Tom Magen has looked at a lot of companies in his time as a businessman. What Tom Magen has noticed is that a lot of family businesses are not well prepared to attract outside investment. Tom Magen believes that if private/middle market businesses spent more time preparing their business before seeking investors, they would be more successful.
Many businesses don’t do some fundamental things.
Do they create an annual operating plan and break it down by month? Sounds simple, but he has seen a lot of companies who don’t. Have they developed Key Performance Indicators (KPIs) There is a dashboard of metrics that need to be created for every business and great businesses hone that down to 5–7 things that really matter. They then monitor them rigorously because they have discovered that these things drive their business.
