Frank Advice to Print Business Owners
In physics, inertia refers to matter that remains in its existing state or uniform motion until an external force changes it. In business, inertia is the tendency to do nothing or to remain unchanged.
A state of inertia often occurs when revenues and profits are rising. As orders stream in at a steady clip and everyone is busy, it’s natural to want to keep things as they are.
But if we learned anything during 2020, it’s this: Inertia in the printing business is not an option. Business-altering disruptions occur without warning. When economic calamities hit your customers, your own business has to quickly adapt.
The truth is, if you want to grow and sell your business, you must always have some type of plan. It’s unrealistic to make an etched-in-stone five-year-strategic plan. But at the very least, you should have a guiding vision.
Planning for What’s Next
When business grinds to a halt—as it did in Q1 2020)—you may suddenly have more time to think. But you also must take quick, decisive action to keep your business afloat until the crisis has passed.
In 2020, some business owners wished they had sold their businesses in 2019 when times were good. Some clients asked me what would happen if they tried to sell a business during the downturn. Could buyers be found? Would they get a decent price?
The widespread disruptions caused by the pandemic reminded us that developing a detailed five-year strategic plan can be a waste of time. However, business continuity plans, succession plans, and exit strategies can be useful in helping navigate the sea changes caused by future disruptions.
A business continuity plan helps your business anticipate potential threats and outlines ways to recover.
A succession plan identifies potential future leaders of the business in case key leaders change jobs, retire, or die.
An exit strategy clarifies how you envision ending your ownership of the business. Will you liquidate all assets? Transfer ownership to members of your family? Sell it to key managers within your company? Create an employee stock ownership plan (ESOP)? Or sell it to a strategic or financial investor?
Create a Guiding Vision
Once you have developed a plan for how your business might look in the future, you can more confidently take actions to achieve your vision.
If one of your goals is to get top dollar from the sale of your business, think like an investor. Would you want to buy a financially distressed company? Or would you prefer to acquire a business that is still making proactive efforts to build a strong management group and diversify into growing markets?
Even if you aren’t planning to sell your business for a few years, the time to start preparing is now. What types of businesses will buyers be looking for? What should you be doing now to make your business more attractive to future buyers?
At the LaManna Consulting Group, our team of industry experts can give you some suggestions. Having bought, grown, and sold a successful business myself, I know firsthand how useful it can be to get fresh, objective perspectives from professionals outside of your existing network of family, colleagues, and friends.
Could you do with a fresh, objective perspective from an outside professional? Call me and let’s talk. (561) 543-2323