Value Creation Strategies- Improving Customer Segments, Channels, and Relationships Before Selling a Business
Journal Name: Value Examiner
Issue: January/February 2025
Publish Date: March 3, 2025
Authors: Kipp A. Krukowski, Colorado State University (http://orcid.org/0000-0002-0993-3566)
Abstract: The Value Examiner (January/February 2025): Businesses are often formed when observant entrepreneurs identify customer problems that demand a solution. Over time, it is important for management to revisit why and how certain customers are being served. Companies operate in a dynamic environment, experiencing ongoing changes in macro factors related to the economy (e.g., capital markets, regulations), the industry (e.g., supply chain, substitute solutions), and the market (e.g., trends, competition). As companies evolve, personnel and capabilities change, and macro environmental forces persist, they may need to reconsider the ideal customers they focus on or the methods they use to serve existing customers. Put simply, the components of a company’s business model may need to change. All companies have a business model, which explains the method of how they create, deliver, and capture value through their products or services. The focus of this article is on the customer component of the business model which comprises of customer segments, channels, and customer relationships. Customer segments describe the group in which the company is focusing to deliver the value proposition. Channels describes how the offering is delivered through communication, distribution, and sales channels. Finally, customer relationships describe how companies establish and maintain positive feelings and motive customers to act. An investigative study was executed engaging seasoned business advisors and brokers who possess expertise in the domain of small business exits. A collection of qualitative, open-ended responses for specific value creation recommendations were gathered, coded, and summarized. The result of this research compiles an extensive repertoire of tactics from experienced consultants designed to increase business value in the area of customer segments, channels, and customer relationships.
Keywords: business acquisition, selling a business, M&A, exit planning, business consulting, business for sale, entrepreneurial exit, business model
References:
Allen, K. (2015). Launching New Ventures: An Entrepreneurial Approach. Cengage Learning.
Glaser, B., & Strauss, A. (2017). Discovery of grounded theory: Strategies for qualitative research. Routledge.
Krukowski, K. A. (2024). Business advisor and dealmaker testimonies: deficiencies in privately held small businesses leading to failed M&A transactions. The Value Examiner, July/August, 4-9.
Krukowski, K. A. (2024). Examining the Business Model: Value Creation Strategies for Improving Financial Viability Before Selling. The Value Examiner, September/October, 16-23.
Krukowski, K. A. (2024). Value Creation Strategies for Improving Company Infrastructure in Advance of Selling a Business. The Value Examiner, November/December, 30-39.
Neck, H. M., Neck, C. P., & Murray, E. L. (2019). Entrepreneurship: The practice and mindset. Sage publications.
Osterwalder, A. & Pigneur, Y. (2010). Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. John Wiley & Sons.
This article (or a version of it) originally appeared in The Value Examiner, 2025 January/February issue, published by the National Association of Certified Valuators and Analysts® (NACVA®). All Rights Reserved. To learn more, please visit www.NACVA.com/ValueExaminer.
This article is being made available for educational purposes.