Mastering Your Day One

Greetings Operators!

I’ve been doing a lot of calls with new acquirers recently, and so I thought I’d distill my best advice into a quick issue on how to handle your Day One.

Take a read, and let me know what questions you have! I always love getting feedback and hearing from you. Just respond to this email and it goes straight to my personal inbox!

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MACRO WATCH
Manufacturing Dropped The Ball

The economy has ‘decoupled’ in the last few years, with various components going through growth and economic pullbacks at different times.

• Consumers

• Real Estate

• Travel & Leisure

• Staples

• Manufacturing

… have all not been moving step in step. This has caused the overall “Economy”, as we call it to stay stationary while churn and volatility occur within.

For this reason, it is wise to not only monitor your business and industry, but also watch the other sectors as well. Understand what and who is strong and weak, and where the next steps might be for the nation as a whole.

And currently? Manufacturing is weak… and it has been for quite some time.

With production down and continuing to decline, this means that lower and smaller producers in the US are having to make do with less production, but most likely the same overhead and fixed costs. This means a margin squeeze on the manufacturing sector.

You can pretty much know for sure that any area where large customers are pushing this risk to smaller suppliers, there is “risk” building in the system

So what does this mean for business owners? Producers of ‘things’ are in a tough spot right now:

1. Streamline Your Workforce: If you're running a manufacturing operation, now is the time to eliminate underperforming employees and focus on upgrading your workforce. With mass layoffs happening in sectors like tech, you'll find a highly skilled labor pool ready for new opportunities. By being proactive, you can strengthen your team while others are downsizing.

2. Leverage Supplier Relationships: As a buyer from manufacturers, recognize their current struggles and use this as an opportunity to renegotiate better terms. While manufacturers may need lower prices to survive, you can take advantage by securing favorable conditions like extended payment terms or improved service levels. This strengthens your position while helping them stay afloat.

3. Capitalize on CAPEX Investments: If you're considering capital expenditures or upgrades for your business, now is an ideal time. With manufacturers desperate to move inventory, you may find attractive deals on equipment and upgrades. Plus, with the potential for interest rates to drop, investing now could offer long-term financial advantages.

4. Requote Your Business for Better Pricing: As a customer of manufacturing producers, this is the perfect moment to reevaluate your contracts. Manufacturers are likely offering their lowest prices to retain business, so requote your needs and see what terms they present. It’s an opportune time to reset relationships and lock in more favorable pricing for the future.

Every part of the business cycle affords massive opportunities to prepared business owners.

• Recessions allow a slowdown to rebuild process and strength operations, to grab marketshare, to find people who can help at a later time, and assets available at better prices

• Expansions allow a company to profit from its increased customer base, its stronger operations, and to maximize its assets. It allows a business to build a cash buffer which it can then deploy in the next recession to repeat the process.

For this reason, its important to monitor a few key aspects so you know when to hire and when to cut poor performers, when to lean out inventory, when to invest and when to stockpile.

AI IN BUSINESS
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• research,

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Check out this video where I show a quick demo on using Otto Grid analyze 1-on-1 meetings and give me direction on how to help that employee 👇️ 

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I have a few openings for coaching business owners on building a scalable operation.

If you are feeling overwhelmed, forcing you to be reactive, let’s set up a time to see if I can help.

The reality is, you should be running the business, the business shouldn’t be running you… and I can help you get there.

THIS WEEK
A Few Things You May Have Missed

MAIN ISSUE
Day One: The Make-or-Break Moment for New Business Owners

You've just acquired a new business or stepped into the CEO role. Congratulations! But before you pop the champagne, let's talk about the first and largest hurdle you’ll have to cross… Day One.

The truth? Your first day could make or break your entire tenure.

Imagine this: You walk in, brimming with ideas, only to find a resistant team, unclear financials, and processes that make no sense. Months pass, and you're still struggling to gain traction. Your grand plans? Gathering dust. Your investors? Getting antsy. Your confidence? Fading fast.

This isn't just a nightmare scenario - it's the reality for far too many new business owners and CEOs who underestimate the critical importance of Day One.

But it doesn't have to be your story.

Today, I'm going to show you how to turn your Day One into a launchpad for transformative success.

Preparation: Your Secret Weapon

Before you even step foot in the office, you need two things locked and loaded:

a) Your Value Creation Plan

• Identify key levers: sales increase, margin expansion, product development

• Example: For a manufacturing business, consider:

  • Implementing lean principles

  • Developing new product lines

  • Investing in automation

  • Establishing strategic partnerships

b) People and Skills Assessment

• Map out existing talent and skill gaps

• Prioritize character traits: urgency, accountability, excellence, curiosity

• Remember: Skills can be taught, character is inherent

Day One: Embrace the Chaos

Forget "do no harm." You're here to create value, not maintain the status quo.

Key Strategies:

• Make bold changes

• Communicate clearly

• Open lines for feedback

Sample Day One Speech Segment:

Swift Action: The 72-Hour Window

You have a brief window to make critical moves without eroding trust. Use it wisely.

Priority Actions:

• Conduct one-on-ones with all employees

• Make necessary personnel changes

• Realign roles and responsibilities

👉️ Tip: Record your meetings. You'll gather insights you won't get a month from now.

Vision Casting: Unite and Ignite

Set the tone for your entire tenure by articulating a compelling vision.

Components:

• Clear mission and objectives

• Common "enemy" to rally against

• Exciting future to work towards

• Core values and attitudes

Example:

Financial Realignment: The MVC Approach

Define your Minimum Viable Company (MVC) and staff accordingly.

Steps:

• Determine essential roles for basic operation

• Calculate sustainable compensation levels

• Implement performance-based incentives

Be transparent:

Intelligence Gathering: Ask the Right Questions

Extract valuable insights while you have the 'new guy' advantage.

Key Questions:

• "If you were doubling this company's size, what would you do differently?"

• "What's the dumbest thing we're currently doing?"

• "What small change would improve your work life immediately?"

The Four Critical Audits: Your First Week's Mission

Conduct these audits to prevent future crises:

a) Price Audit

• Examine pricing structure

• Ensure unit profitability

• Check market competitiveness

b) Process Audit

• Identify inefficiencies

• Streamline operations

• Reduce waste

c) People Audit

• Align talent with your Value Creation Plan

• Address skill gaps

• Make tough decisions quickly

d) Cost Audit

• Review vendor relationships

• Negotiate better terms

• Optimize cash flow

👉️ Remember: These audits are not one-time events. Schedule regular reviews to stay ahead of potential issues.

Your Day One isn't just another day at the office - it's the foundation of your legacy as a business leader. By embracing change, communicating clearly, and taking swift, strategic action, you set the stage for transformative success.

The challenges are real, but so are the opportunities. Armed with these strategies, you're ready to turn your Day One into Day Won.

CONCEPT CORNER
Understanding & Targeting Your Core Customer

Tailoring your business to your core customer allows you to:

• increase your margins

• spend less money

• grow faster

• experience higher employee satisfaction

• build a better brand

• have more satisfied customers

Check out the video below and grab the questions and analysis to help you find yours today!

Get your 40+ page guide here: Operator’s Guide to Finding Your Core Customer