Identifying the Attributes that are Right for Your Business

Many business leaders have found intriguing the basic idea that success is strongly influenced by personal qualities such as perseverance, self-control and working well with others. They point to sales people who have an uncanny ability to sense what is most important to the client, customer service employees who excel in helping angry patrons calm down and be more reasonable. Conversely, they point to brilliant executives who do everything well except get along with people, and to managers who are technically brilliant but cannot handle stress.

Studies have confirmed that soft skills are critical for a vital economy. For instance, the influential report on Achieving Necessary Skills by the United States Secretary of Labor’s Commission argued that a high-performance workplace requires workers who have a solid foundation in literacy and computation. They also need personal qualities such as responsibility, self-esteem, sociability, self-management, integrity and honesty. Emotional intelligence is the basis for these competencies.

But what exactly is “emotional intelligence?” What is the link between that and organizational effectiveness? Is it possible for adults to become more socially and emotionally competent? And finally, what is the best way to help individuals achieve this?

Defining the Term and Its Importance
Emotional intelligence is the ability to accurately identify and understand one’s own emotional reactions and those of others. It includes the ability to regulate one’s emotions and to use them to make good decisions and act effectively. EI provides the bedrock for many competencies that are critical for effective performance in the workplace such as one’s effectiveness in influencing others through the ability to connect on an emotional level. To effectively influence others, we also need to be able to manage our own emotions and have empathy for others.

Best Course to Improvement
To be effective, you need to begin with the realization that emotional learning differs from the cognitive and technical kind in some important ways. Emotional capacities like self-confidence and empathy differ from cognitive abilities because they draw on different brain areas. Purely cognitive abilities are based in the neo-cortex. But with social and emotional competencies, additional brain areas are involved, mainly the circuitry that runs from the emotional centers to the prefrontal lobes. Effective learning for emotional competence has to retune these circuits.
Unfortunately, these particular neural circuits are especially difficult to modify. Emotional incompetence often results from habits learned early in life. These automatic habits are set in place as a normal part of living as experience shapes the brain. As people acquire their habitual repertoire of though, feeling and action, the neural connections that support these are strengthened, becoming dominant pathways for nerve impulses. When these habits have been so heavily learned, the underlying neural circuitry becomes the brain’s default option at any moment – what a person does automatically and spontaneously often with little awareness.

Because the neural circuits that need to be modified extend deep into the nonverbal parts of the brain, the learning ultimately must be experimental. Learning to control one’s temper, for instance, is like learning to ride a bicycle. It is only by getting on a bike and riding it, falling over and trying again repeatedly that one ultimately maters the skill – practice, in short.

Elements to Developing
Because emotional learning differs from cognitive learning in a number of ways, training and development efforts need to incorporate a number of elements such as:

Practice
There needs to be much more opportunity for practice than what one normally sees in the typical work-based program. Not only does there need to be many opportunities in the training but you need to be able to practice with new ways of thinking and acting in other settings such as on the job, at home and with friends over a course of several months.

Ongoing Encouragement
Even with practice during the training phase, old neural pathways can reestablish themselves quickly unless learners are repeatedly encouraged and reinforced to use the new skills on the job. You need to provide periodic reinforcers and reminders to help participants maintain the fragile new patterns of behavior that they have so recently learned.

Management Backing
A learner’s supervisors play an essential role in providing the support necessary for a successful change. Reinforcement by one’s supervisor can be especially powerful in helping new emotional competencies to take root.

Special Training Required
Because the competencies involved in social and emotional learning are so central to our personal identities, special care and sensitivity is required in the way that training is presented. The personal nature of what is involved in this kind of learning also makes it critical that there be a trusting and supportive relationship between the learners and trainers.

Before you go ahead and invest in a franchise, you want to sit down and be honest with yourself. You need to think about how much money you have to invest. Just as importantly, you should assess your personal skills and abilities. Finally, you need to determine what your goals and expectations are in owning your own franchise. Our top VR Franchise Specialist has formulated the following questions to help you find those answers.

In particular, you want answers for the following:

Finances

• How much money do you have to invest?
• How much money can you afford to lose?
• Are you purchasing the franchise alone or with partners?
• Do you need financing? Where will you obtain it?
• What’s your credit rating?
• Do you have any savings or additional income to live on while you start your business?

Abilities and Skills

• Does the franchise require technical experience or special training – ie. Auto repair, home and office decorating, tax preparation?
• What are your special and specific skills that you possess?
• What experience do you have as a business owner or manager?

Franchise Goals

• What is your personal minimum income requirement?
• What types of businesses are you interested in pursuing?
• How many hours do you want to work?
• Do you intend to operate the business yourself or hire a manager?
• Will franchise ownership be your primary source of income or a supplement to your current income?
• How many years can you commit to a business?
• Would you like to own several outlets?

VR Business Brokers of McKinney represents a wide range of franchise opportunities from a variety of industries.  To see a list of all the franchise opportunities we represent, visit our Franchise Showcase  (https://www.vrbusinessbrokers.com/franchiseShowcase/?OfficeID=4206).

If you would like to receive an invitation to our next “Buying  a Franchise Seminar” simply email info@vrmckinney.com with “Seminar” in the subject line and we’ll make sure to invite you.

Comprehending Every Element will Lead to Successful Ownership
When you’re looking to buy a business, you should be aware of the procedures involved and the mistakes to avoid. To give you the best possible income, VR will provide you with the experience gathered from decades of facilitating successful transactions. We match qualified buyers with available businesses that are available for sale. We will support you throughout the process, starting with creating a buyer profile to determine your interests, goals and background. Each VR business intermediary provides service past the day the business sale is complete.

Deciding what Type of Business to Purchase
Based on your interests, experience and goals, you have to determine the type of business you want to purchase. VR will help you manage your expectations, and make the best possible decision in what direction to take. The majority of businesses are grouped into large industry categories such as retail, manufacturing, distribution, services and construction. Underneath these categories, there are scores of subcategories that more accurately describe what the business is and its market.

Committing Yourself Lock, Stock and Barrel
Because buying a business is a very time-consuming process, you have to be completely engaged. VR Business Sales will be able to help select the right business per your interests, goals and finances available. Since you will be investing yourself in the business as the new owner, you have to understand and be involved in the whole process from start to finish.

Understanding the Books
Part of the buying process, besides reviewing the presentation and visiting the business is examining its books. This includes everything from the balance sheet to inventory to payroll to contracts with vendors. You have to understand all the mechanics involved in the business, so you will be able to operate once you purchase the business. Also, you will want to examine the issues through a SWOT analysis – reviews the strengths, weaknesses, opportunities and threats of that business.

This is an imperative part of the process where the majority of your due diligence will take place. You don’t want to avoid performing a full evaluation on the business and find out later there’s not enough revenue coming in to justify your total investment. VR will assist you in deciding whether the business has the potential for growth and development.

Anticipate Concerns
When ownership of a business exchanges hands, it’s normal for there to be trepidation from vendors, customers and employees. In general, a business acquisition is a disruptive process because it’s a change in the status quo not only in ownership but in how the operations will be handled going forward. You have to understand the dynamics of ownership, dealing with people and knowing how to address the concerns of all involved in the business, so you won’t lose faithful customers and long-established relationships with employees and vendors.

Preparing the Transition
When both you and the seller are working toward a definitive agreement, what must be put in place is the transition in handing the ownership reins over to you. Employees and vendors have to be aware and ready for the change that will be taking place. That’s why you should have a plan in place, where you will be introduced as the new owner to the employees as you understand the current procedures in place.
You want to ensure that both the employees and the vendors who have long-standing relationships with the business will embrace and accept the change.
Speak to a VR business intermediary today about what to look for when considering business opportunities.

Knowing When to a Buy a Business

Has the time come where instead of you working for a business, you want to own one? To decide if buying a business is the right decision for you, speak to a VR business intermediary that can help you answer all the pertinent questions.

With any business opportunity, there is a degree of risk and challenge involved. Ask yourself if your personality is conducive to one that thrives in an environment where you have to wear many hats. Throughout the buying process, you have to understand what is at stake for you, both financially and personally. If you’re ready, the rewards will surpass whatever gamble is involved.

What’s Your Motivation for Buying a Business?

If you’re seeking job security or are dissatisfied with your present job, then determine if the business opportunity you’re considering satisfies what you are looking for professionally and personally.

Do You Have Support from Your Family and Friends?

It’s important for you to find out if your family and friends will support you on this new and exciting endeavor or if you’ll be left out in the cold.

They may not understand your prime motivation and personal goals that may be prompting you to buy a business, especially when you’re leaving the security of your current employment. This is one of the biggest decisions you will make in your life, and they have to understand what your feelings and motivations are in doing this. Without your spouse supporting you, the transition can be very difficult. If you take the time to explain the why’s in this decision, they may warm up to it.

Financial Backing and Advice

Knowing your financial options is imperative when you’re going to be investing in a business. You have to know where you’re going to be drawing your capital from.
Do you have financial advisors that you trust and have a working relationship with? Consider carefully what their opinions might be. You don’t need to look at the books of even a single business to know what your attorney’s opinion will be. You can find out right now by asking, “I’m thinking of buying a business — what do you think?”

What Can You Invest?

You may have $50,000 or $100,000 in liquid cash; however, that doesn’t mean you will feel comfortable spending it. Analyze your risk threshold and consider how much of that cash you are willing to invest. If you run short of cash, would you be willing to put up your home as additional collateral? It’s critical that you understand exactly where you stand on the risk factor curve.

How Long Do You Want the Business?

At this point, you should spend time considering exactly what you want to do with the rest of your life. Do you want to run this particular business forever? Just because you’ve purchased your own business does not mean you’re locked into it for the rest of your life.

Many buyers will purchase a business they can afford in a different industry than they’d planned on, run it for two or three years before selling it after they’ve built-up some equity. This is one way, for you to then buy a business in the industry that you want.

• Take time to analyze the business/industry trends.
• Pay close attention to whether gross sales are up or down and whether cash flow has been increasing or decreasing.
• Carefully review the expenses required to operate the business, such as: leases, rents, utilities, labor, inventory, plus other necessary costs.
• Don’t be discouraged if a business is doing poorly. There might be other factors other than the industry or market affecting it, such as poor management.

Discover the Reasons the Business You Want is Selling

Knowing why an owner is selling the business that you want to buy is important.

Is it due to:

• Burn-out;
• Poor health;
• Retirement;
• Relocation Plans;
• Need to upgrade;
• Not generating enough revenue;
• Poor management;
• Lack of capital;
• A partnership dispute; or
• Has the business outgrown the owner’s abilities?

What Does Your Gut Tell You?

If you like the industry, the customers, the feel of the business and are comfortable with the idea of being there every day, you are on the right track.

Compare Yourself to the Present Owner of the Business

Is the current owner an easygoing type, a high-octane dynamo or someone just like you? Also, consider whether or not the business is run in a way that you would like to do business and how changing those operations you don’t like would affect the business.

Ask yourself if you would be as good a business operator — or better — than the current owner. Few people buy a business expecting to do things exactly the way the present owner is doing them. Most people envision additional opportunities for a business, perhaps planning to increase advertising or expand the product line.

If you’re thinking about buying a business, carefully think through each of these issues. Answer them honestly and your future path will become clearer. But keep in mind that while it can take great effort, unlike a job, the potential is unlimited.