Dirty Secrets of Small Business Adam Sonnhalter

In This Episode

One of the biggest challenges for a business owner looking to transition their business to the next generation is figuring out who to transition the business to and how to know when that next generation is ready to take over.  What does it look like when someone is ready to take over the company?  Will you just know it when you see it?  Should you have the next generation just follow you around for six months or a couple of years to learn by osmosis?



We contend you should put together a simple plan focused on the 7 Keys to Success which can be used to judge the readiness of the next generation to run the business.  The idea here is to not only have the next generation pull together the planning for the 7 Keys but also to execute that plan. What could provide more confidence than that!!



The 7 Keys are a great way to inject some objectivity into what can be a very emotionally packed situation.  It will also help to highlight areas where training is needed for the next generation as they prepare to take over the business.

People, Companies and Resources We Mentioned in the Show



* MVP’s 7 Keys to Success (https://maximumvp.com/7-keys-to-success/)

* Toastmasters (https://www.toastmasters.org)

* Rotary International (https://www.rotary.org/en)

* MVP’s 7 Keys to Success (https://maximumvp.com/7-keys-to-success/)

* Toastmasters (https://www.toastmasters.org)

* Rotary International (https://www.rotary.org/en)

In This Episode

One of the things we help our clients do is buy companies.  We usually start the process off by having our clients “turning over rocks.”  Those “rocks” can include everything from talking to business brokers to responding to online listings or ones in the newspaper to sending out unsolicited letters to a target group.



But there are also some other “rocks” you should be turning over which we discussed during the show today.  It includes things like reviewing the Inc. 500 list of fastest growing private companies and pulling together your Know Like and Trust list.  These “rocks” are basically a way to get folks active doing things vs. sitting and analyzing (or overanalyzing!).



With 2020 now behind us and our future in front of us, now is as good a time to be turning over rocks as we’ve seen in our lifetime.  Many business owners had tough years in 2020 due to the COVID-19 pandemic while other thrived.  It’s hard to know which ones are doing well or not until you start turning over those rocks!



Click here to download a 1-page summary for Turning Over Rocks



 

People, Companies and Resources We Mentioned in the Show



* Inc. 500/5000 list (https://www.inc.com/inc5000/2020)

* The Godfather (https://www.imdb.com/title/tt0068646/)

* Gorilla Group (https://www.facebook.com/thegorillagroup/)

In This Episode

One of our favorite topics to discuss over the years on our show is our beloved Cleveland Browns.  Now we don’t talk X’s and O’s when it comes to the Browns, but instead tend to focus more on Organization and Leadership items.  Unfortunately our shows to date have typically been pretty critical of the Leadership team with the Browns.  But this year, during this crazy COVID 2020, the Cleveland Browns may have actually gotten it right!



So during the show today we took a brief history lesson for how a team goes from 0-16 to the verge of the playoffs in only 4 years.  And then we tied it into some of the turnaround situations Jack was involved in where he purchased companies that were struggling and then turned them into profitable businesses.  Many of the Organization lessons are the same.



We thought this was a timely topic also given what’s happened in 2020 with COVID-19 and how many of us are still struggling through ways to rebuild or reset our lives as well as our businesses.  Hopefully you will find some good nuggets in this episode to help you out!

People, Companies and Resources We Mentioned in the Show



* Cleveland Browns (https://www.clevelandbrowns.com)

* Ground Hog Day (https://en.wikipedia.org/wiki/Groundhog_Day_(film))

* Moneyball (https://www.imdb.com/title/tt1210166/)

* Paul DePodesta (https://en.wikipedia.org/wiki/Paul_DePodesta)

* Jimmy Haslam (https://en.wikipedia.org/wiki/Jimmy_Haslam)

* Hue Jackson (https://en.wikipedia.org/wiki/Hue_Jackson)

* John Dorsey (https://en.wikipedia.org/wiki/John_Dorsey_(American_football))

* Freddie Kitchens (https://en.wikipedia.org/wiki/Freddie_Kitchens)

* Gregg Williams (https://en.wikipedia.org/wiki/Gregg_Williams)

* UPS (https://www.ups.com/us/en/Home.page)

In This Episode

One of the annual traditions of business ownership is making some tax planning decisions, usually late in the year.  It includes things like buying equipment or vehicles to take advantage of accelerated depreciation through a Section 179 tax deduction or some other accounting jargon.  But those aren’t really the surprises we’re talking about.  We’re talking about those surprise tax bills you get from your CPA where you have less than a couple of weeks to come up with significant cash to pay your bill.



We wish this was an unusual thing, but our experience tells us differently.  There are too many small business owners we’ve met and coached over the years who have been the “beneficiary” of some of these tax surprises.  Quite often these surprises have resulted in business owners borrowing money to pay their taxes.  Wait, what?  Yes, that’s right, people are borrowing money to pay their taxes.  And way too often the CPA delivers this “good” news with a smile on his face because you’ve had “such a good year” which is why you owe taxes.



But it never feels good to pay taxes. Especially when it’s not in the plan.  So what’s a small business owner to do?  We usually start with a Cash Forecast that shows where all the money is coming from and where it’s going.  The goal we have with our clients is to pull together a 90-day Cash Forecast.  This provides you with a 3-month heads up on any cash flow problems so we can avoid these surprises.  We also encourage our business owner clients to speak with their CPAs on a more regular basis (e.g. at least quarterly or twice per year).



Keep in mind that 2020 has been a very unusual year and there will likely be a lot of questions between now and tax day.  The good news is you have some time between now and April 15th, but don’t wait too long to get your plans in place or else you might be in for a tax surprise come April!

People, Companies and Resources We Mentioned in the Show



* CARES Act (https://home.treasury.gov/policy-issues/cares)

* Paycheck Protection Program (“PPP”) (https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program)

In This Episode

So with all the changes going on in 2020, we are now up against some of the final changes as the year comes to an end.  Gone are all the holiday get togethers with friends and family and business associates.  And while many of you may be celebrating not having to attend your spouse’s company holiday party, just as many are probably missing out on that white elephant gift!  This got us to thinking, what’s everyone doing to celebrate the holidays in their businesses?



One of the blessings of being forced to make changes like we have in 2020 is that if forces us to ask a lot of “why” questions.  Why do we do things this way in our business?  Why does everyone have to be in the office to work?  Why do we have holiday parties?  During the show we address many of these why questions and get to the bottom of what all these celebrations are supposed to do and touch on some different things you can try this year!

People, Companies and Resources We Mentioned in the Show

Ebenezer Scrooge (https://en.wikipedia.org/wiki/Ebenezer_Scrooge)

In This Episode

We all have doubts.  It’s only human.  Some of us are just better at hiding those doubts than others.  One phrase that is often difficult for business owners to utter is “I don’t know.”  There can be a pressure as an owner to know all the answers.  Whether that pressure is real or perceived doesn’t matter because you still feel it.  It doesn’t matter if you’ve been in business for a few weeks or several decades, chances are there are times when you feel like you’re in over your head.  So what’s a business owner to do about it?



First step is to take a deep breath.  In through the nose, and out through the mouth.  Do that a couple of times to help calm and center yourself.  Usually these feelings of being overwhelmed or being over your head come in situations and circumstances that are new.  Just like other parts of your life.  Think about some recent personal situations you’ve been confronted with where you’ve felt over your head.  Thanks to COVID-19 we have all been in a variety of these situations this year.  Everything from dealing with the virus itself to the impact it has had on just about every aspect of our lives including work, school, and entertainment.



As you might imagine, whenever it comes to business and feeling overwhelmed, we focus on the 7 Keys to Success.  Why, because the answer for what to do next will come out of those 7 Keys.  You see, if you’re able to frame an issue or opportunity before having to act you will typically have better outcomes.  One of the beautiful things about MVP’s 7 Keys to Success is that it ensures you are working on the most important things in your business.  So whether you need to adjust the Vision for where your business is going long-term or you need to figure out how to make your cash last as long as possible, the 7 Keys will help provide guidance on what to focus on next.  So you don’t need to have “all” of the answers, just an answer for what to do next.



During our show, we shared several examples where we either felt over our heads or our clients did and how we used the 7 Keys to Success to help focus things and get everything moving.  We think you’ll enjoy!



 

People, Companies and Resources We Mentioned in the Show



* MVP’s 7 Keys to Success (https://maximumvp.com/7-keys-to-success/)

* U.S. Bureau of Labor Statistics on failure rates of small business (https://www.lendingtree.com/business/small/failure-rate/)

* Princeton (https://www.princeton.edu)

* Kenny Rogers (https://en.wikipedia.org/wiki/Kenny_Rogers)

* FedEx fast talking guy (https://en.wikipedia.org/wiki/John_Moschitta_Jr.)