Are you really listening?

Most management writers these days encourage leaders to be more participative and collaborative in their decision making. Gone are the days of the top-down, hierarchical organization of the past they say (but then they contradict themselves by making heroes out of highly autocratic leaders like Steve Jobs).
Our view is that business is not a democracy. Decision making by committee is a recipe for mediocrity.  “Leaders must lead” and that means making clear decisions.  You are not a politician, and this is not a popularity contest.  You are paid to make the good decisions that are in the best long-term interests of the company.  However, we recommend that in order to make good decisions, it is highly desirable to solicit a variety of different viewpoints and opinions before making your decision.

Peter Drucker in his timeless book The Effective Executive said that effective leaders create dissension and disagreement rather than promote consensus.  In fact, he recommended that you should not make a decision unless there is disagreement first.  If everyone agrees at the outset you should tell them to go away and come back with some counter viewpoints. “Groupthink” – where everyone in a company (sometimes even in a whole industry) thinks the same - is a dangerous pitfall to guard against.  ”If everyone is thinking the same, then someone isn’t thinking”

As a leader you need to have the confidence to surround yourself with people who are willing to disagree with you, and demonstrate that you willing to hear what they have to say.

You may not like hearing criticism, or opinions that are different to yours, but you must ask people to tell you what they really think, so you get to see things from a variety of angles.  Introverts are unlikely to speak up to you, so you need to find a way to get their opinion on the table as well.

Recent research shows that motivation, job performance, and morale increase when employees have the opportunity to contribute their concerns and ideas.  That does not mean that you need to please everybody (you can’t) but you need to show that you are willing to listen.

The study also shows that there is a consequence to giving your employees a voice: The leader must listen.  If you pay lip service to listening, and have no intention of seriously considering their ideas – your staff tend to stop offering input and get increasingly frustrated and dysfunctional in their jobs.

Conversely, employees who think their leaders do pay attention tend to speak up more often, and get along better with one another, improving the organization’s functioning as a whole.

In summary, if you want to make good decisions; get input from many people – especially those with a variety of different viewpoints.  Then provide tangible evidence that you have heard them and seriously considered what they have to say.

Now do your job.  Go and make a good decision! 


Article Source: Results.com


Greg Longstaff
Business Development Consultant
Franchise Network Specialist
greg@salesmarket.co.nz
+64 9.307.7860

Switch Business Guide Steps to Selling Your Business

Selling a business is a complex procedure. Whether it’s your first time, or you’re an experienced seller, it’s very easy to forget things and to feel overwhelmed.

While you should always feel comfortable asking questions, the following will give you a better understanding of the process.

STEP 1 - PLANNING
Owner interview and data gathering

This gives a clear understanding on the history and the performance of the business.

Recast financial statements

Normalising the accounts involves adjusting the accounts by adding back interest on debt that won’t transfer, one-time non recurring expenses and to remove benefits accruing to the owner that aren’t related to the actual operation of the business

Provide opinion of market price range

Switch Business prepare a full market appraisal of the business utilizing various valuation methodologies including a market comparison to other similar businesses that have been sold.

Obtain Authority to Sell

This agreement authorises Switch Business to act on your behalf. It outlines our fee structure and both parties’ responsibilities.

Prepare Business Information Memorandum

This document will eventually be released to qualified buyers who have completed a confidentiality agreement and it is very important that it is a true representation of your business. It provides preliminary information on your business enabling Purchasers to determine whether it fits their buying criteria.

STEP 2 - MARKETING
Implement marketing programme

Any marketing that is undertaken will not identify your business (unless agreed). Switch Business uses a multi faceted approach, with our database of qualified buyers being the most powerful. Other marketing may include national newspapers, trade publications, industry databases, or magazines.

Screen response

Initial discussion with interested parties to ascertain whether the business fits their buying criteria.

Obtain confidentiality undertaking

This is obtained from all purchasers before Switch Business reveal any information that could identify your business.

Qualify buyers

This is to ensure that they have the financial resource, business experience and commitment to complete the transaction.


Present Information Memorandum

The purchaser is provided with the Information Memorandum (which you have previously signed off on).

Determine buyer interest

Once the purchaser has studied the Information Memorandum Switch Business follow up to ascertain whether they have any interest in pursuing the business purchase further.

STEP 3 - NEGOTIATING
Arrange first visit

Switch Business generally have this meeting in our board room, this does not disrupt the business. If a site visit is required this is usually arranged after hours.

Provide further business details

As a result of the initial meeting, the purchaser will have a list of questions to be answered.

Negotiate offer from purchaser

This will generally be in writing as a Sale and Purchase Agreement or a Heads of Agreement. The agreement sets out all the terms and conditions of the offer and will almost always be dependent on the purchaser completing due diligence to their satisfaction.

Facilitate negotiations

Switch Business will lead the negotiations on your behalf to ensure you receive a premium price for your business. You will be advised to seek the relevant legal and accounting advice from your other advisors.

Obtain sale and purchase agreement

Once both parties have signed the contract there are now various conditions that need to be satisfied.

Agreements to solicitors

Each original contract is sent to the respective solicitor.

STEP 4 - DUE DILIGENCE
Assist in satisfying conditions

The contract is usually conditional on due diligence, finance and if a lease is involved upon obtaining the Landlord’s consent for the assignment of the lease. Switch Business is involved in all steps of this process and will liaise with professional advisors to ensure that all conditions have been satisfied.

Due Diligence

Due diligence is the process where the Purchaser along with their accountants and solicitors will examine the business in more detail. This usually involves an audit of the company’s financial and non-financial position and performance. Until this stage most of the information provided has been accepted on its face value and now the purchaser would like it verified. This process normally takes between 10 to 15 working days depending upon the complexity of the business and also on the ease in which information is available. Switch Business works closely with all parties during this process, ensuring that any confidential information is protected and that the day to day operation of the business is not disrupted.

STEP 5 - CLOSING
Confirm unconditional

The contract is usually declared unconditional in writing by the purchaser’s solicitor, and both parties must honour the agreed transaction.

Deposit into trust account

Once the contract is declared unconditional, Switch Business will ensure the deposit is paid into their audited trust account and be dispersed according to the relevant law.

Settled sale

During the period between when the contract is declared unconditional and possession takes place, both parties and their accountants and solicitors will attend to any legal requirements that need to be finalized. A stock take is usually done before settlement and the settlement sum adjusted to reflect the value of stock (stock is calculated at cost price with any adjustment made for old and obsolete stock)

Seller’s Assistance

The Vendor will generally be required to assist the new owner in the running of the business for an agreed period of time (usually up to four weeks), payment for this period is included in the purchase price. Any assistance beyond this period is usually by prior mutual agreement at an agreed rate of compensation.

SUMMARY
To a first time seller the above process may seem overwhelming, however the brokers at Switch Business have been involved in hundreds of successful sale transactions and are able to lead you through the process.

If you wish to have a confidential, obligation free chat or come in for a coffee, contact Switch Business today.


Article Source: BuyaBiz Blog


Greg Longstaff
Business Development Consultant
Franchise Network Specialist
greg@salesmarket.co.nz
+64 9.307.7860

Business legal advice: Do your Terms of Trade cut it?

Law is often about the ‘what if’ scenarios, planning for the best but preparing for the worst.
Do your terms of trade do this for you?

Lizandra Bailey of MacDonald Pilcher  Partnership

There are too many issues to consider to list them all here, but here are a few to get you
thinking

Approach

• Who is your customer buying from? Make sure your company name is correct, believe it or not this is a common error.
• Do you offer quotes or estimates? Make it clear as to what your prices are and how long they last.
• Can your customers easily tell how payment is to be made and when.

After-sales

• Delivery or pick-up? Pizza companies aren’t the only ones give these options, so you should make it clear what the options are, and who covers the cost and the risk.
• Don’t want them copying your design? Then make it clear that they are buying just the product, not the right to produce more of them.
• Like your privacy? So do your customers, so reassure them that you will keep their details secure, where it will be stored and how they can gain access to it. Make sure you comply with the Privacy Act 1993.
• Sending out spam? New Zealand has strict legislation on what can and can’t be emailed out, so consider having an email policy, that is within the law, and letting people know what it is and how they can be removed from it.
• Why isn’t this thing working? What warranties are you providing or excluding?
• No payment or late payment – do your terms allow you to charge interest for late payment and the costs of debt collection?

Not unexpected, just undesired

• Have a dispute? With the high cost of adjudication or court action you might want to set down a procedure to mediate any disagreements that occur before any court action can be taken.
• Alien invasion? That might seem far fetched, but wouldn’t you rather have a force majeure clause there, just in case something happens that is outside of your control?
• Is it just not possible? There may be a number of reasons that a contract may be cancelled, so make it clear what these are and how it will be handled.
• Can you get your goods back if there is no payment? If you are giving possession of goods prior to payment, a PPSR clause is essential to protect the goods from other creditors. You must also register your security interest within a certain amount of time to gain protection.
• No guarantees – if the customer is purchasing the goods and services for the purpose of a business you can contract out of the Consumer Guarantees Act 1993 but must do so in writing.
• Have you limited your liability as much as you can?
• Can you change your terms? You should be able to change your terms at any time and your contract should state this and when any changes will take effect.
• Overseas customers? Make it clear New Zealand law will apply.

If you think your Terms could do with updating, we have some great fixed price deals. For help with these and all the rest contact Lizandra Bailey at MacDonald Pilcher on 09 307-3324 or visit us at www.macdonaldpilcher.co.nz


Article Source: BuyaBiz Blog

Greg Longstaff
Business Development Consultant
Franchise Network Specialist
greg@salesmarket.co.nz
+64 9.307.7860

The Simple Art of Networking

Networking is something you either love or you hate. However, whichever side of the fence you sit it is something that can quickly change the fortunes of your business. It is not difficult, not expensive and done well, can generate exactly the sort of business you want right now. If you have done your networking well, when business starts to slow down, kicking in a little extra networking can turn it around in as little as one hour and for next to no expense.

If you think you are just not cut out for networking, and it's all about pushing your products and services then think again! With the right attitude and approach you may even enjoy it!

The simple art of networking to grow your business

Networking - online or offline - even the word is enough to send many capable business owners diving for cover with excuses like "I'm just too busy, maybe next month", "I'm really not good at that sort of thing", and "Oh God, I'd rather do the dishes!" Well it's time to take a whole new look at networking because targeted, planned, well executed networking can be one of the most effective marketing activities you will ever do.

Great networking is a very cost, time and energy efficient marketing activity - a recipe all businesses love! But before we delve into the details of what great networking entails, and how to use it effectively in marketing your business, let's just clear up a few misconceptions.

What effective networking is not.

• Net coffee
• Net meeting
• Net chatting
• Net drinking. NetWORKing is WORK!

What effective networking is.

Networking is all about building relationships with others for mutual gain. It's an opportunity to work together with people to grow your business while also ensuring that they are receiving benefits from their relationship with you. It's a two-way street of mutual support and assistance.

Networking is a very active marketing tactic. It's an activity you need to plan, prepare for, set goals around, and regularly evaluate and measure the effectiveness of.

Networking is a very low cost or even free marketing activity. It doesn't take large amounts of cash or require a big proportion of your marketing budget. However there may be some hidden costs that need to be accounted for.

Networking is a very effective way to gain the people and practical resources you need to grow your business. It is a tried and true method of finding customers, suppliers and staff, learning about your competitors and gaining new skills to assist you in managing and growing your business.

Getting Ready to Network - The Right Attitude

Success at networking does take the right attitude and the right approach:

• Remember 'Givers Gain". Approach networking with what you can give to others, and how you can help them solve problems.
• What can you give to the people you meet
• Think about what is in it for them.
• Be generous
• Aim to be memorable!
• Will they remember you?
• What will they remember about you?
• Will you be the person they talk about when someone asks them how the event went?
• What will they say about meeting you?
• What have you given them to help them remember you?
• Have fun - and look like you are having fun!
• Remember people do business with people, no matter what you are selling, so always start by establishing a good relationship with the person at an individual level.

"A mans feelings of goodwill towards others is the strongest magnet for drawing goodwill towards himself."
Lord Chesterfield 1694 - 1771 English Statesman

Get the whole story

To develop your own networking skills, upgrade your membership to Standard or Full to access the complete October issue of mymarketingexpert featuring:

• A simple 4-step guide to effective networking
• How to assess whether your business card is working for you, and if not what to do about it
• Knowing where to network
• An 11 point checklist to rate and improve your own networking ability
• The 6 traits of great networkers
• 22 tips on how to start and engage in conversation with people you don't know
• 10 things to take with you to networking events
• Plus 10 additional networking tips to give you that extra level of confidence

Article Source: mymarketingexpert

Greg Longstaff
Business Development Consultant
Franchise Network Specialist
greg@salesmarket.co.nz
+64 9.307.7860