Insights

interVal - What’s in a name?

Written by Trevor Greenway | Jul 26, 2024 3:51:52 PM

Naming a company might seem like a small task, but it can be quite significant. Sometimes, we don't put much thought into it. For instance, my 7-year-old wanted to start a lawn-cutting business, and I couldn’t have been more proud of his entrepreneurial spirit. While he was big enough to push the lawnmower, turning it was another story. So naturally, he found the cheapest labor he could find—his Dad—who would work for free. Thus, “Greenway and Dad Landscaping” was born. A not-so-subtle reminder that it was his show and I was just the muscle.


That name was easy and didn’t need to be complicated. Naming interVal, however, was a different story. It has taken on new meanings as we’ve delved deeper into our verticals.


The Meaning Behind interVal
Let’s address the elephant in the room: “Val” obviously stands for valuation. However, I caution you against focusing solely on that word for two reasons: 1) It doesn’t mean what you think it means, and 2) The other part of the word is much more relevant.


What is valuation? Think of it as a broken clock—except it’s never right the second time. It’s a moment in time, reflecting all the work a business owner has put into the business, coupled with market factors, calculations, and the underlying business health that feeds into a number or range. Is it important? Sure. Is it the be-all-end-all? Absolutely not. It matters because it influences behavior when it’s democratized. Understanding what goes into it and how it impacts “value” tends to drive changes in behavior. That’s why valuation matters.


And it’s not just for business owners. Knowing the number impacts how your advisors can help you grow and protect your wealth. Risk mitigation and future state planning are influenced by knowing the number. The number alone means nothing—it’s the power that comes from the knowledge surrounding the number and how you can influence its continued growth.


More Than Just Valuation
InterVal isn’t a valuation platform—it’s an INsights platform, with valuation being just one of those INsights. But that one INsight (valuation) is really the culmination of a series of other INsights into something that people care about and understand. However, the other INsights are even more valuable and can easily be influenced, ultimately rolling up into an increase in the valuation itself.


You might be thinking I take too much liberty with capital letters. I accept that criticism. I’m simply pointing out that we may be focusing on the wrong part of the word “interVal.” “INsights,” “INTERactions,” or even “INTERacting with one’s valuation at regular interVals” (see what I did there), there’s a lot going on here. I must admit, the word insights is beginning to get overused in the market as well. But until we come up with a better word, it’s the most accurate.


Insights and Interactions
At its core, we believe business owners and their financial advisors deserve access to embedded SMB health analysis at all times. This includes visibility into the ever-changing value, the drivers of that value, the leading indicators of future value, opportunities for product placement, advisory engagements, wealth extraction, and everything in between. I’ve written before about “don't just give me data, I don’t have enough time for that; tell me what it means.” Let’s tie that into today’s discussion: people don’t want to just interact with data or a number—they want to know what those numbers mean for them. Is it an opportunity? A risk? What can they do about it?


This applies to both business owners and advisors. They are on the same team, and the advisor has a vested interest in the business owner’s success. To achieve that, we must create efficient interactions when time for both parties is extremely limited. Automating that, at regular intervals, seems like a great place to start.

 

Author: Trevor Greenway