Archive for Simplify the Business

Mar
27

Go For The Gold!

by Lilia Lee

Business Charts with SELL?Perhaps you’ve planned it from the beginning, or maybe you’ve taken years to decide.  Somewhere down the line will come the time to sell your business, and you want to make sure you come out on top.

 “I sold my business” is a magical phrase for micropreneurs.  It conjures up of pictures of wealth, leisure and exciting new challenges. For many micropreneurs, it’s the goal from day one.

 “Selling might not be everyone’s objective when they’re starting out, but it should be” says Ned Minor.  Mr. Minor is a transaction attorney in Denver, and the author of “Deciding to Sell Your Business: The Key to Wealth and Freedom.” 

 It seems that, eventually, every business owner leaves their business. It is left either sitting down at the deal table or feet first on a stretcher.

 The idea of working until your last breath is not uppermost when you start on the roller coaster ride known as “micropreneurship.”  If you aren’t already planning a more graceful exit, you may come out on the short end of the stick.

 When starting a business you’re usually so busy with the details involved that selling out is the furthest thing from your mind.  But the day you start building needs to be the day you should start designing your exit. 

 Many micropreneurs are serial business builders.  The fact is that they sell one business to immediately begin another. In fact, many micropreneurs enjoy building up a new business more than the profitable success it becomes. 

What does a saleable business look like? 

For one, it’s saleable if it’s “scalable” says Minor. 

 There are small-and-steady businesses sold every day, but the big bucks come looking for a business that has huge growth potential.  Every buyer thinks that he/she is smarter than the seller, that they can double or triple the present business it is doing.  A business will fetch the best price only when buyers believe they can take advantage of significant future growth potential. 

Selling a company’s future

What does this mean? It means proving previous growth and validating your future growth strategy.  You need to start with 2 years of audited financials backing up historical growth.  Then, be prepared to explain your business strategy and how it fits into the overall market.  The opportunities for growth could be through acquisitions, or product development, or even through increased demand.   

Who buys?

There are two types.  There are those who are “financial buyers.” These people will typically pay a lower price. Why? Because they have a fire-sale mentality. 

 Then there is the “strategic buyer.” You need to find this type out there. Paint them a picture as vivid as possible.  Show them a great customer relationship, a great piece of intellectual property, an advantage in time to market, or a key employee.  Show the strategic buyer how one plus one equals four or even five. 

Why settle for just one buyer when you could have two? 

Having another buyer in the wings could be a vital strategy in the sale process.  Having strong, visible alternatives makes any buyer sit up and take notice.  It adds some tension to the deal.  Each side wants the other to think that they’re about to walk away; it’s the tension that gets the deal closed. 

Who are the best buyers?

They are large, large companies with broad, strategic agendas and cash to spare.  Selling to a public company also has other advantages and tangible benefits.  Many transactions leave the seller with a fistful of stock, or worse, a long-term payout.  A publicly traded acquirer makes an eventual cash payout more assured.  Be sure to make your business sale more than a sale of your personal network and capabilities.  Make it look like it’s worth the asking price, especially if you’re planning to leave after the sale.

The sale of a business is complex.  If you’ve been in business for 10 years, then it has 10 years of potential liabilities, lawsuits, and bad accounting.  Buyers want to know exactly where the business stands, so extreme due diligence and complete disclosure on your part is essential.  Sometimes what is requested during negotiations is mind-boggling. You should hire some outside help to put it all together.

Getting the deal closed takes the talents of several people, and here’s a list of who you’re likely to meet on your way to closing.

On the Buyer’s Side:

  • CEO: The chief executive needs a vision of how the new company will fit into the existing organization.
  • CFO: This is the detail person, and a professional skeptic.  In the long-term view, he/she will take the heat if reality doesn’t live up to expectations.
  • CPA: The buyer’s CPA (or accounting firm) will validate the seller’s numbers.  Don’t be surprised if the CPA doesn’t argue for a lower purchase price based on historical profits.  These are the “bean counters” of the deal.

 On The Seller’s Side:

  • Investment Banker: He/she is a professional “quarterback” keeping both teams moving toward the goal.  He keeps one eye on the sale price, and the other on the strategic best interests of the business owner.
  • Transaction Attorney:  He’s the referee – there to make sure no one gets hurt.  The transaction attorney’s focus is the sale contract, but he/she can also handle communication with the buyer.
  • CPA: The seller’s CPA should be advising the seller on the personal tax consequences of the deal, and how to handle the after-tax proceeds.

 Did you think it was going to be easier to sell it than to start it, didn’t you? 

 Remember, no deal is a sure thing until the fat lady sings!  The process can be the most harrowing, and the most rewarding experience in the life of a micropreneur.  Take it slowly, planning strategy and guidance.  Each step of the process can add value to the company, and get you closer to the finish line.

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Lilia Lee is the owner and founder of Simplify and Manage. She is an expert on business process development and process improvement with 20 years experience in the field, working at major corporations. Prior to this experience, she was the Controller & CIO of a marine insurance company. She has a B.Sc. in Accounting from Hunter College of CUNY and a J.D. from NY Law School. She is a certified coach from Coach Training Alliance.

Simplify and Manage is a company dedicated to helping business owners simplify, to get things done. We use our system to plan, implement, take appropriate action, evaluate any process, project or money-making idea. And then, we manage the ongoing operations of the business.

0 Categories : Goal Setting, Plan for the Business, Simplify the Business
Mar
13

Are You Communicating Effectively?

by Lilia Lee

SystemsSometimes, you see things clearly…have a clear picture in your head about something. But to the person you are communicating with, things are as clear as mud. Or, you may assume that the other party understands exactly what you see inside your head or knows facts that, in fact, only you know.

The result is confusion or things not getting done right or on time. At times, it even causes disasters, like delivering the wrong thing or missing the budget altogether. 

For example, when I worked for a large health insurance concern as a project manager, there was this itty-bitty project that needed to get done. Seemed simple enough….all that needed to get done was change a single field in the database. Sounds simple, doesn’t it?

Well, what the business analyst forgot to include in the description of the project was that the desired result was to change the wording on one of the letters mandated by HIPAA. Do you HIPAA? No, well, suffice it to say that it is a Federal mandate in the United States that involves quite a bit of regulatory compliance by the medical profession.

What was the end result? Well, the deadline to meet the new mandate for a new letter was missed. Of course, the project had to have a do-over. And in typical corporate fashion, a lot of finger-pointing took place.

So what can a body do to eliminate (or at least minimize) confusion? Here’s what I want you to do…. Follow the checklist!

It is like the yellow-brick road of project management and communication.

The next time you have a task for someone else to do, use the checklist. That way, everyone is sure to be on the same page.

Step 1 – The “What” – Describe the task.  Tell them what you need them to do. Give as much detail as needed, particularly if the person is new.

Step 2 – The “Outcome” – Describe the desired outcome. What do you want to have at the end? What do you want to see when the task is complete?

Step 3 – The “When” – When do you need it to be done? What’s the deadline? Tell them how long you think it should take to complete. Ask them if they think it will take longer?

Step 4 – The “How” – Are there specific steps they need to go through? If so, describe those steps ad nauseam, if necessary. Now to make sure they “got” what you said, have THEM repeat the steps back to you and explain what the end result should be. 

This will clear up any confusion, miscommunication or frustration BEFORE they even show up.

Step 5 – The “Tools” – Are there documents, or tools or information that they need? Tell them about these things. Don’t leave them blind. Does the team member need to get them from you? If not, where can they find these things? Do they have access? Don’t set them up to fail; do set them to succeed, won’t you? 

Step 6 – The “Moolah” – What’s the budget?  How much can they spend without asking for approval? If there’s no money involved, is there a time constraint? If so, let them know how much time should be spent on this?

Step 7 – The “Result” – How do you want to be notified when the task is complete?  Should they email you? Call you? Do they need to store or file the results somewhere? Will the results be re-used in some form?

This is a simple thing to do. But making this small change in communication is an example of how small changes can make big differences in your results. The bottom line is that strategic systems make big differences in your business.

If you’re like me, you started your business in order to:

  • Set your own schedule
  • Write your own healthy paycheck
  • Make your own hours

In other words, you went into business to be free. To be free from depending on other people’s good opinion of you.  However, if you’re like the majority of micropreneurs out there, it may not have worked like that.

The answer is to have a partner to help you create an effective infrastructure for yourself. How do you do that? Give me a call…I can help.

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Lilia Lee is the owner and founder of Simplify and Manage. She is an expert on business process development and process improvement with 20 years experience in the field, working at major corporations. Prior to this experience, she was the Controller & CIO of a marine insurance company. She has a B.Sc. in Accounting from Hunter College of CUNY and a J.D. from NY Law School. She is a certified coach from Coach Training Alliance.

 Simplify and Manage is a company dedicated to helping business owners simplify, to get things done. We use our system to plan, implement, take appropriate action, evaluate any process, project or money-making idea. And then, we manage the ongoing operations of the business.

0 Categories : Create Systems, Effective Writing, Improve Business, Manage the Business, Managing People, Simplify the Business
Feb
26

How Long Since You’ve Given Yourself a Business Checkup?

by Lilia Lee

Medical concept - stethoscope over the dollar billsDo you go to the doctor regularly for preventive check-ups? Do you do spring cleaning in your house each year?

Well, just like you and your house, your business needs to have some form of a checkup each year.  It doesn’t matter whether you’re a one-person shop or you have a team of people working for you. Unless you analyze the effectiveness of what you’re doing and your bottom line, you can’t gauge the effectiveness of your business.

Alrighty, then! How do you go about giving your business a checkup? Here are 10 questions to get you started:

How do your year-to-date sales compare to the last couple of years?

Did you match last year’s level? Good! But don’t be satisfied with that. If sales stayed the same, all you’ve done is achieve zero growth.  With inflation, zero growth is a warning sign for more trouble down the road.

What percentage of your business is from repeat customers?

It is important to know this. Why? Because getting a new customer costs as much as 5x that of retaining an existing one.  Keeping customers is much more cost-effective than constantly seeking new ones. And that doesn’t mean you should stop looking to get new ones either.

When was the last time you offered a new product or service? 

Your loyal customers like to see you changing and progressing with the times.  If you’re stuck for an idea, ask your customers what they need.

Are you looking at marketing and advertising expenditures as expenses or investments? 

The way you look at money spent in these areas impacts whether you’re willing to spend money at all.  Do you look at prescriptions as a waste of money? 

Marketing is an investment in yourself, your vision, and your company.  The old adage is true: you’ve got to spend money to make money. And you must spend it wisely. 

You have to spend it on marketing that gets responses and orders. If they’re not maybe you need to change tactics. In any case, you’ve got to know.

Is PR part of your arsenal? Do you know how to use it to position your business in the media? 

I am not a PR expert but I’ll bet that at least one of your competitors does.  Nearly every mention of a company in the press is a direct result of publicity efforts. 

Being quoted or featured in an article speaks volumes to readers who are your potential prospects, not just your existing clients.  A good PR consultant can do that for you and show you ways to extend the shelf life of that article beyond its publication.

Do you treat your recurring customers better than your singletons? 

You should. 

If the customers that keep coming back don’t feel special, why should they remain loyal to you?  Have a customer appreciation day or a special invitation only sale for your regulars.  Create a mailing list of your regulars. 

Send occasional post cards or greeting cards for special events or just to keep in touch.  Learn to recognize them on sight and greet them by name when they visit you.

I purchased something from a business four years ago. Each year they send me a Happy Birthday card. Now that makes me feel really special.

How long has it been since you really talked to one of your customers? 

I had a doctor when I lived in NY that would take the time to really speak to me and all other patients. You knew that when you came to see him, it wasn’t in/out. But all his patients loved him so much that they would make trips from overseas to see him. Why? Because he cared enough to take the time to find out how we really were.

Just as I appreciated this man, your customers appreciate you if you take an interest in them, their needs.  If you have a service business, have a conversation periodically with some regulars – even if they only contact you once or twice a year.  That personal touch in an impersonal world will be remembered. And it will pay off in referrals.

How is your business doing compared to your competition? 

Every company, no matter what the size, has competition – even home-based businesses. 

Is the competitor’s business growing or shrinking? Is their pricing or their service better than yours?  If so, what can you tell your potential customers about the price difference?  How can you improve your service to meet or exceed your target market’s expectations?

Are your team members happy? 

Do you know? No, don’t ask them. Just observe how they behave throughout the day.  Watch, listen and learn. 

Team members (contractors or employees) who like what they’re doing don’t watch the clock for quitting time and aren’t habitually late. They don’t treat customers poorly, don’t spend a lot of time on personal stuff, and don’t look like they never smiled. 

Observe how they interact with customers.  Not everyone is a match for direct contact with the public, so make sure you don’t have someone who is rebuffing traffic.

I can remember when I was working at my very first job out of college.  It was a service business with just the owner and a handful of people at work.  There was direct contact with the clients, and there was never a problem with smiling when talking face to face with them. 

I was given the best business tip of my life by that employer, when he pointed out to me that when talking to clients on the telephone I should smile too.  For some unexplainable reason, when you smile as you talk on the phone, the exchange with the client becomes more pleasant and more productive.  It’s as if that smile went right through the phone wires to the person to whom you’re talking.

So, how did you do with your assessment? Does your business pass its checkup for the year? Share with us, won’t you?

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Lilia Lee is the owner and founder of Simplify and Manage. She is an expert on business process development and process improvement with 20 years experience in the field, working at major corporations. Prior to this experience, she was the Controller & CIO of a marine insurance company. She has a B.Sc. in Accounting from Hunter College of CUNY and a J.D. from NY Law School. She is a certified coach from Coach Training Alliance.

 Simplify and Manage is a company dedicated to helping business owners simplify, to get things done. We use our system to plan, implement, take appropriate action, evaluate any process, project or money-making idea. And then, we manage the ongoing operations of the business.

0 Categories : Improve Business, Manage the Business, Marketing, Plan for the Business, Simplify the Business
Jan
2

How to Get Clear for the New Year

by Lilia Lee

Picture of 2013 with fireworksIf you don’t know what you’re aiming for, any action you take can be disastrous. You’d be like a blind person taking aim with a bow and arrow. Imagine that!

Unfortunately, that is exactly how many people actually live their lives. If you are lost in the everyday things of life, it is very easy to lose your way. All you wind up doing is living oblivious to what is really important, living in a dream, or worse, in a fog.

There are natural points in the rhythm of life that allow for reflection: a milestone birthday, the birth of a child, and the end of the year. This time of year provides the perfect chance to re-align your goals and envision your dreams.

Have you ever said: “Next year is going to be different…I’m going to make some changes!” 
But nothing ever does?

I am reading a book by Alberto Villoldo, Ph. D. It is a book about healing. Something he said struck me. It goes something like this:

Unhealed emotions -> Drama & suffering -> Beliefs held about reality -> Beliefs lead the Universe to provide that very reality for us.

A New Year can begin as an act of hope and faith for you. It can be the catalyst to help you show up a little differently than you did before. It can be the opportunity to change, to take action and move forward. After all, we are nothing but a bundle of vibrating energy, strings of light that have assembled a body for a short period of time. Quantum physics tells you this. And vibrating energy can shape itself into something new at the speed of light.

Will you show up as a brand new journal, each page blank and ready to be written upon with a new message? Or are you going to show up as the same old worn book you’ve been reading your past from? It really is up to you.

You are the creator of all the next years to come in your life! You can have a brand new beginning, starting right now. You don’t even have to wait for New Year’s Day. You could:

  • Start fresh and make things different from the drama that has been in the past.
  • Set a new course, a new direction.
  • Show up a little (or a lot) differently (at work or at home).
  • Do something you’ve never done before.
  • Reinvent yourself into someone wonderful.
  • Restart a hobby or interest.

Whatever you decide to change, here are some ways to clear the way for this brand, spanking New You:

GET CLEAR ON WHAT YOU WANT

For you to have a chance of success, the first step is that you have to get REALLY clear about what you want. You need to set the intention that you are becoming this new person.

Write it down. Writing it does make a difference. New Year’s Resolutions are often motivated by ‘musts’ or ‘shoulds’ and remain in our heads on a list of things to do. Forget the should and ought-tos. They are counterproductive. Figure out what you really, really want and write that down.

FEEL THE EMOTIONS AND COMMIT ANYWAY

Once you have made the decision, you’ve got to make a commitment to stay the course. That’s the only way you can make it real, make it happen.

You will feel fear. You will be tempted to say: “The old way is me, I am a __________ (insert your own adjective: loser, loner, failure, etc.)” and then get sucked back into being the person you were, living the unhealed emotions and drama you’ve been living with.

Temptation to fall back is too great if you don’t make THE commitment to change.

Buy a notebook. Write your intention on the first page. Use the rest of the blank pages to focus on your goal and record your progress. Writing down your goals helps you to commit to them because it keeps them in your mind.

TAKE A STEP, ANY STEP

Talking about it won’t make it happen! Never did, never will.

You have to get moving. You have to take action. You might get scared. You might get bogged down in the details.

The key to being successful is to get started… Focus on the first step. And then the step after that, and so on. Big things get done in small chunks. But you’ll never get done if you never start, will ya?

 

BE CONSISTENT, ALWAYS

Tony Robbins says:

”In essence, if we want to direct our lives, we must take control of our consistent actions. It’s not what we do once in a while that shapes our lives, but what we do consistently.”

Deliberate action is essential. Consistency of action is key to your success. Track your actions weekly. Review what you’ve done to see the patterns of behavior. Is it going where you want? If yes, that is great. If not, how are you going to course correct? Then schedule time for small chunks of activity that move you in the right direction.

Create a habit of making it happen.

GET SUPPORT

Having someone on your side is extremely powerful. Someone for support can help you make the change real. Can help you become the person you want to be.

Wouldn’t you want someone to help you in working through roadblocks, to keep you from falling back to the same old you in your corner? (email me at info@simplifyandmanage.com to see how I can help you).

I love the opportunities that each new day brings. And New Year’s just seems to bring them in spades… Don’t you?

How do you want your New Year to be? Do you want to be the same old writing? Or do you want to write that fabulous magnum opus that you are inside?

Let me know how it goes, won’t you? Leave a comment below….

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Lilia Lee is the owner and founder of Simplify and Manage. She is an expert on business process development and process improvement with 20 years experience in the field, working at major corporations. Prior to this experience, she was the Controller & CIO of a marine insurance company. She has a B.Sc. in Accounting from Hunter College of CUNY and a J.D. from NY Law School. She is a certified coach from Coach Training Alliance.

Simplify and Manage is a company dedicated to helping business owners simplify, to get things done. We use our system to plan, implement, take appropriate action, evaluate any process, project or money-making idea. And then, we manage the ongoing operations of the business.

15 Categories : Simplify the Business
Oct
30

Are You About to Give Up? Get Off Your Butt!

by Lilia Lee

I am someone who tends to have lapses into “Why do this? What’s the point?”

When that happens, I feel emotionally spent. Nothing seems to lift me out of my funk. Thinking of something positive seems as unreachable as Betelgeuse. Never mind doing anything positive. That is just impossible.

I bet I am not alone in having these feelings. I am sure that you feel this way too sometimes. Even people who are very successful speak of bleak moments in their life. It is a part of the human cycle we don’t like.

Even though you may face difficulty in breaking the cycle, do not give up hope. There are ways. There are some small steps that you can take to help you out of the cycle.

Here is a list of things that you can do to help:

Set a single, simple goal.

For now, select one thing that is simple to accomplish. Focus on it and it alone. The item should take a short time to complete.

Forget the thousand items on the to-do list for now. You’ll actually accomplish less if you try to do too much.

Exercise is my nemesis! I overcame my avowal to couch-potato-ness this way. When I hurt my back, I stopped exercising…for a long time. When I tried to get back to it, it seemed hopeless that I would ever get back to my old levels. So, I started by making a decision to walk for 15 minutes every other day. Small? Yes. Simple? Yes. Success strategy? YES!

Get excited about your one goal!

But, wait, aren’t you despondent and trying to get out of a slump? How can you be excited about something when you are feeling like this?

Well, the answer is to find someone you trust to talk to about both your feelings and your one goal. It has to be someone who will listen and not try to fix anything.

Share with them your vision for when the goal is done, what it looks like, how you will feel. Imagine (in your head) the benefits of getting it done. Then share that. The energy level will come right up, you’ll see.

Anticipate your starting.

Set the start date but delay starting action for a few days. Why? To build up your anticipation and your excitement. Create a plan of action and anticipate the completion of each task.

Post the goal

Write out your goal in big, bold letters. Post it both at home and at work. Create big reminders for yourself about what you are going to accomplish.

Commit to your goal publicly

No, you don’t have to take out a full-page ad in The New York Times (unless you want to). However, do tell others that you are committed to doing this. Find an accountability partner. Ask them to ask you for progress reports. You can’t back down that way.

Think about your goal daily

Send yourself reminders. By doing this, you are ensuring that your goal’s accomplishment is foremost on your mind.

Make your plan have steps small enough that you can spend time each day moving forward.

Get support  

This one is a no-brainer. But, if you are like me, you’ll try to do everything by yourself.  Don’t forget to ask others for support when you need it.

Go with the flow

Remember, life is a constant ebb & flow. Nothing exists in this world without its opposite. Metaphysical pundits call it the Law of Duality. You cannot have motivation without its lack. And the lack feeling will come again. The trick is not to let it overwhelm you.

Journal daily

Writing down your thoughts every day helps. Don’t make a big deal out of it, just get a notebook at Wal-Mart and write whatever comes up. The most interesting things do come up when you do this. Don’t forget to write what you are grateful for too! Even if you don’t think there is anything to be grateful about, find one thing, even the smallest.

Let negative thoughts pass through

When your thoughts turn negative again, let them pass through. In the Sedona Method, one of the tips for releasing feelings is to find the spot in your body where the feeling is lodged. Then, imagine a way for it to escape. Opening a window or a door or something else is permitted.

I used to visualize little oil wells stuck into my body to let all the bad feelings gush out, like oil gushes out of the ground. Go ahead and laugh, but it worked for me.

Think about the benefits, not the difficulties

Thinking about exercise makes me sweat, even to this day. I guess I am a couch potato for life! When I think about what it does for me instead of how hard it is, I find that I can get up at lunchtime and go for my 15 min walk.

So, when you find yourself in a slump that you can’t seem to get out of. Try the above. Let me know how you are doing, I’d love to hear from you.

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Lilia Lee is the owner and founder of Simplify and Manage. She is an expert on business process development and process improvement with 20 years experience in the field, working at major corporations. Prior to this experience, she was the Controller & CIO of a marine insurance company. She has a B.Sc. in Accounting from Hunter College of CUNY and a J.D. from NY Law School. She is a certified coach from Coach Training Alliance.
 
Simplify and Manage is a company dedicated to helping business owners simplify, to get things done. We use our system to plan, implement, take appropriate action, evaluate any process, project or money-making idea. And then, we manage the ongoing operations of the business.
6 Categories : Get Things Done, Goal Setting, Simplify the Business, Stay Motivated
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