Jay Sachetti joined Jeff O’Brien, partner at Husch Blackwell and Dyanne Ross-Hanson, president of Exit Planning Strategies talked about the market for mergers and acquisitions, exit planning opportunities for companies that don’t end up for sale and how companies can maximize their eventual sale price during an early October panel at the first Upsize on Tap event at Summit Brewing Co. in St. Paul.
When the state Legislature passed a law requiring employers to provide paid leave and safe time for employees, Justin Bieganek started hearing differing details from friends, colleagues and peers.
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HUMAN RESOURCES
DEAR INFORMER: We have five partners who own and operate a retail store that’s about a year old. Things were OK at first, but now we’re fighting about the littlest things. Can you help?
DEAR FIGHTING: With five partners on top of the stresses of starting a business, it’s a wonder you’re all still standing. Bridget Davis, a founder of Human Capital Group in Edina, says that it’s time to start defining each person’s role, and airing each person’s point of view someplace other than behind everyone else’s back.
“You probably need to have what I call a come-to-Jesus meeting,” says Davis. “I recommend having a neutral party there. It can be somebody with an HR background, or it can be somebody who is more strategic, somebody who helps new businesses get off the ground. There are change management advisers, trainers, that can come in and facilitate these types of conversations.”
“The catch is, all five of them have to be willing to participate,” she says. It’s very common for business partners to fight, “particularly if they’re working a million hours, they’re not taking salary. Stress is a big part of it,” Davis says.
She recommends job descriptions for each partner, outlining who’s responsible for what and to whom they’re accountable. “Is one going to drive operations and one going to drive sales? A job description is a great way to do that so everybody knows what to do,” Davis says.
The underlying issue for these owners is the uncertain future of the business. Davis says to get it on the table and have each person name a drop-dead date, that is, the date by which certain financial objectives need to be achieved. Each can agree on a timetable, then check back in to see how the business is progressing.
“You almost have to say, I’m going to give it 18 months and that’s it, or I’m going to give it 12 months and then re-evaluate,” Davis says. “It’s a very emotional thing. I felt it in my own business. You ask, how long can I survive, one more month, one more month?”
She says she’s not surprised problems were flaring around the holidays. “Everybody has financial burdens around the holidays, emotional burdens. That adds to this,” Davis says.
Bridget Davis, Human Capital Group: 952.926.3300; ****@****************up.com“>bd****@****************up.com
FINANCE
DEAR INFORMER: I am a Realtor/Web-ezine owner, trying to figure out the best way to find a small-business loan, to find an office for my real estate and also open an art gallery. I do not have the best credit because of a broken back about five years ago. I lost everything and am only now trying to rebuild my life.
DEAR TRYING: Congratulations on fighting back after your injury. Finding financing will not be easy, but Christine Pigsley offers some specific and general resources. She’s the new business development director for WomenVenture in St. Paul.
“For people who have been injured and remain disabled, there are a whole host of programs, loans and grants, that are available,” Pigsley says. She recommends Rehabilitation Services via the state of Minnesota. “For those individuals, self-employment has often been a wonderful lifesaver, because it allows you to change and re-tool your professional life, which is more complimentary to your health situation,” Pigsley says.
She also recommends a national nonprofit called the Abilities Fund, www.abilitiesfund.org, which makes micro-loans to people with disabilities.
Then she recommends you write a letter to potential funders explaining your situation, not going into too much detail about the health problem itself, but showing that your credit problem “was a glitch or bump in the road rather than a long-term experience,” Pigsley says. “Funders, whether they’re banks or other micro-lenders such as WomenVenture, take into consideration the life events that have happened, especially those revolving around a health crisis.”
She recommends staying away from the low-documentation Small Business Administration program, and go to an SBA program called the 7a guarantee. These loan requests are considered at a local level, rather than going to a service center in California, Pigsley says. “I think sometimes you get a little bit fairer shake, when you get somebody local who can say, I can sympathize.” The same goes for any lender: ask the amount the officer is authorized to lend, and don’t give up if one turns you down. Your loan may simply not fit into a portfolio.
Pigsley says WomenVenture and many others make micro loans, generally under $35,000 but with partners up to $100,000. Check out the SBA’s Web site, www.sba.gov. “You can put in ‘micro loan’ and you’ll get a whole list of state and nationwide programs,” Pigsley says.
Finally, she advises, make sure your business can pay back any loan. “You don’t want to be worse off after this financing,” Pigsley says. “Sometimes the passion of entrepreneurship can create rose-colored glasses to issues that should be brought up and discussed.”
Christine Pigsley, WomenVenture: 651.251.0672; ******@**********re.org“>cp******@**********re.org; www.womenventure.org
