Earning the heart of a horse

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Earning the heart of a horse
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Fujifilm forecasts bright future for labels
Rock LaManna03.04.21
To bring out the best in your business, you need to curry it as if it were a top-performing racehorse. Before a thoroughbred ever sets hoof on a racetrack, it is groomed and trained. The owner and team pour their energy into the horse so it is a glowing, muscular specimen that is vibrating with energy. Anyone who visits the stable of a racehorse in training knows which horse is number one. Even standing alone, a horse like this will make you turn your head and gasp.
Your business is like that horse, right? It is powerful and ready to take on the competition. Your team is 100% focused on the success of this asset. You as owner tend to it every day. Your business is healthy and groomed – a head turner.
I know owners. Each one of you is nodding your head and saying, “Yes, that sounds like my business. It’s a thoroughbred.”
Guess what? You may have the desire to be the owner of a thoroughbred business. You may even have the right pieces in place. But in my 45 years advising graphic arts companies, it’s one in a hundred who has the potential.
A horse’s heart
To put things in perspective, here’s a quote from America’s Best Racing: “Many people... cite horses’ hearts as the main reason they love them. From trying all-out to win a race to doing everything possible to make their ‘person’ happy, horses give their all to humans. They have so much ‘try’ and so much heart.”
You see, an owner’s will, money and determination only get you so far. You also need to be deserving of the heart of the horse. Do you deserve that kind of single-minded loyalty?
Does your business – your horse – willingly and lovingly want to put everything into succeeding for you?
Will your team commit body and soul to ensure top performance?
Do the people around you, inside and outside your business, make your success a priority because of your character and commitment?
If you’re still nodding your head, you may have the makings of an owner of a number one thoroughbred. While many owners think they are already receiving that level of loyalty and commitment, they will never know how much further they could have gone. They are too focused on power, wealth and their own comfort. If you are that person, there’s not much I can do about it. Instead, I will speak to the one owner in a hundred with potential.
A thoroughbred business
The top thoroughbreds are curried often because it’s good for the horse’s coat and circulation, and it’s good for team morale. In the stables and on the racetrack, the best want to work for the best.
A well-tended thoroughbred shows the world that the organization is in top form. Likewise, the healthiest graphic arts companies are curried:
From the exterior of the building to the smallest closet in the plant, everything is clean and arranged.
Any outsider – vendor, customer or even competitor or potential buyer – could stop in on a moment’s notice and see an efficient and smooth-flowing plant with happy people.
The employees have pride. Everyone understands their jobs, and they want to perform at their best. They are ethical, professional people who are honored to be part of the team.
Employees at all levels of the organization enjoy making incremental improvements in their areas.
Managers are coaches and strong leaders. They encourage innovations, input and open feedback.
The owner is approachable, authentic and a positive role model.
Whether you plan to sell/transition your business or hold and grow, a well-groomed business attracts attention. I’ve talked to owners who never plan to sell but love knowing that buyers are salivating over the possibility. They fantasize about being approached with top multiples and beneficial terms, validating the winning choices they’ve made with their business.
This is what every business owner – especially founders – wants to believe: that all the struggle and sacrifice was worth it. They want to know that, in the final analysis, they are a success and make a difference.
A truthful analysis
How do you define success? Here’s one answer: Ask yourself if you’ve earned the heart of a horse. If you have been reading my column for years, there’s something you’ve probably guessed: I will always tell you the truth. If you want to know if your business has potential, I will tell you with frankness what I think. I may be the only person around you who feels free enough to tell you the truth.
If you are the type of owner who is worthy of the heart of a horse, you will not be put off by what I say. You will welcome information and education on how to groom your business so you can take your place at the front of the field. You deserve that truth, your team demands it, and your thoroughbred business desires it most of all.
Eight ways to attract top-paying buyers
To benefit from deal flow and capture the advantage, a seller needs to think from the perspective of a prudent, serious buyer. Groom your business like a thoroughbred team would groom the top horse – to attract serious interest and earn the right to receive it.
Make a commitment. Decide today to groom your business daily so it is a thoroughbred, not a workhorse. You need to be the best to attract the best.
Keep financials organized and updated. Order daily cash flow reports from your accounting team. Meet with your CFO regularly, and track the financial health and status of the business in real time.
Organize offices and production areas as if a buyer was going to do a surprise walk-through. Having visited countless specialty printing operations over the last 45 years, I can tell (and your prospective buyer can, too) if the shop has been quickly tidied up or if it’s always kept ship-shape.
Remember that “leaders lead.” As an owner, take your rightful place as an idea generator, big picture thinker and disciplined planner. Being a micromanager or absentee figurehead is a detriment to your personal and business reputation.
Integrity Matters. Obtain a baseline valuation. Set quantifiable goals that have a deadline or time element. Use your metrics to measure your results. Analyze external data on your competitors, industry, ideal customers and more. Find out what other successful owners are doing and how you can gain competitive advantage. Hire an experienced and trusted financial wiz to draw up your roadmap with goals, milestones and timelines.
Always be prepared to exit within 90 days. The world is uncertain. Things change. People get sick and die. You need a Plan B, Plan C and Plan D. One of your plans must be how to exit, transition or sell the business quickly if necessary. That’s reality.
Understand how to sell your business yourself. You might be thinking, “LaManna, you’re crazy! I don’t have time or expertise for that.” Here’s a fact: buyers are motivated to find well-run companies in potential growth markets to acquire and grow. If you own the type of business that has potential, this is the right time to start taking systematic steps to sell.
Patience is an art. It’s easy to get distracted and overwhelmed. Appreciate when you achieve small wins. Express gratitude. Always invest in talented people. Keep your head in the game.
Be healthy, vigorous and well-trained. Be ready to gallop at full speed when opportunities arise. Curry your business like the prized asset it is. If you can do that, you will be on your way to being a winner in the deal flow race.
Rock LaManna is The Deal Flow Guy. He helps qualified buyers and investors find businesses that are ready for acquisition or transition. On the sell side, he helps owners improve their businesses, increase value, and position strategically in anticipation of sale, exit or succession. Sign up for his newsletter at TheDealFlowGuy.com and start the process.
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