Recently I was a guest on Lauren LeMunyan's Spitfire Podcast.  Lauren and I are both coaches who work with executives to become consciously profitable.  The question is, how?

Leaders who are executives and business owners have to keep up with legislation, maintain profitability to retain value within the company, and rely on people to make those things happen.  As if that isn't tricky enough, those leaders have to lead people who, in 2021, are dealing with the pandemic - working remotely and isolated, while dealing with the social reckonings of the lack of equity, inclusion and diversity.

No one wants to be part of the problem.  Everyone wants to offer a solution.  What is a leader today to do?

In this interview we talk about legislation that is in the Senate for committee review that will impact M&A activity for startups.  We also tie it to the questions that Victoria M. Grady poses in a recent article for leaders who want to be value added to their teams in transition.  Finally, we discuss our upcoming webinar, "How To Create A Psychologically Safe Team" on Monday, April 12th, 2021.  In this webinar we will discuss:

Picture this - you’ve worked for years to build your business.  You hope to retire in the next five or six years.  You will use the money from that sale to buy the family a relaxing cruise, invest some for retirement and finally, do what you want to do with your time.

Sounds lovely, doesn’t it?  Unfortunately, for many who hold that dream dear, it doesn’t work out that way.  It happens for a lot of reasons.  Sometimes, the market conditions aren’t right.  At other times, owners get in their own way.

Today you have the chance to get the insider view of the transaction at the point of choosing the best fit buyer.  Dan Scherotter, a broker and strategy consultant with Filament Business Advisors, has a background in the restaurant industry.

Dan is a former chef and restaurant owner.  Dan has a finger on the pulse of the restaurant industry.  As a consultant and broker for Filament, Dan is going to discuss with me the unique aspects of selling a restaurant, asymmetrical buyers and how the past year has “laid the industry bare” structurally.

First, you need to sit down and define your priorities.  What do I mean?

Many owners don’t know what they actually need to realize from the sale of their business.  Sounds crazy, doesn’t it?  But, it’s true.  I recently heard of an owner who thought (no data, just thought it) that he/she needed to walk away with $3M to be comfortable in retirement.  As it turns out, $2M was the magic number and that business sold and the owner was able to take an earn out for a larger purchase price based on forecasted earnings.

Think about your other priorities:

These requests are reasonable if they are presented in a professional manner and the owner has created a strong position as a valuable company.  The likelihood of those priorities being accepted depend on the value of the company, and the timing of the ask.  This is another incident where the right advisor is critical.

Let us know what you think: Wendy Dickinson, Ascend Coaching Solutions, 804-372-7575, [email protected]; Dan Scherotter, Filament Business Advisors, 804-728-1553 [email protected]

Today we look at the process of selling your business.  You may hear of this process referred to as The Deal or the Transaction.  Your deal, or transaction, is the culmination of your years of hard work, blood, sweat and tears.  The amount of money you walk away with is dependent on a number of variables.  I hope that your biggest takeaway for my shows this month is that preparation is your key to successfully selling your business.

Selling your business is a process.  Today, I want my guest to give you a peek at what happens behind the curtain of the deal.  I want you to be ready for the business colonoscopy.  I want you to be so prepared, so ready, that you don’t feel a thing!

We’re going to talk about the things owners do that get in their own way, that they do wrong, or how they subconsciously sabotage the entire deal!  This happens all too often.

KEY ISSUES: Problems You May Encounter:

In my experience, these are the obstacles that owners don’t prepare for, lead through, or navigate successfully, during the transaction.

1.   Owners don’t really know what their priorities are before they begin the transaction process.  It is too late to think about the well-being of your employees once the purchase agreement is signed.

2.   Owners don’t think about who their ideal buyer is or what their attributes should be.

3.   Owners don’t really know how much their business is worth.  Michael recommended the Goldilocks method - ideal price, acceptable price, minimally acceptable pricing.  It is very important to get the pricing right, to attract the interest that you want.

4.   Owners have built the entire business around the owner.

What You Need To Know - THE WHAT:

Folks, you need to know what other companies in your industry and in your geographic area are selling for – I encourage you to do some market research.

If you belong to an association, ask for the names of other owners who have successfully sold their company. Get in touch with them and find out what their experience was like and what they would do differently if they could have a redo.  I also recommend that you listen as closely to what isn’t said as to what is said in those conversations.

Next, make sure you build relationships with advisors who have had experience as part of a deal team.  That experience will be a huge source of strength during the transaction process.

Almost every deal has moments where the door opens to renegotiate the purchase price, or an accounting practice is questioned, etc.  you want your advisors to be calm, professional, and to add value to your position, not detract from the value of your company.

Here are the steps that Michael outlined for your transaction:

Michael Mitchell, Business Research Group, [email protected], or 1-804-381-6667.  Visit Michael’s website here.

A lot of you plan to sell your business one day.  However, the odds of successfully selling your business are against you.

Did you know that there are ways to stack the odds of selling successfully in your favor?  Today Mike Metzger of Murphy Business Sales and I discuss the steps that you can take to prepare your business to go on the market.

We look at the things that you can do to build value in your business.  We discuss the most common mistakes that business owners make when putting their business on the market.  Mike and I want you to know what you don’t know.  What you don’t know can definitely hurt your business.  Finally, Mike and I share our recommendations for steps that you can take to prepare your business to sell, and then integrate successfully once it’s sold.

I think you’re going to want to take notes!

SHOW OBJECTIVES: THE WHY

KEY ISSUES: Problems You May Encounter:

What You Need To Do - THE HOW

Resources:

COVID19, racial reckoning, economic uncertainty, the upcoming election….

Each is a complex, impactful occurrence.  Together - the challenges keep every business owner ready to take up the fight, flight or freeze reaction in our reptilian brains.

McKinsey recently reported that some industries will take up to five years to recover.  Others were able to pivot and navigate the new government recommendations with some success.  In the messy middle are those businesses that are working through the complexity one step at a time.  The small businesses have sustained most of the economic punches of this crisis.

Each owner’s experience is different.  So, take what we talk about today with the knowledge that there is no silver bullet, or one size fits all or a magic pill.

Key Issues - ​Owner Perspective:

What You Need to Do​

Any business owner will tell you that owning your own business is a lot of work.  If you listen to stories of the how and why of different businesses, it will amaze you to hear the twists and turns that a lot of people have gone through to get to that place.

Business owners are as varied as the different types of businesses.  They have different reasons for getting into business - some are moving away from a career they didn’t like, or are moving toward the start of a great idea.  They have different experiences with work, consuming products and financial resources. They also have different levels of tolerance for risk.

But, how can you mitigate your exposure to risk?  Many believe that franchises are the way to go.

Today we look at franchises with one the most successful franchise experts in the country, Gus Iurillo of The Entrepreneur's Source.  Gus will give us tips for choosing a franchise, and what to watch out for.

Failure is possible.  Franchisees do fail.  You have the opportunity to determine what those possible failure patterns are and take steps to guard against them.  Here are just a few:

Gus has developed a process for his clients to follow.  He guides them through the decision making process.  Gus and his clients look for fit, adequate resources, support offered from corporate, etc.

What You Need To Do - THE HOW

At this point, I have to recommend Gus Iurillo of The Entrepreneur’s Source.  Connect with Gus on LinkedIn here.  You deserve to succeed.  Set yourself up for success.

Resources:

This episode is from the Catalytic Conversations aired on IBGR.Network every Friday at 2 pm Eastern.  This was the Season 4 opener.  Let me know if you liked it, have questions, or suggestions for other topics you'd like to hear more about.  Thanks for listening!

Creating a family legacy is hard work.  Fewer than 20% of businesses make it to the fourth generation.  Why is that?  What contributes to the failures from one generation to the next.

A favorite resource is the PWC Family Business Survey series.  Today was take a look at the challenges for those in power to prepare the next generation for leadership.  Using the PWC Global Next Generation Survey from 2019, we will start off with a few discussion points:

You, and your family, have dedicated significant resources to building the minds and confidence of your Next Gens.  But, are you willing to take this a step further – actually several steps further?  By designing a succession plan?  By creating a list of company needs that you present to the Next Gen to explore fit?

It takes courage and patience to hold the space for the growth and development of the Next Gen.  Identify learning and experience goals that yourNext Gen leaders can use to fill their knowledge and experience gaps.

You can connect with Wendy Dickinson on FB, LinkedIn, and Instagram.  Visit IBGR.Network to download the full set of show notes.

Have you forgotten what it felt like to start your business?  I’ve lost count of the number of business owners who have said, “If I had had any idea how hard it would be to get this business where it is today, I’m not sure I would’ve done it.”

Business owners usually nod their heads at this.  Yes, it was hard.  But, you learned a lot.  Many of the lessons learned at that point in the business get lost or forgotten as the company grows.

We’ve talked about innovation and disruption as well as pivots this year.  The pandemic emphasized the importance of scenario planning and contingency plans.  A number of businesses have gotten really creative and changed the way they do business.

How do mature businesses reconnect with that entrepreneurial spirit to reinvent the product, product delivery or the business model to compete in this marketplace?

My guest today is Mavis Tang of Soundé.  Mavis and her co-founders have brought a new product to an old market. I believe in their mission, vision and value proposition.  I invite you to listen to the path Soundé took, and let the possibilities for the future wash over you as you reimagine the business you lead.

This episode is from my weekly radio show on IBGR.Network.  I hope you enjoy it!

This was a special episode from my weekly radio show, Catalytic Conversations, on IBGR.Network radio on Fridays at 2 pm Eastern.  Vince Burruano, VP of Sales for the Commercial Division of JK Moving, is a leader to learn from - you can download the full show notes at IBGR.Network.

I’m currently working with several companies dealing with sales team crises.  One company has had three hires for the sales team without any success.  Another has had a sales manager who was successful pre-COVID and finds the current business landscape so difficult, he’s no longer able to lead.

I invited Vince to give us a snapshot of his innovative approaches to building a successful sales team.  Vince is a lifelong learner who is a student of leadership.  This was a valuable hour for picking up new ideas.

You are all here to learn.  A lot of you, like my clients, learn best by first hand experience.  Is it really necessary?  Vince is here to help you learn about the importance of sales leadership in growing your business.

Today you have the chance to learn through another leader’s experiences – saving you time, money, and energy.  I’m always happy to learn from someone else’s examples, aren’t you?

Vince outlined a number of steps to consider taking when evaluating your business talent needs: