Is It Time to Revisit Why You’re Still Running Your Business?

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As your business grows over the years, things change. You may come to find that the reasons you started the business aren’t the same reasons you’re running it now. Or even the reasons you aspire to in the years to come.

If you can’t easily answer “Why are you still running your business?”, it may be a good time to revisit why you started the business in the first place. Here are a few ideas:

Because you love the industry

If you were to look at some high profile industries, like surfing, coffee, or food, outsiders might look at them and say, “It would be so cool to have a business in that industry!” But in all likelihood those outsiders don’t realize these businesses aren’t just about celebrating something really enjoyable. They also have a lot of hidden challenges and difficulties that can’t be seen.

What keeps people in many companies year after year, decade after decade, generation after generation, is a true love of the industry.  If that love is still there through all the ups and downs of growing your company, you’ve got a good “why.”

Your Business WhyBecause you have great staff

Oftentimes people spend more time with their work colleagues than they do with their families and friends. Ideally that time shouldn’t just be tolerable, but enjoyable.

Camaraderie and a respectful spirit of collaboration often make all you do feel a lot less like work. Owners who are intentional about this process have created a great workplace that makes it a joy to be part of every day.  This is another good “why.”

Because you love the challenge

All business owners know that the sport of business is a daily, often hourly challenge. It will bring out the best in you and test your IQ (emotional and actual) in ways you couldn’t imagine.

The reality is that sometimes people are business owners simply because they couldn’t find a challenging-enough job to push them on a daily basis. Pushing yourself out of your comfort zone on a daily basis is another good “why.”

These are just three reasons to help you get the conversation started within yourself if you don’t really have a grasp on the “why.” As hard as you may work, you owe it to yourself to be able to answer that question when others ask.

Keeping the Best Employees in a Sale

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Selling a business is fraught with all sorts of challenges. One of the most important ones is how to deal with employees. If handled thoughtfully, they can make the transition almost effortless. If handled poorly, you could end up with a deal that doesn’t close.

Do you tell them or not?

Keeping a sale confidential is critical for both seller and buyer. If the seller discloses that the business is for sale, employees might start looking elsewhere because they (understandably) fear change and worry that a buyer will eliminate their positions.

Customers may look for a new supplier because they think you’re going out of business, and vendors may change payment plans to COD! These are just a few of the obstacles when disclosing that your business is for sale. Trust us, we’ve seen it all. People love to gossip and tend to imagine only the worst!

Keep Best EmployeesBuyers expect that a seller will operate their business in a normal fashion until closing which can be difficult if the seller is constantly putting out the fires due to the rumor mill.

Additionally, there are legal limits to what can be disclosed to others before and after closing.

All that said, there can be exceptions to the rule of keeping a sale quiet from your staff.

If you’re ready to retire and your employees know that you’re seeking a buyer, there are ways to handle a transition to accomplish the goals of both the buyer and the seller.

Since you’ve already disclosed that you’re looking for a buyer, your staff can assist in ensuring a transition process is in place. It shows them that you’re being transparent with them and that you want to share what’s happening.

You don’t have to give a play-by-play, but try to make yourself available to them to answer anything you can.

If you can ensure that the buyer is going to keep the employees, that will be even better. It will go a long way to quelling fears they might have about having to start looking for work elsewhere.

It might also be worthwhile to have the staff write out a vision about their position and where they see themselves in the company in the coming years. The buyer will appreciate such documents. It will also give them time to think about the best way to work with these employees.

Share the wealth

Consider a transition bonus. In order to give the buyer confidence that the staff will stay in place, you can give the employees a bonus for staying on for a given period of time, say 6 months or a year.  

Some business owners have even given key employees a percentage of the sale proceeds. This serves as a thank you for their years of dedication and assistance with the transition.

Continue on as normal

Regardless of your approach, it’s important as closing day approaches to continue to run your business as you normally would. Things change and deals can fall apart, so don’t be left in a lurch!

Book Club #7: ZAG, by Marty Neumeier

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zig zagMarty Neumeier’s short slide-presentation book, ZAG, at 192 pages, is one of the shortest books we’ve covered in our Book Club series. Don’t let the smaller size fool you, however.

Neumeier covers a plethora of information about being the best brand possible. We’ve picked a few key ideas from ZAG to share in this article.

What do you mean, ZAG?

“When everyone is zigging, zag,” Neumeier repeats over and over in the book.

If you aren’t #1 or #2 in your category, you need to find a way to stand out…to zag. You can discover your zag by taking the time for a brand audit.

17-Point Brand Audit

Marty goes through a comprehensive brand audit, which every business should engage in, across 17 categories. We encourage you to read the book and go through the audit for your company, but this article highlights five categories in particular.

#2 Purpose – State your company’s purpose in 12 words or fewer. People are used to sprawling mission statements and visions, but 12 words really helps you to focus.

#4 What wave are you riding? – Your company is sitting on some trend – is it a growing trend, one at its peak, or one at the end? What do you need to do in order to switch waves or lengthen your ride on the wave you are on?

#6 The only ____ that _____.  This is one of the most important points in the book and ties directly into Blue Ocean Strategy. An example Neumeier gives is for Harley Davidson: The only motorcycle manufacturer that makes big, loud motorcycles, for macho guys (and wannabees), mostly in the United States, who want to join a gang of cowboys, in an era of decreasing personal freedom.

What’s powerful about that example is that Neumeier has managed to hit the how, who, where, why, and when within the “only ____ that ____” construct. If you take the time to do that for your company, you will gain powerful insights as well.

#8 Find brand loyalists. Who are your evangelists? Who are your biggest fans? Find out how you can serve them and involve them in what you do.

#14 Map the Customer Experience. Start from complete unawareness and end with the experience after they’ve used your product or service. Use this map to find out areas of weakness and strength all along your processes.

Why Your Brand Matters

Whether you’re looking to sell your company or buy a company, ultimately it’s the brand that matters. Why? Because it’s not dependent upon any one person or employee. Brand transcends individuals and is built to last…and that’s priceless.