Knowledge Exchange

Information technology

Search

Why M&A Professionals Should Recommend Low-Code and No-Code Development Platforms

Nathaniel Holzmann of Low Code Road is a member of XPX Nashville
Nathaniel Holzmann
Low Code Road
4 weeks ago

In the fast-paced world of mergers and acquisitions (M&A), professionals are always on the lookout for ways to improve the businesses they represent. The tools and technologies we use can make a big difference, whether we’re aiming for organic growth or preparing a business for sale. Traditionally, business owners have relied on spreadsheets, off-the-shelf software, or Enterprise Resource Planning (ERP) systems. But today, there’s a powerful alternative that’s gaining traction: low-code and no-code development platforms. So, what is low-code development? Low-code development platforms provide a user-friendly way to build applications. Instead of writing complex code, you can create software through simple graphical interfaces and configuration. If you’ve ever used Wordpress to create a website without knowing how to code, you’ll understand the concept. Low-code brings this same simplicity to software development, allowing both business users and developers to create custom applications with minimal coding knowledge. Why are traditional solutions falling short? Spreadsheets: They’re versatile and widely used, but they can become a headache as businesses grow. Spreadsheets are prone to errors, difficult to manage at scale, and lack the robust features needed for complex business processes. Off-the-shelf solutions: While they offer a quick fix for specific needs, these solutions often lack the flexibility to adapt to a business’s unique processes. Customization is limited, and integrating them with other systems can be a challenge. ERP systems: These systems are comprehensive and powerful, but they come with a hefty price tag and lengthy implementation times. Their complexity and cost make them impractical for many small to medium-sized businesses. Here’s why low-code solutions are gaining popularity: Cost-effective: Low-code platforms are generally more affordable than ERP systems, providing robust functionality without the high costs of traditional development and maintenance. Flexibility and customization: Unlike off-the-shelf solutions, low-code platforms let you tailor applications to your specific business needs. This adaptability ensures that the software evolves with your business, supporting growth and changes in processes. Speed of development: Low-code platforms significantly reduce development time. What once took months can now be accomplished in weeks or even days. This speed is crucial for faster adoption and quicker returns on investment. User empowerment: With low-code, business users can actively participate in application development. This reduces reliance on IT departments and accelerates innovation, as those who best understand the business can directly contribute to the development process. Scalability: As businesses grow, their needs change. Low-code platforms are designed to scale, allowing applications to expand and adapt without requiring complete overhauls or replacements. How can businesses use low-code? Process automation: Automating repetitive and manual tasks can save time and reduce errors. Low-code platforms make it easy to automate workflows and processes, improving overall productivity. Custom reporting and analytics: Businesses need actionable insights to make informed decisions. Low-code platforms enable the creation of custom dashboards and reports tailored to your specific requirements. Inventory and supply chain management: For businesses with unique inventory and supply chain needs, low-code platforms can provide customized solutions that enhance visibility and control without the complexity and cost of traditional ERP systems. Let’s look at a real-world example: A mid-sized manufacturing company was looking to optimize its operations before a potential sale. They had been relying on spreadsheets and an outdated off-the-shelf inventory management system. By implementing a low-code platform, they were able to: Streamline inventory management: They built custom applications to track inventory in real-time, reducing stockouts and excess inventory. Improve order processing: Automated workflows sped up order processing, leading to happier customers and fewer errors. Enhance reporting: Tailored dashboards provided management with real-time insights into key performance indicators, supporting better decision-making. The result? A more efficient, agile, and attractive business, ready for growth or acquisition. In conclusion: For M&A professionals, understanding the potential of low-code platforms is a game-changer. These solutions offer a compelling alternative to traditional software options, providing the flexibility, cost-effectiveness, and speed needed to support business growth and transformation. By leveraging low-code, we can help business owners unlock new levels of efficiency and value, ultimately driving better outcomes in the competitive landscape of mergers and acquisitions. As the business world continues to evolve, staying ahead of technological trends is crucial. Low-code platforms represent a transformative opportunity for those willing to embrace their potential. Whether we’re preparing a business for sale or driving operational improvements, low-code is a powerful tool in the modern M&A professional’s toolkit.

Jun 27, 2024
Nashville
Business Value Growth

Why pursue a periodic technology due diligence assessment and the investment roadmap that follows?

Mike Rolfes of 1RIVET is a member of XPX Maryland
Mike Rolfes
1RIVET
10 months ago

When a periodic    Structured Risk Remediation: With our guidance, clients have successfully identified and prioritized vulnerabilities, moving from reactive stances to proactive strategies that mitigate potential threats and losses. Ensuring Compliance: Our experience has shown that businesses that adhere to comprehensive assessments not only align with industry regulations but also cultivate enhanced trust amongst their stakeholders, customers, and partners. Cost Optimization: We’ve assisted several enterprises in eliminating system redundancies and streamlining their budget allocation, directly leading to significant cost savings. Focused Automation: Leveraging automation insights from our roadmap, our clients have boosted productivity and ensured consistent, high-quality outputs across their operations. Growth Scalability: Through our roadmap, businesses have been able to preemptively address the technological needs of future growth, ensuring seamless scaling and adaptive infrastructures. Technology Modernization: We’ve witnessed clients transforming their operations to stay competitive, integrating modern systems effortlessly with other platforms, yielding a competitive edge in their respective markets. Informed Decision-making: By providing a clear and data-driven roadmap, we’ve empowered clients to make evidence-based decisions, fostering alignment amongst stakeholders. Future-Proofing the Business: Our roadmap has enabled businesses to stay ahead, anticipating emerging technological trends and ensuring their strategies remain relevant amidst rapid changes. In essence, a remediation and investment roadmap crafted from a periodic technology due diligence assessment offers businesses a clear, actionable, and strategic path forward. With our expertise and hands-on involvement, we’ve ensured that organizations are optimally positioned for success in both the immediate and distant future.  Those organizations that committed to our technology assessment recommendations have not only become more appealing to investors but have also significantly improved their customer experiences, leading to higher retention rates.

Sep 16, 2023
Maryland
Business Value Transfer

ERP Software Methodology to Avoid Business Disruptions

Dan Kaplan of SMC Data Systems is a member of XPX New York
Dan Kaplan
SMC Data Systems
1 year ago

  Methodology to Avoid Business Disruptions        A business requirements study is conducted before the software implementation begins.  The legacy software database is transferred to the test environment and verified daily for accuracy. Once test-environment data is verified for accuracy the step below will be taken. End users are trained in the test environment that has data with which they are familiar Software Implementation Project managers are assigned to each department i.e., accounting, warehouse, and purchasing. Data accuracy verification in the test environment eliminates the need to run parallel software. Prior to going live with the new ERP-Software, users’ proficiency is determined. To ensure successful going live with new software, training and technical staff remain on site.   Client’s Return-on-Investment Imperial Dade: Foodservice and Janitorial Supply The business grew through M&A integrating the acquired company’s software into the VAI ERP Software 100% ROI Payback in 1.1 years Savings: $ 1,194,353 Black River: Produce Distributor 45% ROI, Payback in 2.3 years Savings: $ 1,188,529 Autumn Harp: Cosmetics Manufacturer Boosted Productivity and Reliability Saved $100,000 in one year Dorcy International: Warehouse Automation Increased Efficiencies and Productivity Dropped from a $170,000 variance to less than $5,000 in one year SMC Data Systems,  Integrated ERP Software,

May 20, 2023
New York
Business Value Growth

Supply Chain Software Upgrade

Dan Kaplan of SMC Data Systems is a member of XPX New York
Dan Kaplan
SMC Data Systems
1 year ago

The Steps Below Should be Taken to Prevent the Need for Running Parallel Software  Before the project starts, a business requirements study should be conducted. At each day end, the data should be transferred to the new software test environment. Transferred data should be verified on daily basis for accuracy. This data verification eliminates the need to run parallel software. The end users should be trained in the test environment. Project managers should be assigned to each department.     Prior to going live, users’ proficiency should be determined. The training and technical staff should remain on site to ensure successful going live. VAI Client’s Return-on-Investment Imperial Dade: Food service and Janitorial Supply Business grew through M&A integrating the acquired company’s software into the VAI ERP Software 100% ROI Payback in 1.1 years Savings: $ 1,194,353 Black River: Produce Distributor 45% ROI, Payback in 2.3 years Savings: $ 1,188,529 Autumn Harp: Cosmetics Manufacturer Boosted Productivity and Reliability Saved $100,000 in one year  Dorcy International: Warehouse Automation Increased Efficiencies and Productivity Dropped from a $170,000 variance to less than $5,000 in one year ERP Software Benefits Cloud or Server Options are available VAI ERP software source code is provided and easily customized to meet your various business needs rather than changing your business model to meet the ERP Software requirements Ability to buy unlimited users Integrates with various vendors’ software applications lowering operating costs and improving bottom-line profit Designed for mid-market manufacturing, distribution, and food companies that need fully integrated ERP software Customers’ success stories

Apr 19, 2023
New York
Member News

Managing Today’s Reality of Excess Inventory

Dan Kaplan of SMC Data Systems is a member of XPX New York
Dan Kaplan
SMC Data Systems
1 year ago

The Domino Effect of Having Out-Dated Software Systems.   Not having real time information on the fast-moving products. Not having accurate information of the inventory level in multiple locations. No method of tracking Vendor Reliability of ON-TIME deliveries.   What are the Results of Excess Inventory? Late shipments will result in production disruption. Order cancellations will result in excess inventory. Reduction of Profit from reduced sales price to move excess inventory. Cash on hand reduced as funds are tied up in unsold inventory.   How to Manage the above issues! Replace the outdated software with real time software needed to: Better manage everything related to sales and inventory   The Benefits Resulting from Real Time Software! Understanding inventory turns to maximize inventory at item levels. Knowing Vendor Reliability to achieve better product availability! Understanding the inventory availability when managing multiple locations.   Customers’ success stories

Apr 19, 2023
New York
Member News

Will ChatGPT Replace My Brain?

Dina Wasmer of Incite Creative is a member of XPX Maryland
Dina K. Wasmer
Incite Creative
1 year ago

Yea, a headache that’s a good example. A headache is a symptom, but the problem could be from lack of sleep or food or a myriad of other things. So what do most people do? Grab a couple of Motrin to try to help alleviate the symptom instead of using their brain and asking, “When was the last time I ate. Oh, it was eight hours ago. I betcha, that’s why I have a headache. Maybe I should eat something.” So is ChatGPT a good thing or a bad thing? As you can see, we had some fun writing this article. As for ChatGPT, we think it’s a good thing, but the jury is still out on how much it will help or hinder certain human behaviors, how much reliance people put into it using it as a crutch instead of tapping into their own creativity, how it will be regulated for authenticity, and if it will just push us all further into our devices instead of bringing us closer together. If, however, it’s used to help us be more creative and more productive together without losing everything that makes us human (sense of humor, diverse perspectives, truly, etc.), and our brands stand for something truly unique, I’m all for it. So go. Explore 

Feb 1, 2023
Maryland
Practice Tips

5 KEY POINTS WHEN PURCHASING SOFTWARE

Albert Carrion of Richards, Rodriguez & Skeith, LLP is a member of XPX Austin
Albert A Carrion
Richards, Rodriguez & Skeith, LLP
1 year ago

Businesses spend thousands of dollars a year on software and SaaS system purchases and upgrades, yet continue to fall into the familiar trap of immediately signing pre-printed or online “form” license agreements designed to protect the vendor, not the purchaser.  Some of these “form” agreements are non-negotiable but many can be modified upon request.  From the perspective of the purchaser, here are five important points to consider before signing:   Permitted Users. How is this term defined? Workforces are increasingly made up of independent contractors, “temp” hires and even volunteers.  Is use of the software limited only to “employees” of the purchaser? What if the “users” are actually employed by a corporate affiliate or management company?  Tailoring standard “user” language to suit your particular situation can avoid problems later if there is a software user audit.   Training & Support. Is the support more than a helpdesk?  Is support personnel locally available if you need onsite help?  Is training included in the license fee and if so, how many hours? Is it provided onsite or remotely?  Negotiating adequate support and training is essential especially if the system is “mission critical” to the purchaser’s business.   Security & Encryption. Does the system comply with the security or encryption requirements required in your industry?  Ask the vendor to include a warranty to that effect and that your data will be stored and transmitted in a compliant manner.  It is not a good sign if the vendor appears unsure of the requirements or unwilling and you should probably look to other vendors.   Indemnity. An indemnity protects you if someone claims that your use of the system violates their intellectual property rights. An indemnification clause typically requires the vendor to either settle the claim or pay to provide a legal defense for the customer.  Having a properly worded clause in the license can help the purchaser avoid costly attorney’s fees affiliated with defending itself in a lawsuit, and require the vendor to fund a settlement or pay any damages awarded to the claimant.   Assignability. If a reorganization, merger or sale of the company occurs, it is important for the purchaser to have the ability to freely assign its rights under the license without the vendor’s consent. Negotiating these exceptions to a “no assignment” clause can prevent headaches later on, such as vendor delays in providing the consent, “consent” fees or a renegotiation of rates.     Albert Carrion Partner Richards Rodriguez & Skeith LLP 816 Congress Avenue, Suite 1200 Austin, TX 78701 Direct:  512.391.8201 Gen:  512.476.0005 acarrion@rrsfirm.com

Aug 22, 2022
Austin
Practice Tips

Ryan Leo, Big Fish Technology, and Scott Siegel, Beacon Sales Advisors and Momentum CPG on “ProfitSense”

Bill McDermott of The Profitability Coach is a member of XPX Atlanta
Bill McDermott
The Profitability Coach
2 years ago

Ryan Leo, Partner at Big Fish Technology, and Scott Siegel, Founder of Beacon Sales Advisors and Momentum CPG, joined host Bill McDermott on this episode of ProfitSense with Bill McDermott.  Ryan discussed managed service providers, how they came about, how to know when you need one, and the background beyond the Big Fish Technology name. Scott discussed his deep experience in sales, how Beacon equips companies to stay competitive through being efficient and effective, creating a roadmap to success, what that success looks like, and much more. ProfitSense with Bill McDermott is produced and broadcast by the 

Apr 26, 2022
Atlanta
Business Value Growth

HOW APPLE’S IOS 15 PRIVACY FEATURE WILL FUDGE UP YOUR EMAIL OPEN RATE DATA & WHY YOU SHOULD CARE

Dina Wasmer of Incite Creative is a member of XPX Maryland
Dina K. Wasmer
Incite Creative
2 years ago

In this vast and ever-changing world of technology, gobs of email service providers (ESP) exist. The most common include Gmail, Outlook, Apple Mail, and Yahoo. And there are even some AOL users still out there. And come September 15, 2021, Apple will throw us all a curveball. But Before we Tackle Apple, Let’s Start with a Little Email Context As far as who uses what ESP, it’s a combination of the device (desktop or mobile – such as a phone or tablet), if it’s for business or personal use, as well as personal preference. For example, my professional career started as a graphic designer, and I was weened on Apple products and Apple Mail. To this day, I still own an iMac and a MacBook. However, after a few iPhones, I was coerced to the “dark side” and gave Androids a try. I liked the features better (particularly the camera) and have never looked back. As a result, I embraced Gmail as my ESP. Doing so made sense since, as a company, we started using other Google Cloud-based products available in Google Drive. And if you’re curious, my current phone is a Samsung Z-Fold. Very cool! But I digress. Although unnecessary, most mobile device users align their email service provider with their operating system. For example, if you have an Apple iPhone, you use Apple Mail to send and receive emails more than likely. These run off of your mobile operating system — Apple iOS. The Evolving Operating System Operating systems have evolved from slow and expensive to extremely fast and relatively inexpensive. As technology and user needs evolve, so make the demands of the operating system. But, of course, competition over market share plays a significant role too. Apple iOS is the second-most popular mobile operating system, second only to Android. In today’s privacy-driven climate, operating systems are empowering users to be the master of their domain — to control their user preferences, including locking down their data. third-party cookies and a widespread crackdown on data privacy across the board, and it’s making it harder and harder to reach your target audience. How Will the Privacy Feature Affect my Email Marketing? As part of your overall personalization at all stages of the customer journey. What Should You Do in Response? While the privacy crackdown will be challenging to navigate around, all is not lost. First, this change won’t impact all email readers. The other 65% of non-Apple Mail users will remain unchanged. HubSpot, or the use of tracking URLs, you can determine how much traffic came to your website from each email you send – or which pieces of content sent the most visitors to your site. The More You Know, The More You Can Grow Technology and privacy laws will continue to evolve and present challenges to marketers. But instead of throwing up your hands and saying, “Oh well,” it’s best to stay informed and focus less on gimmicks and tricks to teasing out opens. Instead, spend your time productively and focus on understanding your target audience — what they think, what they feel, what they need, what they want, and what you can offer them, even if it’s not what you sell or what will make you money right now. I know, I know…it’s a crazy thought. But by being patient and providing valuable content, you will earn their trust, earn their email inbox, and ultimately earn their business. If you need help, give us a call. About Incite Creative, Inc.: 

Aug 30, 2021
Maryland
Business Value Growth

Popular

What's Trending

Explore more

A Dozen Questions to Begin the Exit Planning Discussion

Larry Gard of Hamilton-Chase Consulting is a member of XPX Chicago
Larry Gard
Done With Work Retirement Coaching and Consulting
13 hours ago

As an advisor, your role is to help clients prepare to exit their business, yet many people resist thinking about the future because it involves so many unknowns, decisions, and choices.  And emotions typically complicate matters further, sometimes derailing the process altogether.  Here are some questions that can help you establish rapport with your clients, learn more about their concerns, and move the conversation forward. How are you feeling about your work/profession/business these days? Which aspects of work are you still enjoying, and which are you ready to leave behind? Do you envision retiring from work at some point, or are you contemplating an encore career? What part of planning for your future feels most challenging? How do you imagine your life in retirement will be different from how it is now? What process are you using to figure out what you’ll do next after you retire? What would you like to see happen with your business long term? What options have you considered for the transfer of your business? What steps have you taken to make your business more attractive to a potential buyer? What are your concerns about transitioning your firm to new ownership? What would be your ideal scenario for transitioning out of your company? What topic(s) have we touched on today that we should put on our agenda to revisit? So, what happens after you pose a few of these questions and your clients open up about emotional matters?  Remember, the most helpful thing you can do is to listen attentively.  You’ve created a valuable opportunity for them to talk about things they may not share with other advisors.   Here are some tips for managing the conversation when clients raise emotionally loaded topics: Don’t try to “fix things” by immediately offering suggestions. Doing so sends the message that you’re uncomfortable hearing their concern.  You can offer suggestions but do so later. Don’t say anything that conveys the message that their feeling or concern is unwarranted. “There’s really no need to feel that way” or “I’m sure it will be just fine” may sound reassuring to you but could be experienced as dismissive by your client. Don’t immediately offer a logical counterpoint to your client’s emotion. Remember, feelings don’t have to make sense; they’re “as is”.  Put another way, if feelings made sense, they would be thoughts. People report concerns and characterize their feelings differently from one another, so it’s in your best interest to seek amplification and clarification by inquiring as follows . . . “I want to make sure that I understand exactly what you mean by ___.  Can you tell me more?” “People sometimes mean slightly different things when they talk about ___.  What does ___ mean for you?” “Before I suggest anything, I’d like to learn more about it from your perspective.” It’s possible that during early conversations your client may hint at mixed feelings about exiting their business.  That’s perfectly normal, but you need to bring it out into the open.  You want to foster an atmosphere such that your client keeps you apprised about where they’re at.  If they keep their ambivalence to themselves, it has greater potential to blindside you and complicate the sale.  You can say: “In my experience, it’s normal to have some mixed emotions about selling.  Those thoughts may not always be top of mind, but when they do pop up let’s be sure to talk about them.  Believe it or not, they can help inform our process and alert us to aspects of the sale that are important to you.” You may also find that your client is overly risk averse.  If so, consider saying the following: “Our work together won’t be comprehensive if we only plan for what could go wrong.  That’s just half the equation.  It’s fine to be conservative and err on the side of caution, but to be truly realistic we should also consider a range of possibilities both good and bad.”   Author’s Note:  The concepts in this article are derived from Robert Leahy’s book, Overcoming Resistance in Cognitive Therapy.  New York:  Guilford

Jul 26, 2024
Chicago
Practice Tips

Southern States Fight Back Against Union Wins in South

Robert Brody of Brody and Associates, LLC is a member of XPX Tri-State
Robert G. Brody
Brody and Associates, LLC
1 day ago

For five decades, the southern United States has been an attractive location for automakers to open plants thanks to generous tax breaks and cheaper, non-union labor. However, after decades of failing to unionize automakers in the South, the United Auto Workers dealt a serious blow to that model by winning a landslide union victory at Volkswagen. In an effort to fight back, three southern states have gotten creative: they passed laws barring companies from receiving state grants, loans and tax incentives if the company voluntarily recognizes a union or voluntarily provides unions with employee information. The laws also allow the government to claw back incentive payments after they were made. While these laws are very similar, each law has unique nuances. If you are in an impacted state, you should seek local counsel. In 2023, Tennessee was the first state to pass such a law. This year, Georgia and Alabama followed suit. So why this push? In 2023, the American Legislative Exchange Council (“ALEC”), a nonprofit organization of conservative state legislators and private sector representatives who draft and share model legislation for distribution among state governments, adopted Tennessee’s law as model legislation. In fact, the primary sponsor of Tennessee’s bill was recognized as an ALEC Policy Champion in March 2023. ALEC’s push comes as voluntary recognition of unions gains popularity as an alternative to fighting unions. We recently saw this with the high-profile Ben & Jerry’s voluntary recognition. Will this Southern strategy work to push back against growing union successes? Time will tell. Brody and Associates regularly advises its clients on all labor management issues, including union-related matters, and provides union-free training.  If we can be of assistance in this area, please contact us at info@brodyandassociates.com or 203.454.0560.  

Jul 25, 2024
Tri-State
Business Value Growth

My Interview with Jerry West on Management

John Dini of The Exit Planning Coach is a member of XPX San Antonio
John F Dini
The Exit Planning Coach
2 weeks ago

I once had the thrill of interviewing Jerry West on management. He was “The Logo” for the NBA, although back then they didn’t advertise him as such. Only the Laker followers knew for sure. In 1989 the “Showtime” Lakers were coming off back-to-back championships.  Pat Riley was a year away from his first of three Coach of the Year awards. 

Jul 9, 2024
San Antonio
Owner Life & Legacy

Can You Offer too Many Product Versions to Your Customers?

Steven Lustig of Lustig Global Consulting is a member of XPX Atlanta
Steven Lustig
Lustig Global Consulting
2 weeks ago

Can you Offer Too Many SKUs to Your Customers? The short answer is YES! A SKU, or Stock Keeping Unit, defines each different product version that you sell and keep inventory of.  There may be different SKUs of the same overall item based on size, color, capacity (think computer or cellphone memory), features, and many other parameters.  For build to forecast businesses, that number of variations can quickly explode and become difficult to manage. Your customers are busy and want ordering simplified. Of course, they may need (or want) more than one variation of a product. That is reasonable and a common aspect of business – one size does not fit all! But there is a point where too offering too many SKUs is not value added either for your customer or your business.  In his April 30, 2013 article “Successful Retailers Learn That Fewer Choices Trigger More Sales” in Forbes, Carmine Gallo discusses his experience and a study about “choice overload” by other authors. He writes about a retailer that “has discovered that giving a customer more than three choices at one time actually overwhelms customers and makes them frustrated…when the customer is faced with too many choices at once, it leaves the customer confused and less likely to buy from any of the choices!” Choice overload is well-documented in consumer studies but can apply in B2B as well. While customer satisfaction is important, another key concern is the often-hidden costs associated with a business offering and managing a large number of SKUs for a given product type. These costs include holding inventory, S&OP (Sales and Operations Planning) team time, small production runs, and scrapping inventory. Holding inventory takes up space, which may come with a cost or utilize racks that could be used for other products. Scheduled inventory counts take up employee time and may result in blackout periods when the warehouse is not shipping product.  The more SKUs there are, including extra SKUS, the greater the potential impact. The Sales team’s forecasting and the Operations team’s purchasing reviews that are part of the S&OP process can occupy more of their valuable time if they need to consider these times. If small orders or forecasts require a new production run, this could be costly and create excess inventory. Whether from this new production or past builds, eventually it will make sense to write off and scrap old inventory, another cost impact to the company. How do you know which SKUs to focus on if you wish to look at reducing your total number of SKUs? Start by examining SKUs that have: Low historic sales over a period of time Small variations between SKUs that customers do not value Older technology or model when newer option SKUs are available This requires a true partnership between Sales and Operations. It starts with educating both teams on the costs involved – neither group may be aware of the money and time impact to the company. Periodic (such as quarterly) reviews of SKUs that meet the above descriptions should become a fixed part of the calendar. A review of the data and other available for sale options should result in the identification of SKUs which may not be needed. At that point, it is helpful to have a customer friendly EOL (End of Life) Notice process by which you inform customers of last time buy requirements for this SKU and alternates available. It is usually best to provide some time for the last time buy in the interest of customer satisfaction, although that may not always be necessary. At a company that designed and sold electronics, a robust SKU rationalization process was implemented to help address these issues. A representative from the Operations team analyzed SKUs that met a version of the above criteria and suggested candidates for the EOL process. Next, a member of the Sales team reviewed them and, where appropriate, issued product change or EOL notices to customers, providing them time for last time buy orders when needed. These steps helped reduce the work involved in maintaining these SKUs while not leading to any customer complaints. A final note – sometimes it makes sense to continue offering low selling SKUs – to support customers buying other items (hopefully in larger quantities). It may be worthwhile to encourage them to keep coming back to you for all of their product needs and this may be a way to accomplish that. But it helps to understand that this is truly the case and not assume that this customer would not be equally happy with another, more popular, SKU.   Steven Lustig is founder and CEO of Lustig Global Consulting and an experienced Supply Chain Executive.  He is a recognized thought leader in supply chain and risk mitigation, and serves on the Boards of Directors for Loh Medical and Atlanta Technology Angels.

Jul 9, 2024
Atlanta
Business Value Growth

Owners are a Minority

John Dini of The Exit Planning Coach is a member of XPX San Antonio
John F Dini
The Exit Planning Coach
3 weeks ago

When it comes to careers, business owners are a minority of the population. In conversations this week, I mentioned the statistics several times, and each owner I was discussing it with was surprised that they had so few peers. According to the Small Business Administration (SBA), there are over 33,000,000 businesses in the US. Let’s discount those with zero employees. Many are shell companies or real estate holding entities. Also, those with fewer than 5 employees, true “Mom and Pop” businesses, are hard to distinguish from a job. The North American Industry Classification System (NAICS) Association, lists businesses with 5 to 99 employees at about 3,300,000, and 123,000 have 100 to 500 employees (the SBA’s largest “small business” classification.) Overall, that means about 1% of the country are private employers. Owners are a small minority, a very small minority, of the population. Even if we only count working adults (161,000,000) business owners represent only a little more than 2% of that population. So What? Where am I going with this, and how does it relate to our recent discussions of purpose in business exit planning? It’s an important issue to consider when discussing an owner’s identity after transition. Whether or not individual owners know the statistics of their “rare species” status in society, they instinctively understand that they are different. They are identified with their owner status in every aspect of their business and personal life. At a social event, when asked “What do you do?” they will often respond “I own a business.” It’s an immediate differentiator from describing a job. “I am a carpenter.” or “I work in systems engineering,” describes a function. “I am a business owner” describes a life role. When asked for further information, the owner frequently replies in the Imperial first person plural. “We build multi-family housing,” is never mistaken for a personal role in the company. No one takes that answer to mean that the speaker swings a hammer all day. Owners are a Minority We process much of our information subconsciously. If a man enters a business gathering, for example, and the others in the room are 75% female, he will know instinctively, without consciously counting, that this business meeting or organization is different from others he attends. Similarly, business owners accept their minority status without thinking about it. They expect that the vast majority of the people they meet socially, who attend their church, or who have kids that play sports with theirs, work for someone else. There are places where owners congregate, but otherwise, they don’t expect to meet many other owners in the normal course of daily activity. This can be an issue after they exit the business. You see, telling people “I’m retired” has no distinction. Roughly 98% of the other people who say that never built an organization. They didn’t take the same risks. Others didn’t deal with the same broad variety of issues and challenges. Most didn’t have to personally live with the impact of every daily decision they made, or watch others suffer the consequences of their bad calls. That is why so many former owners suffer from a lack of identity after they leave. Subconsciously, they expect to stand out from the other 98%. “I’m retired” carries no such distinction.       This article was originally published by John F. Dini, CBEC, CExP, CEPA on

Jul 1, 2024
San Antonio
Owner Life & Legacy
Previous
Next

Explore the Knowledge Exchange

Search
Make XPX Part of Your Business Plans
Attend an event
Join a chapter
Start a chapter
Find an advisor
Explore
Learn
Account
Connect
Help & Support

© 2024 XPX Global LLC.          Privacy Policy         Norms & Principles          Site Map           Terms of Use

Paper-plane Linkedin Youtube

© 2024 XPX Global LLC. All Rights Reserved.