From your Prospect tab, click on the three little dots at the far right of the prospect you want to remove:

Then navigate to page two of the "Update Business Owner by clicking "Next":

From page 2, you can select the "Delete Business Owner" button:

Again, this will remove this business owner from your dashboard but it will not delete them from our system. 

The Align Report is designed to focus the energy and direction of a business. This is especially important for businesses with multiple owners or large management teams. The detailed report produces honest feedback from executive team members, showing owners a way to best move forward and make the most pertinent decisions.

How does it work?

The Align Report takes the input from multiple Discover Assessments taken by individuals with a business. It presents the collected findings, comparisons, and observations in a single report. The goal is to highlight the similarities and differences of team members regarding their view of the business in an open and honest environment.  The Align Report can also be set up anonymously for team member privacy.

The Align Report Process

1. Discuss this invaluable upsell with the primary business owner then follow the steps below - use the Align Report one-pager or a copy of generic Align Report  to help with this conversation. 

2. Notify our Support Team and begin the Align process by emailing ValuCompass Support the list of names and email addresses of additional owners or top level management members who you wish to include in the Align report (use 3-7 members for best results). 

3. Then share your advisor's Discover Link (found under the Marketing tab on your ValuCompass dashboard) with all the business team members and agree on a timeframe for them to complete it.

4. Once all members of the business team have completed the Discover Assessment, notify the ValuCompass Support team and they will compile the report within three days.

5. Discuss the results with the Business Owner and propose a time to review the findings with the business owner's full team meeting. Focus the meeting on what's currently working within the business, where there is a lack of communication (causing misalignment), and the specific drivers that need attention (based on combined assessment results).

The Diligence score measures your continued participation in the ValuCompass business assessment process. It always starts at C+ for all participants on the Discover Assessment and improves incrementally as you complete follow‑up assessments (such as Protect and Grow), reflecting your sustained effort towards growing and understanding your business.

The correct NAICS code Industry selection determines which Normalized Trading Range (NTR) the company will be compared with as well as if the Potential Enterprise Value will be determined by profit or EBITDA. It also sets up the “How Does Your Business Compare?” section of the Report relative to Industry Peers. If you select the incorrect Industry, the Report will be off. 

Where do the Industry Titles come from?

For more information about the NAICS Code classifications, visit the NAICS Code Website.

The Industry Categories that ValuCompass uses come directly from the official 22 Industry Titles of the NAICS Codes. Once you know the first two digits of the code you can cross reference it here and then use the dropdown menu in the assessment:

It is very necessary to get the Industry Code correct because it will certainly influence the outcomes of the report. A quick Google search of your business can often yield positive results regarding the Industry Code. We also recommend using the business owners tax return to find this information if possible.

Why not use the actual number?

We don't use the full six digit NAICS code because it's too granular and more specific than we need. We use to include the first two numbers in the assessment but some people found this confusing. At the same time, many business owners do not know their full six digit code and prefer the board sector titles.

The first page in the Discover Assessment begins by asking some questions about the business. These details are necessary to help us figure out who to best compare your business. These items also help us filter your business into a category for better results.

Type of Entity

Choose one of these from the dropdown.

Here are some different types of business entities:

• S-Corporation

  A corporation where shareholders have elected to have their corporation taxed under Subchapter S of the Internal Revenue Code

• Sole Proprietorship

  An unincorporated business with one owner, where the owner and business are not separate entities

• Partnership

  An incorporated business where shareholders are separate entities, but at least one general partner has unlimited liability for the business

• Limited liability company (LLC)

  A separate legal entity where owners, called members, have limited liability to their contribution to the business

• C-Corporation

  A separate legal entity from its members, formed and regulated under specific laws

Industry Sector

At ValuCompass, we use the "Sector Title" to classify all businesses within the 22 NAICS Industry Codes.

What is a NAICS Code?

A NAICS (pronounced "NAKES") Code is a classification within the North American Industry Classification System. The NAICS System was developed for use by Federal Statistical Agencies for the collection, analysis and publication of statistical data related to the US Economy.

It was adopted in 1997 to replace the Standard Industrial Classification (SIC) system in cooperation with the statistical agencies of Canada and Mexico. Their goal was to establish a North American standard.

NAICS is a two-through-six-digit hierarchical classification code system, offering five levels of detail. Each digit in the code is part of a series of progressively narrower categories, and the more digits in the code signify greater classification detail. The first two digits designate the economic sector, the third digit designates the subsector, the fourth digit designates the industry group, the fifth digit designates the NAICS industry, and the sixth digit designates the national industry.

How do I use them?

Either the business owner will know their six-digit NAICS code or they will know the Industry Title. Use this chart to cross reference the number and the title.

Revenue

Revenue is the money generated from normal business operations, calculated as the average sales price times the number of units sold. It is the top line (or gross income) figure.

EBITDA

EBITDA is short for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is one of the most widely used measures of a company's financial health and ability to generate cash.

EBITDA does not include the owner's compensation.

EBITDA removes the impact of income taxes. The idea is that this makes firms easier to compare since two companies may have differing tax rates due to legal structure, accounting practices, or unnecessary expenditures.

Red Flags are important issues or ‘watch-outs’ that can negate some, or all, the value of your business, and compromise performance. While Red Flags are “Driver Specific”, these issues penetrate into other Drivers essentially affecting the entire business.

If an owner is trying to raise capital, hit growth targets, attract stellar employees or a buyer, these are the types of issues that will bubble up during due diligence and can compromise achieving one’s business objectives.

Click here for a PDF of all of the Red Flags.

The Market Drivers

It may be helpful to think of these drivers as ‘external’. Market drivers often relate to how your business operates compared to others in the same industry.  Think of these drivers as they relate to sales, your product, your competition, and external factors. While these external forces may be out of your control, the more you are aware of them the more compelling your business will be. Feel free to click on any of these drivers for a PDF print out with additional information.

The Operational Drivers

These drivers relate to all of the factors within your business. They are sometime referred to as the ‘internal’ drivers. While most business owners tend to naturally focus on these drivers when running the business, they are also some of the most elusive. These drivers rarely present themselves  in obvious manners and most pose difficulties even when you have a team who is responsible. Most business owners are not surprise when one of these drivers pops up as a top Value Gap issue.

Click here for a PDF of all of the ValuCompass 18 Value Drivers.