Fire Your Wife

Chapter One:

Fire Your Wife

Helping business owners is like screaming at a child who is staring at the light while playing on the train tracks.

I’m soliciting a successful small businessman to do some business improvement consulting.  This is how it started.

“I’m Rod Hawkins this is a business call.  Is this an ok time? I said.

“I have just a moment.  What can I do for you Rod?  he said.

“I do sell side M and A work and many other financial activities.  I own Omega Financial Inc in the old Royal Bank building in Woodstock.  

I want to share a couple of insights; owners are writing down their valuations and these downward adjustments are preventable.

For example; not learning how a buyer values your business.

Not leaving behind unrelated management.

Not using brand name business improvement and operational systems like Lean, Six Sigma and ISO.

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.And not growing by acquisistion.

I’m an old Royal banker and I started doing cash flow improvement work.  It evolved into Financial Services, M and A, planting me in the business improvement world.

When I sell your company my success fee is based on how much money I get for you.  Oddly we are working against each other

Phrases like.  “What got you here is not going to get you the rest of the way,” and “Begin with the end in mind, ring hollow to me.”

I put the meat on the system that will give you back wealth.   Equal to every penny you took out of your business in one check.

I don’t know anything about your business and could be wrong.  Can we meet so I can show you some examples of my work?” Holding my cell phone against my cheek I waited.

“My wife is one of the best self taught book keepers and I have worked with CA’s, CPA’s and people with decades of experience.” he said.

“I wrote an article called ‘Fire Your Wife’ because when you retire, she is going home with you leaving her office empty.  This will lower your valuation multiplier by one. 

In a case I worked on the wife saved $50,000.00 per year for twenty years but shaved a million off the sales valuation when she retired,” I said,

“My business is not for sale.  And you want me to fire my wife?” he said.

“When you die, your assets are deemed disposed.  All businesses need to prepare.”

Can we get together?” I said.

Stand by for Chapter two.