Two Statistics That Should Drive Your Future Thinking

There are two statistics that probably won’t wow you in terms of fact but don’t seem to get the airplay they deserve when it comes to building business value for the future. And they won’t serve as “wow factors” in the annals of research, but based on the behaviors of many companies they seem to go overlooked.

Fact #1. The mortality rate among humans is running at right about 100%.

Fact #2. The perfection rate among humans is running at right about 0%!

Here’s what it should mean for any business owner (or team of owners):

No one really believes they’re going to live forever. But oftentimes the structure, policies, practices and culture of a company are designed around the current leader (or leaders), which probably makes sense if we’re focused on this quarter or the next one, this year or the next one.

But if we are to think long-term, we could – and should – be revisiting the way we’re structured and the culture we’ve created according to who the future leaders of the company will be. This creates a competitive advantage that will help us win for a long time, and builds value in the event we ever wanted to package and sell some or all of our company.

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As Seen in Automotive Buy Sell Report - Fostering an ownership mentality – drinking the organizational Kool-Aide

As Seen in Automotive Buy Sell Report - Fostering an ownership mentality – drinking the organizational Kool-Aide

Owning a business is not a simple task. Financial risks, anxiety over success, ensuring employees are taken care of, and all the tasks that go into leading and running a business are a heavy load for business owners. Add to this the continued rapid pace of change in our political, economic and technological environments creating more challenges, as well as opportunities.

Many entrepreneurs gain energy by taking on risk – it is the challenge that keeps them going, and we see this often with dealer principals. With this comes a very strong entrepreneurial focus – finding ways to revolutionize process and procedures to create more out of less, and taking exceptional care to nurture the appearance and brand of the organization.

Read the complete article on the Automotive Buy Sell Website website

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As Seen in Multi Unit Franchisee - Family Business Perspective Matters

As Seen in Multi Unit Franchisee - Family Business Perspective Matters

An owner's perspective about the purpose and who the business serves directly impacts culture, ability to recruit and retain good people, and drive performance - all of which influences customer perceptions, revenue, and profits. In the franchise industry, often times, multi-unit franchisees do not intuitively view themselves as a family business owner. This misperception can and does have an impact on overall business success, sustainability, and value

Read the complete article on the Multi Unit Franchisee website

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As Seen in Multi-Unit Franchisee - True Business Success Requires Liquidity

As Seen in Multi-Unit Franchisee - True Business Success Requires Liquidity

Everyone feels the liquidity pinch some time or another. Growth, acquisitions, internal investments, taxes, and bonuses take capital and drain liquidity. With all of these needs using up your cash, it can be hard to set some aside for a rainy day, but that's just what you should be doing to ensure the future success of your business, says Champ Rawls.

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As Seen in Multi-Unit Franchisee - Leading By Example: How to avoid Common Mistakes even Smart Leaders make

As Seen in Multi-Unit Franchisee - Leading By Example: How to avoid Common Mistakes even Smart Leaders make

There's no such thing as a perfect leader, but some leaders are indisputably better than others. Learn how to harness your strengths, and avoid common mistakes with these tips from leadership expert, Dan Schneider.

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Case Study – 50/50 Partnerships Impact Business Decisions

Industry: Franchise

Company Overview: First generation, multi-unit and multi-brand business across several state lines

Challenge: 50/50 first generation business owners. One partner actively involved in the day to day operations, while the other has become less active, yet very much involved in overall business decisions.

Second generation family members and a few “friends of the family” are becoming interested in the business. The partners have different opinions about the strategic direction of the business, compensation plans based upon their contributions, and the appropriate way to integrate and develop family member employees in the business. Partner conflict is impacting teamwork and performance.

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Is Your Business Vision Working for You?

Did you know that it is impossible to not communicate? In the same way, you can’t be in business without a succession plan. Whether or not you have spent the energy and taken the time to engage a host of experts to help you plan for the transition to the next generation of owners and leaders, you have a succession plan.

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Getting Comfortable with Your Exit Strategy

Before you can get comfortable, you first need to define your exit strategy. This means being able to define what your exit will look like and the range of options are broad and include:

  • Complete cold turkey break from operations
  • Exiting day-to-day management but continuing to have operational final say
  • Entrepreneur’s retirement: participate when you want to, and delegate decision making power to an individual successor or board of directors
  • Sale of the business
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Planning for the Predictable, Probable, and Possible

Former Secretary of Defense Donald Rumsfeld was widely ridiculed for his “what we do not know” response during a 2002 Department of Defense news briefing.

In part, Rumsfeld said about threat assessments, ‘As we know, there are known knowns; there are things we know we know. We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns - the ones we don't know we don't know. And if one looks throughout the history of our country and other free countries, it is the latter category that tend to be the difficult ones.'

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As Seen On Automotive Buy Sell Report - The Right Price is Set by the Market, Not the Value of your Emotional Investment

Seventy-five percent of family businesses - especially highly demanding automobile dealerships - do not have the 4Cs of Successorship: Capable, Committed, Competent and Community-minded successor. In such instances, selling the family business is a viable succession option.

With all the money that is being thrown at buying dealerships today, the value of dealerships is a common discussion item. In some instances where there is no locked-in successor, I am often at the table helping my clients consider if they want to cash in on this hot market.

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A New Frontier: Life After A Sale

Many of you have dedicated a significant part of your working life pursuing the American dream through business ownership. Some of you will pursue succession through family members or key executives and others believe a sale is the best exit strategy option. Selling your business is a viable succession option enabling you to harvest the fruits of your labor and investment as well as to take some chips off of the table. A few years ago, a successful client who is a franchisee in the Midwest chose to sell his business. I had the privilege of working with this couple to help them evaluate their succession alternatives. After considering several options, they ultimately concluded the best decision for them and their family was to sell the business.

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Exit Strategy: When Should I Consider One?

Technically, the answer is before you even open your doors for business (why go anywhere without knowing how you are going to get back?). Now I know that is idealistic to many of you as survival is your highest priority. Let’s face it, succession planning is a subject many business owners would rather not face. However, I submit to you that the earlier you begin the process, the less stressful the transition will be for you and all parties who are touched in some way by your business (employees, community, vendors etc.).

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Interview - Why Your Dealership Needs a Succession Plan in Place

Check out Jeff Faulkner's Interview on Car Business Today where he discusses why your dealership needs a succession plan in place. 

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How Financial Independence Can Impact Succession Goals

What is financial freedom? In the context of business succession, financial freedom means accumulating sufficient liquid resources independent of the business whereby the owner doesn’t have to rely on business profits to maintain their standard of living.  Why is attaining financial freedom so important for a business owner in a family business setting?

Developing wealth independent from the business is paramount to an effective business transition. Financial independence affords the owners freedom to transfer some managerial and leadership responsibilities to successors without fear of them burning the entire house down. In essence, you have the opportunity to see your successors in action and determine if and to what extent additional coaching and mentoring may need to take place.

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Family Business Issues - It's All About Perspective

"I cannot handle this anymore. Dad does not respect me. He questions my decisions, charges jet fuel and dinners with his friends to our credit card. I cannot stand this any longer." 

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To Create or Not Create a Succession Plan – That is the Question

On a regular basis, I get to talk with other succession planners. One of the topics that comes up frequently is the mindset a lot of business owners have in regards to needing a “triggering event” to prompt succession planning. The unfortunate thing about a triggering event is that it is usually just that, unfortunate. 

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Wal-Mart Approach to Succession Planning - Is There a One-Stop Shop?

As a business owner, many of your advisors may be offering succession planning services. Bankers, insurance agents, CPAs and attorneys are all promoting succession expertise within their menu of services. As a result, more and more business owners are approaching their CPA, insurance agent, investment banker or lending agent as if they are the Wal-Mart of financial and business advice. This corporate one-stop shop approach has investment bankers selling insurance, insurance specialists offering investment products, CPAs reviewing estate plans and attorneys recommending financial strategies.  As unnatural as this may seem, professional advisors are becoming more versatile than ever before, which is not necessarily a bad thing. However, it is important to remember that while they are offering advice that could leave you better off than you were before, it may still leave you short of your full potential.  

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(Mis)Perceptions About Change and Their Impact on Succession Planning

A friend who’s never been a client periodically calls me to ask my opinion about how he can implement the change he needs in his organization.  He usually ends the conversation with some slight variation of this comment:  “I don’t care what you say, how many times you say it, or how loud you say it.  People can’t and don’t change.”  

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Wimps Lose Out! Plan for the Future of Your Business

Succession planning is not a project, but an ongoing process requiring strength, resilience, and sometimes pure guts! Here are some steps to help you navigate the process of planning for the future and continued success of your business. 

  1. Develop a Vision – Affirm the concept that “the end must justify the means,” and take the first step for planning for the future of your business by developing a vision. This vision should be an inspiring and motivating mental image of what you want to see happen in the future such as: 

    • In 10 years, I want to be cruising on the Riviera while my business remains profitable! 
    • I want to build x-amount of value in my business so I can sell it by 2030 and live off the proceeds! 
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Rediscovery: The Secret to Life Transitions

Regardless of the kinds of activities you follow – sports, music, movies, politics, etc. – you’ve probably wondered why some people hang around for so long, and sometimes too long. Brett Favre may have played one season too many. Frank Sinatra may have sung a few years too many. Why it happens is fairly simple; and how it happens should be a lesson to all of us. 

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