Friday, March 05, 2010

Business Transition Crisis

It's good to be back after an intense conference and learning period in Spain followed by a few days of rest and relaxation.

Certainly helps with one of my success habits, waking up early (by having a six hour time difference).

I read Wayne Vanwyck's book Business Transition Crisis - Plan Your Succession Now and Beat the Biggest Business Selloff In History.

Wayne is an acquaintance and friend so I might be somewhat biased.

This book targets the business owners and some of the points in the book I think are more applicable to small and family-owned businesses. Still, he made many excellent points.

The one thing that i definitely agree on is he suggested setting goals and planning. Success and succession has a lot to do with planning, which makes total sense.

Vanwyck is a big advocate of E-mything you business. This essentially means having process defined in your business and having everything broken down and documented. This makes it easier for a buyer who can then feel the business can run without you (and this is a good idea in any event).

He had an excellent chapter on planning what the entrepreneur who sells the business should do after they have left the business. Selling the business leaves a huge hole and part of success in transitioning involves what are you going to fill the hole with. Again, this is all planning.

There's a chapter on advisors and I have a healthy skepticism towards many consultants and often fear there are actually conflicts of interest because many advisors are paid and aren't truly in your corner. I do believe in taking advice and listening, but it needs to be filtered.

I think the best transition would be if you can find someone who truly cares about you and the outcome for you and can advise from that angle as opposed to worrying about getting paid. Of course this doesn't mean you don't need other experts like accountants, lawyers, advisors and possibly business brokers.

One interesting thing I found in my years of buying businesses is I often liked buying a business which I didn't feel was particularly well run because then I felt that I could make some changes to make it profitable. Some businesses I've looked at seem that the owner/operator is so good and so hands-on that I think I'd lose much of the value when I buy the business because I simply wouldn't be able to keep doing what they do.

5 Comments:

At 1:50 AM, Blogger Holy Gardens La Union said...

Having a good business plan will lead you to a successful business. Failing to plan is planning to fail.

Joe ann
Css1
Hglump

 
At 2:25 AM, Blogger Melanie Bautista said...

Planning is vital in any business success. But planning is not just simply pulling out the calendar or recording of things to do.Planning is all about actively achieving goals consistently.

In business crisis it is important to have a process. When the existing process does not solve the current crisis or situation then what we need to do is to change it. A process that will drive the business more efficient, drive down costs and improve customer service.

Melanie G. Bautista

 
At 2:36 AM, Blogger Holy Gardens La Union said...

Planning plays a very vital role in a business. Though planning is arduous, it will help us identify about our firm's place in the market.
It will help us foresee potential risk and develop strategies for dealing with them.


Jobyl Marie T. Villanueva

 
At 9:16 PM, Blogger Holy Gardens said...

When you plan, everything falls to place,with great attitude in setting and achieving your goals, success will follow through.

 
At 9:20 PM, Blogger Holy Gardens said...

in every business, planning is important.When you plan everything falls to places. and with greater attitude in setting and achieving goals, success will follow through.

Christine Ann Paris-Payopay
CSS1, HGPMP

 

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