He greased that landing back on Jan. 15, 2009, but there was no rulebook for landing an Airbus A320 on the Hudson River. Nor did he get to practice a few times with an empty plane to get the hang of it. He had 155 lives in his hands and one shot to get it right.

In a lot of ways, I think selling a business is a little like trying to land a passenger jet in a river: You’ve probably never done it before, you don’t get to practice, and there’s a lot riding on the outcome.

Here are three things I wish someone had told me about selling a business before I went through the process for the first time:

1. Find a “sell-side” intermediary

Like selling a house, you probably want someone to represent you in the sale of your business (either a business broker or a mergers and acquisition professional).

But beware: both buyers and sellers can hire intermediaries. When your broker has a “buy side” mandate, it means he or she has been hired by a buyer to find a company to purchase.

As a seller, you want to make sure your broker does the bulk of the work on the “sell side” (being hired to sell a company); otherwise you run the risk that your broker’s loyalties lie with “buy side” clients.

That can be a problem if they try to deliver your business as a gift to one of their clients without generating multiple bids for your business.

2. Seven drips till you quit

Once you have an intermediary engaged, he or she is going to work with you to develop a long list of prospective buyers. Once you agree to a list, your broker is going to contact prospective buyers to try and get them interested in a conversation about buying your company.

Just like a sales rep, your broker may try to call a prospect once or twice and then give up after the third time if his or her calls have not been returned. The broker will then tell you “they’re not interested.”

But there could be many reasons a phone call goes unreturned, so the old sales adage “seven drips before you quit” is apropos here. Make sure your broker tries a prospective buyer seven different times before writing them off the list.

3. Answering the question

At some point in the process of selling your business, a prospective buyer will ask you, often casually, “Why do you want to sell your business?”

These eight seemingly innocuous words have derailed more deals than any other.

Obviously you don’t want to lie, but there is a right and a wrong way to answer the question.

Answers like “I want to slow down a bit” or “I want to travel” or “We’ve got a child on the way and I want to spend more time at home” communicate to the buyer you plan on winding down when he or she takes over. What buyers really wants to hear is your intention to help them realize the potential locked inside your business.

Here are some suggested responses based on your age.

If you’re under 40, you clearly aren’t ready to “retire,” so you need to communicate that you see an upside in merging your business with theirs: “In order for us to get to the next level, we need to find a partner with more [insert sales people, distribution, geographic reach, capital or whatever the partner brings to the table].”

If you’re between 40 and 55, most people will understand the need to shore up your personal balance sheet: “I’ve reached a time in my life where I want to create some liquidity for the value I’ve created so far, and, at the same time, find a partner who can help us get to the next level.”

If you’re over 55, you can start to talk about retirement, but you want to make sure you communicate that you still have lots of energy and passion for your business. “I’m at a stage where I need to start thinking about retirement. It’s a long way off yet, but I want to be pro-active.”

Good luck navigating your own smooth landing and let us know if we can help you like we helped others by calling Peter Kallai, CEO, Senior Consultant 613-795-8181.

Within the technology sector key tools include tax based incentives, international market assistance and technology commercialization programs. Technology commercialization support itself can take many forms.  Common elements include such aspects as:

• Networking support:
  • bringing together business and researchers,
  • facilitating partnerships with prospective customers,
  • international door opening;
• Financial support for everything from proof of concept to pilot projects;
• Support for market research and customer facing marketing.

For a company faced with the challenge of bringing technology to the market, the potential for commercialization support can be enticing.  And in many cases it can be leveraged successfully.  But the attractiveness of an apparent helping hand also needs to be carefully considered.

Here are ten questions to ask yourself about technology commercialization support programs.

1. What programs exist that can meet my specific needs?
2. Do I truly understand the nature of the market I am pursuing and whether available support programs are appropriate to help meet my company’s business goals?
3. Is it worth applying for government funding or is there a way to get this done with my internal resources?
4. Will involvement with this program help or slow us down in the time it takes to get to market?
5. How could this funding be spent?  Could I cover all my project expenses?  If not in whole, what % and whet type of costs eligible?
6. What will be my return on this money and how quickly?
7. Are the potential partnerships to be gained helpful to my organization?
8. How do I apply?   How much time and effort will it take to get to the money?  What are my chances of success in receiving the funding?
9. How do I get to know decision makers?  Or should I hire consultants that worked with the program before to help me out?
10. Are there conditions on the acceptance of funding and are the terms compatible with my business plan?

Keystep has considerable knowledge and experience with government technology commercialization support programs.  We have worked with many startup and growth stage companies to identify, evaluate and pursue programs suitable to the company’s needs.  Our experience can help you navigate a sometimes complex array of programs, quickly and efficiently.  Feel free to contact us if you would like assistance in evaluating or pursing various technology assistance programs.

Dennis Nazarenko
E-mail: d.nazarenko@keystep.com
Direct: 613-513-5106

This is particularly true in the business world, whether you are a sharp and ambitious grad fresh from an MBA program, an engineer turned entrepreneur, or an experienced executive struggling with flat or stagnant growth. There are always benefits to be gained from considering another perspective or the insight of someone who has already overcome a similar challenge.

This of course requires a willingness to step back, take a hard and honest look at yourself and your situation, and acknowledge where there may be room for improvement. Consider it a purely mercenary and self-serving process – there are mentors and strategic advisors out there somewhere with the answers you need, your mission should be to pick the brains of as many of them as possible to up your game.

To lever their insight, you must be receptive and appreciative of frank and honest feedback. That is, you must be coachable. There is no room here for defensiveness and fragile egos in need of regular stroking. To be truly coachable takes no shortage of emotional intelligence, or EQ, a concept popularized by Daniel Goleman.

IQ, the traditional measure of cognitive intelligence, focuses on one’s intellectual, analytical, logical and rational abilities. EQ, however, looks at an individual’s ability to cope with stress, crises and unpleasant situations. Someone with a high EQ is adept at reading and understanding the nuances of other people. They are good teambuilders, dealmakers and leaders.

Goleman identified the five domains of EQ as:

• Knowing your emotions.
• Managing your own emotions.
• Motivating yourself.
• Recognizing and understanding other people’s emotions.
• Managing relationships, ie., managing the emotions of others.

Someone with a high EQ is therefore a confident and well-rounded individual who can accept constructive feedback and criticism in the spirit in which it is intended. On the other hand, they can provide criticism and feedback in a manner that is empathetic to its intended recipient to ensure a positive experience all around.

But people who have a low EQ, and may therefore be lacking confidence, self-esteem and/or emotional security, will find it that much more difficult to effectively coach or be coached, because they will more easily get their hackles up, feel put down, or be fearful of moving out of their comfort zone. How brilliant they are in a purely cognitive sense doesn’t really matter. Consider the classic stereotype of the socially inept nerd who has achieved great things academically but is still unsuccessful.

The good news is that there is always opportunity for improvement. While IQ peaks and levels off at around 17 years of age, the qualities of a strong EQ can be developed at any age through coaching and practice. It is not an easy process. Nor is it a skill set that can be acquired simply by reading a book or two. It takes consistent focus with a qualified coach to master Goleman’s five domains as outlined above.

The value of cultivating a strong EQ in yourself and your team should not be overlooked. When it comes to hiring new staff, their experience and technical qualifications for the job must be weighed against how they present themselves as a well-rounded, confident and balanced individuals. This is crucial to building a strong team made up of people who can effectively communicate, collaborate and confidently provide you with the frank feedback that will strengthen the entire organization.

If need assistance,  KEYSTEP can help.

Leo Valiquette
E-mail: l.valquette@keystep.com
Direct: 613-769-9479

Twitter:@LeoValiquette

After chatting for quite some time, I asked him how sales had been.   “Sales were a bit down in 2010….but we are now developing a new software product that will be a blockbuster in the coming year,” he replied.

“How profitable were you?”  “Not very profitable right now,” he said. “We managed to break even last year, but we had to work really hard in the second half of the year as we lost one of our most important customers as they brought all outsourced work in house and cut their reliance on our supply and support resources.”

Twenty or 30 minutes into the conversation about how company was positioned to improve sales and performance, we got to the real stuff. The Owner/CEO told me he was looking for a new CEO because he had cancer. He missed six months of work in 2010 for surgery and recovery after he was diagnosed.  Given this situation, he had decided to leave the company. He hoped that his employees would buy him out, but was uncertain as to who would succeed him as CEO.

The new CEO would be responsible for ensuring the payments from the buyout were made to him and that the company got back into the black. I asked how this new CEO would be compensated. He said the new CEO would have be charged out to customers to earn his way on various IT projects, because there was just not enough revenue for him to draw a salary. However, there would be some options on the table, or the company could be bought for cash right now, if I was interested. I wondered how I was going to pay myself, or the departing owner. There would have to be a quick and dramatic performance improvement at the time when a significant customer was lost and no proof that the new product would attract additional ones.

When I left that meeting, I wondered how many owner-managed companies are out there with no back up plans or back up CEOs. Would they face a similar circumstance of loss of business, loss of revenues and profitability in a similar situation? It’s too late to find an interim or replacement CEO when the chips are down. Would you not want to make sure that you can keep your business running well and capable of paying your people and yourself?

We at Keystep provide consulting services, sit on company boards and provide interim executive services for when you need them. But please call us a long time beforehand so that we can both be ready. No one can predict with any certainty when such services will be needed. If you wait till you need them, it will be too late.

We at Keystep can help.

Peter Kallai, MBA, PMP
E-mail: p.kallai@keystep.com
Direct: 613-795-8181
Skype: peterkallai1

6) Do the right people know who you are? When a journalist writes about your company, what it does, where it’s going and the likelihood of it actually getting there, he or she needs sources. Sure, you may be tickled by the prospects for your brave new enterprise, but yours may not be the most objective opinion. The journalist may be looking for the third-party perspective of analysts who can provide a frank assessment of your prospects. So it pays to put yourself on the radar of the analysts who follow your industry. Other sources of interest to a journalist could be your investors and even competitors. And, again, don’t overlook the value of testimonials from happy customers.

7) Be prepared: When you engage the media, questions can come from all directions. Expect the unexpected. That doesn’t mean you should view the journalist with suspicion and expect to be ambushed with inappropriate questions. Perhaps the journalist is looking to follow up on old news, such as whether the company is still on track to reach profitability by a certain date, or if those hiring plans you mentioned a year ago worked out, what your future growth plans are, etc. When arranging an interview time, confirm what the journalist would like to discuss.

If you still find yourself caught flat-footed by a question, never be afraid to say, “I don’t know. I’ll have to get back to you on that.”

Keep it simple, stupid: That doesn’t mean talk to the journalist like he or she is an idiot. If they want something dumbed down, they’ll ask and you should accommodate. Better to take the time and demonstrate patience with questions that require something be explained in terms a 10-year-old would understand than risk a miscommunication. In the age of viral social media, retractions and correction notices do little to yank back errors that may be damaging to your company, or at least confusing for busy readers who want their information delivered in clear and obvious terms.

9) Good stories have drama, conflict and resolution: Journalists looking to tell a good story hate to hear that everything is perfect and peachy keen. That doesn’t mean they’re looking for trouble where there isn’t any, they just know the skies can’t be sunny and clear all the time. Don’t be afraid to be frank about challenges your business has faced. Instead, take it as an opportunity to talk about how you’ve persevered and overcome and the lessons you’ve learned. What you’ve learned in the School of Hard Knocks can help paint you as a seasoned and capable executive. It also makes for compelling reading that can imbed you in readers’ minds far better than a write up about your latest product’s bells and whistles.

10) Don’t hide: Sometimes, what you don’t want the world to know gets out at the most inconvenient times. Perhaps it’s bad news, or just news you’re not ready to share. It’s often better to set the record straight than ignore a journalist with a scoop that’s been obtained through avenues beyond your control. The journalist may have already scraped up enough information to run with a story before they even pick up the phone to call you. Don’t throw away the chance to tell your side of the story and clear up any possible misinformation. Dodging the media is often perceived as a sign that you have something to hide, which only adds fuel to the fire.

On the other hand, don’t feel pressured to give that interview before you’re certain about what it is you want to say. Take the call, garner exactly what it is the journalist is looking for, and arrange for the interview to take place at a more suitable time. But appreciate the fact that the journalist likely has a deadline and an editor breathing down his or her neck.

In conclusion:

Journalists, by and large, are looking for compelling content that provides something of value to their readers. This is particular true of trade and industry pubs that are struggling to make do in the face of budget and staff reductions. The easier you can make their jobs, the greater the value you can provide to them, the more receptive they will be. The media can be a powerful means through which to promote your value proposition to potential partners, investors and customers, but it takes considerable time and effort to engage with them and build fruitful relationships.

Leo Valiquette
E-mail: l.valquette@keystep.com
Direct: 613-769-9479

Twitter:@LeoValiquette

Pound for pound, PR can provide greater bang for the buck than traditional advertising. Conveying your key value points as part of a news feature or with a bylined thought leadership article that does not overtly promote your products or services often carries more weight and does a better job of seizing readers’ attention than an ad. But not just any media coverage will do. Your efforts should be applied to those media that:

1. Focus on your market or industry sector and have an interest in the kind of stuff you do.
2. Have the circulation numbers and audience reach to move your market.

It can take considerable time and effort to research and identify the media that meet these criteria. Even more to engage with each of these outlets one on one to introduce your company to them and discuss where and how your story could be a fit with their editorial plans.

So here is my top 10 list of key things to keep in mind when trying to garner coverage in the media, which may also provide you with a deeper appreciation of what defines “effective PR” and the challenges good PR practitioners face.

1) It’s not about your agenda: If you’re an Apple or a Google, it’s easy to dictate the terms of engagement to the media. If you’re not, it’s a different playbook altogether. You have to offer journalists what they need when they need it, which takes research and picking up the phone often, which far too many PR people are loathe to do.

2) Sometimes this is spelled out for you: Many publications, especially niche players like trade or industry pubs, plan out specific coverage of an industry, sector, trend or area of business development months in advance. It could be content for a section of a few pages, or to fill an entire issue. These “editorial calendars” can provide insight as to when and how a particular publication may be interested in your story, or in your perspectives on the state of your industry. It has been my experience that calling up an editor about an upcoming issue can often lead to additional coverage opportunities.

3) Be flexible: Often, the best way to get exposed through the media is to be a source of comment on a particular area that impacts on your business. The journalist is looking for subject-matter experts for a story he or she already has in mind. Depending on the opportunity, the best way to take advantage of this may be by offering a senior thought leader in your organization as a source to be interviewed, or by providing a reference customer who can talk about their experiences (though bear in mind they will likely not be able to blatantly promote your product or services).

With many trade and industry pubs, having willing and articulate reference customers who are primed to talk to the media is not only desired, it is the only way to secure coverage.

4) You can get whatever you want, if you’re willing to pay for it: No, that doesn’t mean that if you buy an advertisement you will get a story. If you insist on your message being told your way, subject to your approval, the journalist’s answer will most likely be “Our sales and marketing department would be happy to hear from you. Here’s the number. Bye, bye.” If what you want is an ad, then buy an ad.

5) Very rarely will you have final approval on the article as a whole: At best, you can push for the right to double check facts and figures that the journalist will include in the story and verify any direct quotes from yourself or your staff that the journalist intends to include. For this to be a well-rounded news article and not a promotional piece, don’t expect you will be the only source, and that leads to the next point…

To be continued next week…

Leo Valiquette
E-mail: l.valquette@keystep.com
Direct: 613-769-9479

Twitter:@LeoValiquette

This talented entrepreneur built a business that leveraged his or her unique knowledge, expertise, energy or contacts.  The business grew as a result of good work and leadership.  Reputation, good timing and perhaps good fortune smiled on the company and growth accelerated to a point where this single person company expanded to over 30 people.  This lasted for a number of years as the market was strong for this company’s services.  Over time the markets shifted, but because the company did not notice at first, it started losing momentum one contract at a time and soon they were down to 15 people and no longer profitable.  The decline continued over the years and seems the company run out of resources that could be dedicated to shift the business to new markets and explore new customer relationships or commercialize a new product or service.

Even in a declining phase the pace required more and more from this entrepreneur who was strategically embedded in all aspects of the business.  Eventually the entrepreneur grew weary of the pace where he was needed to deliver on contracts, keep the existing customer relationships working and then develop new ones.  Hence instead of building the business into a new strategic direction our entrepreneur was just trying to patch up the leaks and losses of contracts and customers with new ones, accepting the steady decline in business and harvesting it as long as he could.  Finally close to hitting 60 our entrepreneur wants to get out.

But there is a problem…..Without the entrepreneur, there is no sustainable business and therefore no value to sell! A good run ends quietly.

This is not a happy ending story and one which Keystep could helped you avoid.  Our experience has shown that it is possible to build a sustainable business and create an exit that will yield value to the founders and shareholders.  It takes focus, time and resources, but building a sustainable business is possible.  And it may take a different approach than the business owner is used to!

The key here is to start early!   Start when the good times are still on, not when the business is in decline and lacking resources.  Just because your business is running along at a good click, it does not mean that it is sustainable as you can see from the above case.  And no one will buy a business unless there are sustainable revenues and profits.

Hence don’t put your head in the sand and push these thoughts off for another day even if your business is doing well now.  Contact us and we can help you start a new page in your business’ life and make sure that there is value at the end. Even if you are looking for an exit 5 to 7 years from now, this is the time to call to give yourself the runway!

Dennis Nazarenko
E-mail: d.nazarenko@keystep.com
Direct: 613-513-5106