Dear Chuck Bower
When will the heat and humidity end? Not soon enough! Our summer newsletter discusses goals vs. intentions from a leadership perspective. The 2nd article suggests the time may be ripe to sell your business.
We hope you find these articles useful. Past newsletters are found at www.hawthorneservices.com/resources/.
Sincerely,
Chuck Bower, 574-361-6166
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Goals vs. Intentions, and Removing Barriers to Success 
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I read an interesting article by Tony Gambill on Forbes focused on the power of aligning intentions with goals. We've been frequently consumed with supply chain and labor shortages. There are actions to address these problems, albeit limited. The epiphany of this article is how we deal with the reality of our problems NOW.
We must ensure our intentions are aligned with our larger goals, AND avoid a reaction to barriers. Rather, the focus must be on the areas we can control. If the supply chain is limiting your available inventory, then sell what's on the shelf. Manufacture what you can. Stay focused on what you CAN do, and not what you cannot do.
Most of our supply chain issues can be traced back to labor shortages. William Dunkelberg writes that almost 14 million workers are receiving some form of unemployment benefits, as opposed to the pre-pandemic 2 million or so. The enhanced benefits will end in September, having been signed into law with the CARES Act in March 2020. The labor shortage will end soon, and our supply chains will return to full capacity. As Kimball writes, it comes down to:
- Shifting the focus off barriers and towards what you hope to achieve
- Choosing actions that represent your values
- Living in harmony with your larger purpose
- Not reacting to temporary negative emotions
In the meantime, we must ensure our actions and intentions are focused on our longer term goals, and on controlling those areas we can, knowing many of our toughest barriers will "fall" away, by fall.
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After a challenging 2020, is it time to sell your business? Perhaps so, but for different reasons that you might think.
A number of factors are influencing business owners to consider 2021 as a time to sell. The possibility of rising taxes on capital gains weighs heavily. Post-pandemic demand has returned for most industries, and never left in some. The strong economy, fueled by inflation, suggests that business pricing will rise significantly.
The availabilty of investment cash has also grown. Individual investors and private equity have used continuing excellent returns and are now in an excellent position. To prepare for a future sale, the business owner has a number of considerations to plan:
- Strengthen your executive team to minimize a buyer's concern that the business is built solely on you
- Prepare family business policies and/or succession plans
- Analyze your potential strengths and weaknesses (reliance on one key supplier, customer, product or service, etc.?)
- Have a qualified expert conduct a business valuation
- Determine your desired participation after the sale
- Consult with your tax advisor for the right timing and acquisition types
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