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Business Decision

Poor gauges, a changing industry, and general uncertainty had this business owner feeling challenged and alone.

Despite seeking advice and support, this business owner was unable to make important business decisions. She needed guidance, advice, and a sounding board.

Challenge

A third-generation business owner had poor gauges for measuring results. Due to significant market changes, she had some very serious strategic decisions to make for the future health of the business.

The business owner unsuccessfully sought advice from both her accountant and her lawyer; no one was able to help. In a 5-minute discovery meeting with The Business Therapist®, she was able to describe the help she needed, and we gladly stepped up to fill the void!

Solution

The business had been operating for over 100 years on a “weekly” cadence; while the business model ran completely by the week, the reporting was done monthly.

Reviewing monthly reports, which covered 4.3 business cycles, was frustrating and rather useless. We quickly uncovered and changed the reporting, so the business owner finally had gauges to measure the business results accurately.

The biggest obstacle facing this business owner was related to changes happening in the industry. There was a significant disruption challenging the existing business model, and serious strategic decisions needed to be made.

We were able to provide the resources, coaching, and “sounding board” to support the business owner in reaching a proactive and fruitful business decision.

Results

The business owner developed clarity of direction for the business. She decided to exit the changing industry while there was still good value to sell. The improved data reporting was beneficial to both the seller and the buyer. The transaction was completed and all parties were satisfied with the results.

Lessons

  1. If your accountant is good at taxes but poor at giving business advice, you don’t have to fire him to get the help you need. We meet many accountants who are actually happy that The Business Therapist® team is working with their clients to improve their cash and freedom so they can be comfortable taking care of tax compliance issues.
  2. You can design the gauges you use to run your business to best suit your world – even if they are not in your accounting software.
  3. Sometimes you “gotta call the baby ugly.” – If there is disruption happening in your industry, it is important to be proactive and address it. While not for everyone, selling the business was the right answer to deliver cash, freedom, and happiness to this former business owner.

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