Organizations succeed because of good planning. When your organization started years ago, someone had a plan to present to those who would invest their time and/or money into this new venture. That planning allowed the organization to get up and running. It was the basis from which people began working towards the future, to get your organization to the point it's at today- preparing to transition the organization to another set of hands or to ensure that the organization will continue on requires a new type of planning process.
So, congratulations, your organization is in the top 4% of all organization's by simply surviving to the point you are at today. 80% of businesses in the first 10 years close and within the following twenty years the remaining 90% will shut down. You have done something very right in how you have operated your business, likely because you have a game plan- a systematic process.
McDonald’s started out as a system, a means to produce a hamburger, French fry, and shake in the quickest, most efficient means possible. How was this a system? Ray Kroc took every aspect of the business he bought from the McDonald brothers and documented the workflows, what and how a hamburger should be, how a store should look, and how it should operate. Ray documented everything, right down to the type of people and personalities who should be hired. That book exists still today in every McDonald’s franchisee or corporate manager’s office and earned their shareholders over $5 billion dollars in 2010. They started out with one store and a well-documented plan and a means to track how the plan was working.
Dow Chemical, Meijer’s, and Wal-Mart all started as family owned companies too and they have succeeded to where they are today because they, like McDonald’s, have documented processes and a means to measure how they are performing. So, do you have a documented process with the means to collect and analyze the performance information from your business? Is it up-to-date? Is it ready for the new owners? If you answered “No, you don’t have documented workflows” or “I haven’t updated or thought about updating them because I am just too busy- it’s all kept in my head” then Holt Marketing and Management Services is here to assist you.
Holt has the experience of working with multi-million dollar businesses who need to put what management and key employees know as best practices in their heads and ‘sticky’ notes into documented, repeatable, measurable work processes. Holt Marketing will ensure that your knowledge and skills, important assets to your business’ value, and work processes are ready to transfer to the next generation of owners. Ensuring that the business does not hit some of these ten key business problems:
- Slow sales development
- Cost controls
- Loss of profitability
- Failure to recruit quality people with the needed skills for production or management
- Failure to retain quality people, likely losing key business knowledge and skills
- Dropping customer satisfaction and resulting sales spiral
- Too dependent on a few key people in the business
- Sluggish cash flow resulting in more debt
- Losing touch with the times
- No management succession plan, no means to pass operational knowledge onto new owners, no means to sell the business
The new owners or managers are buying more than just your business name and customers; they want to know what you know. They want the knowledge that has made you successful and made your business worth carrying on after you exit.
So, contact us and ask us how we can help you prepare your business for your transition. We can be directly involved or give you a briefing on what should be done; the choice is yours.
I hope you have enjoyed this, the first of several chapters on this topic. If you would like to receive more of our blogs please click to the right to sign up or the Sign Up via the RSS Feed link at the top of this blog page.