Life After Business
About This Show
Sell your business when you want, to who you want, for how much you want. Ryan Tansom’s goal is to bring you all the information he wishes he had when they sold their company. He will teach you to build the value of your business, set your timeline, and harvest your wealth during the sale so you can exit your business happy and transition into a life after with passion, purpose, and community.
Most Recent Episode
7 days ago
Our guest this week had to face up to tragedy and the realization that she owned a worthless company before turning things around to make the perfect exit. When her husband unexpectedly died, Kathleen Ferry had no option but to take over his business - a business that was struggling to adapt to a changing marketplace and one that was significantly over-staffed. Kathleen shared some excellent tips on how to streamline a business, and how planning a certain way can put you in the driving seat when it comes to transfering your business to the successor of your choice! Where was the company when she took it over? When Kathleen took over, after her husband and the General Manager of the plant were gone, she got the news that the company had been valued at next to nothing. She had no choice but to keep the business going and try and turn things around to keep food on the table for the livelyhood of her and her kids. Her company was $1-2m in debt and needed some serious streamlining. What were the first key decisions she made? She brought in good-caliber senior staff: a head of sales and an operations manager. What was the streamlining process? After a year in charge it became clear that not only was the firm over-staffed; there were the wrong staff in certain senior positions. The rewarding of loyalty had been too influential in the process of recruitment. Kathleen cut 20% of the staff but only after she’d brought in an external consultant to prove that this needed to be done. Internally she had discussed trimming the workforce, but nobody would agree with her. How did she drive the business forwards after the streamlining? She had to tackle the “it’s always been done that way” culture. This involved her spending a lot of time standing on the factory floor and asking staff to explain what they were doing. As a result of this she implemented policy that significantly improved their cashflow, and a $2m credit line eventually became just $10,000 in working capital! [clickToTweet tweet="reduce your working capital of your business and make your business worth a ton! @ryantansom" quote="'buck the way things have always been done and find ways to reduce your need for capital!'"] Then she established a board of directors. This is what she regarded as the most important decision she made - the sounding board proved invaluable. Ho