Considering Generational Strategies
When you are buying or selling a business, you might very well end up making a deal with someone from another generation. Therefore, it only makes sense to take the time to understand that individual’s background and how that might cause behavioral differences. It is important to understand and reflect upon where many of them are coming from and the collective experiences and trends that shaped their identities and perspectives. At the same time, you can identify your own biases, strengths and weaknesses that may be caused by your own upbringing.
The strategies in this article originated from Chuck Underwood who is considered a leading expert in the diversity of communication styles between generations. He is the author of a major book on the subject as well as host of the long-running “America’s Generations with Chuck Underwood” on PBS.
Generational Sensitivity
Underwood’s perspective is that people of each generation were molded by their unique formative years. The decisions that buyers and sellers make will be impacted by their generation. Mostly likely, the buyers or sellers you will be coming into contact with will be either Baby Boomers, Generation Xers and Millennials.
Working with Baby Boomers
Baby Boomers (those born between 1946 and 1964) are a major force in the business world. While they often possess a patriotic passion to improve the country, they were also witness to a time of great change via many movements including the civil rights and women’s movement.
When you’re dealing with Baby Boomers, it is important to remember that they will want to build relationships and get to know you. Common courtesy is very important to Baby Boomers. That means they’ll expect you to show up on time and turn your phone off during meetings.
You’ll want to keep in mind that older Baby Boomers may be experiencing hearing and eyesight loss. As a result, you’ll want to keep your type and font size larger, and make text easy to read.
When you’re working with your clients, it only makes sense to pay attention to the generation during which they were raised and adapt your approach accordingly. Understanding generational differences will help you get a leg up on the competition while at the same time helping your clients achieve their goals.
What is Generation X?
Generation X (or Gen X) had a wildly different formative experience than the Baby Boomers. Generation X is generally defined as being born from 1965 to 1980. This generation spent its formative years from the 1970’s through the 1990’s. In stark contrast the relatively more pleasant and optimistic childhoods of the Baby Boomers, Gen X had a rougher ride.
America became more mobile during the time period during which Generation Xers grew up. As a result, many children were uprooted and separated from their friends, family and hometown roots. Growing up, these individuals witnessed a variety of scandals ranging from political and religious figures to sports figures. Gen Xers witnessed the systematic dismantling of the American middle class and with it a general lowering of quality of life, opportunities and confidence in corporations. In the end, Gen X was quite literally left home alone and lived as “latch key kids.” It is no wonder that this neglected generation has some issues.
Individuals growing up during this time learned early on that they had to be ready to fend for themselves. Since Gen Xers have been met with consistent and systematic disappointment and even wide scale institutional betrayal, this generation, on average, is more distrustful of organizations.
Gen Xers are self-reliant and independent and one of their core values is survival of the fittest. In his view, Gen Xers are self-focused, individualistic and want everyone to skip the nonsense and get to the point. They have no real interest in getting to know you or playing a round of golf.
Working with Millennials
Millennials spent their formative years in the 1980s and early 90s. They are a very optimistic and tech savvy generation. They are also the most classroom educated generation in history.
It is also very important to note that Millennials are the most adult supervised generation in history. So-called “helicopter parents” who work to protect their children from setbacks are the norm. Employers find that Millennials are entering adulthood, but are still relying upon their parents to help them make decisions and even career choices.
Where Gen Xers are distrustful of the “wisdom of their elders,” Millennials actively seek out such advice. Likewise, Millennials tend to volunteer a good deal and look for ways to solve the world’s largest problems.
You will find that Millennials will enjoy building a relationship with you. Keep in mind these individuals tend to be quite socially conscious and they may very well expect you to agree with their views. Additionally, there is a chance that they will have their parents involved in their business dealings.
Keep in mind that the de facto tech addiction, or at the very least acute overreliance on technology, has led to issues with Millennials’ soft skills. They can often lack the ability to read another person’s body language and adjust accordingly.
In the end, regardless of what generation you are working with, it is important that you continually adapt. This will greatly increase the odds of cementing a successful deal.
Copyright: Business Brokerage Press, Inc.
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Confidential Business Reviews Should Establish Trust
When you are selling a business, your business broker or M&A Advisor will likely create a Comprehensive Business Review, or CBR. This comprehensive document can then be presented to prospective buyers once they have signed all necessary confidentiality documentation. It is essential that this document builds trust between both parties, as this will go a long way towards achieving a successful deal.
Be Honest
The bottom line is that your CBR will be 95% positive. The majority of the document will be dedicated towards selling and promoting your business. Therefore, it only makes sense to disclose some potential problems. When handled correctly, the disclosure of problems can actually be a strong asset.
For example, current weaknesses of your business could become strengths in the mind of the buyer. For example, a business with a very poor online presence represents a substantial opportunity for a buyer to improve marketing and communications. Summed up another way, don’t be afraid to include negative information, especially if that information represents an opportunity.
Sharing Information
It is important that there is an element of trust between the parties. Creating that sense of trust begins with the CBR’s seller section.
Buying a business is radically different from buying a home. When someone buys a home, they usually don’t care too much about the person who they are buying the home from. But buying a business is usually a different experience. Your buyer will want to feel as though they have a fairly clear understanding of who you are and what you are about.
In the seller’s section, the buyer should get a decent idea of who you are. Your broker or M&A Advisor will want to interview you to gain ample information to include in your CBR. Your broker may even want to find out about your family, hobbies, interests and more. You may even want to consider including photos of yourself and your family.
The bottom line is that a potential buyer should be able to pick up the CBR and get a good feel for what you are like. If no level of trust is ever established between the buyer and seller, then it will be much more challenging for the deal to be successful.
Copyright: Business Brokerage Press, Inc.
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What You Need to Know About Foreign Buyers
There is a potentially lucrative group of buyers that many sellers don’t initially think about. We are talking about foreign buyers. While there are some hurdles to working with these types of buyers, it is important to note that there are many huge advantages as well. Let’s take a closer look.
How Are Foreign Buyers Different?
At the top of the list of ways in which foreign buyers are different is that they are often seeking a visa. Another commonality among foreign buyers, one that will surprise many, is that they may want access to the U.S. educational system.
It is common for foreign buyers to want to buy a business so that they can get their children into a particular U.S. school district or college. Sometimes the desire to be eligible for state tuition also plays a role in the selection of a business and the decision-making process. In this sense, business location takes on a level of importance that it might not have for domestic buyers.
It is important to keep in mind that there are cultural and business differences that play a role with foreign buyers. Everything from a different use of business terminology to expectations can play a role. This could impact negotiations.
What About Visas and Immigration?
One of the most important things to remember is that foreign buyers are often navigating the complex world of visas and immigration. Whether or not a visa is issued can dramatically impact whether or not a deal ultimately takes place. This fact is often built into agreements. For example, a purchase condition may be conditional upon visa approval. Nonrefundable deposits may also play a role in the process.
What Do Foreign Buyers Really Want?
Foreign buyers have been impacted by the pandemic too. Yet, some factors remain unchanged. Not too surprisingly, they will want to see that a business is profitable. In this regard, you should be able to showcase profitability in a clear fashion. You can expect foreign buyers to want to see tax returns and all the typical documentation that you’d need to provide to any buyer.
A second factor that foreign buyers are interested in is longevity. If your business has successfully operated for decades, this will be a major advantage.
Ultimately, most of what domestic buyers are looking for in a business will translate over to what foreign buyers are seeking as well. With that stated, however, there are factors that are often unique to foreign buyers. As mentioned above, navigating the often-complex visa process can add a wrinkle to the entire process.
Copyright: Business Brokerage Press, Inc.
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11 Tips on How to Become a Millionaire
People always ask if we have any suggestions for being successful. They question if we can name what we think contributed the most to our success. As one of the major business advisors in Houston, we’d like to share our observations from years of business experience. Applicable for both online and physical businesses, here are our top eleven tips for success:
- Always ensure all of your phone calls and emails get returned. In addition, make a lot of contacts and requests through phone, email, or even in person. We’re absolutely shocked at the number of people who don’t bother to return the request. It’s disrespectful and classless to ignore someone’s request – it disappoints them. When people are disappointed, they let others know you’ve wronged them. The fewer people out there talk bad about you, the better.
- Help anyone who asks. It doesn’t matter what it is (as long as it’s legal) – if someone asks you to assist them and you can, don’t hold back. Whether it requires setting aside some valuable time, writing a check, rolling up your sleeves, or just responding to a question from someone who doesn’t know as much, suck it up and help.
- Try knowing more than most people do about your business or industry. Go to a trade show or seminar every now and then. Participate in forums or discussions, whether they’re online or not. It’ll keep you connected to the people in your industry, making you a guru. The internet is a brilliant tool for getting you there.
- Treat your employees well – because they deserve it. In our business, our employees get away with a lot. They can come and go as they please, get surprise perks all the time, and are well paid. While some take advantage of these, they don’t last long. Being bad to your subordinates always come back to haunt you. It also means that you’ll get hosed. Try to make the workplace as casual, comfortable, and fun as you can. Show your employees by example, how you want them to treat co-workers and customers. They’re going to follow your lead. If they don’t like coming to work, it will show in what your business produces.
- Appreciate everyone who assists you in climbing the ladder – especially those who didn’t gain anything from it. This is another thing that we’re shocked more people have not caught on to. A simple, heartfelt thank you acknowledges the time and effort of these people, cementing them as allies. Trust us: you need all the allies you can get.
- Befriend your competitors. Yes, you’re all competing for customers, but you’re all frogs in the same pot of boiling water.
- Keep your sense of humor – it’s invaluable.
- Over-deliver to your customers. Remind them you’re watching out for their business and treat them as if they’re your friends.
- Get a hobby – race car, motorcycle, hot tub, whatever. You need a transition away from business to your personal self. Ensure you have one. It’ll give your mind a chance to disengage and enable you to background process all you’re thinking about. Transferring information from the conscious mind to the subconscious one is like working out using different muscles – it’ll help you gain results.
- Be very careful who you choose to listen to, but have a go-to team, and defer to someone niftier than you. While people mean well, it takes far less courage to poke holes in someone’s idea than it does to highlight the positive. Try keeping some good advisors around you.
- Don’t give up.
Irrespective of the books you read about getting rich quick, it doesn’t happen that way (most of the time). While some of us make it look simple, it really isn’t – but that doesn’t mean you can’t do it.
If you want an appointment for business consulting in Houston to help you in your journey to success, contact TruView Business Advisors now.
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Types of Attitudes: Do You Have What it Takes to Become a Successful Business Owner?
If you’ve long wished to be self-employed, to design your own destiny, or call your own shots, try bypassing all those yeah-buts that’ve been stopping you everytime. While business ownership may not be for the ordinary, it’s the only way to go for those who understand the American Dream by accomplishing a satisfying lifestyle through business ownership. Successful business owners share specific character traits that have assisted them in getting there. They have what it takes to overcome barriers – to evaluation situations – and have a can-do attitude. Let’s discuss three types of attitudes:
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The self-protective type
This person usually wants to be comfortable. They work hard to seek a routine comfort level, avoid pain, fly under the radar, play it safe, and avoid risks. This probably describes most people to a certain degree. In maintaining the status quo, shaking things up, or not making waves, all of us have a certain degree of comfort. But if being more extra cautious can’t be overcome, business ownership may not be in the cards. Besides, being self-sufficient equates to being self-employed. It requires you to be confident in your abilities and get out of your comfort zone. While many people may think it’s riskier to work for profit instead of a steady paycheck, millions of people are laid off and fired every year in the corporate world; being an employee is rarely low risk.
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The self-involved type
To a large degree, this person believes that they are the strongest, fastest, biggest, the best, and the smartest. However, their ego can let them down. These people are systematic, focused, and successful goal setters – but they can have trouble as enterprise builders. They may not be willing to listen to others who are in the position to advise them, like financial advisors, attorneys, accountants, or other business experts. Since they can’t empathize with others, they’re unable to lead and inspire. So, they can’t piece together the building blocks that set the foundation of successful business operation – a group of people working together as a team. Interpersonal and management skills along with the ability to delegate, must be present somewhere in the DNA of an owner of a long-running business.
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The self-esteemed type
These individuals have the inner motivation and creative spirit that drives them to accomplish what motivates them. They embrace personal responsibility and believe if there’s a problem, they can come up with a solution. They know what they aren’t aware of and the skills they lack and fully intend to hire others to fill the gaps. They know what makes them tick and have a God-gifted inclination to be responsible for doing the right thing – with judgement and honesty. They also believe that others will do the same.
Keep in mind that none of the above types is the stand-alone secret of business ownership. It’s the genetic makeup or right combination of these attitudes that are the stuff that successful business owners are composed of. For example, self-protectiveness is a natural instinct. It’s impossible to survive without it. However, this attitudinal gene should be tempered and can’t be so dominant that it’s difficult to overcome. A measure of risk must be allowed to take a leap of faith. By exercising due diligence on any specific business of interest and performing a self-assessment before pursuing a business acquisition, a potential business owner can accomplish an acceptable risk level for their individual situation.
In search of business advisors in Houston? Well, you couldn’t have come to a better place. Call us now to know more!
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