When we dream of beginning our own business, we envision the freedom of having creative control over our lives. We imagine working on our terms, spending days doing what we love and working for our dream rather than someone else’s. We get excited about the beginning and look forward to its success, imagining the years ahead in which we will be happily making a living doing something we love.
Thinking about retirement or selling a business at the start sounds terribly unromantic. However, when we plan for the eventual transition of ownership a business will undergo from the beginning, we create a business with a strong investment value and a structure that will live beyond its creator. This article is not about crafting an exit strategy, but implementing a framework that will allow a business to become a legacy.
Unlike most coffee house owners, it has never been my ambition to own a coffee shop. Our patrons often ask why we have built Maeva’s and I know they are looking for that beautiful story in which a life-long dream has blossomed into success. The reality is I knew nothing about coffee when we decided to undertake this venture. My passions do not lie in owning or operating food service businesses like the grand restaurateurs that dazzle me in every city I visit. We built Maeva’s because it was a sound investment; because The Milton Schoolhouse needed a business with heavy foot traffic to support our other start ups and our neighborhood needed a gathering place to grow.
As Maeva’s continues to blossom, I already look forward to new ventures beyond this beautiful shop. From the beginning, my business partner and I have had a plan to transition Maeva’s to a new owner (or to a full time operations manager) within five years- allowing us the time to dedicate to new ventures in our community. Whether you are hoping to start and sell your business quickly or wish to be involved for decades, one of the greatest things you can do to ensure the longevity of your work is to make your operation attractive to its next owner and do everything you can to enable their success.
This is an essential part of creating a seamless transition to an Operations Manager or new owner. When someone buys a franchise, they are given months of training and hundreds of pages of information outlining everything from sales techniques to pricing strategies to safety processes. If you’ve built your business from scratch, you know the ins and outs of how you make decisions for your company- but does anyone else? The pieces listed below are essential for not only selling your business but peace of mind if you were ever to face a crisis in which you were required to be on hiatus from its operation:
This is a personal manual outlining the expectations and general rules of conduct for staff. Each staff member should be briefed on this manual and sign a written statement of their understanding. This manual should cover your company’s sexual harassment policy, dress code, any employee benefits, job expectations, and other general conduct policy. Keep signed records of any modifications you make to your manual to show that staff have been briefed on evolving policies. Don’t forget a signed release of name/voice/and likeness if you intend on using photos that include your staff for promotional purposes. If any financials, recipes, trade secrets, etc. are available to your staff, a signed statement of confidentiality should also be included.
While there is no law regulating the requirement of an employee handbook, having a clear handbook of policies can provide some legal protection in unemployment and workman’s comp cases.
Most corporate handbooks are available online. Instead of starting from scratch, find handbooks from companies in similar industries to your own and use them as a template for your business’ handbook.
This manual should be essential information available to staff and managers. It’s exactly what the name implies; a detailed outline for every possible thing someone may have to do in the general care and maintenance of the shop. The Maeva’s Coffee Process Manual includes stated methods for sanitizing the ice bin, how often food is ordered and in what quantity, technical manuals for trouble shooting our equipment, maps for emergency water/electrical shut offs, and basic shop troubleshooting. Include MSDS sheets for any chemicals used in your operation and the appropriate response for potential accidents. Check this link if you are unsure whether or not your chemicals require MSDS sheets to be made readily available to your staff.
This manual is private information, reserved for an operations manager or owner. It should include account information for each of your suppliers, up to date material cost sheets, contacts for subcontractors or people you often work with in your local business network, hiring and termination guidelines, information on scheduling and payroll, as well as contracts and outstanding leases. This manual may also include trade secrets such as exclusive food and beverage recipes.
Brand Management Manual:
This manual may be reserved for an operations manager or released to the entire staff depending upon the openness of your business structure. It should be a brief description of your company’s history and influences, the core principles of what you represent, and guidelines for how that brand is kept fresh. Our brand management manual outlines how often and when seasonal specials are released, how often and what types of events are hosted in the shop, and information on how and what to post on our Facebook, Instagram, and Website.
You should also have your tax records, annual P&L and Balance Sheets, any past or current business plans, and staff files in order as well.
Having a Strong Internal Culture
Creating a culture of internal collaboration will keep your business from becoming stale. When you hire staff who work together and cultivate an environment that encourages communication, new ideas and better processes will become a constant in your business. Staff you are able to trust and who can facilitate projects without constant management are a valuable resource when a business undergoes a change of ownership. A strong culture can easy the rockiness of leadership change and prevent your company’s growth from stalling. Whether your business is six months or sixteen years old, vivacity, clarity, and strength in a business’ culture will make your business attractive to prospective buyers and increase the chance of its survival once you are gone.
The start-up phase is thrilling. As an owner, you have your hands in everything. You and your first few staff wear a thousand hats, taking on responsibilities defined by necessity and circumstance, not necessarily skill. There will be a point in your company’s growth where and honest evaluation will show that you do not have the talent in your current team to grow further. It can be a difficult situation to face but at some point in your wild success you will no longer be able to wear all of the hats.
Accounting is my weakness. It’s taken me twenty months of operation to admit it, but as much as I want to be able to do everything for Maeva’s, the day to day numbers don’t come naturally to me. Accounting is stressful; it’s something I dread. I put it off and cripple my ability to calculate decisions when I can’t readily access current data. This year, I’m resolving to hire a local accountant to handle our books so that I can concentrate on strengthening our business in the ways for which I have a true talent. You can’t be an expert in everything; use your energy to be a better expert in areas in which you naturally excel and hire an expert to take care of your weaknesses.
This stage in your business’ growth may be just as difficult for staff. Bringing in outside help to evolve your business can create friction among veteran staff who may view it as intimidating or insulting to their efforts. Our first autumn of operation, Maeva’s was growing faster than our infrastructure could handle. Our lead barista was appointed as a stop-gap Operations Manager to help manage ordering, scheduling, and shop duties. The position was set out at the start as a temporary one and she disliked the responsibility overall. And yet, when it was time to hire an actual Operations Manager- her feelings were mixed. Going back to her position as lead barista sounded as much a relief as a demotion and our shop dynamic was never the same
Just as an owner should understand if not be able to perform all aspects of a business, there should be an outline, if not a staff member trained, to perform the vital processes the owner oversees. If you intend on selling your business through traditional avenues rather than coaching someone to operate it in your stead, make sure you not only have a process manual in place but have trained your staff in how to take care of each of your responsibilities.
Instilling a Vision Beyond Yourself
The first time a business changes hands it takes an incredible risk in failing due to loss of direction. Great companies are built by great leaders; you’ve worked to instill your passion in your work and your staff. Corporate examples abound- Apple’s struggle with the loss of Steve Jobs or Starbucks bringing back Howard Shultz after the company was on the verge of failure. Small companies face the same challenge.
Create a vision for your company and coach your staff to follow that vision- not you. The vision of your business should be a permanent, core reason for its existence, the foundational value supporting every decision made during its life. Maeva’s vision is to bring quality coffee and revolutionary community to our neighborhood. The strategy for achieving this beyond my time of leading her is highly entrepreneurial; I seek to create a culture of collaborative staff, teach them how to listen to the needs of our community, and give them the confidence and power to make decisions regarding those needs.
Like every small business, Maeva’s Coffee has been a deeply personal venture. More than just time and money, she is a product of the talents and personalities of its owners, staff, and the community she serves. It’s my responsibility and privilege to do everything possible to ensure whomever comes after me steps into a strong culture and every available resource to take her beyond my own abilities. This duty guides my current operating decisions but also insures her financial stability and success- ultimately allowing her to fund the creation of new ventures in our community.