Strategy without Implementation is Hot Air without the Balloon
Conversely, what good is the balloon without hot air? It’s a lot like your people if they can’t or won’t implement an organization’s strategy? A business will not maximize its value if it doesn’t have a meaningful strategy and the right people organized to execute it.
Planning to sell your business?
Most owners want to believe that they are getting the most out of their business; making the most they can. They need to maximize business value. Most convince themselves that they are and as a consequence, have an over-inflated value of what it is worth. When the time comes to exit and pass the business to a successor they run into a conflict with the potential buyer’s perception.
Best case scenario then is a value gap which means re-planning the seller’s retirement. Worse is the opportunity left on the table, the unfulfilled promise of value that might have been. So, why are seller’s expectations and the buyer’s willingness to pay so often so far apart – what can owner managers do to close the value gap?
When you buy a car you want it running on all cylinders. An opportunistic buyer will hope to buy a poorly running business hoping that they can fix the problems – that’s the seller’s value left on the table.
A business that is firing on all cylinders will have appeal to a synergistic buyer who can bring more resources than the owner to the organization and likely to pay a higher price. A seller can feel comfortable that her legacy and former employees are in good hands.
Optimizing performance for a selling price at the higher end of the range means having:
A clearly defined, written strategy for growth or improved performance that can be easily articulated and communicated to employees, vendors and other stakeholders enabling a potential purchaser to envisage a clear and successful picture of the future business and the steps to get there.
A clear and unequivocal commitment and focus on implementation by management and the rest of the team
A management system that monitors strategy implementation and ongoing adherence through a clear action plan and the measurement of results; and
The right people, doing the right things at the right time giving effect to the plan and secured in place for a future owner.
Maximize business value
Think of the process as a business succession “runway”; that period between an owner deciding that they want to exit their business and when it is sold. The longer the runway the more that can be done to add value and the best runways begin the day after an owner starts their business! However it’s never too late to create a new runway if you haven’t already started that process – you just need to give yourself enough time to get it right so that you can optimize the outcome.
To maximize your return, maximize your business value first
Many owners spend their entire working lives growing their business, focused on one enterprise. They don’t get to see how other companies develop strategy and integrate operations and culture into that long term vision. They know their business exceptionally well and in today’s competitive environment, by simply surviving means they are executing on their plans but could they do it faster, do they select the best alternatives and are they achieving optimal value.
We help organizations and their owners develop, implement and profile their strategy to appeal to the most motivated buyers through our investment banking partner; an integrated service from runway to landing that delivers added profitability and cash flow in the interim.
Not ready to sell, just yet?
Regardless of whether you want to sell your business now or in the future, the implementation of the abovementioned approach will lead to a vastly improved, high-performing business that grows its bottom line. In all circumstances, this is a highly desirable state for any business to be in, and the opportunity is there for you to grasp. With a focus on what you want to accomplish, and a desire to succeed, this approach is seamless, painless and will make you very rich if you just do it right.
Hot air dissipates if not contained by the balloon and fails to create lift if not sustained. Businesses can only rise above the competition when sustained and their energy effectively directed. But it’s not automatic, and it does not happen by accident.
Contact us with no obligation to discuss how to make the most of your selling runway OR if you just want to create a very profitable, very successful business.
Mastermind Solutions is a multi-disciplined consulting firm comprising of highly experienced professionals. We are committed to attaining the highest customer satisfaction by providing accelerated solutions to your business challenges.
We specialize in Business Growth. We deliver to clients' a sustainable future by helping them define where and how they wish to grow. And then we make that happen, together with you.