Business Transition Planning Best Practices Study Reveals How Not to Spend Your Time

Are you the Boss/owner of your own business? Who does the selling in your business?  My guess is that when you’re personally involved in doing the selling, your business is a whole lot more profitable than the months when you leave the selling to others.

That makes sense because you’re likely the most passionate advocate for your business. You have the most industry knowledge and the widest network of industry connections.

If your goal is to maximize your company’s profit at all costs, you may think that you should spend most of your time out of the office selling and leave the dirty work of operating your businesses to your underlings.

However, if your goal is to build a valuable company—one you can sell down the road—you can’t be your company’s number one salesperson. In fact, business transition planning best practices tells us the less you know your customers personally, the more valuable your business.

The Proof: A Study of 14,000 Businesses

We’ve just finished analyzed our pool of Value Builder Score users for the quarter ending December 31.  We offer The Sellability Score questionnaire as the first of twelve steps in The Value Builder System, a statistically proven methodology for increasing the value of a business.

We asked 14,000 business owners if they had received an offer to buy their business in the last 12 months, and if so, what multiple of their pre-tax profit the offer represented. We then compared the offer made to the following question:

Which of the following best describes your personal relationship with your company’s customers?

I know each of my customers by first name and they expect that I personally get involved when they buy from my company.

I know most of my customers by first name and they usually want to deal with me rather than one of my employees.

I know some of my customers by first name and a few of them prefer to deal with me rather than one of my employees.

I don’t know my customers personally and rarely get involved in serving an individual customer.

2.93 vs. 4.49 Times

The average offer received among all of the businesses we analyzed was 3.7 times pre-tax profit. However, when we isolated just those businesses where the owner does not know his/her customers personally and rarely gets involved in serving an individual customer, the offer multiple went up to 4.49.

Companies where the founder knows each of his/her customers by first name get discounted, earning offers of just 2.93 times pre-tax profit.

When Value Is the Enemy of Profit

Who you get to do the selling in your company is just one of many examples where the actions you take to build a valuable company are different than what you do to maximize your profit.  If all you wanted was a fat bottom line, you likely wouldn’t invest in upgrading your website or spend much time thinking about the squishy business of company culture.

How much money you make each year is important, but how you earn that profit will have a greater impact on the value of your company in the long run. 

If you are thinking about selling your business and are interested in business transition planning best practices then it’s time to contact Value Growth Partners. We can help you build your business value before you sell. Call us for a no-fee initial consultation at 312-525-8382.

Business Transition Planning Best Practices Study Reveals How Not to Spend Your Time

Are you the Boss/owner of your own business? Who does the selling in your business?  My guess is that when you’re personally involved in doing the selling, your business is a whole lot more profitable than the months when you leave the selling to others.

That makes sense because you’re likely the most passionate advocate for your business. You have the most industry knowledge and the widest network of industry connections.

If your goal is to maximize your company’s profit at all costs, you may think that you should spend most of your time out of the office selling and leave the dirty work of operating your businesses to your underlings.

However, if your goal is to build a valuable company—one you can sell down the road—you can’t be your company’s number one salesperson. In fact, business transition planning best practices tells us the less you know your customers personally, the more valuable your business.

The Proof: A Study of 14,000 Businesses

We’ve just finished analyzed our pool of Value Builder Score users for the quarter ending December 31.  We offer The Sellability Score questionnaire as the first of twelve steps in The Value Builder System, a statistically proven methodology for increasing the value of a business.

We asked 14,000 business owners if they had received an offer to buy their business in the last 12 months, and if so, what multiple of their pre-tax profit the offer represented. We then compared the offer made to the following question:

Which of the following best describes your personal relationship with your company’s customers?

I know each of my customers by first name and they expect that I personally get involved when they buy from my company.

I know most of my customers by first name and they usually want to deal with me rather than one of my employees.

I know some of my customers by first name and a few of them prefer to deal with me rather than one of my employees.

I don’t know my customers personally and rarely get involved in serving an individual customer.

2.93 vs. 4.49 Times

The average offer received among all of the businesses we analyzed was 3.7 times pre-tax profit. However, when we isolated just those businesses where the owner does not know his/her customers personally and rarely gets involved in serving an individual customer, the offer multiple went up to 4.49.

Companies where the founder knows each of his/her customers by first name get discounted, earning offers of just 2.93 times pre-tax profit.

When Value Is the Enemy of Profit

Who you get to do the selling in your company is just one of many examples where the actions you take to build a valuable company are different than what you do to maximize your profit.  If all you wanted was a fat bottom line, you likely wouldn’t invest in upgrading your website or spend much time thinking about the squishy business of company culture.

How much money you make each year is important, but how you earn that profit will have a greater impact on the value of your company in the long run. 

If you are thinking about selling your business and are interested in business transition planning best practices then it’s time to contact Value Growth Partners. We can help you build your business value before you sell. Call us for a no-fee initial consultation at 312-525-8382.

Do You Want to Learn CEO Succession Planning Best Practices?

Did you know the ideal timeline for succession planning is 5 years? It is possible though for the unexpected to happen and if/when it does, a CEO succession planning best practices is to have a game plan i.e. a succession plan all lined up and ready to go to ensure continued success with your business.

Take a look at the CEO Succession Planning timeline here:

THE SUSTAINING PHASE

Begin this phase 2-3 years in advance. The executives are preparing to thrive under the new leadership; Right Mindset, Future Outlook, Organization's Sustainability, Updated Strategic Plan, Executive Team Assessment, and Internal Team Candidates.

THE TRANSITIONING PHASE

Begin this phase 6-12 months before the leadership transition and consider overlapping with the Sustaining Phase. The organization embarks on the executive search process for the successors that may include board members, management team, and executives. Extensive work is done with transition planning.

THE ONBOARDING & SUPPORT PHASE

The heavy lifting is completed within the first 3-4 months of this phase but the hand-off process continues over a 6-12 month period. The board and senior management team access and adjust to the new leader’s management style and leadership role.

CONTINUED SUCCESS PHASE

The succession preparation and planning process should begin as early as possible. However, there are cases when you do not have the luxury of 4-5 years to plan. In these cases, it is best to have a contingent succession plan in place in the event that an emergency arises.

Value Growth Partners is here to assist with all of your succession planning needs. Request a 15-minute consultation with Value Growth Partners now to set up your CEO Succession Planning.

Do You Want to Learn CEO Succession Planning Best Practices?

Did you know the ideal timeline for succession planning is 5 years? It is possible though for the unexpected to happen and if/when it does, a CEO succession planning best practices is to have a game plan i.e. a succession plan all lined up and ready to go to ensure continued success with your business.

Take a look at the CEO Succession Planning timeline here:

THE SUSTAINING PHASE

Begin this phase 2-3 years in advance. The executives are preparing to thrive under the new leadership; Right Mindset, Future Outlook, Organization's Sustainability, Updated Strategic Plan, Executive Team Assessment, and Internal Team Candidates.

THE TRANSITIONING PHASE

Begin this phase 6-12 months before the leadership transition and consider overlapping with the Sustaining Phase. The organization embarks on the executive search process for the successors that may include board members, management team, and executives. Extensive work is done with transition planning.

THE ONBOARDING & SUPPORT PHASE

The heavy lifting is completed within the first 3-4 months of this phase but the hand-off process continues over a 6-12 month period. The board and senior management team access and adjust to the new leader’s management style and leadership role.

CONTINUED SUCCESS PHASE

The succession preparation and planning process should begin as early as possible. However, there are cases when you do not have the luxury of 4-5 years to plan. In these cases, it is best to have a contingent succession plan in place in the event that an emergency arises.

Value Growth Partners is here to assist with all of your succession planning needs. Request a 15-minute consultation with Value Growth Partners now to set up your CEO Succession Planning.

Founder of Value Growth Partners Now a Certified Exit Planning Advisor

Mark O’Brien, MBA, CMAA®, CEPA®, Managing Director of Value Growth Partners, a successful business growth, succession, and transition advisory firm, has added another high-level accreditation to his name and business. Mark has successfully completed the rigorous course requirements to become a Certified Exit Planning Advisor (CEPA®), as certified by the renowned Exit Planning Institute.  

Being a CEPA®, Mr. O'Brien is now certified to lead business owners in the strategic process of successful business succession, transition, and exit planning. 

“I have been blessed to know such wonderful mentors like Peter Christman, Richard Jackim, and Chris Snyder in the field of exit (succession and transition) planning,” said Mark O’Brien. “These experts have been very supportive in my goal to become a Certified Exit Planning Advisor. I am thrilled to have learned and worked with them to be certified and I look forward to continuing to assist business owners with executing successful succession and transition strategies.”

The CEPA® process emphasizes that a good exit strategy is a good business strategy. It is about building, harvesting, and preserving family wealth for generations to come and integrating best-in-class business practices into daily operations.

In order to qualify initially for the CEPA® program, an exit planning advisor must have already finished a bachelor’s degree from a college or university, and have worked 5+ years working full-time directly with business owners as a business consultant,  valuation advisor, financial advisor,  CPA, attorney, business broker, investment banker, estate planner, insurance professional, or similar professional capacity.

Learn more about Mark O'Brien and Value Growth Partners today at https://vgpltd.com/

Founder of Value Growth Partners Now a Certified Exit Planning Advisor

Mark O’Brien, MBA, CMAA®, CEPA®, Managing Director of Value Growth Partners, a successful business growth, succession, and transition advisory firm, has added another high-level accreditation to his name and business. Mark has successfully completed the rigorous course requirements to become a Certified Exit Planning Advisor (CEPA®), as certified by the renowned Exit Planning Institute.  

Being a CEPA®, Mr. O'Brien is now certified to lead business owners in the strategic process of successful business succession, transition, and exit planning. 

“I have been blessed to know such wonderful mentors like Peter Christman, Richard Jackim, and Chris Snyder in the field of exit (succession and transition) planning,” said Mark O’Brien. “These experts have been very supportive in my goal to become a Certified Exit Planning Advisor. I am thrilled to have learned and worked with them to be certified and I look forward to continuing to assist business owners with executing successful succession and transition strategies.”

The CEPA® process emphasizes that a good exit strategy is a good business strategy. It is about building, harvesting, and preserving family wealth for generations to come and integrating best-in-class business practices into daily operations.

In order to qualify initially for the CEPA® program, an exit planning advisor must have already finished a bachelor’s degree from a college or university, and have worked 5+ years working full-time directly with business owners as a business consultant,  valuation advisor, financial advisor,  CPA, attorney, business broker, investment banker, estate planner, insurance professional, or similar professional capacity.

Learn more about Mark O'Brien and Value Growth Partners today at https://vgpltd.com/

Develop A Strategy Map To Transform Your Company

A strategy map is a graph of a company's overall goals and how they connect to one another. This is a guideline for organizational choice makers, which they can use to plan and keep track of the progress of their business.

Technique maps are specifically useful when your organization is going through significant change. It is essential that the strategy map not alter significantly from the variation you receive from the coordinator, so that your decision makers can use it to plan the next steps to get your goals achieved.

Developing A Strategy Map

You ought to produce a strategy map at the start of your organization, however later on as the modifications occur you can develop a new variation. You can alter the strategy map or simply create a brand-new one. A few of the issues that should be consisted of in a method are:

• Start of action strategy
• Continuous actions
• End of action plan

In addition, you need to include an impact statement. An effect statement is a statement of the goals and objectives of your change technique and whether they are likely to be attained. It is likewise a statement of what the company needs to do to attain these objectives. It is to be sent to all current and potential customers and providers, to let them know that you understand their responsibilities and what the organization requires to do to accomplish the change method. The declaration ought to be utilized for interacting the modification to all stakeholders.

Use your strategy map to interact the modification

Developing a strategy is hard, specifically if you have a relatively little company. There are lots of resources readily available. One of the most important is your organization's Strategic Plan that ought to be examined and updated annual. Your strategy map must belong to that plan. A good company needs to have a strategic plan and its own strategic map. You need to evaluate the strategic plan to make sure that it shows the vision, intents, and short, medium and long-term goals of your company. This was composed by a planner who has worked with lots of large business.

StratēgoMap is an innovative software specifically developed for: Local Businesses, E-Commerce Businesses, Affiliate Marketers, InfoProduct Creators. This FREE tool maps out your service techniques so that every staff member can quickly understand them. StratēgoMap strategy map software, permits you to draw up the strategies, processes, procedures, and techniques you require to build an effective and successful service.

planning

Develop A Strategy Map To Transform Your Company

A strategy map is a graph of a company's total objectives and how they associate with one another. This is a guideline for organizational decision makers, which they can use to prepare and keep track of the development of their service.

Strategy maps are particularly beneficial when your company is undergoing substantial change. It is necessary that the strategy map not alter significantly from the variation you get from the organizer, so that your choice makers can utilize it to plan the next steps to get your goals accomplished.

Developing A Strategy Map

You must develop a strategy map at the start of your organization, but later as the changes happen you can create a brand-new version. You can change the strategy map or simply develop a new one. A few of the problems that need to be included in a method are:

• Start of action strategy
• Ongoing actions
• End of action strategy

In addition, you need to consist of an impact statement. An impact statement is a declaration of the objectives and goals of your change technique and whether they are likely to be achieved. It is also a declaration of what the company needs to do to attain these objectives. It is to be sent out to all present and potential clients and suppliers, to let them understand that you know their obligations and what the organization requires to do to attain the modification strategy. The declaration needs to be used for interacting the change to all stakeholders.

Use your strategy map to communicate the modification

Producing a technique is difficult, particularly if you have a reasonably small company. There are lots of resources available. Among the most important is your company's Strategic Plan that must be examined and upgraded annual. Your strategy map should belong to that strategy. A great company needs to have a strategic strategy and its own strategic map. You need to examine the strategic strategy to make sure that it shows the vision, intentions, and short, medium and long-lasting objectives of your business. This was composed by a coordinator who has actually dealt with lots of big business.

StratēgoMap is an innovative software specifically created for: Local Businesses, E-Commerce Businesses, Affiliate Marketers, InfoProduct Creators. This FREE tool draws up your organization methods so that every team member can easily understand them. StratēgoMap strategy map software, enables you to draw up the strategies, procedures, procedures, and strategies you require to construct a successful and successful company.

planning

How To Make Keto Salad Dressing

This Keto salad dressing recipe really comes from Greece but it is also a low carb salad dressing. You will need:- ½ cup (108 gr) extra virgin olive oil ½ cup (119 gr) apple cider vinegar Juice of 1 medium lemon 1 ½ tsp garlic powder + 1 ½ tsp dried oregano 1 ½ tsp dried basil + 1 tsp honey mustard 1 tsp onion powder + 1 tsp parsley 1 tsp salt + 1 tsp pepper Whisk them all together Serve over your favorite salad Perfect with grilled chicken Lots of Keto recipes in the Real Plans Meal Plans app. Real Plans is a keto meal planner app that creates custom weekly menus to make planning, shopping, and cooking much easier. For many, macro tracking and the keto diet mean successful weight loss.

Our keto meal plans keep you on track while helping prevent food boredom in this lifestyle change. Real Plans creates custom weekly meal plans using over 500 built-in keto recipes, with the option to add 100s more from some of your favorite keto bloggers. 

how to make keto salad dressing

How To Make Keto Salad Dressing

This Keto salad dressing recipe really comes from Greece but it is also a low carb salad dressing. You will need:- ½ cup (108 gr) extra virgin olive oil ½ cup (119 gr) apple cider vinegar Juice of 1 medium lemon 1 ½ tsp garlic powder + 1 ½ tsp dried oregano 1 ½ tsp dried basil + 1 tsp honey mustard 1 tsp onion powder + 1 tsp parsley 1 tsp salt + 1 tsp pepper Whisk them all together Serve over your favorite salad Perfect with grilled chicken Lots of Keto recipes in the Real Plans Meal Plans app. Real Plans is a keto meal planner app that creates custom weekly menus to make planning, shopping, and cooking much easier. For many, macro tracking and the keto diet mean successful weight loss.

Our keto meal plans keep you on track while helping prevent food boredom in this lifestyle change. Real Plans creates custom weekly meal plans using over 500 built-in keto recipes, with the option to add 100s more from some of your favorite keto bloggers. 

keto diet meal plan

Why Real Plans Meal Planning Is The Best

Real Plans was designed by real foodies with real eating restrictions, so we’ve packed our app with hundreds of delicious recipes and enough flexibility to satisfy an incredibly wide range of diets. Examples are Paleo, Whole 30, Keto, Gluten-Free, Dairy-Free, Vegetarian and Mediterranean just to mention a few. 

Life can be hectic and complicated, especially with dietary restrictions. Real Plans can help, no matter what you eat, or how big (or small) your family is. Our meal planning app is brimming with features to help you plan faster, shop more easily, and deal with real-life eating restrictions.

Could Real Plans really save me time?  I was thinking that it might not be able to cope with number of servings, the schedule, a quickie recipe when needed or change up the diet for the following week. These adjustments can easily be made.

 Then when you add in the shopping list and even which supermarkets you go to, you wonder how on earth it could do all that. Well, it can, and a lot more too. I love the fact that the shopping list goes into aisle-friendly mode!

The Real Plans mobile app is brilliant.



meal plans on a budget