The traditional artisan is a skilled craft worker with significant experience and aptitude that is utilized to create unique, handmade goods. The use of artisan branding has become popularized in recent years to symbolize quality in breads, cheeses, wines, beers, furniture, jewelry, and many other non- and semi-mechanically created products. Branding aside, however, artisans, as craftsmen, create a product from distinctive raw materials that a machine cannot replicate.
Measuring and managing value in a business is quite similar in that every business enterprise and ownership situation is unique. By attempting to oversimplify and mechanize the process of understanding value through inputting key financial data into a model, with no regard for the nuances of the business and the situation, value is missed.
Additionally, artisans are highly practical and skilled in using the most appropriate tool for the job. The valuation report – whether it be a three-page letter or an 80-page report – is generally viewed as the valuator’s product. As artisans, we look at the report as the tool to disseminate information, not the product itself. The actual product is a quality opinion of value and accompanying advice. As a tool, the report should fit the job, whether it be a general sense of value for the owner looking to sell a business in a few years or a highly defensible report for litigation or for a material gift with the expectation of IRS scrutiny.
Finally, artisans bring a high degree of passion to the job that cannot be replicated by a processor or machine. Their human touch ensures that the details blend well together to create a superior product or service which creates a unique experience and tells a compelling story.
We believe that these three tenets of traditional artisans – experience to understand the nuances, using the right tool for the job and bringing passion to every project – are imperative to measuring, managing and protecting value and are thus embedded in our company’s name.
In our next posting, we’ll share our use of the word “Value” in our name and why value is so important. Until then, we invite you to share your thoughts and create a discussion below.