Many business owners lean on the DIY approach to strategic planning, integrating family into the business, succession planning, and positioning their business for sale on the open market. Where entrepreneurs are sharp in many ways, without outside help, they often suffer from being able to see the trees from the forest, which is the difference between hitting the nail on the head and missing the nail altogether.
In this episode, Doug Woosnam, a consultant with Cetane Associates, shares that the DIY approach goes back to the fact that owners are entrepreneurial people who have made all the decisions. Generally, they have done them very well within their scope of expertise. However, that doesn’t always lead to success, and it highlights the need for professionals
If you want to sell the business, it is naive to think you can decide one day and put the company on the market the next day. Whatever you do, it is essential to have a plan; and know what you want. For example, If you considering selling, WHY? Is it the cash, industry too tricky, or no successor? If you don’t want to sell, there are ways to strategize around your issues. But if you want to sell, it still requires a strategy and plans to position your business to maximize your life’s work.
Clayton Latiolais with The Rawls Group advises starting at the 3,000-foot strategic level and working toward achieving three key objectives. He often sees owners getting caught up in the day-to-day weeds versus looking over the horizon towards the future.
Planning is a buzzword that often gets stuck in a business owner’s head. Marty Kirshner, Partner with Gray, Gray, and Gray, shares that having an idea is great, but an idea doesn’t turn into a strategy until it is put to paper; discussed with advisors to identify pros and cons and provide creative problem-solving to achieve the vision.
One of the biggest misconceptions of business owners is they think they have it done. Champ Rawls with The Rawls Group shares he has heard numerous times, “I got that agreement with my partner, we will figure it out,” and then a $500,000.00 litigation suit arises with your partner, and the attorneys are the only ones winning.
Leaning on an expert’s insight means getting the team around you that can help you, which is essential to growing, transitioning successfully, or selling at the highest possible multiple.