Making the Change

Inevitably we will all make a career/employment change at some point in our lives. Personally I'm in the middle of my 5th employer and 2nd career change. This feels like the most difficult but I'm also most optimistic about this being my last change. Of course, I'm older, but still have a good 20 years of strong production left in me.....I hope! The interesting thing about his change is that I find myself feeling sad and relieved at the same time. Why?

What I'm learning and want to share with you is that during trying times, you must continue to check in on your beliefs, morales or whatever drives your core. I'm leaving because there are basic philosophical business differences between my current partners and myself. The differences are so core that changing them just isn't going to happen, I've already tried for 10 years. I cannot see myself spending the rest of my career battling things that cannot be won. The sadness comes from seeing potential and loving everything else about the position I'm in bu knowing it will never get achieved here. Stay true to your core!!!

What we sometimes don't realize is who we become or how we behave around others when we're experiencing troubles in some part of our lives. My family and friends experience me as a frustrated person instead of a happy person...no fun for them, no fun for me and no fun for the people I work with and nobody is getting any younger...That's why you make changes! Believe in your core, listen to the people you love and trust and strive to be happy, we only have one life. We all have the power of choice. Doing the right thing can ge hard and very difficult to decipher, but when you recognize things aren't right...invoke your power to change and live happily.

I wish all my current partners the best of luck and will always willingly help with anything I can. R&A CPAs is a great professional firm but Eide Bailly sees what I see and my struggles today will be the peace tomorrow!

Speaking of struggles, this economy has taken its toll on all of us. Never be afraid of looking for new ways to supplement your current income or reach out to help others. I remind you that Tampogo is a great way to do both. I encourage everyone to visit the site and see how easy it is to build a simple, no pressure network of caring people that can save lives and add a little cushion to your pocketbook.

Victor

Virtual Office - Save Thousands!

I am absolutely amazed at the quality & pricing of some great applications/services out there that allow you to setup a business and operate as if you had a complete staff and had invested tens of thousands of dollars in infrastructure.

I've been in business for over 2 decades. In that time I have setup or help setup dozens of companies and offices. Where does the majority of investment go? Well outside of the physical location (leasehold improvements) and the product (assuming you're selling one), it goes to infrastructure and marketing. You know, a phone system, fax, flyers, brochures, lead lists and services and of course the salaries for the people to answer your phones, send your faxes and contact and track your potential customers.

For all those people that find themselves without a job and considering starting up their own business, allow me to introduce some applications and services that might allow you to open your own business for much less than you were originally thinking

1. If you don't need a physical location don't get one (this is just common sense, no application or service). Setup a website at either 1and1 or Go Daddy. It's very inexpensive and very easy to create and edit.

2. Phone System - most people have a cell phone and that's great but you have no help this way. Try Give the Impression of a Large Corporation with Virtual Call System! Toll Free 800 Number which gives you all the services of a normal phone system (PBX) and a receptionist for next to nothing and you can pay monthly.

3. Fax System - this one is easy. Just get an eFax Annual Subscription and be done with it.

4. Contact Management - So this has never been my strong point but this product is amazing. Please evaluate this, you will be doing yourself a favor. Free Trial of iContact

5. Legal Entity - don't forget to protect yourself. If you need a complex structure because you will have partners or outside financing, go see an attorney and get it done properly. If you're going at it alone, you can do it yourself at Legal Zoom

For your convenience I've put banners to these sites just to the left of this blog. Just click and evaluate. These are also located on my personal website www.raendrop.com.

Good luck to you all,

Victor

Succession Planning

One of the biggest, if not the biggest, challenges small to mid-sized business owners face is that of succession planning.  Finding the right person or people to hand the reigns over to should be a process that lasts years not months.  It is difficult to accept that whoever that next person is, they won't be you and they won't run the place like you either.

So what can be done to increase the success of handing things over to the "next generation"? First of all, don't limit your options and plan plan plan.  One of the most important things I have learned over the 20 plus years of being a business owner and advisor is to make sure you have an exit strategy as early in the game as possible.  I now teach young entrepreneurs to make sure part of the business plan is an exit strategy.  What options are there?

For the most part there are 3 options to exit.  First is to hand it over to an insider.  That would be someone that has been working for you that understands how the business works and is willing to pay for the opportunity to drive the bus going forward.  Second, is a sale to a competitor or larger enterprise that has an interest in your market and your brand.  The third is a variation of the second and that would be to merge with a competitor or a complimentary business that gives both entities a benefit.  There is the option to liquidate or close the business but I don't think of that as succession planning even though it is an exit strategy.

Finding the right player is always the difficult part.  A successful business almost always has clearly defined core values and you want them to stay in tack so you need someone that understand and believes in yours.  You also want to make sure there is strong leadership and passion for the business along with aptitude, compassion and strong business acumen.  Now you start seeing why this is such a challenge!  The good news is that this happens all the time so you aren't the first person to have to do this.  The bad news is that at least half of these fail within the first 3 years.

The point here is to take your time and think about how you can best transfer what you know about the business, people, customers, process, market, industry, and all the tricks of the trade to that lucky chosen one.  Invest time and money to educate and edify or to investigate a potential buyer/merger candidate to find the best fit possible.  Understand that there is great value in mentoring, shadowing, selecting a protege, or whatever you want to call it.  The training for the next leader should be much different than any other position in the business because the business owner is a unique position.

Be aware that businesses, like people, have a period when they are in their prime so don't wait too long if you want to maximize the chance of success and value.

Victor D Puchi, CPA

vpuchi@randacpas.com