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16 Valuable Life Lessons You Can Learn From Entrepreneurs

Posted: 16 Jan 2020 08:57 AM PST

Whether you’re faced with an obstacle or an opportunity in life or business, such moments can offer important life lessons that can help you grow.

Certain business or life lessons tend to stick with you through the years, shaping your personal and professional mindset. That’s why we asked a group of Young Entrepreneur Council members to weigh in on the following question:

Q. What business or life lesson has stuck with you through the years? What can other business leaders learn from it?

1. Surround yourself with good people

A lot of being successful in business and in life is about who you surround yourself with. Do everything you can to have a tribe around you that is supportive and will be there for you in times of need. If you find people who will work for you and are the perfect fit, do everything you can to keep them around. The same goes for your friends in life. —Zach Binder, Bell + Ivy

 

2. Remember when you wanted what you currently have

Having an ongoing gratitude practice is important in staying calm and grounded through the ups and downs of business ownership. Gratitude helps you celebrate the journey, rather than mindlessly jumping into the next goal, and can help keep you in a great headspace to make decisions. —Rachel Beider, PRESS Modern Massage

 

3. It’s about the ride

Everything we do, we do because there is something we want. But with business and life, if you only cherish the moments where you are getting that thing you want, you may very well be miserable the rest of the time. Find a way to enjoy the ride. It will make the journey much more enjoyable. —Rana Gujral, Behavioral Signals

 

4. Fear is the most important emotion

Whenever you start something new, great or risky, the fear and doubt will start to set in. If you can focus on acknowledging those fears, addressing them and moving forward regardless of how scary it is, you will surpass those who get hung up on fear. Most of the things that don't get done in entrepreneurship are because someone was too afraid to execute. Fear is a mindset one chooses to have. —Jeff Keenan, LeadsRx

5. Collect nos

No one loves failure and rejection, but it’s a part of life and growing as a person and business. Knowing this, I have flipped the script and now try to collect “nos.” I know that the more “nos” I hear, the more likely it is I will soon get a “yes.” It also removes the fear of taking a chance on things. If I know that putting myself out there might get me more “nos,” then I am in! —Colbey Pfund, LFNT Distribution

6. Be good to your talent

Show real appreciation for those who work for you. Having loyal employees is so valuable and it’s something people don’t focus on. It’s a big mistake to take talent for granted or let them know they can be replaced. We can’t treat people like products as part of a throwaway society. That talent will leave and you’ll then realize how important they were to your success. —Peter Daisyme, Hostt

 

7. Keep your ethics and values no matter what

I’ve learned the importance of sticking to my guns about ethics and values no matter what opportunity presents itself. Nothing is worth compromising your own values to achieve, even if it means more money or success. Always being true to what you believe in should come before business. —Serenity Gibbons, NAACP

 

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8. There are no problems, only challenges

The language you use to tackle tasks can determine how well you actually accomplish the task. Often the very words we use can define who we are. That’s not just in the behavior we are using, but also in the way we think and the way that we approach things. A challenge is something that can be faced in a positive manner; a problem is something that can drag you backwards. —Nicole Munoz, Nicole Munoz Consulting, Inc.

9. Always have a backup plan

Have a backup plan for everything. This allows you to be flexible and change needs. Try to anticipate what happens if a key employee or client leaves, or a new competitor comes into the market. Plan what you would do in as many scenarios as possible and have a backup plan in case your first option fails. —Peter Boyd, PaperStreet Web Design

 

10. Stay hungry

As an entrepreneur it can be easy to get comfortable when things are going well. Your traffic is growing month-over-month, the team is taking over more responsibilities, and processes are better than ever. That doesn’t mean you can kick back and relax. Things will change at some point, and if you keep putting in the work when things are trending upwards, you’ll be better prepared for it. —Karl Kangur, Above House

11. Get out of your comfort zone

Nothing great ever got achieved by people staying where they’re comfortable and doing the same things over and over. If you want to succeed, you need to put yourself out there and push yourself to do things you’re uncomfortable doing. I used to struggle with social anxiety, and the thought of networking and meeting other professionals scared me, but the more I did it, the better I got at it. —Jared Atchison, WPForms

12. Be patient

Some entrepreneurs expect overnight success, but you never know what’s to come or what hurdles you’ll have to overcome along the way. We have this mindset that if we don’t reach success quickly, we’re failures, and it’s detrimental to our progress. Remember to be patient and that it’s a process. Learn to enjoy the hardships, because you won’t be stuck forever. —Stephanie Wells, Formidable Forms

13. Communication can fix almost everything

I have found that proactive communication can resolve most issues before they even develop. Explaining the situation clearly and outlining potential outcomes before things get out of control can minimize most problems while still maintaining relationships in the business. —Matthew Podolsky, Florida Law Advisers, P.A.

 

14. Be grateful

I’ve learned many valuable lessons in the more than 13 years I’ve been in business, but being grateful for all the amazing people around me has been truly game-changing. Gratitude is the best motivation. The most exceptional things in the world were built by a team of people, and I wouldn't be at where I am today if I was alone in this journey. —Solomon Thimothy, OneIMS

 

15. Every interaction matters

Whether you’re trying to partner with another business or win a customer, every interaction adds up. It’s said that you only get one chance at a first impression. What I’ve found is people tend to remember the average of your interactions with them. So even if you fumble in one interaction, don’t give up. You’ll have many more opportunities to make up for it. —Syed Balkhi, WPBeginner

16. Failing is part of succeeding

Most business leaders are afraid of failing. Failure is portrayed as shameful in our society, and because of fear of failing, we may miss out on opportunities and success. Failure is actually the best teacher—getting things wrong and trying again is when the path to success starts to show itself. —Alfredo Atanacio, Uassist.ME

RELATED: 5 Lessons I Learned About Business by Playing in a Band

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How to Successfully Sell Your Company in 10 Steps

Posted: 16 Jan 2020 08:16 AM PST

By Kison Patel

Over the past decade, I've had the opportunity to work with countless executives and CEOs undergoing the extremely complex, all-consuming, and intricate process of selling their company.

As the CEO and Founder of a software platform that helps manage mergers and acquisitions (M&A) and as a former M&A advisor, I've witnessed a variety of successful exit strategies, along with a handful of unfavorable outcomes.

Ideally, M&A transactions benefit all stakeholders, employees, and the overall strategic growth of the acquirer as well as the captured asset. However, planning and executing such an acquisition requires organization, proficiency, know-how, and an extreme amount of focus.

These ventures are as time-consuming as they are intricate. While executives concentrate on conducting a successful transaction, they must still perform their responsibilities of running an organization. This balance can be extremely difficult to master.

This is why I've compiled a list of 10 actionable steps built from my industry experience that can clarify and organize the process for executives in the midst of an acquisition.

1. Clearly define the goals of the sale

Assuming that your organization is in the appropriate stage for such a transaction, selling a company can be an incredibly advantageous exit strategy. The first step of any sale is to clearly define the goal. Why do you want to sell your company and how would you like your asset to evolve in the hands of its acquirer?

Identifying both the financial and strategic motivations will allow you and your team to remain focused on the bigger picture, unite efforts, and lead to better decision-making. This goal should become somewhat of a "North Star" for your transaction.

The goal of your exit will likely define the types of buyers you are interested in pursuing. If you're selling your organization mainly for financial reasons, a private equity firm may be your best option. However, if you're looking for a more strategic exit, as you'd like to see your product grow and develop, you may be looking at more transformational buyers like Google or Amazon.

Consider the strategy for why the company is being sold and what you hope for the future of the asset you created and fostered. Establishing this story will clarify your intent, strategies, and marketing.

2. Decide on an appropriate value

Naturally, the next step is to evaluate what your asset is worth and decide on an acceptable offer range. Organizations can conduct such an evaluation in a few different ways. However, I highly suggest obtaining an assessment from an investment bank, whether or not you plan to use them for the transaction itself. This will allow for a thorough, unbiased, and knowledgeable assessment of your company or asset.

Such an evaluation will provide leverage during negotiations and aid in decision making.

3. Value enhancement

It is highly beneficial for an organization preparing for a sale to go through a value enhancement process. This simply means addressing and strengthening any underperforming or vulnerable areas within your organization. You may be acutely aware of these problems or they may be introduced during a formal assessment. What actionable steps can you, as an executive, make to enhance the value of your company?

Much like staging and renovating a home before putting it on the market, the goal of this step is to ensure you are presenting buyers with the strongest possible margins, operations, and messaging.

4. Prepare due diligence material

Due diligence is perhaps the most tedious and time-consuming aspect of selling a company. Collecting the appropriate information and answering endless buyer requests requires the attention of executives across all functions of your organization.

Before engaging buyers, I highly suggest you prepare and gather any documents that may be requested during diligence. This includes any legal, financial, and operational documents as well as written contracts such as non-disclosure agreements.

Preparing this information will allow for a smoother, more efficient process so that your organization's executives stay focused on operational needs.

5. Identify potential acquirers

Identifying potential acquirers is a helpful next step in preparing for a sale. Luckily, there are endless resources available to conduct such research such as PitchBook, CB Insights, S&P Global Market Intelligence, and even LinkedIn.

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Determining potential buyers will enable you to better focus your marketing tactics and create a more tailored ​teaser or company one-pager​ for stronger engagement​. If you are working with an investment bank, they will pitch your company anonymously to selected targets and allow interested parties to sign non-disclosure agreements to view select, high-level information and your company and the deal.

6. Shortlist buyers and prepare

Buyers truly interested in pursuing the deal will often provide you with an ​Indicator of Interest (IOI), which will include the range of purchase price, deal timing, and strategic vision. This IOI will allow bidders to look at more in-depth information about your company and the potential sale. Naturally, this process will also weed out disinterest buyers.

From here, you should develop a shortlist of buyers. When looking at the provided IOIs, consider the overall goal of the deal. Which potential buyer's initial offer is most in line with your financial, strategic, and personal vision? Many times, sellers will meet with interested bidders in order to learn more about their organization, intent, and overall compatibility.

Ideally, in order to negotiate the true terms of the deal, you should narrow prospective buyers down to one or two companies.

7. Prepare and negotiate deal terms

Now, it's time to negotiate. A select few bidders will offer a Letter of Intent (LOI). Unlike an IOI, this document is more binding and includes specific deal terms, acting as a guiding contract for the transaction. This contract signifies a serious commitment from both the seller and buyer and will typically include purchase price, deal timing, escrow payments, and transition strategy.

Negotiating a strong LOI is extremely important to deal success. Referring again to the strategic intent of the sale, prepare multiple scenarios for the LOI negotiation and collaborate with the bidder on equitable terms.

8. Assist in conducting efficient due diligence

After deal terms are decided, more intense diligence will begin, and preparing that initial material will prove extremely helpful. However, buyers will likely request a significant amount of additional information. Developing an efficient process for how these requests will be assigned, answered, and organized is vital for a quick and efficient process.

9. Purchase agreement: Close and hand off

Once due diligence is complete and a decision is made, you will sign a definitive agreement with the selected buyer. This purchase agreement marks the end of negotiations and the close of the deal.

As an executive, it is now important to develop a plan on how to communicate this transaction throughout your organization. With transparency being the most critical aspect, it's your job to make sure employees know what to expect from the sale and the integration process. This understanding will allow for a more successful and efficient transition period.

10. After you sell your company, consider transition

Depending on what was decided on in the final agreement, as the CEO or executive, you may have an important role in the transition period. Whether you're staying on short-term to assist with integration, or you're occupying a new role within the organization, it is helpful to prepare yourself and your former employees for this cultural and operational shift.

Selling a company, although rewarding, is a complex and all-consuming process. Following these 10 steps can help provide needed guidance and hopefully lead to more successful outcomes.

RELATED: A Comprehensive Guide to Due Diligence Issues in Mergers and Acquisitions

About the Author

Post by: Kison Patel

Kison Patel is the Founder and CEO of DealRoom, a project management software for complex financial transactions. Kison has over a decade of experience as an M&A advisor and developed DealRoom after experiencing first-hand a number of deep-seated, industry-wide inefficiencies and challenges.

Company: DealRoom
Website: www.dealroom.net
Connect with me on Twitter and LinkedIn.

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