Building a sales team
Building a business with an effective exit strategy requires an established sales team. If the owner is the primary sales force, then a buyer is more likely to require a high earn out as a portion of the purchase price in order to help insure an effective transition. By creating a sales staff, the sales process can be validated and sales can exist in absence of the owner. A good rule is to have more than one salesman to foster friendly competition. Two successful salesmen also helps validate the sales training process.
For an interesting article on hiring sales staff click here to read an Inc. Magazine article by Geoffrey James.
B2B CFO Sponsors “Getting to the Next Level – A Business Plan Competition”
Tonight was the second training session for competitors in the “Getting to the Next Level – A Business Plan Competition” presented by the Fort Worth Business Assistance Center and The Neeley School of Business at TCU amongst others. B2B CFO is also sponsoring the awards and will provide assistance to the winner by helping them implement their business plan.
Contestants have submitted business plans and these have been culled down to the top 5. Tonight, there was a training session on presentations by partners from TruSpeak Consulting – a business communication coaching firm.
Supporting this competition is an excellent way to help build new businesses and to expose these new ventures to the many resources available.
Check out more information on the contest at : Getting to the Next Level.
B2B CFO Partners Sponsor ACG 6th Annual Wine Tasting
The Dallas Fort Worth partners are sponsors of the Association for Corporate Growth (ACG) 6th Annual Wine Tasting event on August 25, 2011. The event brings together over 600 leaders from corporations, private equity, finance, and professional service firms. They recognize the multiple benefits of networking within an influential community of executives growing public and private companies worldwide.
Exit Strategies and B2B CFO Interviewed by Morningstar
Morningstar, known as the leader in independent investment research in North America, Europe, Australia, and Asia, Morningstar offers data on approximately 390,000 investment offerings along with real-time global market data. Morningstar also offers investment management services and has nearly $140 billion in assets under advisement and management as of March 31, 2011. The company has operations in 26 countries.
Recently, B2B CFO® founder Jerry Mills was interviewed by Morningstar’s editor on the subject of exit strategies and the importance of having sound advice when selling the business. Catch this informative interview at this link:
What’s the picture look like for small-business owners in retirement in the next few years?
Mills: Well, the numbers are dramatic. We know that in the United States that there are about 78 million baby boomers that are going to retire in the next 12 to 15 years. Interestingly enough, they own about 12.5 million businesses. And because the younger generation doesn’t want to take over those businesses, about 70%, or about 8.4 million, of those businesses are going to have something happen to them. They are going to transition to a third party, they are going to be liquidated, they are going to go to their employees in ESOPs–something is going to happen. Actually, I call it a tsunami. It’s never happened in terms of volume in the history of mankind. So, it’s going to actually be fascinating, and there’s going to be some winners and some losers as we go through these numbers.
Here’s an interesting point from the interview:
What’s the picture look like for small-business owners in retirement in the next few years?
Mills: Well, the numbers are dramatic. We know that in the United States that there are about 78 million baby boomers that are going to retire in the next 12 to 15 years. Interestingly enough, they own about 12.5 million businesses. And because the younger generation doesn’t want to take over those businesses, about 70%, or about 8.4 million, of those businesses are going to have something happen to them. They are going to transition to a third party, they are going to be liquidated, they are going to go to their employees in ESOPs–something is going to happen. Actually, I call it a tsunami. It’s never happened in terms of volume in the history of mankind. So, it’s going to actually be fascinating, and there’s going to be some winners and some losers as we go through these numbers.
Measuring Success of Fort Worth Business
A key element in planning and understanding your business is measurement. Each month as owner, you get the scorecard of profitability. Helping the organization understand how their actions impact that profitability requires analysis, measurement and communication.
Most likely, as the founder of the business you have a gut sense of what works in the business and what doesn’t. Take that gut feel, and try to put it into actual measurement. Remember, as businesses grow or shrink, those relationships can change. Unfortunately in today’s market, you can’t afford to make a mistake on understanding what is driving the profitability. Identify a couple of measurements and then calculate them historically if possible.
Here are some important measurements that should be a part of the regular reporting process:
• Gross profit by product
• Sales dollar (revenue) per employee
• Total cost per employee
• Units produced per month by product
• Cross-training plan and activity over past month on cross-training
• On time completions over the past month (% and quantity)
Each business is unique, and it is important to take time to identify key measurements that drive the business and measure the success.
A resource to help identify measurements and how to get the organization involved is the book “The Game of Work” by Charles Coonradt. Or, feel free to give me a call at 817-729-0688 or email me at BruceBenes@b2bcfo.com. I’d welcome the chance to discuss your business and see if we could identify some quick and easy measurements to help you improve the current situation.
Vision, Mission and Strategy
In undertaking the planning process, the vision and mission statements provide a foundation for everyone: customers, employees, vendors, and other stakeholders. Similar in purpose, these statements may even be combined into one statement. Both work to identify the purpose of the organization. The vision statement brings in values – how the organization is to act. Vision adds an external focus and provides customers a reason for doing business with you. The mission statement outlines the purpose of the organization: the key products, clients and markets, future direction and perhaps key benchmarks measuring the success of the organization.
Strategies become the work of the planning process. Consideration must be give to the critical issues facing the organization, both internal and external. One effective exercise is a “Strength, Weakness, Opportunity and Threat” listing. A “GAP analysis” of identifying the difference of where an organization is compared to where it wants to be, is another. Also, consider the product matrix and product life cycles. In identifying the critical issues, gather data to support issues to avoid generalizations. This data might include growth rates, market share, sales rates, profitability, cash flow, capital and productivity measurements. Then clearly identify the root cause of variations to form conclusions and identify strategies to overcome the issue.
Working on Vision, Mission and Strategies involves the entire organization. For smaller firms, bring in outsiders as well. Trusted advisors, bankers, lawyers, peer business associates are some resources to consider. These sessions require a facilitator, someone who can challenge, and ask questions and capture information brought forth by the group.
Why Fort Worth Businesses Need to Plan
“I can’t tell the future so how can I develop a plan.”
“My business is impacted by too many outside factors beyond my control to be able to create a meaningful budget.”
These are the words of a business owner I recently met. Sound familiar? So often we feel it’s impossible to develop a business plan because we do not control the factors that drive our business.
So what’s the purpose of developing a budget or heaven forbid “a long-range plan”? Why go through the effort if the plan will be inaccurate or circumvented as soon as it is written? How can we say what will happen In the future when we can’t control interest rates, the price of commodities or the actions of our key customers? Sound familiar?
Planning is a difficult and sometimes too formal of a process. How many of us set goals? Income targets, purchases, new business lines to explore, losing weight are all simple examples. New Year’s resolutions are meant to be broken, so why do we expect more from our business plans? Why do we plan and why should we spend the time and effort to document what is far from an accurate science?
As a business grows and it becomes more complex, the need to document ideas and direction becomes critical for success. Just like personal goals the likelihood of achieving success increases when plans are written. But it’s more than that.
Complex
A business often starts out with a simple idea, driven and implemented by a few people. The distribution of work and rewards tends to be relatively small, but the rewards for the few are inviting. Then, as a business grows, the scaling a business suddenly requires more outsiders and crafted processes. Now the world gets complex. Written plans construct a framework for communication. This includes not only the communication of the direction, but also the framework (for outsiders and the increasing pool of advisers) to communicate results. Perhaps most importantly, written plans create a benchmark to gauge the results. Are they on track? Is something different from initially assumed? What changes are necessary to achieve the overall goals? Are things better than initially planned (move faster) or not as good (move slower, change direction)?
Process
Planning is a process. Some plans should be complex documents with a significant investment of time and research. Other plans should be simple, one page plans for quick review and reporting. Either way, the planning process needs to provide:
Vision – a big picture statement of what is to be achieved
Mission – why, for whom, what are common elements of the mission
Research – hard data and analysis to support the vision’s viability
Strategies –key methods and ideas for implementation
Objectives – dated benchmarks to provide “look back” objectivity to measure progress
The process needs to involve the principal players and advisers: financial, marketing, systems, technical and human resource types.
Resources
So where does a growing business get the resources to plan effectively? An interim CFO or part-time CFO can be a cost-effective way to obtain valuable experience for planning; in addition to the experience with the business aspects of venture capital and business funding, banking relationships, cash flow, modeling and systems development. B2B CFO® partners have on average nearly 30 years experience in virtually every industry type with a solid understanding of marketing, operations and finance. Utilizing a B2B CFO® partner provides experience at a cost that matches the organization’s resources.
If you would like to learn more about the next step, please contact me at 817-729-0688 or send me an email at BruceBenes@B2BCFO.com for a no obligation consultation and analysis.
B2B CFO NAMED IN PRESTIGIOUS INC. 5000 LIST
B2B CFO NAMED IN PRESTIGIOUS INC. 5000 LIST
184% Growth Earns B2B CFO Spot in the 2010 List of Fastest
Growing Companies in America
Phoenix, Ariz. August 24, 2010 – B2B CFO, nation’s largest
provider of CFO services to small businesses, has been named to the
prestigious Inc. 5000 list of fastest growing companies in America.
Now in its 29th year, Inc. Magazine’s annual ranking judges US-based
and privately held companies by their revenue growth. This year’s
list was ranked on the percentage in revenue increase from
2006-2009. B2B CFO’s growth earned 84th place in its industry.
“There are approximately 27 million small businesses in the U.S.
today,” said Jerry L. Mills, founder and chief executive officer of
B2B CFO, “It is a huge honor to be among the fastest growing and the
most successful businesses in the country. Our firm has experienced
tremendous growth over the past few years and we are on track to
continue expanding. I am especially grateful to all of the firm’s
dedicated Partners who continue to advocate our services around the
nation.”
In a personalized letter congratulating B2B CFO on this
accomplishment, Jane Berenston, editor-in-chief of Inc. Magazine’s
wrote “Congratulations: your company, B2B CFO, has made the 2010
list of the fastest growing private companies in America. This
achievement puts you in rarefied company, especially if you consider
that over 27 million businesses are registered in the USA. The elite
group you’ve now joined has, over the years, included companies such
as Microsoft, Timberland, Visa, Intuit, Jamba Juice, Oracle, and
Zappos.com. I look forward to congratulating you in person in
Washington, D.C.”
B2B CFO’s growth is reflected in numerous awards this year. The
company was also recently named in ACE Corporate Growth Awards,
which recognized the most successful and fastest growing companies
in Arizona.
In August 2010, B2B CFO has grown to 170 Partners across 39 states,
representing 5,000 years of cumulative experience. Each Partner is a
seasoned financial executive who serves as CFO to growing businesses
on as-needed basis. Approximately 80% of the Partners have a
background that includes senior executive positions at the Big Four,
and all of the Partners have held high level executive finance
positions in various industries in corporate America. Together, B2B
CFO Partners work with more than 500 businesses in the nation with
combined annual sales of more than $3 Billion.
Jerry L. Mills and many of the B2B CFO Partners regularly dedicate
time to educate business owners on financial matters. Mills is a
frequent speaker and contributor and has been featured on many
national media networks including FOX Business, Fortune Small
Business, Smart Money and many others. Mills is also the author of
The Danger Zone – Lost in the Growth Transition, and Avoiding The
Danger Zone – Business Illusions, both business non-fiction books
that help entrepreneurs understand and build a strong financial
strategy.
“We look forward to participating in the Inc. 500|5000 conference in
Washington, DC this fall,” added Mills. “Along with my colleagues, I
look forward to the October 2nd awards ceremony and to meeting the
entrepreneurs that created the other 5000 fastest growing companies
in America.”
About Inc. Magazine
Founded in 1979 and acquired in 2005 by Mansueto Ventures LLC, Inc.
is the only major business magazine dedicated exclusively to owners
and managers of growing private companies that delivers real
solutions for todays innovative company builders. Inc. provides
hands-on tools and market-tested strategies for managing people,
finances, sales, marketing, and technology.
Inc. Magazine’s 29th annual Inc. 5000 ranking of the fastest-growing
private companies in the country is available online at
www.inc.com/inc5000/list
About B2B CFO
Headquartered in Phoenix, Ariz., the firm was founded in 1987 by
Jerry L. Mills. B2B CFO is the nation’s largest CFO firm serving
entrepreneurial, growth and mid-market companies with revenue under
$75 million. The firm’s partners have an average of 25 years of
experience and each individual partner is a senior level executive
with a broad range of expertise. Please visit online at
http://www.b2bcfo.com/
The Wall Street Journal featured B2B CFO® as experts in cash flow management. 
