Many business advisors recommend that multi-unit franchisees operate with the mindset of always preparing for sale. The idea is to refine processes and procedures to make them efficient and repeatable. It also involves building a strong team of managers and leaders who can carry out the organization’s mission and vision. By doing so, you are creating something of value that others would be interested in acquiring. This approach ensures a good return on your investment and creates options, regardless of your exit, succession, or transition strategy. “Preparing for sale” has many upsides in terms of efficiency and marketability, but running your business with the sole focus of making it attractive to a buyer can sometimes disconnect you from your purpose. Instead of solely thinking about business value and marketability, it’s important to integrate regular check-ins with your mission and purpose.
Your purpose is what gives your business its unique identity and sets it apart from competitors. It is what motivates and inspires you, your team, and your customers. In short, the “Why” acts as the soul of the business, or what is also often referred to as your culture.
So how can you strike a balance between the mindset of ‘preparing your business for sale” and staying connected to your purpose? Here are a few key considerations:
1. Refine Processes and Procedures with Purpose
Continually evaluate and improve your operational processes to make them efficient and repeatable. This makes your business more attractive to potential buyers and also streamlines your operations, making it easier to maintain focus on your purpose. Ask “Why” questions behind processes and procedures to ensure they align with your mission and vision.
For example, after Covid-19, more and more people are looking for flexible work schedules or the option to work from home. In an office environment, I have heard many businesses requiring employees to report full-time to the office, and employees complaining because they aren’t finding the value behind the commute and are feeling the decision is based on babysitting. If there is a strong culture and performance purpose behind requiring people to report to the office, communicate it. If it is because you are concerned your people aren’t working at home, then they are probably still not going to work at the office.
By putting your mission and vision first, your people and customers will feel the impact of the “greater good” and quickly buy into the group cause.
2. Build a Strong Team Committed to Your Purpose
Invest in developing a team of managers and leaders who can carry out your organization’s mission and vision. By empowering your team, you create a sustainable business that can thrive even without your direct involvement. This adds value to your business and aligns with your purpose of creating a positive impact in your industry or community.
In your recruitment efforts, craft questions that assess behaviors and attitudes to ensure the people you bring into the organization align with your culture. A couple of questions to consider are:
- From your employment history, what were the qualities of your manager/leaders that you liked, and what were the qualities you disliked and why?
- From your employment history, what were the qualities of the culture you liked, and what were the qualities of the culture you disliked and why?
If the qualities your candidate mentions that they enjoyed align with your culture, then that is an indication that they will fit into your culture. However, if the qualities they enjoyed do not align with the values and behaviors that characterize your culture, then remove them as an option for employment.
3. Regularly Assess your Mission and Purpose
Take time to reflect on your business’s mission and purpose. Are you still aligned with your initial goals? Have goals changed, requiring a needed shift in purpose and vision? Are you making meaningful contributions to your industry or community? By regularly checking in with your mission, you can ensure that your business remains purpose driven.
4. Seek Feedback and Input
Engage with your team, customers, and stakeholders to understand their perceptions of your business’s purpose and value. This feedback can help you refine your strategies and ensure that you are meeting the needs and expectations of your target audience.
As you interact with your people and strategic relationships, have open discussions about their perspectives and feedback. From an employee and customer perspective, feedback surveys are a great way to gauge if customer service, management, and leadership align with core values, acceptable behaviors, and the mission and vision of the organization.
5. Don’t Lose Sight of the Bigger Picture
No matter where you are in your journey as a business owner, remember that it is just one milestone in your entrepreneurial journey. Stay focused on your long-term goals and aspirations and use the journey as an owner and leader as an opportunity to learn and grow. What you focused on five years ago may have changed because your priorities have changed, the industry has evolved, and people’s needs/wants may have shifted. When you feel you are on a grind, take a step back and acknowledge where you are and where you want to go next. What challenges do you want to tackle (and why)? What role do you want to take on (and why)? What impact do you want to leave on others (and why)?
Striking the Balance
Operating your business with the mindset of always preparing it for sale can be a smart strategic approach. It ensures that you are constantly refining and improving your processes and building a strong team, which adds value and marketability to your business. However, staying connected to your purpose and mission is equally important. By striking a balance between the “always preparing for sale” mentality and staying true to your purpose, you can create a business that is attractive to buyers and fulfilling and impactful for yourself, your team, and your community. As a result, you have created options for your future.
For more information on this topic, check out the video, Preparing for the Future as a Multi-Unit Franchisee.
Kendall Rawls knows and understands the challenges that impact the success of a family-owned business. Her unique perspective comes not only from their educational background; but, more importantly, from her experience as a second-generation family member employee of The Rawls Group – Business Succession Planners. For more information, visit seekingsuccession.com or email info@rawlsgroup.com.