I'm excited to welcome back, Michelle Loretta of Sage Wedding Pros. Michelle Loretta, along with Kelly Simants, are owners of Sage Wedding Pros, a resource for professionals who want to create sustainable businesses in the wedding industry. Michelle is going to be a guest blogger for the next 2 Mondays. I am honored to introduce her fabulous and insightful post aptly titled, Where do you want to go with your business? On a more personal note, Michelle is a great supporter of vendors and I delight in being able to call her one of my inspirational vendor friends.
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Where do you want to go with your business?
Most of us in the wedding industry launch a business because of an overwhelming desire to create something of our own. We yearn to be artistic. We yearn to see our name in proverbial lights. We yearn to have command over our careers. And, this propels us forward… year after year after year.
But, then what?
What is it that you are building?
Where do you want to go?
What does your business look like when you are done with it?
Where do you want to go with your business?
At Sage Wedding Pros, we ask this of wedding pros when we work with them on their business plans. And, it’s without-a-doubt the hardest of all questions to answer. But, it is probably the most important one. We are very focused on building our dream in the present and it can be challenging to envision the end of the road. But if we don’t know where we’re going how do we know what road to take?
We encourage business owners to start planning for succession as early as possible. (We encourage people to make this step at approximately 2 years into business, if not earlier.) If this sounds super scary to you, then start with the following question: what do you want to do with your business? Use this as a building block in beginning to create your succession plan.
Business owners generally end up in one of the following places…
3 Options for the Future of Your Business:
Sell Your Business
Many people dream of selling their business and making millions from it. (I know I do!) Often a business owner that has built a successful business will realize and learn (and do some quick math) that they can sell their business for much more than they actually make in annual revenue. This is what is most enticing about selling your business.
In reality, a small owner-run business is not easy to sell. The wedding industry these days has very little barrier to entry. (We’ve all seen this as wedding pros pop up quickly each month.) But with such little barrier to entry, why would someone buy a business if they can’t easily start their own business? This is a challenge you will certainly face if you goal is to someday sell your business. It emphasizes the importance of creating a succession plan.
Here are some things to keep in mind if you want to sell your business someday:
- Identify a potential buyer. This can be a real actual company that may be interested in acquiring your business to strengthen their company. Or, you can create a “pretend” buyer to have someone in mind.
- Identify the reasons that this buyer would be acquiring your business. Is it your incredibly strong brand name? Is it your assets and equipment? Is it your innovation in the industry?
- Build a succession plan around the assumption that this business (or person) will acquire your business. Structure your every business move around this and the reasons they would buy your business. You are now in the business of selling your business – not jut the product or service on which your business is modeled.
Leave Your Business to Your Family or Employees
You may be dreaming of the day that your family (or if your employees are like family – then your employees) take over your business. You have a vision of creating a legacy that can be carried on without you.
Before my life in the wedding industry, I worked for a small company who had this as a succession plan. The owner had operated and owned the business for 15 years and she wanted to retire. Her succession plan was to turn the business over to 2 employees who had worked in the business for many many years. The plan was that they would earn their equity (ownership) in the business over 5 years. This would be based on the company’s profit performance.
Two things happened. The first is that this succession turnover began in 2000 – and then came the dot bomb. Despite everyone’s efforts to keep the company going, the economy took its toll on the business. The company did not have a strong profit performance and the owner was forced to close. Regardless of her best efforts in creating a succession plan there were other circumstances that took over.
The other – incredibly significant problem – was that the owner had a very hard time relinquishing control to her employees in regards to daily operations. She was every bad stereotype in terms of being a horrible manager. She led by fear and threats. She had an incredible team but she never let them do the work they were hired to do. I watched profits slide in large part due to this factor.
If you plan to leave your business to family members or employees, here are some points to consider:
- - Write a succession plan.
- Who would you like to see take over this business?
- How will you train them to do so?
- Will they take on any ownership in addition to managing operations?
- Find the right people for the right jobs and let them do their work. Often employees perform poorly because we expect them to do something that they aren’t skilled at doing. Your job is to teach them how to do so or put them in a role where they can excel. Once you have the right people in the right positions, you company will thrive better than ever.
- Create a timeline and start working towards this now. If your plan is to take a less active role in your business in 10 years, then start NOW in paving the path to get there.
- - Study other businesses with solid succession plans. Nordstrom and Zappos are two strong companies with succession plans at every level of their operations – not just at the executive level.
To Be Continued....
Read the conclusion of Where do you want to go with your Business? next monday.
For more on business strategy and information on Sage Wedding Pros, including their one-to-one business plan coaching and workshops, please visit www.sageweddingpros.com










































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