I tell you, this is confusing. Six months ago I came to the conclusion that I should sell. That was after much soul searching and heart ache on my part. Wanting to be supportive to my wife - her being desperate to move on and start a new eco tourist farm project. Three weeks ago I wobbled when my wife said that I should do what I wanted to - not because of my wife.. I felt like I ran into a road block. For four days I ached in my mind, but came to the conclusion that I was an entrepreneur by nature and therefore couldn't go back.
And then the last couple of days, after spending an afternoon with my sales director, and I did a review with my operations direction, I realised that I love these guys. I enjoy spending time with them. They are good guys, utterly trustworthy. They have given of their all for me so that I could have a sabbatical.
And I got to thinking. I hated my company in the end because I was involved in so much detail. I'd been desperate to get a management team in place in order to free me. I have achieved that. Do I want to throw that away, sell the company for less than I think it's worth (and it wouldn't allow my wife to do all that she wants, and I've have to go back to work to earn a good wage), and start again with a new venture with little or no money??
Or do I want to see if I can help grow the company onto the next level. I've got really good managers, a team I trust, a company that has real potential to grow doing what it does very well. I have great resource in other words, a great foundation to push on and grow the company, as well as the profits (actually we need to make a profit but that's a different point).
What is it I do well?
- I can sell. It's built into me because people trust me, why? Because I'm a nice guy who is trustable. It's my character.
- I envision, inspire confidence, people want to follow me - why? Because I'm charismatic, optimistic, and can't see no.
- I carry through - usually, when I start something, I follow through. I'm dependable, honest and trustworthy.
What's the challenge.
First - get the company into profit as soon as possible
Two - grow the profits to give us a cash deposit, safety net
Three - grow some more whilst living balanced lives
This challenge really excites me.
How do we/I do it?
First - get the two guys to buy as many shares from my wife as possible. This allows my wife to move on
Second - I act as entrepreneurial MD - not hands on. That's better managed by my two guys
Third - I sell, supporting the Sales Director, whilst adding value as MD as the figure head - inspiring confidence within the company.
Fourthly - and crucially - with balance. And I infuse that need for balance into the company as a whole.
What would my targets be?
1. Profitability - each month making money whilst everyone is paid as they ought to be - including me
2. Increase service customers - bigger accounts, which drive pull through services
3. Set a growth and profit target each year. Bonuses/dividends paid on achievement
How would the guys buy in?
1. Utilise what cash they have - I estimate a min of £250k (OD £50k, SD £200k)
2. Remortgage - this is their choice and option to benefit from future growth - another £200k (OD £100k, SD £100k)
3. Through payroll - fore go salary % and instead buy shares (OD)
4. Pay shares from future bonuses, profits
Will this be enough for my wife? We don't know. Maybe go for the DTI loan as well - and use that capital to pay some of the £270k she's owed from shares already sold. That would give her, say, £600k? If I was still earning a decent whack - min £10k/month net provided we are making profits then we would be able to borrow more too for her to do what she wants with (a) farm.
If necessary - would I be willing to sell this house we live in (after all the building works) and buy a semi say to release more money??
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