Business Owner Lifecycle Solutions

Every business goes through cycles. It begins as an embryonic organization usually started by an entrepreneur,  progresses to the growth stage which usually requires a professional manager, and then over time may go through a mature stage headed by a caretaker, and finally to an aging state which will likely require a turn-around specialist.

The ideal position in this cycle is at the top of the curve.  The investment to start the company and to promote its growth resulting in an attractive cash flow has been made.  As the company ages, additional investment will normally be required in order to maintain a competitive position.  Without such investment, the business gravitates to an aging mode which, to remain solvent, will need to be reborn or it will die.

The key to continued success is to recognize when additional investment must be made and in what areas to invest.  The answer to  “When?” will normally be before the top of the curve is reached.  The answer to “How?” will differ for each organization.  For some, new or enhanced products will be required.  For others, it may require new or expanded markets.  For others, growth can be achieved through joint ventures, strategic alliances, or acquisitions.

The determination of when and how can best be accomplished through the process of Strategic Planning facilitated by a professional.  Decisions necessary to ensure the perpetuation of the organization will be made through this process.  This process should be followed by the process of Manager Resource Planning which includes Succession Planning.  Such planning ensures that the necessary human resources to make the plan a reality are in place.  Again, the process should be facilitated by a professional.

Extensive financial planning must take place.  In some cases, this will involve exit planning and estate planning.  In other cases, it may require wealth planning, how to best capitalize on the significant investment that has been made by the owner.  Such planning should be done by professionals who have the necessary background and expertise to offer alternatives and to tailor a plan to meet individual needs.  Irons Group Ltd. has allied itself with such financial resources..

The business cycles are real.  It is critical to recognize the cycles and take appropriate action.  This can be done through Strategic Planning, Manager Resource Planning, Continuity Planning, Financial Planning, and Exit Planning.

Consider a no-obligation face-to-face visit with Keith and make a decision with which you will be comfortable.  View our website at IronsGroupLtd.com, email IronsGL@aol.com, or phone 815-543-0693

Strategic Planning – Follow-up

There is actually a third answer to “How long does Strategic Planning take?”

As help is needed in the implementation of the Strategic Plan by any of the functional areas, Irons Group Ltd. can supply the necessary resources, either internally or externally.  The Principal, Keith Irons, has helped many organizations develop their Marketing Plan, which  should precede the other functional plans.  He is considered an expert in Human Resource Planning including Management Development.  He has experience in all facets of the Plan.  The amount of time required to help the respective functional areas will vary from only hours to days or weeks.  Each organization will determine the time needed.

Irons Group Ltd. has developed a Strategic Planning Manual that outlines the process and provides guidelines for  developing  the respective sections.  Each section provides questions which, if answered and followed, will aid greatly in the writing of any functional plan.  The book is provided to those organizations that engage Irons Group.

Consider a no-obligation face-to-face visit with Keith and make a decision with which you will be comfortable.  View our website at IronsGroupLtd.com, email IronsGL@aol.com, or phone 815-543-0693

Strategic Planning – How Long?

“Strategic Planning – How Long?” is a question with a two-part answer.

The first part of Strategic Planning, the actual sessions using a skilled facilitator, normally take four days of intense work by the chief executive officer and all direct reports. It is recognized that taking four days in sequence may be difficult due to the press of operating issues. The sessions can be broken up into two, two-day sessions. The gap between these sessions should be no more than one week in order to retain continuity. The sessions can be conducted over a weekend if necessary. A very common approach is to have a dinner meeting on Thursday evening to explain the process, followed by sessions on Friday and Saturday, with a similar sequence the following week.

The second part of Strategic Planning, the implementation and the achievement of significantly improved operating results, will take between six and eighteen months. It takes this long for functional plans to be fully implemented. To ensure success, however, the Strategic Planning Process must be followed to the letter. It cannot be aborted or postponed. Such a discipline is required. The vehicle for ensuring such follow-up is the use of specific or tactical objectives, which clearly spell out action steps, accountabilities, and dates for completion.

Consider a no-obligation face-to-face visit with Keith and make a decision with which you will be comfortable. View our website at IronsGroupLtd.com, email IronsGL@aol.com, or phone 815-543-0693

Merger & Acquisiton (M & A) How Long?

In addition to the when, the how, and the how much, the question of how long should be answered. It will normally take more than six months and up to eighteen months to two years to complete the sale of a company. This includes the research time necessary to market the company, find the right buyer, perform the buyer due diligence, and negotiate the final transaction.

It might be well for those considering a divestiture to keep in mind the proposed changes by our government that will likely impact negatively on your business in 2013 and beyond. Certainly, the full impact of the proposed health care act should be felt in 2013. Other proposals include:

• Replace the so-called “Bush tax cuts”
• Reinstatement of the 36% and 39.6% tax rates
• Reinstatement of long term capital gain rate of 20%
• Reinstatement of the phase-out’s of personal exemptions and itemized deductions

Many other proposals are being considered. Some are an attempt to be positive, but many are not; however, it might be wise at this point to get professional guidance from your accountant and your attorney for company planning as well as personal estate planning.

The world is changing rapidly and those who can respond to change and take the necessary action should not only survive, but will prosper.

Irons Group Ltd. would like to be of service in the area of Strategic Planning, Succession Planning, Merger & Acquisition (M & A) from either the sell side or the buy side, and as an Executive Coach.

Consider a no-obligation face-to-face visit with Keith and make a decision with which you will be comfortable. View our website at IronsGroupLtd.com, email IronsGL@aol.com, or phone 815-543-0693.

About Irons Group Ltd.

Irons Group Ltd. was founded by Keith Irons who has decades of experience in both domestic and international markets.  He is a former Chief Executive Officer of manufacturing and distribution businesses and a former business owner who understands how to provide value to clients.  He is the creator of the Interactive Loop which, if followed, literally guarantees success of any organization.

An organization must have a viable Strategic Plan to be successful.  The Plan is developed and implemented by the CEO, or Executive Director in the case of a not-for-profit organization, and the staff reporting to that position.  Others who represent specific knowledge or skills may also be called in to participate in the sessions.  All of these participants are products of the Manager Resource Planning process and they will be part of the Succession Plan for the organization.

The vehicle that brings the Strategic Plan together with Manager Resource Planning is Creative Communicating.  This process clearly indicates the respective responsibilities and duties and levels of authority for all positions.  Another vehicle for implementation is the Creative Group Concensus which addresses all problems, concerns, and opportunities faced by the organization and arrives at the best solution using the Creative Clarification Method.

Other functions that spin off as a result of the Strategic Planning Process could be Mergers & Acquisitions (M & A) – one of the ways to grow an organization, Marketing Planning, Process Management, and Project Planning.

Functions that could spin off from Manager Resource Planning are Succession Planning, Management Development, and Coaching.

The Irons Group is the only entity in the world that offers all of the functions of the Interactive Loop.  The Group has helped hundreds of organizations to succeed and welcome the opportunity to serve you.

Consider a no-obligation face-to-face visit with Keith and make a decision with which you will be comfortable.  View our website at IronsGroupLtd.com, email IronsGL@aol.com, or phone 815-543-0693.

Who Needs Executive Coaching?

The young and the inexperienced are not the only people who need executive coaching.  Anyone in a position of authority who needs someone to talk with, to discuss ideas with, or who needs counseling on a matter that may be foreign to them can benefit from executive coaching.  No one person knows all the facets of a business and there will be times when the necessary expertise cannot be found within the organization structure.  An executive coach with significant expertise in a number of areas can bring objectivity, discipline, and certain skill sets to bear on issues confronting executives in today’s fast moving environment.

An executive coach must have an exceptionally high degree of personal and business integrity.  They must reflect professionalism in all dealings and demonstrate emotional stability and intellectual maturity.  The ability to develop trust is a requisite for any relationship and that is gained through mutual respect and confidence.

Those working with an executive coach will normally meet face to face initially to establish rapport.  If geography does not make such a meeting practical, an initial phone conversation would be conducted.  Successful subsequent discussions can be held via phone. Such discussion may range in length from a few minutes to an hour or more.

An executive coach with a background as a business owner and as Chief Executive Officer of several organizations with both domestic and international experience and a track record of success is well qualified to work with other executives and provide a value added service as an executive coach. Irons Group Ltd. provides such a serice and you would work directly with the Principal, Keith Irons.

The next question could well be “How much?”  When value added is achieved, cost becomes a non-factor.  However, even value added may require an investment.  Irons Group can be very flexible when it comes to pricing.  Value added services can be based upon an hourly, daily, or retainer rate depending on the magnitude of the assignment and what you, as a client, would prefer.  After the initial discussion, the investment necessary can usually be determined and we look forward to your call or email.

Consider a no-obligation face-to-face visit with Keith and make a decision with which you will be comfortable.  View our website at IronsGroupLtd.com, email IronsGL@aol.com, or phone 815-543-0693

Merger & Acquisition (M & A) How Much?

Methods for growing a business are identified through the Strategic Planning Process.

From a revenue growth standpoint, the ways to grow a business are:

New or Expanded Markets, New or Enhanced Products, Merger & Acquisition (M & A), Strategic Alliances, Joint Ventures, Licensing, International

Growth in income/profitability may also come from:

Cost Containment, Cutbacks, Productivity, Prices

The process of Merger & Acquisitions (M & A) can be one of the fastest and perhaps the most visible means to grow a business.  Great care must be taken to ensure that the respective cultures are compatible and that the merger is well received by the marketplace.  The use of a professional Merger & Acquisition (M & A) firm, such as Irons Group Ltd., is a requisite for a successful transaction.

In providing value added services, cost is usually a non-factor.  However, to provide such services, an investment is usually necessary.   Normally, a Merger & Acquisition (M & A) transaction is structured with an up front investment called a consulting fee which allows Irons Group to conduct:  an operations analysis,  a confidential search for best prospects, and confidential negotiations.  Approved out-of-pocket expenses are billed and paid each month.  The consulting fee is deducted from the success fee.

The success fee is based upon the usual Lehman Formula:

5% consideration up to $1 million plus

4% consideration between $1 million and $2 million plus

3% consideration between $2 million and $3 million plus

2% consideration between $3 million and $4 million plus

1% consideration in excess of $4 million

Consider a no-obligation face-to-face visit with Keith and make a decision with which you will be comfortable.  View our website at IronsGroupLtd.com, email IronsGL@aol.com, or phone 815-543-0693