The team is only as good as the sum of its parts
I have written extensively about the need for an exit plan from your business. Understanding your options for exit combined with where you are both financially and mentally, will help you select the most appropriate exit option for your business. In order to execute the strategy, you will need a group of people to deliver the results – we at B2B CFO® like to call that group of people The Success Team™.
Once an exit plan is in place, the next stage is the execution of the strategy while still running and creating value for the business. This is a critical time for a business – one where chaos can ensue if not structured properly. Gordon Segal, founder and CEO of Crate and Barrel stated it perfectly – “getting distracted is the biggest problem entrepreneurs’ face.” Often times, owners believe that they need to be the point person in a business sale, coordinating the negotiations, document gathering and relations with all the respective parties.
Jerry Mills in his book “The Danger Zone, Lost in the Growth Transition,”classifies business roles using the Finder, Minder, and Grinder™ levels. A finder is the entrepreneur, visionary, leader, idea generator and catalyst for future change working in the future. A minder is historically driven – the administrative, accounting and operational staff of the company. A grinder is the person doing the work – working for today only. Keeping an owner in the finding stage will help the business continue to grow while the exit is being executed – maximizing the return on the sale.
This is your business and you are in charge. Your most effective role onThe Success Team™ is to:
So who is on The Success Team™ and what are their respective roles? Let’s look at the content of the team:
The selection of the team members will center on the team members experience in exit activities. For instance, having an attorney that is a cousin that specializes in divorces may not be the best person to involve in a business exit. Likewise, having a participant that does not synchronize to the owner’s goals should remain off the team. Selecting the team members will directly correlate to the owner’s ability to continue to focus on value creation and profit maximization.
Some of these value creation methods will be highlighted in future episodes of this newsletter. Until then, if you don’t have an exit plan in place, please start working on one. If you have an exit plan in place, start pulling together the members of The Success Team™. My background as a B2B CFO®partner will provide the expertise to both plan and execute your exit strategy – let’s start adding value!