Tag: Entrepreneurs

Posted on

More On Networking And Team Building

My favorite way to conduct business is over cigars, preferably with an adult beverage.   It isn’t something I can do every day, but I make the best of the times when I can.  As I am always looking for new places to enjoy a cigar, I was willing to accept a 3:00 p.m. meeting this past Tuesday at Highland Cigar.   Highland Cigar Company is located in a neighborhood just east of downtown Atlanta.  This neighborhood, like many others close to downtown, is enjoying re-gentrification.

If you know anything about the traffic in Atlanta, the last thing you would want to do is to put yourself in a situation where you must commute home during rush hour.  It is especially true if you are returning to the northern suburbs from downtown.  Notwithstanding the traffic issue, I thought this meeting was worth the effort.  It was an opportunity to spend time with Eric, one of my newest Associates.  I arrived five minutes early and found a parking space on the street in front of Highland Cigar Company.  Karma was smiling on me.  When I stepped inside, I saw Eric sitting comfortably in front of his laptop enjoying a beer and cigar. We exchanged greetings, and he invited me to check out the humidor at the back of the store.  It isn’t the largest or the best-stocked humidor I have seen, but it featured a number of my favorite brands.  I picked out a Perdomo Habana, ordered a Guinness and rejoined Eric.

“Highland Cigar Company provides an uncompromising environment for acquiring and enjoying premium cigars and spirits. Our state-of-the-art ventilation system, comfortable leather sofas and high definition televisions create an experience like no other in the Atlanta area.”

As I settled in, lighting my cigar and savoring my first sips of Guinness, Eric told me a little about his affinity for Highland Cigars.  It’s within walking distance to his home office, a convenient place to take a break.  Highland Cigar Company is comfortable and inviting.  It offers a variety of seating options including traditional seating at the bar.  There were groups of over-stuffed leather chairs for quiet conversation as well as computer-friendly tables.  As with most retail venues, they offer free wi-fi, so one can enjoy a cigar and a beverage and still be productive.  In fact, many of the patrons in the bar were working on their Laptops.  I view Starbucks as a suitable venue to work in the morning, whereas a cigar-bar is my preference for the afternoon.  I came to realize that Highland Cigar Company was Eric’s home-away-from-home.  I can appreciate that.  After the background on Highland Cigar, we got down to business.

Eric began by saying that he was looking for guidance.  He wanted to understand how to fit into our team and to make a meaningful contribution.  He told me of a recent meeting with two other Members with similar skills.  He sees value collaborating with them as they form the nucleus of a Practice Group.  Our meeting was a great start as I am encouraged by proactive people, willing to contribute.  [Tweet “I find it easier to lead other leaders than to motivate followers.”]  It pleases me to see folks willing to take a leadership role in the organization.  We discussed the importance of networking within the Membership, to understand their capabilities.  We talked about opportunities for him to present at our monthly meetings; when we schedule time for one Member to discuss their business model in greater detail.  Eric liked that idea.  I suggested that he join our Marketing Working Group, which would benefit from his contribution.  That team is working to improve our brand positioning and value proposition.  It was at this point that I recognized an increase in Eric’s energy level.

Eric has a strong background in project and program management. He is an accomplished professional with experience and connections that make him a valuable team member.  He walked me through a deck related to one of his rebranding projects. Fabulous material!  It was an outline of the project plan, complete with storyboards and deliverables.  After he presented that material, he showed me the finished product which included a revised website.  His work was impressive; highly professional and compelling.  His contribution to our Marketing Working Group will be significant.

My meeting with Eric was very productive!  I learned more about his capabilities to better position him within our team.  I provided him with guidance to enhance his effectiveness.  I found a new venue to conduct business while enjoying a favorite cigar.  It was time well spent.

We concluded our meeting just ahead of rush hour, so my return home was uneventful.  During my drive, I phoned another colleague to recap my meeting with Eric.  We dialed him into the Marketing Group and invited him to their next meeting.  I anticipate great things from that group.   These one-to-ones are an essential component of our team-building efforts.  It is an integral part of my plan.  I become energized by these meetings.

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 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. CEO- Northeast-based Casual Dining Restaurant Company – New

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

4. Area Supervisor – Legacy Pizza Chain, Carolinas – New

5. Operating Partners – Legacy Pizza Chain – New

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

Networking And Leadership

A 5:30 a.m. wake up call to make a breakfast meeting at 7:00 a.m. is not my idea of fun.  However, I will happily do so to support my team!  So, Thursday I was up and out of my home by 6:15 a.m. to make the 45-minute trek to our breakfast spot.  It was still dark, and much of the route was under construction.  More fun.  The plan was to meet with two colleagues from ITB Partners, the consulting side of our business. They wanted to discuss business development opportunities to help move our consulting group forward.  These two Members had met over the prior weeks to get to know each other and to learn how they could support one another.  During their meeting, they realized that they were not clear on certain aspects of our strategy.

I enjoy these meetings on many levels. It is always fun to break bread with my teammates and to catch up on their progress. It gives me a reality check as to my leadership skills and messaging. I leave with ideas as to how I can strengthen our bond and improve the effectiveness of our communications.

As I listened to their thoughts, two themes came to mind. The first is that these guys are still not clear on our mission and value proposition. Secondly, they’re uncertain as to their responsibility to build relationships with other Members. It was clear to me that they needed some coaching.  This wasn’t a surprise as we are still in the “storming phase” of our team-building efforts.

When it was my time to respond, I reminded them of our dual mission. The first part of the mission is obvious, to connect the Members with clients in need of their services.  The second part of our mission is to improve the effectiveness of the Members; freelancers, building independent consulting practices. These folks appreciate the value of our Membership program.  We are dedicated to helping each other generate more revenue and to become more effective freelancers.  I reinforced the point that the power of our concept is the Membership, whose value is to leverage our business development efforts. To make this concept work, active involvement is required of each Member.  This requires them to become knowledgeable about the others.  Each Member needs to know the capabilities of the other Members.  They must be confident that introductions will not reflect poorly on themselves.  This led us into a conversation about networking in general.

They pointed out that networking did not seem to be a natural strength of the Membership.  We discussed the paradox regarding the capabilities of new Members’ networking savvy. Surprisingly people with senior-level corporate experience aren’t necessarily adept networkers.  Networking is an attribute that does not come easily to some, training and practice is required.

We also discussed the question about how to best position their affiliation with the ITB Partners brand.  They were not clear how they should present the benefits of their association with ITB Partners to their clients.  This is still a work in process, but I gave them some ideas to consider.

Benefits ITB Partners provides to its members:

  • Sharing best practices
  • Promoting member clients
  • Public speaking opportunities
  • Promoting/sub-branding practice groups
  • The added value of team meetings
  • Making introductions to prospective clients

Becoming a freelancer is a process.   A good support group can make the process easier and shorten one’s learning curve.  An organization like ITB Partners can help close new assignments quicker and ensure a continuous flow of work.  Our Model is designed to increase the freelancer’s prospects for success.  However, we work in an environment where relationships are critical to success.  This requires our Members to continually develop and strengthen their connections.  This is the whole point of networking.  My role as a leader is to stay close to my team, to understand and respond to their needs.

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

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

Current Assignments

  1. CEO – Northeast-based Quick Casual Restaurant Company – New
  2. COO- Northeast-based Casual Dining Restaurant Company – New
  3. Operating Partners – Legacy Pizza Chain – New
  4. Corporate R&D Chef, Atlanta-based Home Meal Replacement Company – Complete
  5. Area Supervisor, Legacy Pizza Chain Franchisee, S. Carolina – New
  6. Senior Accounting Manager – Atlanta-based Manufacturer. Complete
  7. Controller – Atlanta-based Consumer Products – Digital Company – Completed

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

 

Posted on

Aftan Started A New Job This Week!

Aftan Romanczak started a new job this week.  I helped! He became the Corporate Research and Development Chef for an Atlanta-based, home meal replacement company.  I am happy to say that his placement completed my contract to fill this position. A total of thirty-days elapsed from the day my search contract was executed to Aftan’s start date.  This time-to-completion statistic represents my shortest search.

My average search assignment is ninety days, so this is a significant record. However, it only ties my best. In this case, everything fell into place. I had a highly motivated client who had been unsuccessful recruiting this position on their own. I had a highly motivated candidate, who was between situations.  He could join my client’s team immediately.  Did I say he was also highly qualified?  I had a strong network activated to feed candidates to me. And finally, Aftan was already known to me as were his references.

Some may call this luck. I would say fortunate, but it wasn’t luck.  All of the stars were aligned to achieve this result. However, all of the components were in place after years of investment. I have experience placing Corporate R&D Chefs, so I have a network into those folks. I have a host of network contacts who have connections to the R&D Chefs. The candidate was known to me as he had worked for a client of many years.  I had two excellent personal references who validated his work history and capabilities. Most importantly, I had a sophisticated client who knew the current market for this position. They had tried to conduct this search on their own, without success. They even made an offer to a viable candidate.

When this client turned to me for help, they were in a position to make a rapid decision when presented with the right candidate. They were clear as to whom they sought. All I had to do was to present one highly qualified and motivated candidate to complete the assignment.  The added benefit to the client is that they get a sixty to ninety-day head-start on the productivity Aftan will bring to their operation.

I am reminded of buying my wife’s engagement ring, 42 years ago.  Purchasing that first diamond engagement ring is a learning experience. It took time to understand the product and the market, relative to my budget. The second diamond purchase was easier.  If you are a diamond merchant, you are always up to date on the market.  Recruiting an R&D Chef isn’t a routine activity for most managers.  It requires the hiring manager to become familiar with the supply-demand dynamic, which takes time and effort.

This was not the first time I’ve completed an assignment so quickly. The first was for a CFO I placed with a PEG portfolio company.  In many respects the circumstances were similar. The client had been unsuccessful in their search to find a CFO. They were trying to execute an internal search on a confidential basis. I had just completed a CFO search in the same industry segment for another client.  When I completed that search, I made an announcement to my network which got the attention of the Vice President of HR for that company.  He contacted me, and we entered into a search agreement.  I immediately presented him with a shortlist of candidates I had just validated. This company found their ideal candidate in the group and made the hiring decision. Once again, I had a highly motivated client who was familiar with the market for CFOs. When I put the ideal candidate in front of them, they knew to hire him.  This led to a series of additional CFO searches for the company’s PEG owners.

Every time I experience a below average time to completion on a search I feel validation that my business model is correct. I continue to grow and strengthen my network. I keep them apprised of my work and provide them with useful insights to keep them connected to me. The lesson for job seekers and networkers is that networking can be very effective if you work the process.

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

Current Assignments

  1. CEO – Northeast-based Quick Casual Restaurant Company – New
  2. COO- Northeast-based Casual Dining Restaurant Company – New
  3. Operating Partners – Legacy Pizza Chain – New
  4. Corporate R&D Chef, Atlanta-based Home Meal Replacement Company – Complete
  5. Area Supervisor, Legacy Pizza Chain Franchisee, S. Carolina – New
  6. Senior Accounting Manager – Atlanta-based Manufacturer. Complete
  7. Controller – Atlanta-based Consumer Products – Digital Company – Completed

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

Posted on

More On Networking And Team Building

My favorite way to conduct business is over cigars, preferably with an adult beverage.   It isn’t something I can do every day, but I make the best of the times when I can.  As I am always looking for new places to enjoy a cigar, I was willing to accept a 3:00 p.m. meeting this past Tuesday at Highland Cigar.   Highland Cigar Company is located in a neighborhood just east of downtown Atlanta.  This neighborhood, like many others close to downtown, is enjoying re-gentrification.

If you know anything about the traffic in Atlanta, the last thing you would want to do is to put yourself in a situation where you must commute home during rush hour.  It is especially true if you are returning to the northern suburbs from downtown.  Notwithstanding the traffic issue, I thought this meeting was worth the effort.  It was an opportunity to spend time with Eric, one of my newest Associates.  I arrived five minutes early and found a parking space on the street in front of Highland Cigar Company.  Karma was smiling on me.  When I stepped inside, I saw Eric sitting comfortably in front of his laptop enjoying a beer and cigar. We exchanged greetings, and he invited me to check out the humidor at the back of the store.  It isn’t the largest or the best-stocked humidor I have seen, but it featured a number of my favorite brands.  I picked out a Perdomo Habana, ordered a Guinness and rejoined Eric.

“Highland Cigar Company provides an uncompromising environment for acquiring and enjoying premium cigars and spirits. Our state-of-the-art ventilation system, comfortable leather sofas and high definition televisions create an experience like no other in the Atlanta area.”

As I settled in, lighting my cigar and savoring my first sips of Guinness, Eric told me a little about his affinity for Highland Cigars.  It’s within walking distance to his home office, a convenient place to take a break.  Highland Cigar Company is comfortable and inviting.  It offers a variety of seating options including traditional seating at the bar.  There were groups of over-stuffed leather chairs for quiet conversation as well as computer-friendly tables.  As with most retail venues, they offer free wi-fi, so one can enjoy a cigar and a beverage and still be productive.  In fact, many of the patrons in the bar were working on their Laptops.  I view Starbucks as a suitable venue to work in the morning, whereas a cigar-bar is my preference for the afternoon.  I came to realize that Highland Cigar Company was Eric’s home-away-from-home.  I can appreciate that.  After the background on Highland Cigar, we got down to business.

Eric began by saying that he was looking for guidance.  He wanted to understand how to fit into our team and to make a meaningful contribution.  He told me of a recent meeting with two other Members with similar skills.  He sees value collaborating with them as they form the nucleus of a Practice Group.  Our meeting was a great start as I am encouraged by proactive people, willing to contribute.  I find it easier to lead other leaders than to motivate followers.  It pleases me to see folks willing to take a leadership role in the organization.  We discussed the importance of networking within the Membership, to understand their capabilities.  We talked about opportunities for him to present at our monthly meetings; when we schedule time for one Member to discuss their business model in greater detail.  Eric liked that idea.  I suggested that he join our Marketing Working Group, which would benefit from his contribution.  That team is working to improve our brand positioning and value proposition.  It was at this point that I recognized an increase in Eric’s energy level.

Eric has a strong background in project and program management. He is an accomplished professional with experience and connections that make him a valuable team member.  He walked me through a deck related to one of his rebranding projects. Fabulous material!  It was an outline of the project plan, complete with storyboards and deliverables.  After he presented that material, he showed me the finished product which included a revised website.  His work was impressive; highly professional and compelling.  His contribution to our Marketing Working Group will be significant.

My meeting with Eric was very productive!  I learned more about his capabilities to better position him within our team.  I provided him with guidance to enhance his effectiveness.  I found a new venue to conduct business while enjoying a favorite cigar.  It was time well spent.

We concluded our meeting just ahead of rush hour, so my return home was uneventful.  During my drive, I phoned another colleague to recap my meeting with Eric.  We dialed him into the Marketing Group and invited him to their next meeting.  I anticipate great things from that group.   These one-to-ones are an essential component of our team-building efforts.  It is an integral part of my plan.  I become energized by these meetings.

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 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. CEO- Northeast-based Casual Dining Restaurant Company – New

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

4. Area Supervisor – Legacy Pizza Chain, Carolinas – New

5. Operating Partners – Legacy Pizza Chain – New

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

7. Outplacement Assignment – Atlanta-based Manufacturer:  Complete

Posted on

New CEO Search Assignment: February 5, 2018:

IDEAL EXPERIENCE
CANDIDATE SPECIFICATION

The CEO has overall responsibility for setting the strategic direction and executive management for the Brand. The CEO reports directly to the Chairman and sets the tone and management style for the company. This includes the vision, executive management, organization, financial direction, and control of all  restaurants.  The CEO is responsible for ensuring that all restaurants maintain company standards for food quality, customer service, sales growth, and profit margins.  In addition, the CEO is also responsible for ensuring that the company meets financial targets, including food and payroll costs.

Chief Executive Officer

The successful candidate has had approximately fifteen years of related experience in the restaurant or hospitality industries. A Bachelor’s Degree in Business or Restaurant & Hospitality Management is required. An MBA is a plus, but not a requirement. Foundational experience in a multi-unit, restaurant environment with 100 or more locations is desirable, as is the demonstrated ability to develop and lead major strategic initiatives. Experience in a smaller, start-up or high-growth, entrepreneurial situation is very desirable.  Experience achieving and maintaining high levels of customer service in a retail environment are required.

 

IDEAL PERSONAL PROFILE

 We are seeking a results-oriented individual with an entrepreneurial spirit who has proven restaurant management skills. The successful candidate is well organized, with an eye for detail. The ideal candidate is a team player that can help lead this organization to “best in class” status while maintaining high levels of morale and customer service. Strong written and oral communications skills; problem-solving, and decision-making abilities are required, as are the highest standards of ethical behavior. A positive “can do” attitude with an optimistic view of problem solving and conflict management a must.

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 – Completed

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

5. CEO- Northeast-based Quick Casual Restaurant Company – New

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

7. Outplacement Assignment – Atlanta-based Manufacturer:  Complete

James E. Weber, President

New Century Dynamics Executive Search
770-649-7051 Tel.
770-354-2817 Cell
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

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

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.

 

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

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

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

David Shavzin, CMC

Partner, ITB Partners

Shavzin and Associates, Inc.

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

Atlanta, Georgia

770-329-5224

 

 

 

 

 

 

 

 

 

 

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 – Offer Accepted

 

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

So, You Need A Marketing Budget!

Guest Blog Post By: Michael Sick, Partner, ITB Partners – San Diego

 

While every company is unique, a common question among business owners is “how much should I spend on marketing?” The correct answer is…it depends. There are many factors to be considered to establish the optimal spending level for marketing and advertising. Here are a few issues to consider:

 

Industry Norms – Most industries have a “success model” that defines line item spending ranges.   Understanding this model is an important first step. Previous experience, feedback from other firms in the industry, or searches on the internet or trade publications are all good sources for this information.

 

 According to a report in Ad Age, ad spending in the United States as a percent of GDP was 2.2%.  That number is just for advertising and does not account for all marketing expenditures.  Marketing services (trade shows, research, consulting, design, production, staff, etc.) can often comprise 25 to 50% of the total spending.  McDonald’s (MCD) reports about 9% selling G&A with about half of that funding TV advertising.  Boston Beer Company (SAM), maker of Sam Adams beer spends 25 to 30% of its revenues on advertising, promotional and selling expenses.

 

Spending ratios are influenced by the business model for the industry.  Unlike lower margin business (consumer electronics or banking), high margin businesses (beverages and software) can afford to spend a greater amount of their revenue on advertising.

 

SEND ME THE FREE EXECUTIVE RESUME CHEAT SHEET!


“Fixed” Program– Some brands require a “minimum” level of marketing expenditures to be competitive. For example, a company may know that it needs to attend a given number of industry trade shows or regularly advertise in certain publications to maintain market share.   In this case, their budget is driven by a “fixed” set of expenditures.  As their business grows, these fixed costs will become a lower percentage of revenue.

 

Competitive Position – If Company “A” is in an industry where the norm is to dedicate 5% of sales to marketing, consideration needs to be given to the size of the competition.  If the company does one million dollars in revenue, an advertising budget at 5% results in $50,000 of expense.  If the other direct competitors have combined revenues of five million dollars and also spend 5%, they will spend five times the budget of Company “A”.  To break through the noise, consideration should be given to increasing the spending percentage, focusing the budget on a specific vertical customer segment and/or limiting the geographic reach of the marketing plan.

 

Growth Goals – If a company has aggressive revenue goals, they should consider the additional cash flow available for marketing generated by achieving the higher revenue goal.  Establishing the marketing budget as a ratio of the revenue goal is another approach.  Growing quickly requires increased working capital for inventory, staffing, and accounts receivable.  The prospect of increasing marketing spending can be challenging for high growth companies. Companies with plans to grow rapidly may need to spend a higher percentage of sales to achieve that goal.

 

Budgets in Recessions – Some companies find themselves losing customers and revenues during recessions.  A natural tendency is to reduce marketing expenditures to keep them “in line”.   If revenue is down 10%, should the marketing budget be reduced by 10%?  Logic dictates that if you reduce your budget by 10%, your revenues should fall by the same percentage.  Reducing marketing spending is likely to reduce the acquisition of new customers or jeopardize the company’s current share.   Brands should resist the urge to reduce marketing budgets in a recession.  Focus instead on improving the media mix, the creative or relevancy of the message. Recessions present an opportunity to gain market share, so look to reduce other expenditures first.

 

While marketing expenditures are recorded as expenses on the P&L, smart managers know that these expenditures are investments in the future.  The “Chicken and the Egg” dilemma is confounding for some businesses.  Which comes first, the revenue to support the marketing budget or the marketing budget to generate the revenue.  Your CFO and CMO are likely to answer that question differently!   They can probably agree, however, that revenues tomorrow are likely to be higher if you spend more on marketing and advertising today.

 

Setting a budget for marketing expenditures can be perplexing to business owners as the promised benefit is elusive.  Every business has a slightly different situation that needs to be considered to establish a marketing budget. Prospects generally need to be exposed to a brand multiple times before they are willing to change providers or make a purchase.  The Savvy marketing professional knows that it takes months, years even to nurture a prospect.   [Tweet “Optimizing marketing expenditures by benchmarking and tracking metrics specific to the company’s situation is the foundation for success.”] Reviewing the approaches discussed in this article is a good first step.  ITB Partners (www.itbpartners.com) has broad experience across many industries and domains, so we are capable of advising our clients on this subject and all other issues facing the enterprise.

 

 

Michael Sick, a nationally recognized, innovative management consultant specializing in strategic marketing, advertising, and business development. He spent 25 years in corporate marketing and was a Marketing Vice President for Jack In The Box, Pearle Vision, Arby’s and others. Currently, he serves as the part time Chief Marketing Officer (CMO) for some clients around the US. Learn more at:   www.itbpartners.com/michael-sick.html

 

 

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

 

 

 

 

 

 

 

 

Current Assignments

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

2. Controller – Atlanta-based Consumer Products – Digital Company – 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 Restaurant Company: New

7. Outplacement Assignment – Atlanta-based Manufacturer:  New

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Posted on

Talent Acquisition In The New Normal Requires A Social Media Strategy

It isn't easy managing human resources in the new normal!

 

In the past year, I've been involved in consulting engagements to help small to midsize companies improve their team building efforts.  These folks are finding it difficult to attract talent, especially as the market has tightened.  They need help, but they're reluctant to engage professional help.

 

In this connection, I had an interesting discussion with a senior executive for a major financial services company located in the northern suburbs of Atlanta. He is having difficulty attracting new agents and keeping existing employees engaged. I listened to his frustrations for ninety minutes.  What I found most interesting was not what he said, but what he didn't say. He did not speak of a recruiting strategy using social media.  As we were closing our discussion, I suggested that his company would be well served by treating employees and recruits as customers. His feedback to that comment was entirely nonverbal, a blank stare indicating total confusion. If I was to draw a cartoon image of the encounter the caption over his head would've read "tilt." He failed to make the connection.

 

Major companies have the resources to support their recruiting program and to understand the needs of their labor force. They actively manage their culture and invest in tools to achieve their recruiting and selection goals. They monitor the attitudes of their employees and respond to their needs. They treat their employees like customers.

 

I am reminded of a former employer before I started my recruiting business. It was a major consumer products company that placed a high value on manpower planning. In many respects, they set the standard for creating a highly productive, engaged workforce. One year they did a climate survey of the corporate office staff which generated some interesting results. The employees complained that they worked so many hours that they had little time for mundane personal tasks like banking or Dry Cleaning. This company, being highly responsive to the needs of their internal customers remodeled the corporate office adding a branch bank and laundry service. Clearly, their heart was in the right place, even if they missed the point of the feedback. The employees wanted their company to dial back the workload so they could choose how to improve their quality of life.  Now I must admit that this is third-hand information so it could be erroneous, however, based on my time working for this company, this story rings true.   I am confident that their response today is more on target.

Smaller companies have a more difficult time with recruiting, selection, onboarding, and retention. They're focused on client acquisition, but don't quite understand how to maintain a highly productive workforce while minimizing turnover.  Most have had little training in the fundamentals of interviewing or making effective hiring decisions.

 

Much of the labor pool is composed of Millennials who Baby-Boomers find difficult to understand. They have a distinct set of values and expectations from employment. They must be recruited and managed differently. Social media can be a very powerful  tool in this regard.


Many mid-caps are out of phase with the labor market in the new normal. They may be making a heroic effort toward consumer outreach, but they are old-school in the way they recruit new employees. In fact, many don't understand the new employment dynamic.  They are using outdated strategies that just don't work. 

 

 

Most companies are doing well with their digital marketing efforts to attract new customers. To be competitive at talent acquisition they must employ the same strategies.  They should be developing communities of prospective employees and keep them interested in the opportunity for employment. The goal is to generate a continuous flow of job seekers, minimizing the need for outside recruiters. To support this strategy, training is recommended to become better interviewers and to improve candidate selection decisions.  To minimize turnover and to keep employees engaged, customer loyalty programs should be developed for employees.  

 

Treat job seekers as customers for successful talent acquisition in The New Normal. 

 

 

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
JimWeber@NewCenturyDynamics.com
Author of: Fighting Alligators: Job Search Strategy For The New Normal

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 – 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 Restaurant Company: New
7. Outplacement Assignment – Atlanta-based Manufacturer:  New