Category: Growth Strategies

The 5 Key Ingredients To Building A Thriving Business

March 11, 2021 Sean Mooney

During my 20 years in private equity in New York, I learned quite a few lessons about what makes a thriving business and its people tick — for better or for worse. Some are driven by dollars and cents; some are motivated by a people-first philosophy that puts human beings at the center of decision-making. Many fall somewhere in between.

When I decided to spin out of the private equity world and start a company, I quickly realized how important it was to articulate my own philosophy. Otherwise, how could I lead others in any direction with a clear purpose?

Fortunately, my entrepreneurial craze turned out to be the right move, and four years later — with patience, grit, and an amazing team — we’ve exponentially grown and now serve more than 500 of the world’s top private equity firms. I believe this is in part due to a handful of “ingredients” — all of which reinforce one another and somehow ensure that we are getting back what we put in. Follow this recipe and your business will likely be the better for it:

Ingredient No. 1: Do good with good.

This is probably about as simple as it gets. I call it the “Karma School of Business”: Do good things with and for good people, and the world tends to take care of itself. It’s not necessarily the fastest path to Rome, but in my experience, this approach yields the highest percentage chance of long-term success.

The Karma School of Business principle is at the center of my company’s work, where we connect business leaders with service providers to help create a successful environment for both parties. We actively test the service providers we invite into our network for this mindset, and I consider it one of the key reasons why we have grown so quickly.

Ingredient No. 2: Work and learn hard.

Secretary Colin Powell said it well: “There are no secrets to success. It is the result of preparation, hard work, and learning from failure.” I built my career in an industry filled with many of the smartest people in the world. I most definitely was not the smartest person in most of the rooms I shared with peers. The thing that differentiated me was that I worked exceptionally hard, asked lots of questions, and sought answers from those who had already figured out the thing I needed to know.

The lesson here: Don’t recreate the wheel. Instead, ask a lot of questions, take time to learn how things operate, and then work tenaciously to make it happen.

Ingredient No. 3: Use the word ‘no.’

In our business, it’s our job to connect private equity firms with specialized third parties (e.g., boutique advisors, independent consultants, interim executives, etc.). If a resource isn’t the perfect fit, we tell them. “No” is always the best answer.

This is often hard to do, particularly if you think someone is otherwise smart, effective, and likable. But this doesn’t always mean they are the right person for the job. The trick is learning to say “No” in a self-aware and gracious way. I take a lot of time to explain how life is too short to put yourself in a bad position. To throw another quote in the mix, according to Warren Buffet, “It takes 20 years to build a reputation and five minutes to ruin it.” Your customers will thank you for saying “No” when it’s not the right situation and will remember you when it is.

The caveat to this ingredient: Do not be anti-everything. “No” can be the easiest thing in the world to say. But if you’re not being thoughtful, you can become paralyzed in the face of otherwise confidently manageable risk. Good people know the difference between an errant “no” and one that is applied with introspection and purpose.

Ingredient No. 4: Prioritize growth.

Whether you’re committed to personal growth or the growth of the business, this ingredient is vital to the health and longevity of any thriving business. The ability to learn, be agile, and always on your toes is often the difference between success and failure.

My dad had many wise sayings when I was a kid. One relevant one that comes to mind is, “The second you start to feel like you’ve figured the world out, you’re already falling behind.” Investing time and energy into constantly advancing knowledge and skills (for yourself, your employees, and your customers) will benefit you and your business in spades.

Word to the wise: Growth-oriented organizations are far more likely to retain their best employees. Your best people will eventually leave if they feel bored or stagnant.

Ingredient No. 5: Adopt a winning mindset.

When push comes to shove, at the end of the day, ingredients one through four are foundational for success. However, you still need to have a winning mindset to create a thriving business that matters. It’s imperative that you work to win for your customers, win for your stakeholders and win for your company and yourself.

To be clear, I’m not talking about a “winner takes all” mentality, where someone else is always losing. Healthy relationships are not transactional. They should be built around core commitments that are important and lead to the success of both parties.

A winning mindset means that you’re always looking for ways to ensure that both you and your peers end up ahead.

 

The 5 Key Ingredients To Building A Thriving Business originally appeared on Forbes.com.

How we did it: Digital marketing due diligence case study

February 5, 2021 Sean Mooney

Our PE fund client needed a resource to perform digital due diligence for an e-commerce-enabled aftermarket products business. They needed a full overview of the digital landscape, including SEM, SEO, UX, conversion path analysis, Google Analytics, and digital GTM strategy. We used our extensive experience in digital marketing due diligence to immediately connect our client with expert groups from our invitation-only Intelligent Network. They used the insights gathered from the chosen digital marketing group to make an informed decision and quickly close on the investment opportunity. Ultimately, we were able to help the client find a clear path forward. 

For the full story, read the case study here.

REDIRECTED Part Two: How To Avoid Hiring the Wrong Person When You are Growing Fast

September 22, 2020 Steve Tafaro

Last week, I wrote about the fact that when you’re poised for growth and moving fast, putting the right people in place is just as important as developing a business strategy. However, you’d be surprised how many leaders underestimate the importance of finding the right fit. In addition the first common mistake I see— treating talent acquisition as tactical and reactive versus strategic and proactive—the second common mistake I witness time and time again is overlooking the cultural fit. 

In a commoditized world, a company’s culture stands out as the most powerful and sustainable opportunity to create a competitive organization. As we look to recruit the “best athletes” we often hire based on experience and overlook cultural fit. The culture in which people operate has a direct bearing on their performance; and the performance and retention of the people they manage. In fact, the number one reason a person leaves a company is because of their manager or boss.  

One of the best ways to avoid these obstacles is to develop a standardized interview process. According to a 2015 talent acquisition study by Glassdoor, organizations that lack a standardized interview process are five times more likely to make a bad hire. Managers must be given the tools to formulate good questions and evaluate candidates. Behavioral interviews can determine if the candidate would fit well into the company culture. It also provides insight into a candidate’s past experiences, skills and abilities that relate to the position for which they’re interviewing. Here are some examples of behavioral-based interview questions and what you’ll learn from the candidates’ answers:   

What attributes do you look for in a company when applying for a position?
You will be able to see if a candidate’s values and aspirations align with those of the business.

What are your pet peeves?
You will discover what irritates, agitates and infuriates a candidate; if those things exist in your environment move on to the next candidate. 

Have you ever found an error in your own work? How did it happen, and what did you do about it?
You will determine whether a candidate can admit and learn from their mistakes, or if they prefer to shift blame and render themselves blameless. 

What types of decisions are easiest for you to make and which ones do you find most difficult?
Probing in this area will enable you to assess whether the candidate is inclined to fully buy-in to their job responsibilities and make decisions that are in the best interest of the company.  

How do you accommodate last-minute changes?
Some people become very stressed in an environment of constant change. You will want to assess this when interviewing for management positions. 

Give an example of a time when you faced an ethical dilemma at work. How did you deal with it?
This exposes a candidate’s personal belief system and what they hold dear. Their answer will tell you if they’re a good fit for your company culture. 

Tell me about a time you set challenging goals. What did you do to achieve them? 
You’ll learn how a candidate approaches setting goals for themselves, and if achieving a successful outcome matters to them. 

Tell me about a time you disagreed with a decision. What did you do?
By evaluating the candidate’s response, you should be able to tell if the candidate views differing opinions as constructive, as conflict or as an insult. Their reaction can also give insight into passive-aggressive or openly aggressive tendencies, which are undesirable in any environment. 

For more information about resources pertaining to talent planning and talent acquisition processes, please contact BluWave. We have experts who can help you win!

REDIRECTED Part One: How To Avoid Hiring the Wrong Person When You are Growing Fast

September 15, 2020 Steve Tafaro

When you’re poised for growth and moving fast, putting the right people in place is just as important as developing a business strategy. But hiring the wrong person or third-party resource can be more detrimental than leaving the seat open. HR agencies estimate the cost of a bad hire can range from 40% of salary for entry level people to 400% of salary for executives. More importantly these costs can extend beyond monetary value due to the impact on productivity, employee morale, company culture and reputation.

As someone who has advised many companies during high-growth phases, I’ve learned a thing or two about what it takes to get the right people in place. When coaching a CEO, one of the first questions I ask is: “What’s your talent acquisition process?”

If the answer to the question is “we don’t have one” or “posting openings on LinkedIn”, then I have a fairly good idea of where to take the conversation. One common mistake I see, as newly funded companies strive to hire the best talent, is treating talent acquisition as tactical and reactive versus strategic and proactive.

Companies often rush to fill a position and end up hiring someone who does not meet the needs of the job. This sense of urgency usually happens when an attractive candidate is identified but not properly vetted. The sudden need generally arises due to the departure of a key employee; or when a number of people have to be hired to meet the staffing needs in a given area. A well–conceived talent acquisition process will eliminate these issues.

Such a process should include:

  • Assessing your needs: Why does the need exist and what is the ideal candidate profile?
  • Presenting your brand: What is the message and value–proposition communicated to candidates, and does it reflect your culture?
  • Generating leads: Postings on job boards, recruiting, professional networking and employee referrals.
  • Screening candidates: A thorough screening process will produce more consistent high–quality outcomes and eliminate bias.
  • Interviewing candidates: Everyone involved in the interview process should be trained in behavioral-based interviewing.
  • Onboarding new hires: A strong onboarding process will improve new-hire retention.
Stay tuned for part two, where I’ll talk about the best interview questions to ask in order to get the right people in place.

3 Ways to Increase Your Company’s Value

June 6, 2018 Sean Mooney

After nearly 20 years in private equity, I appreciate how hard it is to build and grow businesses in a constrained environment.  Nothing is easy, but most things are possible with the right people and resources.

Top private equity funds regularly ask us about ideas to help drive growth and reduce costs.  Here are a few growth, organizational development, and cost reduction strategies that can be applied to build your business and drive value creation:

Reach 1,000s of customers at a click of a button:  Digital marketing is the most underused tool in the middle market: every business should be doing at least the basics (particularly in underutilized B2B markets).  This starts with good data (you should think of this as a business asset), requires market segmented content, and systems capabilities. It’s really hard, and expensive, to internally be good across SEO, paid search, content, email, PPC ads, etc.  You should outsource this to a middle market agency who will do this better and at lower cost than you can.  Committed digital marketing programs can lift revenues by more than 20%.

Rent “A” Players:  Sometimes it’s better to rent 10% of a bunch of A’s rather than own 100% of the B or C you can afford in your budget: the future of work is now (just ask some of the best younger workforce members who won’t work full time).  There are great variable resources that you can use across the functional areas of your organization to more optimally inform strategies and execute on your plans.  Use them.  Plus, if it is a one-time project, you often can get an add-back for it, enabling you to present stronger numbers when it comes time to sell your business.

Your costs are rising, you should be fighting it more: In the current world climate, all sorts of input costs are on the rise, from metal to plastics to fuel. Most companies (including very large ones), don’t have the internal expertise or the free resources to understand and aggressively combat today’s volatility. Bring in a specialized procurement group that lives and breathes in these markets to reduce costs, diversify supply chains, and/or hedge risks. While you’re at it, go after your indirect spend. If you’re not ready for a procurement group, at the very least you should be using plug and play Group Purchasing Organizations (GPOs). Expect some push back as the savings can be embarrassing and/or preemptively tap into rainy day savings buckets. However, when you apply a valuation multiple to the savings you’ll achieve, these tools are no-brainers.

Finding the superior groups isn’t easy. BluWave seamlessly connects you with the best vetted and private equity tested practitioners that specialize in your areas of need and fit your budget. We also make it remarkably easy on you: we don’t charge you anything to use our service.

Start talking with us about your needs today. Help is a call or email away.