Yesterday I was with a client and we were discussing a potential acquisition target. The acquisition target is a friend who is leaving the industry.
The opportunity to take on a range of new clients in this service based business is attractive and the potential scale it could create is significant.
During the conversation we wee having about this opportunity to acquire it became apparent to me that this smart and successful business person was looking to do a favour for a friend.
I get this completely however – I reminded my client that when looking to make any acquisition, takeover or business purchase, the same due diligence is required.
My client had spent many years building a very clean, very well considered business inside a highly regulated industry.
By his own assessment – his friend probably had not applied the same rigour and therefore there needs to be a discount applied for this to the business that is being acquired.
In my experience there should be the “no friends in business” approach to any potential acquisition or takeover. The reason?
Because there are no friends in business.
Do the deal on the basis of your core values, in this instance, fairness of course was one. So I reminded him he could put a good deal together that suited both parties however it must serve the plan he has for this business.
The growth plan is clearly laid out by me and him – and for good reason – when these opportunities come up the question you always must ask is – “does this decision to takeover this business take me towards my lifestyle goal or away from it?”
When you take any action on any give day – where is it taking you?
Asking yourself this question often and genuinely will give you a real sense of the purpose you are working towards. Without a purpose, your business will find it difficult to grow into what you set out for it to be at the start.
I would encourage you to ask yourself this question each time you are about to take an action.
It is not an easy process to get into. To get into the mindset every day and every action to stop – think – and act in the direction of the dream you set for yourself when you started this business.
so why are you in business for yourself? Where will this thing take you?
Who you allow to be part of your day each and every day can determine for the most part how successful your business life will become.
What actions you choose to undertake each day will determine how successful your business life will become.
So how do you choose who to surround yourself with and who can you trust. We have found in our experience that the people you surround yourself with require in the main four qualities.
- Self awareness – As you are in business, your business must naturally grow or it will end at some point. So the people in your business world must be self- aware as you must be. This provides you perspective on what is important, it provides you people who are looking to continually improve; great company.
- Truthfulness – You need people around you who are prepared to tell you the truth about your plans, the vision, your strengths, your weaknesses. They must care enough about you to tell you the truth.
- Respect – If you are not respected by those in your circle, you have surrounded yourself with the wrong people. Respect is the single most important connection point between you and your circle of influence members.
- Drive – Getting through every day, taking the hits as a business owner, riding the highs, the moderate times and the lows takes its toll on every single person who enters then arena of business ownership. Drive in those closest to you will help you when you are falling behind and help drive them when you are flying.
Just a thought from me to you – one mans opinion
Different measures for different stages of your business – Business Essentials 50
I attended a multi-unit event on Thursday last week in Sydney. There were a lot of take outs and reminders and I thought I would share this one with you today.
Many business owners who we come into contact with in the first instance are unsure what to measure and when.
I was reminded of this last week and I wanted to remind you also that the key to developing a business is to have the business measures understood for each of the different stages of development of that business.
In practical terms let’s look at an example.
When you start your business your key measures are simply put; new contacts made, new quotes provided, new sales made, revenue in, costs out and profit left over. Pretty simple metrics for the start up in all of us.
When you get to the next stage – there are no more rules. The measures must connect to where you want to take the business. So for example, if you are someone who wants to be in the business fully, immersed and not ever be out of it, your measures will be different from someone who is looking to be the owner and not the operator.
In another example, the business owner who wants to employ staff against someone who needs to have contractors in the group will also have different measures that need to be applied.
So think of where you are in your business development and think about the way you are measuring. Are the measures right for the time of life the business has reached?
Of course as usual you can always catch me on my mobile on 0434690275 here in Australia or at my website www.businessessentials.com
Business Essentials number 1891 #1891
Conversation, interaction, where to begin – Business Essentials that separate the good from the great.
I find in dealing with a wide range of people, that many of them – when they grasp the understanding between leading and managing – they not only change the way they interact with their people, they change the way they interact with their customers.
When you commence any relationship with anyone, whether it be with a person you are employing or a person you are selling to, the conversation starting point is the key.
Seek to understand where the other person wants to be” – make this the starting point of every single interaction you have and your success will multiply.
Often the starting point with a customer in a retail setting is the sale that is front of them. In reality – all sales, all transactions are meaningful on some level.
the starting point of dealing with a customer is to understand them, then you can lead them through the decision making process.
The same is true of your people, or your partners or your suppliers or other circles of influence you deal with.
I have found in my education of business owners that this is one of the single most important lesson you can learn. To know that the conversation should always start with “where does the other person want to be and how will my interaction help them to get there?”
IT IS ALL IN THE PLANNING – I KNOW – BORING!!!
Setting out to deliver a product or service and then delivering that service to the market – put simply – is why any business exists.
Now you may have some other reasons for being in business however fundamentally your business exists to serve a market need or want.
No matter what business we work with, not matter what the owners intention, the key to making this work and delivering on the service is still in the planning.
Planning gives you a roadmap, it gives you the direction and guidance you are looking for and it gives you the ability to know what a good and bad day looks like based on your plan.
Planning is not always about certain things in certain times – chronology is often used – however the achievement of the action is the key, not the time it takes.
Setting aside planning time when it suits you is vital also. Set the time aside and in the location you decide when it is best for you. We all have different times of the day when we are most effective, use the time of the day when you are at your best to plan.
This is one of the key Business Essentials in my view – I continue to see it in all my consulting, when the planning is solid and habitual, the business evolves.
Enjoy the journey
PLAN AS WELL AS DO – 70 ON DO AND 30 ON PLAN
The rule of 70/30 is one of our most important Business Essentials. It focusses in on the need for us as business people to spend 70 per cent of our time on the today activities and 30 per cent on the tomorrow activities.
Planning is so very important to your everyday success. No matter what business you are in and no matter for how long you have been in business for, planning for each increment of time gives structure we all need.
So a quick tip and reminder to focus some of your attention on the future and not simply on getting through today.
As someone who comes across many people in his day to day life who own businesses, I am intrigued as to the “why” factor.
Why do you own your business and what is it going to do for you?
This is where I start my conversations with people who do in fact own a business of their own. Why do I start here? Well simply put this is in fact the beginning.
We all have a reason to make a living – some make that living quite happily in paid employment and move from the relative security of one job to the relative security of another. Others of course work their way up the tree as it were to the decision making table and carve out strong careers in management and leadership roles.
Then there is me and you – we decide for whatever reason – there is no need for us to work for someone else and we take on the role of MD of our own business and brand.
Why oh why do we do this? The answer to this question is linked directly to the success you will have as a business owner. How can it be related – simply put – the clearer the reason why you are in business – the crystal clear goal you have set for self as a business owner – the closer you are to achieving it.
Clarity is king.
When you know right down deep inside of yourself what your reason for being is, you will then know what actions will take you towards that reason and what actions you will avoid as they will take you away from that goal.
Goal setting is for those of course who decide they deserve what they want from life.
Stay tuned for part two of this story when we move to – how to set your lifestyle goal clearly for you and your family.
Until then – Geoff McDonnell – here to help – firstname.lastname@example.org
Being in business moves past the one time chance – the one tie contract that gets you going. When you then employ your first person – then your second and then your third – you are into it. You are responsible.
Once you are at this point – the decision you then make is – why am i here?
Once this is clear to you and you are also fully aware of the timeframe you have to reach the goal – you can then link each action to the destination of the goal.
The way you behave – the values you hold fiercely to yourself – will then give you the anchor you need to link all you do to your strategic outcome – linking to your lifestyle goal.
Action is underrated – in your business to take action you first must understand the milestone it relates to. For examples – if you are looking to build a client base – every single little action you take – every single little communication you implement – must take you towards this outcome.
I have many clients who completely understand this and some who do not at all.
When you set out to reach a very clear outcome – ensure that each time a decision about how you behave in every circumstance is in front of you – that you apply your mind to the outcome you are aiming for before making the decision.
This process is the difference between having a strategy on paper and implementing one.