Last week at a Charlotte Vistage seminar a colleague of mine told us a story of a family business transition that was potentially explosive. The founder bequeathed a family business to his son and daughter, who became equal shareholders. The founder’s son took over running the business while his daughter stayed out of the company and continued her career. In a few years, the business was doubled in size and tripled its profits. When the founder got sick, my friend got into an uncomfortable position. He wanted to buy out his sister before their father would die.

Listen to today’s episode to find out what happened to this family and how certain entrepreneurs handle family transitions.


Your succession is success.

068 - Explosive Family Transition

A client of mine who owns a business development consulting firm has recently found his pipeline drying up. It looked like a case of the “cobbler’s son going barefoot”, as his employees were stretched thin servicing clients and claimed to have had no time left to drum up business.

We brainstormed different solutions until we arrived at the conclusion. He had to become his own client.

Listen to today’s show to learn the details of our finding and how that strategy can fix my client’s lagging sales effort.

Thank you for listening. If you have a question about succession (in the broad sense), please tweet it to #asksuccessionsteve or email it to steve@entrepcoaches.com.

Your succession is success!
Visit Us: https://entrepcoaches.com/

074 - Become Your Own Client

Can you recall the life and death Hungary-Portugal soccer game at the Euro 2016 championships?  After Hungary snatched the lead the third time with a goal bouncing off a defender, Cristiano Ronaldo was caught on camera in a fit of frustration. This scene was circulated on the internet as “evidence” of Ronaldo being a “spoilt” star who cannot control himself. Check the video on Youtube: https://www.youtube.com/channel/UC4p0DG02urAupV3t164gT2A

I drew the opposite conclusion.

Listen to the show, or read the transcripts, to learn why it was a sign of Cristiano’s brilliance and how this attitude helps him be a champion, which he and the Portugal national side ultimately became.  https://soundcloud.com/successionsecrets

Your succession is success!
Visit Us: https://entrepcoaches.com/getting-started/

075 - Leave No Room For Excuses

In today’s episode, I am sharing two stories from my time as an investment banker. The first is about a large construction company, where the owners got greedy and second-guessed their advisor. The second is a company where the seller had complete confidence in us.  As you may have guessed it, these two deals turned out very differently.

Listen to my stories making the case that if you cannot trust your investment banker, you should not hire him or her. Do your due diligence up front and make a decision only when you have found the right candidate. It is a critical decision, as all things being equal, the quality of the negotiations on your behalf is directly correlated to the level of trust you are willing to invest into your advisor relationship.

Your succession (and trust) is your success!
Visit Us: https://entrepcoaches.com/what-is-eos/

076 - Pick One You Trust And Trust Them

One of my clients, who runs a major advertising agency in Richmond, introduced himself to our Vistage CEO peer group as the “Chief Enabling Officer”. In today’s episode, I share with you a story about one of my early bosses, Hassan, who was a Chief Enabling Officer of the Structured Finance department of the bank where I worked 20 years ago. Hassan never seemed to be doing much work himself, other than coaching the twelve of us in the department... lobbying senior management for resources... negotiating with other departments we had to deal with... and generally removing any obstacles from our way... so that we could power ahead without the frustrations and frictions I experienced in my previous jobs

Your Succession is Success!
Visit Us: https://entrepcoaches.com/steve-preda/

077 - Chief Enabling Officer

One of my favorite books is “On War” from an early 19th century Prussian general, Claus von Clausewitz.  This is possibly the most famous book on military strategy after “Art of War”, that most of you have heard of.  In his book Clausewitz talks about grouping officers into four clusters in terms of their intelligence and diligence. There are the dumb and lazy officers, who should be left alone. The smart and diligent officers must be taken great care of, as they will get everything done and make you look good.  The dumb and diligent ones are dangerous and should be fired or pushed aside, as they screw everything up. However, the smart and lazy officers are destined for the highest positions in the army…

The smart and lazy ones - this is what today’s podcast show is about.

Tune in to hear my story about a smart and lazy colleague of mine and how he made a stellar career at KPMG London, where I started my career. Find out how to become a smart and lazy entrepreneur yourself and what it means to your succession.

Your succession is success!
Visit Us: https://entrepcoaches.com/

078 - Smart And Lazy People

There are three main triggers for the succession of the business owner: (1) necessity, (2) an irresistible offer, and my favorite: (3) a more compelling future. In today’s episode, I tell the story of a former client of mine, Csaba Kovacs, a Hall of Fame hockey player (not in the NHL, but still a Big Deal) who initiated his exit to realize a much bigger dream, that was to benefit not just him, his family and his associates, but his country. He sold his business to devote his time and energy to becoming the deputy chairman of the Hungarian Hockey Association and help elevate Hungarian Ice Hockey from Division C to the Elite Division of the International Ice Hockey Federation.

Check https://soundcloud.com/successionsecrets to listen to the show or read the transcripts and learn how having a compelling future can help you build a more valuable business, exit it at peek valuation and use it as a springboard to an audacious dream.

Your succession is success!
Visit Us: https://entrepcoaches.com/getting-started/

079 - A More Compelling Future

When you are a buyer of a business or an investment banker, it is critical to figure out the motivation of the seller. In today's episode, I tell the story of the reluctant seller, whose spouse was driving the transaction that he wasn't committed to make happen.

Eventually, the deal worked out great for the seller and there are two lessons in this tale worth hearing and processing.

Listen to the show or read the podcast at http://successionsecrets.com.

Your succession is success!
Visit Us: https://entrepcoaches.com/what-is-eos/

080 - The Spouse Behind The Sale

Tune in to the story of how we sold a communications business in late 2008, when the bottom fell out of the mergers and acquisitions market. Hint: it was not about strong-arm tactics and yes, speed was a HUGE factor.
Visit Us: https://entrepcoaches.com/steve-preda/

Succession Secrets

081 - Selling in a falling market

I received a question from Christos Nikolau the other day about the difference between Leadership and Coaching. Thanks for the questions Christos! 

Leadership is the action of influencing people to achieve goals. Coaching is one of the ways to exert this leadership.

In today’s episode, I am discussing the three ways to exert leadership. The first one is Modeling, where you are leading people by setting a personal example of the attitudes and performance that you expect them to emulate. This works well in the workplace or in your family, where people see you operating. It also works when you are visible through the media, and we emulate celebrities, artists, and politicians, for better or worse. This is why we need leaders that we can look up to and that are worth emulating. George Washington, Gandhi and Angela Merkel are good examples. 

Coaching is a tool to help individuals or groups to figure things out themselves the right way forward. It is the Socratic method of leadership that allows you to influence other’s thinking indirectly, without having to tell them what to do. It works in one-to—one and small group situations - like Vistage executive peer-groups - where direct interaction in possible.

The third tool of leadership is inspiration, when you create the desire in your listeners to want to follow your lead. Inspirational leadership is exerted through public speaking, writing, acting or through other media, like audio or video. inspirational leadership has the biggest potential impact, as you can reach millions of people with your message. The more the hesitance between you and your audience the more inspiring the message must be. Think of “Don’t ask what your country can do for you…”, or “I have a dream….”, or “Imagine….”.

How do YOU exert leadership? Please tweet to #asksuccessionsteve or email me at steve@entrepcoaches.com.
Visit Us: https://entrepcoaches.com

082 - Three ways to exert leadership

We had some fierce conversations about my daughter’s pondering whether to drop a class with which she may have overreached. My wife gave her a hard time about it, which I felt was perhaps unreasonable. However, it reminded me of Sam Walton, Walmart’s founder, who stated that “High Expectations are the Key to Everything”.

Remember Steve Jobs? he wasn’t exactly a nice guy, as he had unreasonable expectations all the time. It was super-hard to work for him, but he changed the world and built the greatest company on Earth. There are other examples, like Napoleon or Cezar, whose ambitions killed millions, but who says they were not great leaders?

Tune in to today’s show to hear my musings about what great expectations led to in my own company and how to set (or why avoid setting) great expectations to yourself, your family and the people around you.

How do YOU set expectations? Please tweet #asksuccessionsteve, email me at steve@entrepcoaches.com or visit https://entrepcoaches.com

ProfServ Traction

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