• Simon Zryd

Value Driver 3: The Switzerland Structure



Value Driver 3: The Switzerland Structure

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This structure gets its name from the country of Switzerland. If you know any about the history of Switzerland it's pretty amazing. They've taken this obsession with being independent.

They didn't join either of the two world wars. They didn't send troops to Iraq. They didn't even join the United Nations, if you believe this, before a referendum the entire country to decide whether to join or not – they ultimately did.

It shows that as a country they're obsessed with this independence and not being overly dependent on any one faction or regime so to speak. That's essential for building a sellable company: that independence of any one constituency and the three most important groups you've got to make sure you are independent of are:

  1. Customers. So you can't have an overly concentrated customer set. You've got to have good diversification among your customer set.

  2. Employees. To be overly reliant on any one employee.

  3. Suppliers: This one is sometimes not as intuitive as the others. You can't be overly dependent on any one supplier either.

So, customers, employees, suppliers, you've got to be independent of those three. From a buyer’s perspective, if they see that you're overly dependent on any one of those constituencies, they're going to discount the business because it's just too risky for them.

To improve your score, you've got to make sure that you have good diversification in your customers, make sure you're not overly reliant on any one employee and you get diversification in your suppliers as well.

To get more in-depth information on all of these 8 value drivers, you can click the link here https://www.denverbusinesscoach.com/8vdebook and download a free eBook we put together for you.

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