When you begin the steps of selling a business, it is common to identify and prioritize opportunities to enhance the business valuation and act on them. This typically leads to a portfolio of proposals, some of which might become derailed at some point, and might even derail your sales process.
The bottom line is facing reality through constructive questioning and disciplined execution and accountability. Build a realistic understanding of the project and people. This can mean taking the first few weeks moving extremely emotional meetings to productive ones. It is a balancing act to get to the heart of a challenge through persistent and constructive probing, and then productively working on it.
There are many detailed methodologies I use to right derailed projects, and smart questioning is at the core of all of them. Below are specific diagnostic questions you can use if you find yourself in a similar situation. It can be as easy as the “Start-End-Continue” approach. Think regarding the activities and deliverables in terms of “start, end, continue.” Work with the project team to consider:
- What do we begin doing to assist us meet our project goals? What would we benefit from adding?
- What do we stop doing taking the steps forward?
- What do we be positive to continue?
For those situations that need a more detailed examination, more is needed. Questions will need to probe deeper into project processes, issues, people and overall strategic alignment. If available, contemplate reviewing detailed operating plans, performance and personnel data.
Raw information, however, rarely tells the entire story. Meet with one-on-one with key personnel with prepared questions such as:
- What are the most important challenges the project is facing, and why is the project facing them?
- What are we doing concerning these challenges currently?
- What are the most promising unexploited opportunities for positive change, and how may we take advantage of them? What would want to happen to appreciate their potential?
- How were goals set? Were they insufficiently or overly challenging? What was the consequence if they were not met?
- How are we measuring success? What measures were employed? What behaviors did they encourage and discourage?
- Do the primary problems reside in the organization’s strategy, structure, technical capabilities, culture and/or politics?
- What are the most formidable barriers to making needed changes? Are they technical? Cultural? Political?
- Are there islands of excellence or other high-quality resources that we will leverage? Who is doing well, what is operating and what can we learn and apply elsewhere?
- What new skills and capabilities need to be developed or acquired?
- If you were in my shoes, what would you focus attention on?
When reviewing the project proposal, think about:
- Are all the deliverables and their quality check points included as milestones?
- Is time for rework fitted into the schedule? Should it be mandated?
- Are the chunks of labor too large? Can you go down another level with the work breakdown structure (WBS)?
- Are there milestones a minimum of once each 2 weeks?
- Are all dependencies in place?
- How reliant is the timing on everything proceeding exactly as planned? Is there a buffer when something doesn’t go as planned? I frequently place a fifteen % risk buffer.
- Are qualified resources assigned to all tasks and milestones? Are the resources receiving the support and coaching they have?
To get a project back on target, translate desired outcomes into concrete steps for action. Set goals and priorities and put structures in place to make order out of chaos. Establish measurable milestones and accountabilities and report on them regularly. Focus the proper individuals on the proper details at the proper time. By concentrating on a high level of responsiveness, accountability and communication, these necessary ideas to improve the value of your business before you sell it can move forward.
When selling a business, it is important to have your fingers on the heartbeat of the multitude of preparation projects you will have going on, and quickly act to put them on course if necessary.
I invite you to use these ideas during your journey to sell a business.
Marian Cook is a highly sought after business transition expert and speaker with over 25 years experience helping business owners design their best-life exit strategy, and improve their business performance and valuation. She is the co-author of “Selling Your Business For More: Maximizing Returns For You, Your Family and Your Business” (published by Macmillan). If you are ready to sell a business and jump-start your business sale process, connect with Marian via her free tips, articles, checklists and blog at Business Transition Experts.