Dan’s Story Part 2

Dan and his wife built a successful boerewors business. They also dreamed of selling the business and retiring to embrace the Greek lifestyle. One day, an investor knocked on their door, and they thought their dream might come true. However, when Dan received the offer, he and his wife were very disappointed. After reading the due diligence report, Dan realized that he had not built the business to be sold at a fair price with fair terms and conditions.

He declined the offer and decided to start building a business that is a true asset.

Mindset is crucial when starting a new journey. “Nothing will cost you more in life than a predetermined belief that things will not work out,” said Donald Miller.

A business builder is willing to try more because they know that the more you try, the more success you will have. They do not give up. They have a growth mindset, believing that age is not a factor in learning—it’s the attitude towards learning that matters. They do not avoid conflict and challenges but embrace them. Business builders learn from criticism and find inspiration in the success of others. They take action and see effort as a path to mastery, not a waste of time. Business builders choose not to be confused. Confusion happens when you know what you need to do but avoid doing it because of fear or a desire to please others.

The next step was to do a thorough analysis of the business. We examined each business pillar: Leadership, Marketing and Sales, Services and Products, Capital, and Cash and Overhead. Note that finances are not a separate pillar because every action in the business affects the financial statements, making finance an integral part of each pillar. Analysing the financial statements is crucial.

Each pillar should be optimized to bring value to the owners. Dan and I analysed the strengths, weaknesses, opportunities, and threats for each. Then, we rated each pillar according to different maturity levels:

• Regressive: The company lacks a core culture and does not invest in improvements.
• Reactive: The blame game is prevalent, and only necessary replacements are made.
• Plan: The company has a compliance culture, believing prevention is better than cure.
• Proactive: An ownership culture exists, with a focus on improvement, not just fixing problems.
• Stable: Systems run the business, creating a consistent way of doing things.

Next, we assessed the risks that influence each pillar. This information painted a clear picture of where the business stands now.

Dan needed to build his business on a solid foundation. He clearly defined his aspiration and mapped out the steps to achieve it. Based on this aspiration, he described the key characteristics of the business, and the critical actions employees should take to realize this vision.

The next step for Dan was to address the gap between the current state of the business and his aspiration. He set goals for each pillar based on the 80/20 principle, keeping risk management in mind. Dan developed an activity map for each goal and its critical objectives. But remember, actions speak louder than plans on paper! So, Dan began implementing the changes.

It was a rollercoaster ride. But Dan kept his aspiration at the forefront of his mind when the journey got tough. He followed basic management principles: planning, organizing, leading, and controlling. He regularly reviewed the plan to make timely adjustments.

During this process, Dan learned a few important lessons:

1. It’s not just about taking action—it’s about taking the right actions to bring value to the owner.
2. He is responsible for providing direction by taking the right actions.
3. A business run by systems has stability and rhythm, resulting in lower costs and manageable impacts in unforeseen events.

Today, Dan and his wife still dream of living in Greece. They know that when the opportunity arises, they can demand a fair price for their business.