There are many attributes to creating a successful, long-term business. Whilst no one attribute makes a business successful, culture is very important in bringing various components together. The business needs to develop loyalty from team members, suppliers, customers, management, directors and owners.
There are marketing tools which can assist in the creation of a caring culture within an organisation, including:
- Use of customer database.
- Surveying customers on what they like and don’t like about the products and services supplied by your business.
- Keeping websites up to date, containing interesting articles.
- Testing the market and getting feedback on customers’ perceptions on new products and services.
The development of culture can also be enhanced by successfully developing alliances to other businesses. This might be businesses in different geographic locations or even businesses that are generally in the same industry, either suppliers or individual businesses offering services that your business doesn’t offer.
The development of an appropriate culture of courtesy and prompt response to enquiries is vital to developing long-term, strategic alliances for the benefit of the business.
You cannot measure culture and it’s difficult to identify what it is. However, it definitely comes into consideration when preparing a valuation of a business. It’s an integral part of the business’ goodwill. Some businesses can be valued at 3.5 times after tax profit. Others at 4. Some others get valued at higher multiples (eg 6 or 7). The businesses that get valued at a higher value normally have a very strong “culture” operating within the business.