 I moved from working in my business to working on my business!
Jim White, Founder Savor Dallas http://www.savordallas.com |
 I found a community of business leaders who make being in business a lot more fun and less lonely.
Jeannine Sandstrom, CEO CoachWorks International, Inc. http://www.coachworks.com |
 I now have a place to be open about my business success and future challenges.
Debbie Mrazek, CEO The Sales Company Author The Field Guide to Sales http://www.the-sales-company.com |
Archive for the ‘strategic planning’ Category
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By Jeff Becker
Selling your business is something that most business owners do only once in a lifetime. So how do you make sure everything goes well? Many business owners consider working with a business broker, an expert in selling businesses, to make sure they maximize the sell price of their business. Is this always a good idea? Lets look at the pros and cons of working with a broker:
Why you should work with a business broker when selling your business
1) A broker has (hopefully!) sold many businesses for prior clients, and you can use that expertise to learn the basics of the process and avoid making careless mistakes.
2) They can act as a facilitator to the transaction, making sure that negotiations go smoothly, the transaction proceeds at the right pace, and that the business is ultimately sold with all parties satisfied.
3) A broker may reduce your upfront costs of selling the business, as many brokers will pay for creating sales collateral and advertising the business at their own expense in exchange for a fee when the business sells. They also may have insights as to what advertising mechanisms deliver the best “bang for the buck” to make sure as many potential buyers as possible are exposed to your business.
4) They can provide expert advise related to market conditions and can help evaluate potential offers to buy your business. For example, a business broker will typically provide a free initial estimate of the sales price of your business, and can provide information on what similar businesses may have recently sold for in your area.
5) A business broker can help preserve the confidentiality of the sale. By having a third party involved, buyers can interact with the broker instead of the business owner, making it easier to protect the identity of the business for sale.
With so many good reasons why a broker can help sell a business, no wonder that most businesses that are sold ultimately involve a business broker. However, there are downsides to working with a broker that a prudent business owner should consider.
Why you should NOT work with a business broker when selling your business
1) Business brokers may charge a large commission. The amount of commission varies based on many factors, such as the ultimate sales price, geographic location, and the skills of the broker. For a “main street” style business selling for less than a million dollars, it would not be unusual to see between a 10% to 20% commission fee. Some brokers will also have a guaranteed minimum, on the order of $10,000 or $15,000. You should only hire a business broker if you believe that the time and effort involved justifies this price, or if you believe they will raise the selling price by more than the amount of their commission.
2) A great broker is worth their weight in gold, but a bad (or even mediocre) broker costs far more than they are worth. In many cases, the sale will be lost due to incompetence on the part of the business broker. If you are not confidant that the business broker can not only increase the transaction value, but can also increase the chances of actually getting the business sold, then you are probably better of managing the sale on your own.
3) Do not work with a business broker if you go into the transaction not knowing what you want out of it. Many times business brokers will contact you proactively, letting you know that there are buyers interested in buying your business. Selling a business is a big decision, and one that you should enter into with a great deal of care. Make sure that you are talking to a broker because YOU made the decision to sell, and that you have properly educated yourself about the process and the ultimate consequences of your decision.
Working with a business broker, when done properly and for the right reasons, can be a great benefit to selling your business. By educating yourself about the different factors involved, you have taken an important first step towards getting your business sold. Best of luck!
Jeff Becker has bought, run, and sold his own small business using a business broker. He subsequently became a licensed business broker and has advised both small business and Fortune 500 companies on business transactions. He provides insights to the business broker world to business owners interested in selling their business through his website, Business Broker Secrets, at http://www.businessbrokersecrets.com
By Dave Guerra
Disasters can occur at anytime and anywhere. When they occur they are usually unplanned or when notice is given it is usually not much. You can prepare for just about any disaster by having a Disaster Recovery/Business Continuity plan in place and ready to roll at sign of the first raindrop. What people usually do not prepare for is how to act the moment a crisis begins be it natural or man-made.
The old Rudyard Kipling quote, “If you can keep your head when all about you are losing theirs…yours is the Earth and everything that’s in it, and — which is more — you’ll be a Man, my son!” should serve as a prime example of why remaining calm will lead you to a place that other men and women can only imagine.
Remaining calm during chaos will work in your favor when you need things to get done. Not only will your ability to remain calm serve to calm others but will also make you the person that people will turn to because of that ability. It may be difficult at times, especially when the severity of the situation may be more than you have ever faced. You will have to reach deep inside yourself and find the strength to get past the surreal situation you find yourself in and put on a brave face.
The first thing you will need to do, as part of a leading in a time of disaster is to get information. The task at hand will be to determine what the exact situation is, not what someone thinks it is, and especially, not what someone else heard it might be. Therefore, it is imperative to gather all the information that is available and the information that is secondhand should be confirmed as quickly as possible. Provided that no one is sick or injured as a result of the initial onset of the situation then it is imperative to get people focused on what needs to be done and get their minds off the initial shock of the situation. You will need to assign specific tasks. Initially, this will focus on the people around you being the ones that will provide you with the information you need. Assigning such tasks should be based on their ability to gather and deliver the necessary information. If you are looking for an update on the status of supplies available then someone working in the warehouse or storeroom should be tasked to provide that information, if you’re not sure on whom to call upon, ask for volunteers.
Keeping everyone focused gives everyone an opportunity to alleviate some of the stress and anxiety they may have, as it will help them voice their concerns along with critical information about the situation. Keep in mind that collecting information initially should come from direct observance of the unfolding situation, outside sources such as television and radio, feedback from individuals that are present and any historical data available about the present situation. Thus, it is important to get as much firsthand information as possible and limit the amount of second- and third-hand information you are willing to accept, as second- and third-hand information will take time to verify. As a rule of thumb, if it takes more than 5 minutes to confirm then don’t use it, as it may be information that is wrong or already out-of-date.
Having collected your data now you will have to act fast in processing information and developing the plan by which to act on. Depending on the severity of your situation you will need to determine what you will be able to do what you will definitely not be able to do, what can possibly be done, and what you would like to do. As the situation may be continuing to unfold, the development of any plan should definitely take into consideration the current situation and possible outcomes that are both short- and long-term and in some cases post-disaster considerations should be included.
During this time information could still be coming in and will continue to impact your ability to make a plan. At some point you will have to draw a line and say to yourself no more new information will be accepted and the plan will be made based on the information available. When putting the plan together, you will not have the luxury of time, as in most cases things are happening fast and changing constantly. However, just as it is essential to make a decision as fast as possible it is equally important to not make hasty decisions.
Making hasty decisions will lead to outcomes that might have been avoided provided there was a bit more time to process the information that was available. Therefore, avoid making any decisions or plans until you have enough information and can no longer wait for any more information to come in. While there never is really a good time to make a decision and you will never have all the information you need, a decision still has to be made. At this point, you must now make a decision that will affect everyone involved. Be sure to include everyone that is available and able to do something in the plan.
The plan should be designed to keep everyone focused and centered on what needs to be done and hopefully, not on what has happened. If everyone can participate and contribute then all the better, however, be careful when there are not enough tasks to go around. Those without something to do should be monitored to ensure that they do not create a negative atmosphere that can demoralize the rest of the group.
As a leader, your responsibility is not only to ensure that what needs to be done gets done but also to keep everyone motivated, as having a negative atmosphere will defeat any morale building activity. Therefore, ensure that a negative or a defeatist attitude is addressed as quickly as possible. By having everyone on the same page and working towards a common goal will ensure that whatever you are trying to accomplish will get done.
After making your decision, it is time to put the plan into action. Assigning specific tasks ensures that everyone understands what needs to be done. It is also important that everyone understand what is being asked of them. It is imperative that everyone is fully aware of your intent, if they do not than it is up to you to explain it to them quickly, concisely, and that they can say what it is back to you. As with any assignments, it is important to have measures in place that will notify everyone as to whether the tasks are on track to be accomplished properly or are they creating more trouble than what they are trying to accomplish.
By monitoring the activities of everyone as well as getting feedback from the participants themselves you are then able to adjust the assignments as necessary. Additionally, you should be able to fine-tune the plan so that it conforms to any changes in the situation. The trick here is to find the point by which you not only stay up to date with the evolving situation but you can even forecast actions to be taken.
At some point, you will be able to relax and have the time to reassess the situation as the initial crisis state has passed. In the event of a natural disaster, this means that the initial shock has passed and while destruction may still be occurring, time has elapsed which will enable you and your team to reshape the plan to gain greater ground on what needs to be done. In the case of a man-made disaster, short of a nuclear accident or event, the initial chaos may have subsided. You and your team definitely can proceed in a slower and more deliberate pace, that way what was initially missed or overlooked can now be addressed.
Leading in a time of disaster is not something that can be practiced; it can be simulated. Simulation will only go so far because once it hits the fan all bets are off. As part of any disaster recovery or business continuity plan be certain to include time to go over any possible scenarios and what your reaction will be. No matter how horrific or surreal things may be you will need to remain calm, stay focused, and above all be the leader. You may be called upon to do things you would never do in everyday life but then again natural or man-made disasters are not an everyday occurrence. This is where planning and preparing now comes into play, so always remember and never forget what someone once said: “Sweat more today and bleed less tomorrow.”
Dave Guerra
Owner The Dave Guerra Company (http://www.daveguerra.com)
Dave Guerra invites you to find out how providing Information Technology Leadership and Management greatly enhance return on your technology investment. The Dave Guerra Company helps small to medium sized organizations get their message out via the use of Internet Technologies utilizing new media tools such as Web2.0 and the emerging Web 3.0 technologies. Find out what The Dave Guerra Company can do for you, your organization, and your Information Technology investment.
(c) Copyright – David G. Guerra. All Rights Reserved Worldwide.
By Jan Richards 
Your vision of the future – whether it’s positive or negative – is a much more powerful factor than you might ever guess in helping the shape your future success.
A vision that works motivates the person or group who hold it to take action to make the vision come true, no matter what obstacles they find ahead.
Effective visions are ones that appeal powerfully to both emotions and logic.
Discover, express and focus on a vision of the future that’s clear, positive, compelling. Think of creating your vision as a way to “pre-experience” success, in detail. Think of the vision, itself, as a snapshot or preview of the future you are creating.
Here are tips about how you can create your team or individual vision:
1. Create the time and space for it.
You need time to relax and let ideas flow. That requires time and space away from the pressures of the regular workday. Schedule the time in advance.
Create an environment for the visioning work that’s free of interruptions and enables you or you and your team to think expansively, clearly, honestly, creatively.
If you’re working with a group, engage a good facilitator if there’s no one in your group, presently, who has those skills.
2. Envision a compelling future.
Start by setting a target date by which you hope your vision will be real. Perhaps that’s 5, 10 or more years away. Whatever it is, make it a specific date.
Next, imagine what you will have achieved by this time. Imagine in detail. “Be there now.”
If it is a business vision you are creating imagine what your customers, collaborators, and competitors are saying at this future time about you or your group, your results and how you created them:
- When you see and hear their reactions, what do you like?
- What do you want to change, about what they are saying about you, in that future state?
Now, as you imagine being in this future, imagine how you feel about what you have achieved by this time:
- What do you like best?
- What do you want to add or change?
3. Capture and sort the input to create the vision.
Capture the ideas you’re generating in writing or graphics, whether you’re creating your own vision, or working with a group.
Sort the information in some easy way as you move through the process. You can use mindmaps, clustering techniques, or structured brainstorming exercises.
You can also create a graphic template ahead of time of a metaphor you want to use to catch and organize the ideas that lead to your ultimate vision. For example, some people use a metaphor of taking a journey, mountain climbing, surfing, or building a city. There are many other metaphors you can also use.
4. Refine and post the vision. Then follow up.
Take the visioning work you’ve done, and distill it, whether you’re working on your own, or in a group.
Produce a simple final vision statement or graphic.
Post the vision in a prominent place where you or your team will see it regularly. That may be a physical space, or if you’re working as part of a virtual or dispersed team, post it on an online space you share.
And now I would like to invite you to claim your Free Instant Access to “Firewalking: Leading Teams Successfully Through Uncertain Times” when you visit http://www.jgrichardsresults.com from Jan Richards, J.G. Richards Consulting – Turning Business Goals Into Great Results.
Thirty years ago, of the thirty companies that made up the DJIA in 1979 only 10 of those companies still make up the Dow today. Some of the largest Corporations that make up the Dow today measured by market capitalization didn’t even exist thirty years ago, notably Microsoft Corporation and Intel.
On the fortunate side is opportunity. The bedfellows of opportunity are both innovation and project management. Quite possibly why they have the opportunity to work so well together is linked directly to the Corporate Culture, accountability and sound business decisions.
How do large companies grow and prosper and why do others stub their corporate toe? Let’s take a quick comparison look at General Electric, RCA and Eastman Kodak. General Electric joined the Dow in 1907. Today, along with appliances and consumer electronics, they are in consumer and corporate finance, health care, oil & gas, rail and security and aviation among others.
The subject of the General Electric entry into the aviation industry represents a great Business Case study. Leaving the issue of start-up capital aside, how would it ever be possible to compete much less become a world leader in the manufacture of jet aircraft engines? It was truly a monster of an undertaking. Was it realistic to even try to take market share from both Pratt & Whitney and Rolls Royce? The engines of Jet aircraft worldwide carried either the Pratt & Whitney eagle in flight logo or the Rolls Royce double R.
It would have been very interesting dialogue at the GE Board level when their Senior Management made their initial Business Case Board presentation. The answer came from in depth Market Research and innovation and the answer was also driven in part by their Corporate Culture and mission statement to “Harness the power of the imagination to make life better for our customers and consumers worldwide” a veritable green light.
General Electric thinking moved ‘outside the box’ and away from the actual unit cost associated with the manufacture of a traditional jet engine as a key driver. GE saw an opening. With GE innovation their focus shifted instead to the operating efficiencies side of the product itself; noise abatement, engine thrust and fuel consumption – a great success story.
The GE move into new businesses provided them with the financial flexibility to become less dependant on their original core businesses and a shift in corporate culture.
Not so successful was RCA Corporation, which was originally started by General Electric in 1919, then spun off. Over the next 50 years RCA initially grasped the market for broadcast and commercial radio point-to-point transmission through NBC Radio Networks till the monopoly was broken up by antitrust legislation. Like GE, RCA then moved further afield with successful innovations in key technological advancement areas. Fuelled by an almost endless list of electronics innovations RCA then became a Dow listing and subsequently grew into one of the largest companies in the world. 30 Rockefeller Plaza in New York, the Corporate Head Office of RCA became known as the RCA Building.
Broadcast radio and recorded music (RCA Victor and Nipper the Fox Terrier logo) were the lynchpins followed by RADAR, television, first black and white then color TV, then HD-TV to name a few. The old Indian Head TV test pattern was created by RCA. The RCA color-TV and RCA television cameras and were adopted as the standard in broadcast TV technology for American color TV transmitting and reception by the NTSC. In addition to broadcast television, the electron microscope, Radiotron vacuum tubes, LCD’s, VHS-VCR’s, HD-TV’s, satellite systems all found their genesis at RCA.
The story of the meteoric rise of RCA Corporation was also the story of David Sarnoff, his drive and leadership which permeated the entire fabric of RCA. Just at a time RCA thought they could do no wrong Sarnoff was succeeded by his son Robert the downward spiral began (early 1970’s). Robert Sarnoff took RCA in another direction. RCA then embarked on complete departure from their core competencies of electronics and communications with the acquisitions of Hertz (rental cars), Coronet (carpeting), Random House (publishing), Gibson (greeting cards) and Banquet (frozen foods), all of which created a serious drain on the availability of research capital and a very real distraction from their traditional businesses. With the distraction came mistakes, an open door to the competition and the ultimate slow road to self destruction. RCA was taken over in the late 80’s by GE, broken up and sold off in pieces. RCA exists today only as a trademark. RCA Victor Talking Machines and RCA antique radios remain as collector’s items. Nipper is no longer listening to ‘His Master’s Voice.’
Eastman Kodak was replaced on the Dow in late 2005. With a loose application of the GE model there is some general agreement that they were slow to react and diversify. For decades Eastman Kodak was the undisputed market share leader in all segments of the photography and photofinishing industry. The early warning signs were there however, even as far back as 1973 when Paul Simon, in his song ‘So Mama Don’t Take My Kodachrome Away’ maybe recognized the market dominance of Eastman Kodak and Kodachrome as the most famous and financially successful film of all time. What may have been overlooked however was Paul Simon’s not particularly subtle reference in the song to his Nikon camera.
Today there is no question that Eastman Kodak is a very different company than it was in those days. They no longer manufacture either film or cameras with the exception of the disposable camera. Through Unified Workflow Solutions in their Graphic Communications Group (GCG) they are into Graphic Design, Digital Imaging, digital photography and digital imaging solutions. Again, very different company with very different products but what was lacking in both RCA and Eastman Kodak was the drive and vision of a David Sarnoff.
What was very similar to all three were the marketplace dynamics. Quality produce solutions manufactured in South East Asia in countries like Japan, Hong Kong and China were flooding the market. Neither RCA nor Eastman Kodak had viable solutions. Forward thinking Strategic Planning driven by qualitative market research has been the enduring GE corporate culture of Business Process Re-Engineering for over eight decades. The ‘catch-up’ game is indeed a very difficult game to play. It boils down to a ‘proactive’ strategy versus a ‘reactive’ strategy’ and the difference between the two strategies has defined GE, RCA and Eastman Kodak.
Bob Ferguson is President/CEO of BTG-Business Transitions Group Inc.
http://www.businesstransitionsgroup.com
BTG is a leading provider of Business Process Management tools and templates. Bob Ferguson has had a business executive career that spans 33 years with the most recent 15 years as President/CEO of a broad cross-section of companies in the United States, Canada and Overseas.