Posts Tagged ‘buy your boss’ business; ready to move from employee to boss?’

Could You Take Over a Business If the Owner Was Closing It?

Thursday, May 25th, 2017

It now seems inevitable that when Yolanda Simonsis entered the package and converting industry in 1978 by working for a B2B publisher and within five years on a magazine as an editor-in-chief and associate publisher that she would one day establish an online magazine.  Sometimes, however, an opportunity suddenly emerges and you know it’s time. If you have entrepreneurial inclinations, Simonsis’ sudden transformation from employee to owner offers interesting insights and suggestions.

From Employee to Boss

“In August, 2011, we were advised that Paper, Film & Foil Converter magazine, which had been established in 1927, was closing along with other properties and employees would receive severance packages. In discussing our futures, three of us with long industry experience considered buying it, since the website and e-newsletter were very successful,” Simonsis explains.  “We did, and in addressing the new challenges, we have learned a lot and have been rewarded by the industry, advertisers and readers.”

By September, 2011, YTC Media, Inc. was established as the new owner of an online magazine: www.pffc-online.com. The new owners are: Yolanda Simonsis, President and Editorial Director; Timothy Janes, VP Online Sales; and Claudia Hine, VP Managing Editor.

In September, 2011, Simonsis attended an industry exhibition/conference in Las Vegas. She told attendees, including advertisers, about the new ownership and that Paper, Film & Foil Converter would no longer be a print publication.  Because PFFC had a prominent history and exhibiting participants knew and trusted Yolanda and the YTC staff, advertisers were very receptive. “They believed in us and our ability to make the new online site a success. PFFC also publishes a weekly newsletter via email. In fact, since 2011, we have increased revenues by 35% and have seen growth each year.”

Simonsis started her career in the packaging and converting industry at the former Delta Communications and immediately knew “I loved publishing, particularly trade publishing. In fact, it prompted me to seek additional training and education in publishing to prepare me for new responsibilities.”

When she and her colleagues began to set up the new YTC Media publishing company, Simonsis, Janes and Hine’s goals included maintaining their positive reputation, not disappointing staff and partners, and responding to subscribers and advertisers interests and feedback. “Our Online Buyers Guide, for example, is very popular.”

How to Purchase the Company You Work For – Simonsis’ Advice & Suggestions

  • Find a good lawyer who has experience in buying/selling in the trade publishing industry or your industry.
  • Be sure your key contributors are on-board before sharing any news about your new ownership with others. Once you are sure you have the elements in place, move on to the next step. . .
  • If you require “angel investors,” line them up before talking to your lawyer and accountant.
  • When starting out, it’s important to deliver your new message of ownership to key advertisers in person. You are asking them to place their trust in you with a monetary investment that you expect to return with a surplus of advantages.
  • Develop a reward system for those who are loyal to you as charter advertisers.
  • You don’t have to spend a ton of money in legalizing the formation of the corporation (we used LegalZoom), but you do need to do your research prior to forming the corporation in order to decide what fits your needs best. Will you form an S-Corp, an LLC, Inc., etc.? My advice is to check first with a CPA who will be doing your taxes. Tax law can make or break your fledgling company.
  • Create a detailed press release announcing your new company’s ownership and spread it far and wide. In a competitive situation, you don’t want fake news to become the reality for your potential advertisers and/or subscribers. The best scenario is to share your news at a large industry event/conference/trade show where people can ask you questions and you can provide the final word.
  • Don’t forget to take advantage of past relationships to navigate where and how to set up reliable vendors who will provide valuable services.
  • Don’t commit to using service providers whom you’ve never used in the past. Network and use your past experience to find the best vendors.
  • This is your chance to implement new concepts that will make your product better than in the past. Identify those concepts and innovations and “make them so.”
  • Constant communication is your best ally. We worked very long hours with not much sleep when starting. But, our constant communication made sure we were all on the same page. We opted for three partners, and it was the best thing we did. All of our decisions come down to majority rule. It makes the difficult decisions much easier.
  • Make customer service a priority. Go above and beyond, and people will remember.

At first the challenges of keeping track of all you must do seem endless. Keep a running list and cross off each item as it’s accomplished. This is incredibly important to make sure nothing falls through the cracks. Identify whose responsibility it is to do what. While these responsibilities may change in the future, someone must take on even the most onerous of duties at first. And you or a partner may discover that you surprisingly enjoy doing what you may have hated in the past. Somehow it’s different when you become the person in charge rather than doing work for someone else.

Rewards

It may take a good two to three years of maintaining the status quo before you start to see real growth. Don’t be frustrated. If you’re slowly but surely paying off your start-up loans and meeting your fiscal obligations, then your third or fourth year will be gratifying.