Plan for the Future You Want

You may or may not have seen or heard of the movie titled “Failure to Launch,” but the title is a great reminder that most of our regrets don’t come from overtly “jumping into a river without a paddle” type mistakes. Many times, people’s biggest regrets come from failing to envision—and then plan out–what they want for the future.

If you’re a business owner that could mean deciding how your company will grow: organically or via an acquisition. Or, maybe you think it might be nice to sell your business someday, but you’re in the early stages of developing an exit strategy. Mulling over your options year after year or being indecisive counts as failing to plan. It’s worth mentioning, it is OK for your plan to change. The importance is knowing and understanding what the current options are for your business and how this can affect your short- and long-term success.

The business plan, attrition rate, operations and contracts are some of the major facets to review in order to determine whether or not a “deal” makes sense. Start by reviewing (or creating) your business objectives before deciding if an acquisition is the best decision for you and your company.

There are five keys to understanding the health and ultimate wealth of your business:

1. The Business Plan.  First and foremost, write one. It doesn’t have to be a 37-page document bound in a three-ring binder. In fact, it better not be. But a one-to-five page document outlining your visions, goals, target audiences, strategy, and tactics, along with the documentation on how you plan to make money, need to be thought through, written down, and revised often. Think of your business plan as a “working document.” One you refer to, follow and adjust as your business evolves.
2. Attrition.  Understand that a big part of whether you succeed or fail is not just about how many “fish you can get into the boat,” but more about how many fish you can KEEP in the boat while you’re still fishing. Attrition can be what we call a “silent killer.” If you don’t pay attention to it, it can be costly.  Read our whitepaper on attrition right now.
3. Operations. You can have a terrific idea and a great sales team who can sell that idea, but if you don’t have the means to follow through and make sure you’re entire process works correctly, you’ll find yourself adding the new customers you want, but you’ll never reach your true potential. Paying attention to each “touch point” of your operation and ensuring maximum efficiency will go a long way in keeping both your staff and your customers happy.
4. Finances. Businesses are all about making money. Therefore, you must be able to show how your business currently makes money and has the possibility to make more money in the future. Read our Finance: What You Need to Know to understand the expectations and financial documentation you’ll need to make a deal.
5. Contracts/Legal. Unfortunately, it’s hard to get “practice” with contracts and legal issues until you are in a position to buy or sell a business. Therefore, this is a common area of confusion for many successful alarm businesses. A transaction can look great for both the buyer and seller, and then they review the customer contracts.  Remember, it is never too early to review your current customer contracts to ensure your business is ready for an acquisition.

None of us actually “plan” to fail, so rather than allowing “whatever happens” to be your future, plan to launch yourself into a future you’ve determined is best for you.