How to buy and turn around a
distressed business or 'roll-up' competitors

On this site you’ll read real life stories of how 23 entrepreneurs find, fix and then sell small companies on the edge of failure. Sometimes we buy our weak competitors in a roll-up and get new clients cheaper by acquisition then organic growth. If you like these concepts, come to the next workshop. Learn how we...

✓  Find distressed companies that are worth saving for capital gains
✓  "Roll-up" your competitors for rapid growth with little cash or risk  
✓  Why buying a distressed business is the BEST way to do a start up

From KC Truby Lonesome Cowboy Publishing Inc. 301 Thelma Drive #426, Casper WY 82609 (760) 207-6385

3 ways to keep from making that same mistake again

By on June 20, 2014

3 ways to keep from making that same mistake again.

By: KC Truby

The next major mistake we look for in a business is a little harder to find but if you are aware of it, you might not do the same stupid thing in your current business.

Now all of us think we have a good enough memory on the things we’ve done wrong, that we’ll not do it again. Yeah, right, as my son would say. All of us make the same mistakes over and over again. Here are some pretty common examples….

✓  We realize an employee needs to be fired, but keep them on the hope they may turn around soon.

✓  A customer with a bad credit or support history calls you and ask for another shipment or service and you take the order.

✓  A customer service problem arises, and the staff run to you for instructions on how to handle it. Not only is something wrong with your business systems and it’s causing your customers to be unhappy. The fact that the staff is standing in your office, AGAIN is a dreadful error that may well ruin the rest of your day.

✓  We hire employees based on how much we like them personally in our first interview.

Mistakes like these 4 happen over and over in the average business. This drains the owner’s enthusiasm for the business and keeps them away from the three big jobs the company needs to have done each day.

Here is how we keep from doing something wrong over and over…

  1. I jot down all negative and most positive interactions with customers, vendors and employees in our CRM software (customer relationship management) these notes are password protected so only I can see them. When an employee comes in to tell me about a problem, I quickly look at my notes to see if we have dealt with the problem in the past. If so I’ll stop the staff from wasting my time, remind them of what we did the last time and ask if they would start handling such problems by themselves in the future. This cuts way down on the interruptions.
  2. We review customer records each time an order comes in and if we see a track record of slow pays, or complaints we simply return the order. Life is too short to deal with bad customers over and over again. There are GOOD customers waiting for you to show up, go see them.
  3. My personal journal reminds me of the last time I made a mistake like hiring based on looks or personality. The more I review my journal the better manager I quickly become.

If you’re going to clean up your current business so it runs like a turn-key cash cow and then move into buying other companies – you’ll need to become good at writing down notes about your events every day all day. Those notes are invaluable to you as you learn how to run multiple companies like a CEO instead of tradesman.

 

About KC Truby

From their ranch in Wyoming, KC and his wife Linnea have bought or started 21 companies as a side line to their accounting business leading them into M&A as a full time business in 2012. These companies are located all over the Western Rocky Mountains, London and India. Since 1969 through their accounting and training companies, KC has taught 18,000 business owners how to improve cash flow and find more customers by installing standardized systems in their small business. Since 1989 KC has presented over 1,000 seminars and training classes to the small business owner.

One Comment

  1. Robert

    June 21, 2014 at 5:21 am

    Turning down the ‘bad’ clients is sooo difficult, however agreed, it is necessary

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