Step 2 – Put a Number to It
Now that you’ve started keeping track of the contributions you’ve made, it’s time to express them in terms your owner will appreciate… Numbers. Here are some examples of things you might need to put a dollar value on:
- cost savings identified
- productivity gains realized
- impact of suggested pricing changes
- improvements to the cash conversion cycle
Another important consideration is the impact these improvements have on “enterprise value”. To calculate this, multiply any improvements to EBITDA realized by the standard multiple of EBITDA used for valuing companies in your industry.