Michael Vann, Building a Successful Business Continuity Plan – InnovaBuzz 283
Michael Vann, Buying Out the Boss
In this episode, I’m really excited to have as my guest, Michael Vann from the Vann Group. Michael is a Business & Transaction Advisor with a passion for the growth and development of high impact companies.
Michael serves as a trusted advisor to owners and leadership teams that require insight and execution of strategic initiatives and transactions such as mergers & acquisitions, the development of joint ventures & strategic alliances, the acquisition of financing and capital, and the launch of new business models & divisions. Together with his father Kevin, Michael is co-author of the book, Buying Out The Boss, “The Successors Guide to Succession Planning”.
In our discussion, Michael and I talked about:
- Why succession planning is vital in any business
- Why contingency planning is also critical
- How to prepare to exit your business, in whatever way you may choose to, and how to prepare for the next phase
Laura Briggs in episode 252 introduced us to Michael.
Listen to the podcast to find out more.
Listen to the PodcastContinuity of ownership and leadership is the most critical thing that an owner can do for themselves, their family, and their business. – Michael Vann @TheVannGroup on #InnovaBuzz podcast Click To Tweet
Show Notes from this episode with Michael Vann, Co-author of Buying Out the Boss
Key points and takeaways from this episode include:
- You have to know who’s going to replace you. You have to groom your successor because you’ll never know what’s going to happen.
- Continuity is important in an organisation. Continuity of ownership and leadership is the most critical thing that an owner can do for themselves, their family, and their business.
- Define what you want to do next and why.
- Know why you are moving on and why you’re selling the business. Knowing what’s driving the exit makes the transition easier.
- Selling a business is not simply transactional. There’s always a personal side to it because all business is personal.
- Be willing to take a step back and look at the bigger picture. Don’t trivialise the small things and look at the bigger picture of what you are trying to achieve.
- Using an intermediary as a middle point in the transaction is important.
- Keep in mind that when you’re working on your business full-time, it means that you are selling your job as well. You have to know how much you would pay for your job.
- Buyers can get too conservative and critical. When buying a business, don’t look for everything that’s wrong. Focus on why you are buying the business in the first place.
- Be reasonable and practical.
- Sit down with a financial adviser to help you understand what the proceeds need to be from the sale.
- A financial adviser can also help you understand where the value of the company is today versus where you want it to be in the future. Once you are able to identify that gap, you can then identify the steps you need to take to get that value there.
- Go through an exercise where you look at your business like a buyer. Be really critical and dig deep into it.
- Having a contingency plan in place is critical for any business. Plan for the worst scenario.
- A good transition plan is one that allows a business owner to sell when he wants, to whom he wants, and for the price he wants.
- Know who your successor is and make sure that that person is prepared for it.
The Buzz – Our Innovation Round
Here are Michael’s answers to the questions of our Innovation round. Listen to the interview to get the full scoop.
- #1 thing to be more innovative – Setting aside time to work on the business and really thinking about it. Schedule clarity breaks.
- Best thing for new ideas – Listening to clients as to where their needs are taking them.
- Favourite tool for innovation – Trello and mindmaps.
- Keep project / client on track – Using milestones a lot and breaking things down into manageable components.
- Differentiate – Be honest with your clients. Stand behind what you say. Be honest about what you think and explain why you have that opinion.
To Be a Leader
The number one objective of a leader is to make the people around you successful. If you can consistently do that, people are going to look to you. They will reach out to you. They will take care of you. A leader’s job is to help others be successful.
Michael suggested I interview Meghan Lynch of Six Point Creative. So Meghan, keep an eye on your inbox for an invitation from us to the InnovaBuzz podcast, courtesy of Michael Vann.
Learn how to make things go right and negotiate a successful transfer. GET $5 off when you purchase “Buying Out the Boss: The Successor’s Guide to Succession Planning”. Use the code BETHEBOSS.
Cool things about Michael
- He is the first Vice-Chairman of Alden Credit Union.
- He’s been pursuing business opportunities since his earliest days, starting with paper routes, lemonade stands and speculation in baseball cards
- He’s a licensed practitioner of Predictable Success, an organisational growth and leadership development consultancy firm that provides coaching, consulting, training and speaking services to organizations of all sizes, and an official member of the Forbes Coaches Council.