Catalytic Conversations

Recently I was a guest on Lauren LeMunyan's Spitfire Podcast.  Lauren and I are both coaches who work with executives to become consciously profitable.  The question is, how? Leaders who are executives and business owners have to keep up with legislation, maintain profitability to retain value within the company, and rely on people to make those things happen.  As if that isn't tricky enough, those leaders have to lead people who, in 2021, are dealing with the pandemic - working remotely and isolated, while dealing with the social reckonings of the lack of equity, inclusion and diversity. No one wants to be part of the problem.  Everyone wants to offer a solution.  What is a leader today to do? In this interview we talk about legislation that is in the Senate for committee review that will impact M&A activity for startups.  We also tie it to the questions that Victoria M. Grady poses in a recent article for leaders who want to be value added to their teams in transition.  Finally, we discuss our upcoming webinar, "How To Create A Psychologically Safe Team" on Monday, April 12th, 2021.  In this webinar we will discuss: What’s Working and What's Not in DEI Strategies The 4 Stages of Psychological Safety and What You Really Need to Pay Attention To The Next Steps to Building Your Inclusive Leadership Strategy Registration is free and available at consciouslyprofitable.com

Picture this - you’ve worked for years to build your business.  You hope to retire in the next five or six years.  You will use the money from that sale to buy the family a relaxing cruise, invest some for retirement and finally, do what you want to do with your time. Sounds lovely, doesn’t it?  Unfortunately, for many who hold that dream dear, it doesn’t work out that way.  It happens for a lot of reasons.  Sometimes, the market conditions aren’t right.  At other times, owners get in their own way. Today you have the chance to get the insider view of the transaction at the point of choosing the best fit buyer.  Dan Scherotter, a broker and strategy consultant with Filament Business Advisors, has a background in the restaurant industry. Dan is a former chef and restaurant owner.  Dan has a finger on the pulse of the restaurant industry.  As a consultant and broker for Filament, Dan is going to discuss with me the unique aspects of selling a restaurant, asymmetrical buyers and how the past year has “laid the industry bare” structurally. First, you need to sit down and define your priorities.  What do I mean? Do you know what your financial outlook is? Can you afford to take an earn out or reinvest part of the proceeds of a sale? What are the tax implications of the sale for you personally? Many owners don’t know what they actually need to realize from the sale of their business.  Sounds crazy, doesn’t it?  But, it’s true.  I recently heard of an owner who thought (no data, just thought it) that he/she needed to walk away with $3M to be comfortable in retirement.  As it turns out, $2M was the magic number and that business sold and the owner was able to take an earn out for a larger purchase price based on forecasted earnings. Think about your other priorities: You want the company to stay in your town. You want the new owner to keep all of the employees for at least a year. You want to continue acting as part of the business development team. You want a seat on the Board. These requests are reasonable if they are presented in a professional manner and the owner has created a strong position as a valuable company.  The likelihood of those priorities being accepted depend on the value of the company, and the timing of the ask.  This is another incident where the right advisor is critical. Let us know what you think: Wendy Dickinson, Ascend Coaching Solutions, 804-372-7575, wendy@ascendcoachingsolutions.com; Dan Scherotter, Filament Business Advisors, 804-728-1553 dan@filamentbusinessadvisors.com

A lot of you plan to sell your business one day.  However, the odds of successfully selling your business are against you. Did you know that there are ways to stack the odds of selling successfully in your favor?  Today Mike Metzger of Murphy Business Sales and I discuss the steps that you can take to prepare your business to go on the market. We look at the things that you can do to build value in your business.  We discuss the most common mistakes that business owners make when putting their business on the market.  Mike and I want you to know what you don’t know.  What you don’t know can definitely hurt your business.  Finally, Mike and I share our recommendations for steps that you can take to prepare your business to sell, and then integrate successfully once it’s sold. I think you’re going to want to take notes! SHOW OBJECTIVES: THE WHY 4 out of 5 businesses that go up for sale, don’t successfully sell. Of the businesses that close the deal, 80% fail to integrate successfully. 73% of business owners are unhappy with the results of the sale of their businesses 1 year out from the close. Over 60% of business owners are planning to use the proceeds from the sale of their business to fund their retirements. KEY ISSUES: Problems You May Encounter: Owners don’t really know how much their business is worth. Owners have built the entire business around the owner. Owners have failed to build value within their business - value to a prospective buyer, that is. Owners fail to run the business successfully once the transaction occurs. Owners don’t get the timing right. Owners don’t have the right advisors. Owners don’t have a communication plan for their team and word leaks. What You Need To Do - THE HOW Get a valuation by an independent source. Consult your financial planner to determine the amount you need to live comfortably in retirement.  Could you manage an earn out, or reinvest as minority owner?  If so, for how much? Develop relationships with a broker, attorney and accountant who have this kind of expertise. Take a 2 week vacation and don’t contact the shop.  Use this as a stress test. Anything that “broke” while you were gone was a weak point that needs shoring up. Find out what the steps are and what the process looks like for your business. Conduct an inventory, a cash flow analysis, account receivables over 90 days are considered a lost cause.  Collect on those ahead of time. Consider the “curb appeal”.  Clean and spruce up ahead of time. Prepare your team, and your customers, for transition.  It will cost you if your key performers/customers up and leave once the deal is closed. Resources: Mike Metzger, Murphy Business Sales, m.metzger@murphybusiness.com, or 1-804-617-6328.  Connect with Mike on LinkedIn here. Visit my website, to get your free downloads here

This episode is from the Catalytic Conversations aired on IBGR.Network every Friday at 2 pm Eastern.  This was the Season 4 opener.  Let me know if you liked it, have questions, or suggestions for other topics you'd like to hear more about.  Thanks for listening! Creating a family legacy is hard work.  Fewer than 20% of businesses make it to the fourth generation.  Why is that?  What contributes to the failures from one generation to the next. A favorite resource is the PWC Family Business Survey series.  Today was take a look at the challenges for those in power to prepare the next generation for leadership.  Using the PWC Global Next Generation Survey from 2019, we will start off with a few discussion points: Gaining top level experience is the #1 priority for NextGens in increasing their skills.  48% would like to do more shadowing/mentoring, 43% feels the need to network more with peers, 42% would like to gain experience outside of the family biz, 41% would like to gain international exposure. The “incumbent” generation is not answering the call by and large.  2018’s Survey found that only 15% have succession plans and 44% had none. Here are the skill Next Gens say are most important for the business and they need the space to make mistakes and gain experience in these areas: Problem solving and strategic thinking 72% Leadership 71% Financial Management 57% You, and your family, have dedicated significant resources to building the minds and confidence of your Next Gens.  But, are you willing to take this a step further – actually several steps further?  By designing a succession plan?  By creating a list of company needs that you present to the Next Gen to explore fit? It takes courage and patience to hold the space for the growth and development of the Next Gen.  Identify learning and experience goals that yourNext Gen leaders can use to fill their knowledge and experience gaps. Begin by setting next gen up to be the best version of themselves.  The relationships between family members as well as with the business itself is explored, developed, and nurtured with the idea that the business will continue into perpetuity. Next, consider how far each person could go in leadership development, and in what areas (be specific!). Create a family employment policy - explore the roles waiting to be filled by the next generation.  Identify who might fill what roles, and how well the person fits the role. Organize regular family meetings. Develop a continuity plan for the family and for the business in the face of transitions of leadership, ownership, governance, and the family assets. You can connect with Wendy Dickinson on FB, LinkedIn, and Instagram.  Visit IBGR.Network to download the full set of show notes.

This was a special episode from my weekly radio show, Catalytic Conversations, on IBGR.Network radio on Fridays at 2 pm Eastern.  Vince Burruano, VP of Sales for the Commercial Division of JK Moving, is a leader to learn from - you can download the full show notes at IBGR.Network. I’m currently working with several companies dealing with sales team crises.  One company has had three hires for the sales team without any success.  Another has had a sales manager who was successful pre-COVID and finds the current business landscape so difficult, he’s no longer able to lead. I invited Vince to give us a snapshot of his innovative approaches to building a successful sales team.  Vince is a lifelong learner who is a student of leadership.  This was a valuable hour for picking up new ideas. You are all here to learn.  A lot of you, like my clients, learn best by first hand experience.  Is it really necessary?  Vince is here to help you learn about the importance of sales leadership in growing your business. Today you have the chance to learn through another leader’s experiences – saving you time, money, and energy.  I’m always happy to learn from someone else’s examples, aren’t you? Vince outlined a number of steps to consider taking when evaluating your business talent needs: Perform an honest assessment of your business.  Ask a trusted associate to help ensure you are seeing the world as it really is, and not how you think it is or should be. Business culture and performance overall.  How is the customer experience?  Are you able to differentiate your offering from other competitors?  Do you create a positive memorable experience for those clients that engage your business? Your sales organization.  Is it an asset or a liability? Skills.  How good are they at the basics?  Are they growing professionally?  Can they develop organic business, or do they rely on leads from the firm? Is there a defined and written sales process that incorporates best practices?  Is it continuously evaluated and tweaked for maximum impact and results? Accountability.  Are goals clearly defined, measured, and areas needing improvement addressed?  Does everyone understand their mission and how it fits into the overall business? Leadership.  Would a dedicated sales manager add value?  Could they drive your business to the next level while you focus on the big picture? Development and Continuous Improvement.  Is everyone getting better each day? Results.  Is your sales team creating profitable revenue?  Could they do even better with the right focus and support? Are you the leader you need to be? Manager vs. Leader – Managers do things right while leaders focus on doing the right things well. Are you inspiring others to be their best?  Is your why believable? Are you developing new leaders in your company?  Leaders are always in short supply and they are the cornerstone of all future growth.

Many family businesses come to a place and time where the decision is made to sell the family business.  While many families would prefer to pass the business on for generations to come, sometimes that isn’t possible for unforeseen reasons. I recommend to all business owners that they actively plan for the sale of their business - regardless of their ideal exit.  Why?  Because it is always great and empowering to have options when you are ready to exit. For some owners, taking this seriously will allow them to reverse engineer a viable asset instead of merely a job from the business they’ve worked so hard to create.  My guest today, Michelle Seiler Tucker of Seiler Tucker Inc. and author of Exit Rich, has had 20 years of experience buying, selling and growing viable businesses. Michelle has designed a process with tools to equip business owners to build value within their businesses.  Today, she shares the ST GPS, and the 6 Ps of value that every listener can integrate into their exit preparation. KEY ISSUES: Problems You May Encounter: Business that is built around the OWNER, not with systems and processes that allow the business to function separately from the owner. Business owners who do not know the actual value of the business based on cash flow, profitability, and the documentation to prove it. Owners who don’t have a vision for their next chapter in life. What You Need To Know - THE WHAT: Have to know your numbers - what you need to bring that vision for a next chapter to life, an independent valuation, and a clear view of the profitability of the business. The opportunities that exist in your industry.  IF your business is in a dying industry, selling becomes more difficult. Michelle Seiler Tucker outlines the many missed opportunities she has witnessed over her career in Exit Rich. What You Need To Do - THE HOW: Check out the ST GPS. Determine your destination (sales price). Know your current location (the value of your company). Identify who your buyers will be. Know your time frame. Determine your WHY. The 6 Ps: People - right team? Product - niche or intellectual property Process - Is your process efficient and/or proprietary? Proprietary - IP, brand, patents, trademarks, etc. Patrons - customer concentration, etc. Profits - Are you operating at the highest profit margins for your industry? Resources: Exit Rich, by Michelle Seiler Tucker, available NOW on her website.  Check out the resources Michelle offers those who dive into Exit Rich. Work The Bugs Out: Practices To Work In, & On, Your Business, by Wendy Dickinson, Publish: TBD.  Excerpt: Free Downloadable PDFs to work through. You can connect with Wendy Dickinson on FB, LinkedIn, and Instagram.

This is interview was a part of my weekly radio show at IBGR.Network.  Catch Catalytic Conversations every Friday at 2 pm EST. Building Culture and Teams Culture in any organization can be difficult to define, as well as communicate.  The issue of defining and explaining culture in a family business is even more complex.  At the same time, leaders in a family business have a responsibility to not only define and explain culture, but to also equip themselves and the next generation to lead through culture changes.  It’s complicated for the family and for those in the organization outside of the family, isn’t it? At the same time, the WHY Institute believes that knowing the WHY of the company, it’s leaders and those who make up the organization is an important part of sustaining a family business for future generations.  The WHY Institute founder, Gary Sanchez, was inspired to reach  out to Simon Sinek after his famous TED Talk to ask how a person goes about discovering the WHY.  Simon didn’t know, but supported Gary in his efforts to devise a scientifically sound way of discovering your WHY. Today I have a conversation with Dan Dominguez of the WHY Institute.  Dan shares his experiences in working with family businesses, and the individuals within those organizations, on discovering their WHY, their how and their what.  Each leads to greater clarity and ability to communicate the mission and vision to employees as well as ideal clients/customers. Strong Culture is linked to: Happier Employees Greater Productivity Higher Employee Engagement Higher Profits Knowing the Why, the How, and the What of the company AND the people in an organization helps build a strong company culture. According to the PwC, 2019 Family Business Survey, over 50% of family businesses did NOT plan to pass the business on to the next generation.  One of the reasons was a lack of interest on the parts of the younger generation.  Dan and I wonder if a lack of clarity around Why - for the company and for the next generation, contributes to that statistic. Companies and individuals can investigate the process of Why discovery by exploring The WHY Institute’s website: www.whyinstitute.com. Resources: Dan Dominguez, The WHY Institute, contact Dan at dan@whyinstitute.com. Work The Bugs Out: Practices To Work In, & On, Your Business, by Wendy Dickinson, Publish: TBD.  Excerpt: Free Downloadable PDFs to work through. 2019 US Family Business Survey, PWC, January 2019. 8 Reasons Why Organizational Culture is Important, indeed.com. The Statistical Case for Company Culture, levelingup.com. You can connect with Wendy Dickinson on FB, LinkedIn, and Instagram.

Have you forgotten what it felt like to start your business?  I’ve lost count of the number of business owners who have said, “If I had had any idea how hard it would be to get this business where it is today, I’m not sure I would’ve done it.” Business owners usually nod their heads at this.  Yes, it was hard.  But, you learned a lot.  Many of the lessons learned at that point in the business get lost or forgotten as the company grows. We’ve talked about innovation and disruption as well as pivots this year.  The pandemic emphasized the importance of scenario planning and contingency plans.  A number of businesses have gotten really creative and changed the way they do business. How do mature businesses reconnect with that entrepreneurial spirit to reinvent the product, product delivery or the business model to compete in this marketplace? My guest today is Mavis Tang of Soundé.  Mavis and her co-founders have brought a new product to an old market. I believe in their mission, vision and value proposition.  I invite you to listen to the path Soundé took, and let the possibilities for the future wash over you as you reimagine the business you lead. This episode is from my weekly radio show on IBGR.Network.  I hope you enjoy it! What the (O) needs to Know - Pay Attention to Alignment The key Need To Know for an Innovator. The things that surprised Mavis. The steps Mavis took to prepare for ownership. What the (O) Needs To Do - Aspire, Align, Accomplish The people Mavis and her co-founders go to when they have questions. Mavis’s strategy for dealing with conflicting priorities.  It’s all about communication. The strategies Mavis and her co-founders have for dealing with conflicting opinions.  They respect and honor the vision first and foremost - agreement flows from there. The advice Mavis offers to others out there who have an idea for a business. Resources: Check out Sounde here.  Soundeapp is coming.  Sign up for the newsletter so that you and your family know when Sounde will be ready to beta test.  Can’t beat the price! “5 Obvious Mistakes First-Time Founders Make That Sink Their Startups” by Megan Holstein, entrepreneurshandbook.com, Medium, Dec. 2020. “Decoding Quantum Thinking: What It Feels Like To Think Free”, by Kashyap Vyas, July 20, 2019. “Disaster Preparation and Recovery For Any Size Business”, by Wendy Dickinson, Ascend Coaching Solutions, 2020. “Why Design Thinking Works”, by Jeanne Liedtka, HBR, October 2018.

This show gives you, the Owner/Founder Executive the chance to see how somebody else did it - innovate within an established market.  Jay Carpenter and his co-founder, Alexis Carpenter, had a need, which led to an idea that took them to starting Handley Watches. Jay shares the journey.  He gives us his “WHY”.  He told us what he didn’t know and had to find out.  Jay will let us in on how they did it - from day one. Handley Watches gives us a blend of the old and the new, so that we can move, work and play without the weight of connection dragging us down and back. This interview took place as part of my weekly radio show, Catalytic Conversations, with IBGR.Network every Friday at 2 pm EST.  Drop by any time.  Join the IBGR.community or download the IBGR app to get the full show notes. Resources: Handley Watches, Visit the Handley Watches website to sign up for their updates and receive 10% off your purchase!   Handley Watches FB Page, “Richmond Couple Finds Time To Launch Wristwatch Brand”, Richmond BizSense, August 27, 2020. “5 Obvious Mistakes First-Time Founders Make That Sink Their Startups” by Megan Holstein, entrepreneurshandbook.com, Medium, Dec. 2020. “Decoding Quantum Thinking: What It Feels Like To Think Free”, by Kashyap Vyas, July 20, 2019. “Disaster Preparation and Recovery For Any Size Business”, by Wendy Dickinson, Ascend Coaching Solutions, 2020. “Why Design Thinking Works”, by Jeanne Liedtka, HBR, October 2018.

You’ve been told to take the emotion out of your business decisions.  It makes sense.  If only it actually worked.  We know that making a decision in the midst of extreme emotion is a really bad idea.  But, what happens if the President of the family business feels really strongly about a person (his son, for ex.), or a plan, and can’t separate the emotion from reason? My guest today is Jay Cowan, a “recovering insurance guy” (his words- not mine).  Jay shares a family business story that is heartbreakingly tragic.  This story is the WHY of Jay’s business, Business Owner Exit Strategies. In this story, Jay’s stepfather, Glenn, chooses his successor based on his love for his son.  It went terribly wrong.  Glenn needed a coach.  He needed someone to talk through his options, develop a plan to prepare his son for leadership and offer support as he navigated the relationship with his son. The first time I heard this story, I couldn’t believe it.  If you work in a family business, take the relationship aspect of the business seriously.  It matters. If you’d like to talk with Jay, call him at 804.726.6011 or check out his website at BOESVA.com.  If you are in a family business and want a coach to support your efforts to succeed, call me at 804.372.7575 or email me at wendy@wendybdickinson.com.

Meet Tommy Howard, former President and CEO of Sqwincher, based in Columbus, Mississippi. Tommy shares his experiences of assuming leadership of his family’s business, gaining a private equity partner and then, his exit from the company after selling to a strategic buyer. Tommy had 3 priorities in the sale: legacy, the well-being of Sqwincher employees AND purchase price. In our offline conversation Tommy said that “this is a small town, it’s not like those people can just go out and get another job”. He went on to say that he feels really good about the outcome and continues to see Sqwincher grow while making a positive impact on the Columbus community.

Phil Pietrandrea, Sales Director- Infrastructure at UNITRAC Railroad Materials, Inc. / Wabtec is my guest for this interview. Phil is a veteran of mergers & acquisitions. He shares key leadership strategies for leading a team through the M&A process, with integrity and authenticity. Phil makes a strong case for ownership transparency to gain company wide buy-in. Phil utilized his team of external advisors to successfully lead UNITRAC across the finish line - and gained trusted friends along the way.

How many of you are willing to put peace of mind ahead of profit? My guest, Dry Farm Wines founder, Todd White, is one of the few. In this interview we learn about clean wine, fear based leadership, and the rewards of failure. Todd tells us about his entrepreneurial journey which started at age 17. Todd founded 2 companies that he sold successfully. Todd also defines success; his perspective may surprise you. Todd labels his 3rd company a resounding failure that brought about his greatest wealth- peace. This interview focuses on the 4th of Todd’s creations - Dry Farm Wines. White has resiliently created DFW with a growth mindset, and expanded sense of awareness. Todd looks for those ready to embrace personal responsibility, while being part of a community - a key to the DFW Peace & Profit Manifesto. Check out to the DFW site: https://www.dryfarmwines.com

Rhonda and Jim Leavitt candidly share their conversations. They start with the one they had when Jim wanted to leave his Wall Street career to start their business. The money in savings, division of labor with a family of four young children and, how to eventually exit the business, are discussed in this interview. Jim and Rhonda are the founders of Grand Cayman Villas and Condos. Natural disasters, along with the issue of distance, are factors both Rhonda and Jim navigate in running the business and their household. Check out the company on their website: www.grandcaymanvillas.net. Listeners, if you’d like to learn more about working with me as your coach, feel free to call me at 804-372-7575 or go to my website, Ascend To Sell.com. I would love it if you would leave a review on iTunes and share this podcast with your contacts.

This episode focuses on creating value through climate optimization. Anne Waple, Vice President & Co-founder of Climate Optimize shares strategies for acquisitions. Climate Optimize, Inc “CO”, was founded on the fact that climate change presents both risk & opportunity to enterprises worldwide. Markets increasingly reward those that include climate assessment in their governance. CO takes climate assessment to the next level: Climate Optimization. Uniquely positioned to add enterprise value against a backdrop of climate change, CO will climate optimize by: ● Identifying, & acquiring, profitable companies with significant climate optimization potential. This may offer opportunities for outside capital partners. ● Assessing & advising third party clients using a CO-developed proprietary climate optimization platform to maximize enterprise value. Contact the CO team by visiting their website: climateoptimize.com . Contact Wendy Dickinson, the M&A Coach at: ascendtosell.com

Today's guests look back on the sale of their business. This partnership weathered each transition life had to offer. Marriage, a growing family and what became a large, profitable, organization- Mike and Patricia managed it all.

As an Amazon seller veteran, eCommerce expert, and outsourcing guru, Connor Gillivan is passionate about building profitable businesses that address specific customer needs within the eCommerce world. Starting out of his college dorm room, Connor spent 4 years working with his business partners to build an eCommerce business selling on Amazon.com. With the venture, he’s sold over $25 million online, have worked with over 1,000 suppliers, and have managed over 500,000 products. After hiring and firing hundreds of remote freelancers and virtual assistants with his Amazon venture, Connor and his business partner started FreeeUp.com to address the frustrations they were facing on other marketplaces like Upwork, Fiverr, and Freelancer: (1) too much time interviewing and vetting freelancers and (2) too much turnover. FreeeUp receives hundreds of applications from freelancers each week, interviews them for skills, communication, & attitude, then only allows the top 1% into the network.

Libby Dishner, MLHR, ACC, is a Founding Partner of Cresco Coaching and Consulting. As a sought-after leadership coach, human resources strategist, and speaker she helps people find success and happiness by reaching for their full potential. Libby, a veteran navigator of acquisition integration, shares her tools for building resilience during disruption.

Many owners plan to either grow through an acquisition or, sell their company one day. But, are they ready? Have owners prepared for future disruptions? My guest, Courtney McBean and her partner, had two unexpected buyers come calling. Today, Courtney shares with us the tenets of the partnership, how it all began and the amazing results of the deal. Courtney is an entrepreneur and constant innovator looking for new ways to solve problems in clinical trials. With over 20 years experience in clinical research, her mission is to build strategy, processes, and technology that bring clarity, focus, and efficiency to organizations enabling teams to perform and trials to succeed. Checkout Courtney’s latest work. Cascadia Global Research

Ellen is a B2B CFO Partner, with an interest in helping the owners of privately-held businesses reach their goals, both personal and business. For almost twenty years as a CFO in the private sector, Ellen helped to add value to a company which experienced a long period of robust growth. Ellen provides fractional CFO services on an as-needed basis. Ellen's new book, "The Big Turnaround-How Bad Management Nearly Destroyed an Exceptional Company", will be out in late March.