Completing the Model 

  1. Rate each value driver on the four criteria – return, risk, time, and investment. The rating shouldn’t be considered definitive. Instead, the purpose of the rating is to allow you to loosely prioritize the potential actions you can take. This can help you focus first on the highest impact actions that present the lowest risk and that require the least time and energy to implement.
  2. Prioritize the value drivers based on their overall rating. Improving the value of your business shouldn’t be done haphazardly. Rather, it’s best to prioritize the potential actions you can take and then execute a few value drivers at a time in a systematic fashion. Most business owners take a hodge-podge approach to value maximization as opposed to a strategic, intelligent, and rigorous one. The objective of the RVD Model is to provide you with a structured framework you can use to increase the value of your business. In addition, the RVD Model helps prioritize possible actions you can take based on potential returns, the risk involved in achieving those returns, and the associated cost in terms of time and money.