The Exit Strategy

Not having an exit strategy is always a mistake. I think people fail to think about and plan for an exit strategy because they have the mindset that failure isn’t an option. Um, no. Failure is always an option and avoiding it as a thought process may be setting yourself up failure! The good news is people, like myself, can learn from their failures.

Even with the best training and the most experience, you should always plan an exit strategy in business. In fact, you should always plan an exit strategy when entering into any contract or committed situation. Knowing the worst case scenario up front can help you navigate your future endeavors. So, yes- I recommend making an exit strategy for your business. But how?

1. Write your business plan and write your exit strategy back-to-back.

2. Succession Planning vs. Selling to an Outside Party- which one is right for you? Should things go wrong, how will you sell your company? Will you sell your company? What if things go right? Will you sell your company? If so, to who?

3. Don’t assume your family wants to takeover the business in the middle of your crisis. Talk with your family about handling your business should a medical or other life emergency arise. Would they be able to (and would they want to) take over your company?

4. Consult with advisers now about your exit strategy (either selling because it’s failing or selling because it’s succeeding). If you don’t hire the right financial, legal, tax and business advisers to help shepherd any sale or consult on an exit strategy from the get-go, you’re doing yourself a great disservice.

Exit strategies are needed. It’s difficult to address when launching a business, but I promise you its even harder to address when going through a time of great wealth or difficulty.

Until Monday,

Twyla Garrett

Office Rumors.

Rumors are the worst. Most of the time, they are not true. However, sometimes they are. Either way, rumors and office gossip can easily tear a company down. Many great employees either leave because of gossip pertaining to them or because they culture sickens them.

I wanted to address how you deal with office gossip and rumors directly on my blog tonight. First, identify the root of the gossip. Now, you have two choices. First, don’t share anything with this person and change the subject every time he or she is around or second, fire him or her. This may seem drastic but it also depends on the extent of the gossip.

If the person is gossiping about someone’s hair or personal affairs, it is catty but ignoring it usually squashes it. If the person, however, is sharing company secrets or talking bad about the company or key employees in a way that can be harmful, liable or leak trade secrets- there is no rectifying the behavior. A firing is needed. Period.

I tell all of my employees that gossiping is not acceptable. Regardless of who starts it, if it gets back to me- the entire staff is fired. This isn’t a joke. I will do this. Most people are less likely to carry stories or even go near known gossips if they know the entire group’s livelihood is dependent upon this single rule.

So, if need be, implement my no gossip policy tomorrow. It is the best way to save your company from legal issues and prevent employee turnover.

Until tomorrow,

Twyla Garrett

Keep Your Team Happy!

I know the benefits to keeping a happy team of employees. Small businesses and large corporations can provide some simple, and affordable, perks to help keep employees happy and productive.

I like the catered lunch. People love free food, especially employees. If you tend to have a problem with absenteeism on Fridays then I promise you something as simple as a catered lunch from Subway will change the statics. Employees love to feel appreciated. Not having them reach into their own pockets to buy lunch once a week or once a month is a great morale booster and helps promote ownership of their roles within your company.

Next, reward employees for their time spent giving back. If your company volunteers for a cause once a month, reward employees who participate with an extra day off the following month! It does work and this is a win-win situation for all involved. I also like to promote sleeping at work. I know what you are thinking but wait before you stop reading. There is evidence that cat naps throughout the day promote creativity and productivity. Provide a designated resting area for your employees. You might even consider playing zen-like music and adding a grapefruit scented oil infuser to help re-energize employees!

I know business owners like to get the biggest bang for their bucks. But, when you help employees feel appreciated and rejuvenated, your profit margin can go up- way up. So, invest in a few lunches and a special break room where sleeping is encouraged.