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Know Yourself!

This week, Dana Maggi, Owner of Career Pain Relief, spoke to my chapter of Business Executives Networking Group (BENG).   Actually, she facilitated a lively discussion on job search.   My takeaway from Dana’s presentation is ‘know yourself’.  This advice is always on point.  It is very difficult to gain traction in your job search if you cannot clearly communicate your value proposition. You cannot present your value proposition; i.e. the reason you are best suited for the job unless you know your strengths, weakness, and accomplishments.

The discussion eventually moved to tricky interview questions and how best to answer them.  One question caught my interest; the ubiquitous, “tell me about yourself.”  The group was confused about the best way to answer.  They were not clear as to the intent of the question, or how much detail to provide.

Well, how should you answer the “tell me about yourself” question? Do you talk about your personal life; your family, hobbies, or other interests? Do you talk about your career goals?  Do you talk about your favorite boss or past employer?  Or, do you convey your particular accomplishments, skills, training, and development? How would you answer that question?

My contribution was to remind the group of the big picture.  Interview time is a limited commodity, so make it productive.  Focus on why you are there.  As a prospective senior executive, your communication skills are of great interest.  They may be the most important aspect of the job in question. Directing a team requires clear communications.  Convincing more senior executives to fund programs or projects requires effective salesmanship.  Defending a budget, or a capital appropriation request requires persuasion skills.  Presenting to the Board of Directors requires exceptional poise and finesse. As with each of these activities, interview success depends on your ability to present a clear message that resonates with the employer.

Personally, I’m not fond of the “tell me about yourself” question. It is too ambiguous to yield a consistently useful answer.   I understand that it may be used as a conversation starter, but there is a better way.   I prefer to ask the candidate for a 60-second, thumbnail sketch of their current situation and what they want to do now.  This question is clear, requiring a focused response.   I expect to hear the common themes of their career, including their particular skills and strengths.  I want to gain an understanding of their plan for the next stage of their career.  It is my first glimpse into the candidate’s ability to communicate.   It is a more productive use of my time.  If the candidate can present her experience, strengths, and skills in an effective one-minute presentation, she has my attention.  I will move her forward in the process. It requires self-awareness.

From my point of view,  the “tell me about yourself,” is a poor way to begin an interview.  However, one must anticipate this question as it is so commonly used.  Fortunately, it presents the job seeker with an opportunity to influence the direction of the interview. I recommend an answer that is focused on what you’re trying to accomplish now while presenting the strengths and experience you bring to the party.  It should be a short answer, probably no more than one minute long.   It will require a well-rehearsed presentation.  The best response explains why you are the ideal candidate for the job.  In other words, your elevator pitch.  If done properly, your interviewer will ask follow-up questions that play to your strengths.  Unless you are asked about personal interests, stay focused on presenting your suitability for the job in question.

During job search, you must communicate a clear and concise message to capture the employer’s interest. To craft this message requires self-awareness.  Know yourself!

 

Thank you for visiting my blog.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so please leave a comment.

 

 

 

Jim Weber, President

NEW CENTURY DYNAMICS EXECUTIVE SEARCH

JimWeber@NewCenturyDynamics.com

Current Assignments

  1. COO- Northeast-based Casual Dining Restaurant Company – New
  2. Operating Partners – Legacy Pizza Chain – New
  3. Director of Biz Dev, Atlanta-based B2B Professional Services Company:    Completed
  4. Payroll-Benefits Manager, Atlanta-based Retail Company:  Complete
  5. Senior Accounting Manager – Atlanta-based Manufacturer. Complete
  6. Controller – Atlanta-based Consumer Products – Digital Company – Completed
  7. Outplacement Assignment – Atlanta-based Manufacturer:  Complete

Author of: Fighting Alligators: Job Search Strategy For The New Normal

Posted on

New Search Assignments Announced By New Century Dynamics

December 1, 2017:  New COO Search Assignment:  New Century Dynamics Executive Search Announces a new Search Assignment: COO for a Northeastern-based Casual Dining Brand. Your interest and referrals are welcome.

December 1, 2017:  New Search Assignment:  New Century Dynamics Executive Search Announces that it has been contracted to find Operating Partners for a Legacy Pizza Chain. Your interest and referrals are welcome.

James E. Weber, President

New Century Dynamics Executive Search

 

Current Assignments

1. COO- Northeast-based Casual Dining Restaurant Company – New

2. Operating Partners – Legacy Pizza Chain – New

3. Corporate R&D Chef, Atlanta-based Home Meal Replacement Company – New

4. Area Supervisor, Legacy Pizza Chain Franchisee, S. Carolina – New

5. Senior Accounting Manager – Atlanta-based Manufacturer. Complete

6. Controller – Atlanta-based Consumer Products – Digital Company – Completed

7. Outplacement Assignment – Atlanta-based Manufacturer:  Complete

 

Author of:  Fighting Alligators, Job Search Strategy For The New Normal

 

770-649-7051 Tel.

770-354-2817 Cell

www.newcenturydynamics.com

JimWeber@newcenturydynamics.com

 

 

Blog:  http://fightingalligators.blogspot.com/

 

 

 

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“What we’ve got here is failure to communicate.” Strother Martin, Cool Hand Luke, 1967

Two weeks ago, Robert approached me for help with one of our engagements.  He is providing field-level project management support for a forty-year-old construction company. It has been a successful engagement which has improved the productivity of the Principal.  Robert has established a solid foundation of trust and has done a good job representing our brand.  The client appreciates our work, but they are unclear about the next project.  We are at an impasse.  

There is a clear opportunity to expand this engagement and.  The client wants our help, but they’re stuck.  They cannot quite pull the trigger to expand the engagement.   Robert has done an excellent job building the relationship, but cannot get them to the next level.  Additionally, he is having difficulty managing other members of the team.  He has become frustrated by communications between the other Partners and the client.  Some of the discussions have bypassed Robert. This is clearly sub-optimal, creating confusion.  It also violates our business model as all such communications should go through Robert, the Partner in Charge.

Robert called a meeting, which included me and the other two Partners.  The objective was to get focused on the opportunity and develop a strategy to expand the engagement.  Yesterday, we met together as a team.

Robert had three primary objectives for the meeting:

  • Discovery: understand the opportunity to expand this engagement
  • Local resources: who else could we bring in to help
  • Understanding short-term wins and how to exploit them

The first agenda item was to understand the client’s culture; their goals and aspirations; and their management style. This company wants to grow.  They have built forty years of goodwill, which is the basis for their marketing strategy.  However, the recession had a major impact on the company. In many respects, they are relaunching the business.   One thing is clear, they need a business development program.  Without help, they will find it difficult to grow.

The client has three major objectives:

  • Grow the business
  • Enhance brand equity; Strengthen their strategic relationships
  • Improve their productivity and operating effectiveness

Robert followed the client overview with a discussion on the communications protocol.  He dispatched that issue, achieving alignment from the others.  I reinforced the point, reminding them about our code of conduct.

Robert and his team came to the meeting prepared with an outline as to how each would approach the situation. I thought it somewhat amusing as all of the documents were typical corporate-style outlines with jargon unfamiliar to most entrepreneurs. I was beginning to understand that we own the communications problem. We are not speaking the client’s language, and we aren’t helping them with their decision.  In other words, we need to make our case in very clear terms. I suggested that the team might better connect with the client if they translated their terminology into plain-speak.

I spent most of the meeting listening to the discussion, trying to understand everyone’s point of view.  Like many smaller companies, planning is not a part of their culture. They are in a reactive mode dealing with the crisis “de jour.”  They are victims of a time management.  There is no doubt that we can help them, once we formulate a communications plan.

Toward the end of the meeting, I had an epiphany.  I told Robert that I should write an article about the company.  Telling the company’s story could serve as the foundation for their re-positioning.   We could use the article to demonstrate our capabilities to our clients and prospects.  I saw a clear opportunity for a win-win.  This would give me an opportunity to become familiar with the client and establish a deeper rapport.  Today, Robert told me that the client likes my idea and wants to move forward.

In conclusion, it might be cliche’ to say that a successful engagement depends on clear and effective communications.  But, we cannot help them if we cannot make our case.  We cannot make our case if we aren’t speaking the client’s language.  We cannot speak their language until we know them well enough to develop empathy.

Thank you for visiting my blog.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so please leave a comment.

Jim Weber, President

NEW CENTURY DYNAMICS EXECUTIVE SEARCH

Author of: Fighting Alligators: Job Search Strategy For The New Normal

Current Assignments

1. COO- Northeastern-based Casual Dining Restaurant Company – New

2. Controller – Atlanta-based Consumer Products – Digital Company – Completed

3. Director of Biz Dev, Atlanta-based B2B Professional Services Company:    Completed

4. Payroll-Benefits Manager, Atlanta-based Retail Company:  Complete

5. Senior Accounting Manager – Atlanta-based Manufacturer. Complete

6. Controller – Atlanta-based Restaurant Company: New

7. Outplacement Assignment – Atlanta-based Manufacturer

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“Time is short! Find me a Specialist!”

“Time is short!  Find me a Specialist!”  Those may not be the exact words, but that is most definitely the message.   My clients have specific needs that must be addressed and do not have time for a generalist to learn how to attack the problem.  They want people who have been there and done it.  Most of my clients are small to mid-cap companies. Many are owned by Private Equity Groups, (PEGs).  The rest are a mix of privately held emerging brands and more established niche players.  Virtually all are working to make their brand relevant in a very dynamic and challenging business environment.  Time is of the essence, so their planning horizon is short.   Certainly, shorter than for larger, Fortune 500-class companies.

 

 

 

 

 

Most recently, my clients have been facing the following situations:

  • Change of ownership
  • PEG buy/sell transaction
  • Pre-IPO
  • Public to Private
  • Chapter 11
  • Debt Covenant Issues
  • Turnarounds
  • Start-up
  • Joint Ventures
  • Installation of Management Accountability Systems
  • New CEO
  • Major Systems Upgrades

Other searches have required experience in franchising, consumer packaged goods, and experience in family-owned businesses.  Industry-specific experience is almost always required.  I have even had searches requiring the candidate to move to remote, less than desirable locations.  This parallels the demand for our consulting practice, but not as much.

Most people know that tenures have decreased significantly.  Three to five years in position is not uncommon for C-level executives.  Three years or less is common for other senior-level executives. Much of this is related to heightened levels of accountability due to intense competition.  This level of senior-level turnover can affect the entire management team.  Some of it, of course, is due to a change of ownership which often means a new management team, or changes for key executives.   As the planning horizon shortens, the enterprise focus is on the best ways to enhance competitiveness.   Companies in the small to mid-cap sector need people who can make an immediate impact.  Generalists requiring a learning curve are eschewed over candidates with more specialized skills and experience.  It has become an ad-hoc world.

The good news is that most of you have lived through the situations listed earlier.  You have been through the break-up of Conglomerates.  You have seen global competitiveness affect your employers.  You have seen employee-led Leveraged Buy-outs.  Without a doubt, you have seen the productivity benefits of technology.   These global changes have resulted in right-sizing; down-sizing; re-engineering; and outsourcing.   You have likely seen several ownership changes, IPO’s, and the public to private transactions, and probably have experience with PEGs.  By now, you have a wealth of experience and skills for specific situations.  Face it, with reference to Peter Drucker, we have been living in turbulent times.

The objective is re-branding oneself as a specialist, but not necessarily one specialty.   If you look back on your career you will find common themes.  You will notice that you have thrived in situations which have been identified in this post.  Those situations can become the themes for your positioning as a Specialist.   The good news is that word-processing programs allow you to have multiple resumes which you can tailor to a given specialty.  It doesn’t mean that you are fabricating a career history.   It means that each version of your resume puts more emphasis on the specialty (read skill-set) you wish to promote.

Time is short for small to mid-cap employers, especially for PEG Portfolio companies.  They need specialists to help resolve immediate issues.  Become the Specialist they seek for success in your job search or in your freelance career.!

Thank you for visiting my blog.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so please leave a comment.


Jim Weber, Managing Partner

ITB Partners

Jim.Weber@itbpartners.com

Author of: Fighting Alligators: Job Search Strategy For The New Normal

Current Assignments

1. COO- Atlanta-based Casual Dining Restaurant Company – New

2. Controller – Atlanta-based Consumer Products – Digital Company – Completed

3. Director of Biz Dev, Atlanta-based B2B Professional Services Company:    Completed

4. Payroll-Benefits Manager, Atlanta-based Retail Company:  Complete

5. Senior Accounting Manager – Atlanta-based Manufacturer. Complete

6. Controller – Atlanta-based Restaurant Company: New

7. Outplacement Assignment – Atlanta-based Manufacturer:  Complete

Posted on

The Ideal Way To Begin A New Assignment

Good News!  We just closed another deal!  But,  it required a lot of effort.  As it should.

This week my colleague David, and I closed a deal to help a new client plan and build a ten-store territory for a California-based franchised restaurant concept.  This is a complicated assignment as it involves a family in various stages of immigration to the U.S. and inexperienced operating partners.  Nevertheless, it is a fascinating opportunity and we are happy to participate.  We even provided our prospects with referrals to attorneys who will help them with immigration issues, offshore financing, and finalizing the franchise agreement.   During a meeting this week, David and I clarified the remaining details to begin our work, including the retainer.

The genesis of this project was late Spring when David invited me to a meeting with the prospective clients.  As this was a referral from their Attorney, who we both know, it seemed like a viable investment of our time.   Prior to that meeting, David explained that the prospects were interested in buying a franchise of an Oriental restaurant concept.  That was the extent of his brief, based on information from the Attorney.   David brought this opportunity to me because he lacks a background in restaurant franchising.  He thought I could help him close the deal and to collaborate on the project.   We were clear that if we closed the deal, David would be the lead consultant and I would play a supporting role.  Based on our contractual agreement, David is entitled to a referral fee from me, a percentage of my earnings from the project.  This point was clear before our first meeting with the client.  This is how we work together.

Subsequently, we had several meetings with the client to learn the details of their plans and to establish mutual respect.  As with many projects, the prospective client’s circumstances changed which affects the scope of the project.  In this case, the scope has grown significantly requiring modification to our proposal.  Over the Summer, the prospective clients became disenchanted with their lead opportunity and began searching for an alternative, including the acquisition of a going concern.  Additionally, a brother and his family, the principal financiers for this project, decided to begin the process of immigrating to the U.S.  This increased the scope of our work as we will interface with the Immigration Attorney to help her complete her work. The good news is that David and I have established our bona fides, and have developed a good rapport with the client.  We scheduled to meet with them one more time to finalize our agreement and scope of work.  That meeting occurred this week.

Our next step is to plan the “kick-off” meeting with the client and their attorneys.  We also finalized our fee splitting arrangement.   To that point, the client requires a flat fee for our services.  Our proposal for the first part of the assignment, Phase I, is a flat fee, paid in advance.  It also specifies the number of man-hours anticipated to complete Phase I, the planning phase.   As a result, David and I have a defined hourly rate for our services, the basis for the referral fee.  David will collect and escrow the engagement fee for Phase I.  We agreed to track our hours and make a settlement each week.  I will receive our hourly rate times my weekly hours, less 10% of that sum.  Simple enough.

Before this deal closed, David and I established our working relationship and formalized our financial arrangement.   This is how we work together.  It is the foundation for trust and respect.  People new to freelance consulting often have difficulty on joint assignments because they begin without this foundation.  This is a stumbling block that creates difficulty completing the assignment.  It is probably a combination of inexperience and ignorance, however, it is a major detriment to a successful working relationship.

David and I have collaborated on a number of assignments, so our process is well defined.  This is something our new consultants must learn as it hasn’t been a part of their career experience.

Thank you for visiting my blog.  I hope you enjoyed my point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list. Your feedback helps me continue to publish articles that you want to read. Your input is important to me so; please leave a comment.

Jim Weber, Managing Partner

ITB Partners

Jim.Weber@itbpartners.com

Author of: Fighting Alligators: Job Search Strategy For The New Normal

Current Assignments

1. COO- Atlanta-based Casual Dining Restaurant Company – New

2. Controller – Atlanta-based Consumer Products – Digital Company – Completed

3. Director of Biz Dev, Atlanta-based B2B Professional Services Company:    Completed

4. Payroll-Benefits Manager, Atlanta-based Retail Company:  Complete

5. Senior Accounting Manager – Atlanta-based Manufacturer. Complete

6. Controller – Atlanta-based Restaurant Company: New

Posted on

What Were They Thinking?

There are times when I learn of situations that make me scratch my head and say “whaaat?’

 

My next thought is usually, “what were they thinking?”  Well, that is the gist of it, but my language is often more colorful.  

 

 

 

I had another one of those moments this week after talking with two senior level restaurant professionals recently discharged from a failed startup.  One is a Controller.  I already have him in front of a client who has seen him twice.  The other is a marketing professional I have known for many years.   We scheduled a meeting for Monday morning to discuss her situation over a cup of coffee.  

 

 

 

She told me that she had been recruited by a Private Equity/Venture Capital Group to join a restaurant company start-up as CMO.  In May, she was relocated from her home on the West Coast.  By the middle of August, she was unemployed.  Her story was very disappointing if not heart breaking. Being new to Atlanta, she must build a network to find a new job.   We talked about her job search strategy and the changing nature of employment, including the rise of the freelancer.  Naturally, I pitched her on the value of joining ITB Partners as a transition strategy, and possibly as a career.  Atlanta is a good market for restaurant professionals so she won’t be unemployed long.

 

 

This situation surprised me on many levels.  Atlanta is a vibrant, highly competitive restaurant market.  It is home to multiple National and Regional brands.  We have a large pool of restaurant professionals available to recruit.  Why anyone would hire and relocate someone from the west coast escapes me. I am baffled as to why my friend took that risk.  

 

 

 

The bigger story is the reason for the company’s failure.  One day, they had two operating restaurants with a third on the drawing board.  The next day they closed the first store, fired the executive team, and shelved plans for growth.   They failed because cash flow from the restaurants couldn’t support their overhead commitment.  In addition to my friend, the CMO, and my Controller candidate, they employed a CPO, a Director of IT, a VP Operations, a Director of Culinary Operations, and the CEO/Founder.  For a start-up, their overhead was stunning.

 

 

 

ITB Partners works with start-ups, including restaurant industry concepts.  We understand the challenge of building a successful restaurant company.  Even with solid marketing research to make informed decisions, success isn’t guaranteed.  Our clients know this.  They understand the importance of conserving cash.  They are excellent stewards of invested capital, funds often provided by friends and family.  They understand that administrative expenses must be managed carefully, if not minimized.  These entrepreneurs work hard and take small salaries.  They look first to outsourced solutions when professional help is required.  When cash flow is stable and predictable they will consider hiring full-time equivalents, typically lower-level employees.  At times, I have discouraged clients from hiring me to find full-time equivalents.  Instead, I encouraged them to pursue a 1099 solution.  This was the genesis of ITB Partners.

 

 

 

Major corporations approach new ventures differently.  They are expected to innovate, take risks, and grow.   They have people to assign to these projects and financial resources to make a difference.  They are committed to the venture, but realistic.  They ensure that controls are in place and that key metrics are tracked.  Even so, major companies have become more entrepreneurial, exercising tighter control on resources deployed.  This was the typical corporate model, albeit without the support.

 


Success follows a pattern.  Start-ups share a similar process toward success or failure.  If you are involved in a start-up or looking to join one, compare their history with the standard model.  If their plan deviates from the model, take pause.  If their plan deviates significantly from the model, take flight! 

 

 

 

 

What were they thinking?

 


Thank you for visiting my blog.  I hope you enjoyed my point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list. Your feedback helps me continue to publish articles that you want to read. Your input is important to me so; please leave a comment.

 

 

Jim Weber, Managing Partner

ITB Partners

Jim.Weber@itbpartners.com

Author of: Fighting Alligators: Job Search Strategy For The New Normal

 

 

 

 

 

 

Current Assignments

 

1. COO- Atlanta-based Casual Dining Restaurant Company – New

2. Controller – Atlanta-based Consumer Products – Digital Company – Completed

3. Director of Biz Dev, Atlanta-based B2B Professional Services Company:    Completed

4. Payroll-Benefits Manager, Atlanta-based Retail Company:  Complete

5. Senior Accounting Manager – Atlanta-based Manufacturer. Complete

6. Controller – Atlanta-based Restaurant Company: New

 

7. Outplacement Assignment – Atlanta-based Manufacturer:  Complete

Posted on

Exit Strategy

by David Shavzin

Business Exit Structure is the fourth high-level step I discuss when speaking on succession/exit planning. 


My last three blogs covered the first three steps: Step 1: Exit Planning / Succession Planning is a TEAM SPORT; Step 2: Knowing Your Business Value; Step 3: Building Transferable Value. The fourth step, Business Exit Structure, comes in many flavors.

 

 

 

 

 

 

 

 

 

 

 

How Can I Leave Thee – Let Me Count the Ways


It is not simply a matter of handing over the business and getting a check for the full amount on your way to the islands for the rest of your life. Despite what you hear, it rarely happens that way. It may be a payout over time, the amount may be tied to future revenue targets, it may require your continued involvement for a period of time.

 

You may simply not be ready to accept offers that are put in front of you, requiring you to stay in the business longer than you would like.

 

A few options to consider for your business exit structure:

 

• Sell to a 3rd Party: An investor or someone looking for a business to run and grow.

• Sell to Family: Could be ideal, could be complex and personally challenging!

• Sell to Employees: Current staff knows the business, employees keep their jobs.

• New Employee/Acquirer: Bring someone in, teach the business, agree to sell at a certain date.

• Retain Ownership: Sell majority ownership, but keep an income stream over time.

• Shut the Doors: Liquidate, perhaps the only choice due to a crisis or lack of planning.

• Strategic Sale: Find a competitor who may pay more because of various cost savings.

• The Two-Step: Merge with a competitor as a first step and have a plan for a buyout over time.

• Split in Two: Don’t want to completely retire? Is there a product or service you enjoy and would want to keep?

• Die – No Really!: Want to work forever? Ok, but you still need to plan.

 

The Bottom Line on Business Exit Structure


There are dozens of formulas for business exit structure. Start planning early, build your advisory team and outline at least a target exit scenario so you have something to work toward. Discuss the pros and cons of each possible scenario. You can always adjust along the way, but having an initial plan will help bring you and your team together toward common goals.

 

A successful transition takes time. The earlier you start, the more flexibility and negotiating power you will have for your business exit structure.

 

********************************************************************

More Reading:

Step 1: Exit Planning / Succession Planning is a TEAM SPORT

Step 2: Knowing Your Business Value

Step 3: Building Transferable Value

********************************************************************

David Shavzin, CMC

Shavzin and Associates, Inc.

Valuation, Succession / Exit Planning, Building Value for Sale

Atlanta, Georgia

770-329-5224

Our BLOG

LinkedIn

dshavzin@shavzinassociates.com

www.ShavzinAssociates.com

Thank you for visiting my blog.  I hope you enjoyed my point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.Your feedback helps me continue to publish articles that you want to read. Your input is important to me so; please leave a comment.

 

 

Jim Weber, President
New Century Dynamics Executive Search
Author of: Fighting Alligators: Job Search Strategy For The New Normal

 

 

 

 

JimWeber@NewCenturyDynamics.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 Assignments

 

 

 

1. COO- Atlanta-based Casual Dining Restaurant Company – New

 

 

 

2. Controller – Atlanta-based Consumer Products – Digital Company – Completed

 

 

 

3. Director of Biz Dev, Atlanta-based B2B Professional Services Company:    Completed

 

 

 

4. Payroll-Benefits Manager, Atlanta-based Retail Company:  Complete

 

 

 

5. Senior Accounting Manager – Atlanta-based Manufacturer. Complete

 

 

 

6. Controller – Atlanta-based Restaurant Company: New

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Posted on

New Century Dynamics Executive Search Completes Controller Search

New Century Dynamics Executive Search,  has successfully completed a Controller Search assignment for a CPG – Digital client based in the Atlanta Metro Area.  This client is a privately held company experiencing rapid growth.  We validated a number of highly qualified candidates during this process, so if you have a similar need we can move rapidly on your behalf.

There is another career strategy you should consider:

ITB Partners is looking for consultants to join our team!

 

If you are interested in a career as a freelance consultant, we want to talk with you.

We offer our consultants a branded umbrella to help you build and sustain your business.

  • Marketing and Public Relations Support
  • Team of Consultants to Collaborate With
  • Website with Dedicated Page for the Freelancer
  • Email Account
  • Business Development Support
  • Referral Network
  • Mentoring
  • Email Marketing support

 

We are looking for professionals from all industry segments and functional disciplines who have 25 years of corporate experience, having achieved Senior Level Management status. Do you have experience building and leading significant business units? If so, we should talk!

 

Thank you once more for your interest in New Century Dynamics Executive Search.

 

Sincerely,

 

Jim Weber

 

 

James E. Weber, President

New Century Dynamics Executive Search

www.newcenturydynamics.com

JimWeber@newcenturydynamics.com

 

 

 

Posted on

Exit / Succession Planning: Transferable Value and Value Drivers

Guest Blog Post by David Shavzin;  Partner, ITB Partners

 

 

A laser focus on key business TRANSFERABLE Value Drivers will maximize your exit. When I speak on exit and succession planning, I talk about four high-level steps. My last two blogs covered the first two steps: Step 1: Exit Planning / Succession Planning is a TEAM SPORT and Step 2: Knowing Your Business Value and Step 4: Business Exit Options.

 

Step 3: Understanding TRANSFERABLE Value and Value Drivers

First, let’s discuss Transferable Value


I usually put it this way: “What would happen if you left your business for three months, headed down to an island with absolutely no way to communicate?”

If you get back and the business is humming along well, even thriving, you may well be on your way to significant transferable value.

 

If sales didn’t happen, if bills were not paid, if your products or services were not delivered, if 2 key employees quit and if the leaking roof completely fell in – because you were not there – you probably  don’t have much transferable value.

The company’s dependence on you for success limits Transferable Value to a buyer. A buyer does not want to see a significant amount of knowledge walk out the door upon purchasing your business. If that’s the case, they will pay you a lot less than you want for it.

Perhaps the extremes of 1) or 2) above don’t apply to you, but the reality is that most businesses have a long way to go to optimize transferable value.

The big goal: make yourself irrelevant to the business. “But, but…” I hear you start to protest. Get over it! If your goal is to have the money that you need/want for yourself and your family, you need to raise your business like a child, preparing it to live life on its own…without you.


Now, the Top Ten Drivers of Transferable Value

These are not necessarily in priority order and should all be addressed as you work on growth, succession, and exit. Develop a plan that truly addresses these ten items, and start working the plan now:

• Your revenue will improve immediately.

• You will feel better and enjoy the business.

• Your value will start to grow quickly.

 

1. Sustainable, Recurring Revenue.

2. Written Business Processes: update them regularly, train to them regularly. Repeatable, consistent  operating systems drive the customer experience and sustainable cash flow.

3. A Technology infrastructure that supports your plan and value drivers, while staying current!

4. Management Team and senior staff who are trained and motivated. Make sure that your employees are Knowledgeable and Engaged.

5. Sustainable, Competitive Advantage: Is there something that is truly different about you? If not, find it! Don’t be a commodity and don’t tell me “we have great customer service”!

6. Scalability: are you ready to take on a new customer that adds 50% to your revenue? 100%?

7. Diversified Customer Base: Is one customer more than 20% of your revenue? And how often do customers leave you?

8. Customer Experience: Do you truly know how your customers experience your products and services?

9. Financial Performance: Sustainable, Growing Cash Flow and Financial Controls.

10. Written Growth Plan

 

The Bottom Line on Transferable Value

The business needs to thrive – without you! Develop and work a plan that addresses the top ten value drivers. Start today, measure your progress and adjust your tactics if you get off track on your exit planning.

 

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More Reading:

Step 1: Exit Planning / Succession Planning is a TEAM SPORT

Step 2: Knowing Your Business Value

Step 4: Business Exit Options.

Transferable Business Value and What Drives It:

http://www.forbes.com/sites/johnbrown/2016/06/30/transferable-business-value-and-what-drives-it/#22c215fe7241

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David Shavzin, CMC

Partner, ITB Partners

Shavzin and Associates, Inc.

Valuation, Succession Planning / Exit Planning, Building Value for Sale

Atlanta, Georgia

770-329-5224

 

 

 

 

 

 

 

 

 

 

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Jim Weber, President
New Century Dynamics Executive Search
Author of: Fighting Alligators: Job Search Strategy For The New Normal

JimWeber@NewCenturyDynamics.com

 

 

 

 

 

 

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2. Controller – Atlanta-based Consumer Products – Digital Company – Offer Accepted

 

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4. Payroll-Benefits Manager, Atlanta-based Retail Company:  Complete

 

5. Senior Accounting Manager – Atlanta-based Manufacturer. Complete

 

6. Controller – Atlanta-based Restaurant Company: New

 

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