Abundance vs. Scarcity Mindset. Which do you have?

Abundance vs. Scarcity Mindset. Which do you have? Editor's Note: Can you believe it - we are beginning to close out Q1 of 2025. What kind of Organization do you have? What kind of Leader or Team Member are you? In many cases it comes down to whether you have an "abundance" or "scarcity" mindset.  I thought these two graphics might be good to ponder.  Another note: Regardless of your politics, as I re-read this, I recognized that our country is currently led by a president who has many or the charateristics of a "scarcity" mindset.-dpm] ___________________________ Collaborator or "Smartest person in the room"; Seek the credit or Share the credit; Horde information or Share information. Are you willing to invest to achieve a greater outcome? Whether you are building a team or a company, which traits/attributes do you want in yourself and others? The best organizations do not tolerate "scarcity mindsets" - they sap the energy and vitality out of an organization. Individuals and Team Members Leaders Scarcity breeds employee flight. In today's environment, employees who are the best and brightest do not want to work in an environment with a scarcity mindset - certainly not with leaders with that mindset. We can help. Mead Consulting Group has worked with many companies to help them transition to a more positive environment that sees the potential and collaboratively works to achieve possibilities. Contact me at (303) 660-8135 or meaddp@meadconsultinggroup.com to explore how to begin to transition your organization to one more focused on executing the strategic future. Best regards, Dave Mead

"I can't change the direction of the wind, but I can adjust my sails to always reach my destination."   _________ The future has never been more uncertain, but your business can always be prepared with flexible approaches to planning and execution ________

For more information, see our website www.meadconsultinggroup.com  or  contact Dave Mead at (303) 660-8135 or meaddp@MeadConsultingGroup.com

The importance of scenario planning in preparing for the Trump Presidency

 The importance of scenario planning in preparing for the Trump Presidency

There is much optimism in the business community about the new Trump administration. There are more predictions than one can count. The one sure thing is that the pundits have been wrong predicting the future much more than

they have been right. But with the many bold statements and actions coming out of Washington, how sure are you about the future?

 

How well are you prepared for what you think will happen in the future? How well are you prepared for what you don’t think will happen?

 

·       What impact will tariffs have? On prices? On supply chains? What will be the impact of foreign retaliation?

·       How much will deportation impact the labor pool?

·       What will be short-term impacts of government cuts?

·       Will certain actions trigger a new round of inflation?

 

One thing is for certain - when government gets involved with many broad sweeping actions – There will be unintended consequences?

In 2025 more than ever, we are seeing companies in one of three camps: 1. Paralyzed by uncertainty; 2. Certain they are right with their view predicting the future; 3. Planning for multiple scenarios.

The Mead Consulting Group has been helping companies with scenario planning for many years. Companies that do scenario planning, have management teams that are prepared to act quickly to changes in market variables. Check out our client success stories for examples of companies from $15M to $200M that we have helped.

 

If you want to discuss how your organization can be best prepared for an uncertain future, please contact me.

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The Mead Consulting Group helps dozens of companies and organizations -like yours - every year with scenario planning ,strategic planning & execution, and strategic business coaching. Clients that utilize these processes consistently outperform their competition.

 If you would like to discuss your situation, please contact me to set up a complimentary meeting. Dave Mead at (303)660-8135 or meaddp@meadconsultinggroup.com.

The Next Selling Cycle for Business Owners is Beginning to Ramp Up

 [Editor's Note - We published the below article in October - in anticipation of what many were forecasting to be a banner year for busness transactions in 2025.

Now that we are in January, we are beginning to see the dynamics line up. Interest rates continue to fall, the overall economy is strong, there is much capital on the sidelines, and there is much pent-up demand for business acquisitions. Strategic Buyers and private equity firms are just beginning to gear up their corporate development efforts for the new year.

If you are contemplating an exit from your business in the next few years, now may be the best time in several years to tee things up.   – Dave Mead]

 

Don’t miss the opportunity to sell during the next selling cycle

The exit sales process may take longer than you think.  There are record levels of capital, sitting as dry powder, and interest rates have continued to come down. Many professionals believe the next major sales cycle will begin during this year in 2025 and extend through 2026.

While some business owners may believe they can pull the string when they are ready to sell, the truth is, for many business owners, the exit sales cycle may take several years to execute. In order to sell at highest value, the process includes time to get ready, 1 year for the transaction, and then you may have to spend 3 years or more with the company after the sale.

Much of the preparation can be accomplished in advance. Companies can focus on making fundamental improvements to their business that will help them be healthier and more prepared than their competitors.

1. Focus on customer net profitability

2. Upgrade management

3. Cleanup business processes and conduct a pre-due diligence process

4. Develop a strategic growth and execution plan

Focus on customer net profitability. The tendency during a downturn is to cling to any customers and revenue no matter the profitability level. A common comment is that “at least they absorb overhead.” The notion of unprofitable business absorbing overhead may be one of the greatest false beliefs in business. In many cases, overhead that has been viewed as fixed is really a cost that can be minimized or shed. Carrying unprofitable business will be a continuing cash drain that may inhibit your business’ ability to continue to grow. Additionally, removing unprofitable business adds to your EBITDA.

Upgrade management. While velocity is slow in the labor market today, there is a great supply of good talent stuck in their current companies. In many cases this may be talent that would not be available in better times. Take advantage of the opportunity to improve. Similarly, this is a great opportunity to review all of your employees and weed out those with below average performance, poor potential, or unrealized potential. Our clients use a simple tool to rank all employees in terms of potential and performance – the results make it very clear which ones have been a drag on the company.

Cleanup business processes. During boom times, some companies claim they are too busy to scrutinize business processes, to make improvements, and to streamline work flow in order to increase throughput. That “excuse” leads to suboptimal performance. Review potential due diligence items to clen up issues in advance.

Develop a strategic growth and execution plan. You need a plan that will allow you to be agile enough to take advantage of opportunities and will be attractive to a prospective buyer.

Take a lesson from the Boy Scouts: Be prepared. These steps can add value to your business. Your business can accelerate faster and be well- positioned. The market for selling a business will be ripe as we move into 2025 and 2026. Those businesses that are ready will find a hungry group of buyers and investors who have been sitting on their hands during 2023 and 2024.

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Don’t miss the opportunity to sell during the next selling cycle

 [Thank you - As we begin the final quarter of 2024, we want to take this opportunity to thank Mead Consulting clients (current and past), professional services partners, bankers, and private equity investors for your trust and referrals this year. We have been able to assist new and existing clients working to achieve their goals – be it developing and executing clear-minded strategies, managing growth, uncertainty, and change, or preparing for a future exit.    – Dave Mead]

 Don’t miss the opportunity to sell during the next selling cycle

 The exit sales process may take longer than you think. With credit markets tight, interest rates high, and many buyers sitting on the sidelines, it may seem counter-intuitive to be writing about preparing your company to be ready to sell. However, there are record levels of capital, sitting as dry powder, and interest rates have begun to come down. Many professionals believe the next major sales cycle will begin during 2025 and extend through 2026.

While some business owners may believe they can pull the string when they are ready to sell, the truth is, for many business owners, the exit sales cycle may take several years to execute. In order to sell at highest value, the process includes time to get ready, 1 year for the transaction, and then you may have to spend 3 years or more with the company after the sale.

Much of the preparation can be accomplished in advance. Companies can focus on making fundamental improvements to their business that will help them be healthier and more prepared than their competitors.

1. Focus on customer net profitability

2. Upgrade management

3. Cleanup business processes

4. Develop a strategic growth and execution plan

 Focus on customer net profitability. The tendency during a downturn is to cling to any customers and revenue no matter the profitability level. A common comment is that “at least they absorb overhead.” The notion of unprofitable business absorbing overhead may be one of the greatest false beliefs in business. In many cases, overhead that has been viewed as fixed is really a cost that can be minimized or shed. Carrying unprofitable business will be a continuing cash drain that may inhibit your business’ ability to continue to grow. Additionally, removing unprofitable business adds to your EBITDA.

Upgrade management. While velocity is slow in the labor market today, there is a great supply of good talent stuck in their current companies. In many cases this may be talent that would not be available in better times. Take advantage of the opportunity to improve. Similarly, this is a great opportunity to review all of your employees and weed out those with below average performance, poor potential, or unrealized potential. Our clients use a simple tool to rank all employees in terms of potential and performance – the results make it very clear which ones have been a drag on the company.

Cleanup business processes. During boom times, some companies claim they are too busy to scrutinize business processes, to make improvements, and to streamline work flow in order to increase throughput. That “excuse” leads to suboptimal performance.

Develop a strategic growth and execution plan. You need a plan that will allow you to be agile enough to take advantage of opportunities and will be attractive to a prospective buyer.

Take a lesson from the Boy Scouts: Be prepared. These steps can add value to your business. Your business can accelerate faster and be well- positioned. The market for selling a business will be ripe as we move into 2025 and 2026. Those businesses that are ready will find a hungry group of buyers and investors who have been sitting on their hands during 2023 and 2024.

____________________

 The Mead Consulting Group helps dozens of companies and organizations -like yours - every year with both strategic planning & execution, strategic business coaching, and preparing to maximize value in an exit. Clients that utilize these processes consistently outperform their competition.

 If you would like to discuss your situation, please contact me to set up a complimentary meeting. Dave Mead at (303)660-8135 or meaddp@meadconsultinggroup.com.

 

Six Reasons Why CEOs Need a Coach with Strategic Business Experience

 Six Reasons Why CEOs Need a Coach with Strategic Business Experience

[Editor's Note: Over many years leading and working with lower middle market companies, I have seen - first-hand- the benefits and significant advantages for CEOs who have a a coach with strategic business experience. Coaches with relevant business experience can understand when things look too good to be true. They also understand that a good strategy well-executed beats n excellent strategy poorly-executed every time. -dpm]

The role of a CEO, especially in competitive markets, is one of immense responsibility, requiring a blend of strategic vision, operational expertise, and strong leadership skills. For many CEOs, particularly those leading lower middle market companies, the challenges can be overwhelming. This is where a coach can make a significant difference - a coach with real business experience. Here are six reasons:

1.     Understanding of the CEO Role -The demands of the CEO role are unique and multifaceted, requiring a delicate balance of strategic thinking, operational oversight, leadership, and empathy. A coach with business experience understands these demands intimately because they’ve likely held similar roles or worked closely. This understanding means that the coach can identify with the CEO’s challenges and provide support that is both relevant and impactful. They know what it’s like to be in the CEO’s shoes and can offer guidance on how to handle the pressure, manage competing priorities, and lead a team effectively. This empathy and understanding make the coaching relationship more meaningful and effective.

 

2.     Relevant Insights and Practical Advice -A coach with business experience brings practical knowledge and insights that are directly applicable to the challenges a CEO faces. This experience means the coach has likely encountered similar situations, whether it’s managing cash flow during a downturn, leading a company through a merger, or building a successful leadership team. This real-world experience allows the coach to offer practical advice rather than theoretical solutions. For example, when a CEO is considering an acquisition, a coach with business experience can provide guidance based on their own experiences with M&A, highlighting potential pitfalls and best practices. This level of insight is invaluable in helping CEOs make informed decisions that are grounded in reality, not just in theory.

 

3.     Strategic Perspective and Vision -One of the most critical roles of a CEO is to set the strategic direction for the company. A coach with business experience, especially that of strategic planning and execution, can provide invaluable support in this area by offering a strategic perspective that is informed by years of experience. A strategic business coach can help the CEO see the bigger picture, anticipate industry trends, and identify opportunities for growth. They can also provide a fresh, external perspective that challenges the CEO’s assumptions and encourages them to think outside the box. They can also help the CEO align their strategic vision with the company’s operational capabilities, ensuring that the strategy is not only ambitious but also realistic and achievable.

 

4.     Credibility and Trust – Lower Middle market CEOs tend to have a good “B.S. Sensor.” For a coaching relationship to be successful, there must be a foundation of trust and credibility. CEOs are more likely to trust and respect a coach who has walked the walk—someone who has faced similar business challenges and has a track record of success. A coach with business experience brings a level of credibility that is difficult to achieve otherwise. They can speak the same language as the CEO, understand the nuances of the industry, and provide advice that is both relevant and actionable. This credibility fosters a deeper level of trust, which is essential for a productive coaching relationship. When a CEO knows that their coach has faced and overcome similar challenges, they are more likely to take their advice seriously and implement their recommendations. This trust is crucial for the CEO’s growth and the overall success of the coaching process.

 

5.     Ability to Challenge and Inspire Growth -A coach’s role is not just to provide advice but also to challenge the CEO to grow and develop as a leader. A coach with business experience is particularly well-equipped to do this because they understand what it takes to succeed in the business world and can push the CEO to reach their full potential. Many times, this involves challenging the CEO to think more critically about their decisions, encouraging them to take calculated risks, or helping them develop new skills. Because the coach has firsthand experience in business, they know when to push and when to support, helping the CEO to grow in a way that is both challenging and achievable.

 

6.     Network and Resources - A coach with a background in business likely brings a valuable network of contacts and resources that can benefit the CEO and the company. This network might include potential business partners, industry experts, or even other CEOs who can provide additional support and insights. Having access to this network provides added value by opening new opportunities for the CEO, whether it’s through partnerships, collaborations, or simply learning from the experiences of others. A coach with business experience can also connect the CEO with relevant resources, such as industry” intel,” training programs, or tools that can help them improve their performance.

Having a coach with business experience can make all the difference. Such a coach brings practical insights, credibility, strategic perspective, and the ability to challenge and inspire growth. They understand the unique demands of the CEO role and can provide the guidance and support needed to navigate the complexities of the business world successfully. becoming a crucial partner in the CEO’s journey to success.

Why Choose Mead Consulting for a Strategic Business Coach for your lower middle market business:

• Experience – We’ve been in your shoes - Not only have we each grown multiple businesses, but we have been coaching business leaders like you across many companies for more than two decades.
• Lower Middle Market Focus – we understand the issues unique to growing and scaling businesses of this size.
•  Strategy – we have proven strategies that work; we help you focus on the strategies that matter
• Accountability – we hold you accountable to accomplish the desired results we outline together

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The Mead Consulting Group helps dozens of companies and organizations -like yours - every year with both strategic planning & execution, and strategic business coaching. These processes have helped our clients consistently outperform their competition.

 

If you would like to discuss your situation, please contact me to set up a complimentary meeting. Dave Mead at (303)660-8135 or meaddp@meadconsultinggroup.com.

     

The Critical Need for Flexibility in Strategic Planning

Small and Middle market companies face distinct challenges that necessitate a flexible strategic approach, including:

• Resource Constraints: Unlike large corporations, small and middle market companies have limited resources. This constraint necessitates efficient allocation and a high degree of adaptability to maximize returns on investments.       
• Market Volatility: The market environment is increasingly volatile, with rapid changes in consumer preferences, technological advancements, and competitive dynamics. Companies must be nimble to navigate these shifts effectively.
• Growth Ambitions: These companies often aim for substantial growth, which requires balancing risk and opportunity, along with capital availability. Flexibility in strategic planning allows them to pivot quickly when new opportunities arise or when faced with unforeseen challenges.

The Case for Flexibility

1. Adapting to Market Changes. Flexibility allows companies to respond swiftly to shifts in demand, competitive pressures, and technological advancements. Static strategic plans can quickly become obsolete, while flexible plans enable timely adjustments that keep the company aligned with market realities. For instance, during the COVID-19 pandemic, many small and middle market companies had to rapidly pivot their business models. Those with flexible strategies were better equipped to transition to e-commerce, adapt supply chains, and meet new consumer needs.

2. Capitalizing on Opportunities. A flexible strategic plan allows middle market companies to seize these opportunities swiftly. Whether it's entering a new market, launching a new product, or acquiring a competitor, being able to pivot quickly can be a significant competitive advantage.

3. Managing Risks. Flexible strategic planning enables companies to implement contingency plans and react promptly to unforeseen events. This proactive approach can safeguard the company against potential downturns and position it to thrive in adverse conditions.

Steps to follow for Implementing Flexibility in Strategic Planning.  Incorporating flexibility into the strategic planning process involves a combination of mindset, processes, and tools:

1. Embrace a Growth-oriented Culture. A growth mindset encourages continuous learning and adaptability. Leaders should foster a culture where employees are encouraged to innovate, take calculated risks, and learn from “fast failures.” This cultural shift can make the organization more responsive to change.

2. Regular Review and Adjustment. Strategic plans should not be static documents. Regularly reviewing and adjusting the plan based on current performance and market conditions is crucial. Mead Consulting Group recommends that client companies perform quarterly, or bi-annual reviews can help ensure that the strategy remains relevant and effective.

3. Scenario Planning. Scenario planning involves envisioning various future scenarios and developing strategies and action plans for each. This approach allows companies to prepare for a range of possibilities, making them more resilient to unexpected changes. It’s particularly useful in navigating economic uncertainties and market disruptions.

4. Agile Models. Agile models and methodologies can be applied to strategic planning. This involves breaking down the plan into smaller, manageable components and iterating on them regularly. Agile planning encourages feedback, rapid iteration, and continuous improvement.

5. Leveraging Technology. Technology can play a significant role in enhancing flexibility. Data analytics, for instance, can provide real-time insights into market trends, customer behavior, and operational performance. Leveraging such tools allows companies to make informed decisions swiftly and accurately.

Some examples:

1.     A mid-sized manufacturing client faced declining demand for its traditional products during Covid. By adopting a flexible strategic plan, the company was able to pivot to producing medical supplies during the pandemic. This quick shift not only stabilized revenues but also opened up new growth avenues.

 

2.     Another manufacturing company, specializing in automotive parts, experienced a downturn due to decreased demand in the automotive industry. Utilizing a flexible strategic plan, the company explored new markets and diversified its product offerings. They identified an opportunity in the renewable energy sector and began producing components for wind turbines and solar farms This strategic pivot opened up new revenue streams and positioned the company as an innovator in a growing industry.

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Companies must prioritize flexibility in their strategic planning to remain competitive and resilient. The Mead Consulting Group utilizes a strategic growth and execution process that promotes flexibility and a regular review process to update the Client’s strategies to the current realities in the market. If you would like to discuss how to build flexibility into your company’s strategic planning and execution process, please email me or call me at (303)660-8135. 

Best regards,

Dave Mead                

Prepare your company to be bought

 

Prepare your company to be bought    [Editor's Note 1: There is currently almost $4 Trillion in Dr Powder in Private Equity firms. While 2023 and 2024 have been slow years for transactions, there is the sense that once interest rates begin to come down, there will be a flood of activity as PE firms rush to deploy capital]  Editor's Note 2: Many business owners fail to prepare their businesses for a sale either because they believe that a potential sale is far off in the future or because they are focused on current issues and do not consider preparation to be a priority. We would submit that companies need to be "prepared to be bought." Sometimes lucrative offers come unexpectedly for companies that are well-positioned. We typically recommend that a company engage an experienced investment banker to assist them in a sale - often even if they have received an offer - in order to generate a competitive environment. Some business owners who have tried to "time the market" at some point off in the future have found that unpredictable events such as the Covid-19 pandemic, 2007-2012 recession, credit and stock market crunches, tech bust(s), 9/11, industry issues, etc. can derail their ability to sell at maximum value. We recommend to our clients to work each year to make certain that their companies are currently desirable to buyers. - DPM]   How best to position your company to be attractive to buyers:  1.   Demonstrate Strong Financial Performance a. Historical Financials *   Consistent revenue growth (at least upward trend) *   Recurring revenue is a plus *   Strong operating margins *   Increasing profitability *   Importance of last twelve months  b. Operating Cash Flow *   Focus on hitting projected revenue and earnings numbers *   Review net profitability of customers and products  2.   Maintain "clean" financials a. Audited or "auditable" Financial Statements *   Have your financial statements audited with a reputable firm to add    credibility *   Use GAAP accounting. If not, identify how practices differ from GAAP *   Understand cash vs. accrual accounting - timing differences can be material  b. Income Statement Adjustments and "Add-backs" *   Buyers are skeptical of earnings that rely on substantial add-backs (one-time, non-recurring charges, private company expenses, etc.)   3.   Diversify your customer & supplier base *   Diversification signifies a healthy business and reduces risk *   Buyers will pay less for companies dominated by one or two customers *   Examine what % of sales your top 10 customers represent? *   How stable are your top suppliers? How stable are their terms? *   Do you have multiple suppliers for critical components/services? *   What % of total purchases does your top supplier represent? Top-5 combined? *   What % of the company's sales are related to a few key employees?   4.   Develop a Strategic Growth Plan *   Maintain a clear strategy and be able to demonstrate your history of execution *   Be able to articulate specific future growth opportunities *   Position your company to take advantage of them * Remember: A buyer needs to see a potential Return on Investment   5.   Build a capable Management Team * Invest in training and key strategic hires, if needed *  Motivate management to add value to the company through a potential sale * Focus on building a deep management team that can thrive without your continued leadership   6.   Eliminate potential "Gotchas"(these are items that could result in significant discounts to value) *   Maintain legal documentation (licenses, regulatory filings, contracts, intellectual property, incorporation, etc.) *   Clear title to all assets *   Document processes and procedures *   Resolve legal disputes, environmental issues, etc.   7.   Build a team of Qualified Advisors *   Minimize distractions from running your business effectively *  Get advice from professionals who have "done it before" and  who have expertise in areas you do not  *   Beware of advisors that outstep their areas of expertise and pretend to do it all   Are you and your company ready if a buyer appeared on the radar? Most business owners who have executed a successful sale of their business will tell you the most important thing is: BE PREPARED.   Selling a business is very different than operating a business. As a business owner you know your industry, your product or service, your customers and your markets. Most business owners will only sell a business once in their lifetimes - and it can be by far the most important financial transaction of their lifetime.                                 ________________________________________   The Mead Consulting Group has helped over 70 clients prepare for successful sales transactions ranging from $10M to $350M in transaction value. We help companies increase the value of their businesses leading up to a transaction, minimize the things that cause potential buyers to discount the price, prepare to best position the company, and assist the owners in building a transaction team.   What successful business owners say about us:  ...We could not have completed the sale of our business without the advice and guidance of The Mead Consulting Group. Their experience was critical in helping us prepare, and endure, the transaction process to a successful outcome. ...Charles M, President, Healthcare IT Company   A successful process is draining and stressful. The Mead Consulting Group brought the experience and expertise necessary to help our team focus on the critical issues and not get caught up in the multitude of items that can derail a transaction. Why reinvent the wheel? We chose to take advantage of individuals who could help us understand the nuances, negotiate effectively, and close the deal. ... Ken W, CEO, Behavioral Healthcare   ...We missed the opportunity to sell our family business during the last upcycle. Mead Consulting helped us grow revenue and EBITDA to record levels and guided us through the selection of a transaction team. Dave Mead and his group provided great counsel throughout the sales process, removing obstacles and firmly encouraging us to a great deal with a strategic buyer that mirrored our family business values. ...Dan M, President, Building Products Company   ...I do not know why anyone would attempt to sell their business without Mead Consulting. Since they have owned and sold their own businesses, they understand the challenges of continuing to run the business while trying to sell it. Their experience kept us focused on the right things and they helped keep our transaction team well-aligned during the process. They truly act as the advocate for the CEO and owner, helping to make sure that it was the best deal for the owner. ...Ron T, CEO, Software Business   For more information on the process to prepare your business for a successful transaction, please contact me at meaddp@meadconsultinggroup.com or (303)660-8135.  ____________________   Best regards, Dave Mead

"I can't change the direction of the wind, but I can adjust my sails to always reach my destination."     _________     The future has never been more uncertain, but your business can always be prepared with flexible approaches to planning and execution   _________      Ask us about how Strategic Business Coaching for CEOs and Senior Teams can help you achieve better outcomes