You don’t know what you don’t know 📃

It’s easy to get sucked into the way you do things as a business owner. It’s the age old “we’ve always done it this way” mantra.

Often, when we acquire a company at Winch & Co, we immediately see areas for improvement. Not because the vendor has been running the business inefficiently, but rather because they have ‘always’ done it that way, or that’s the ‘way they do things’. Or, they do it that way because it was appropriate years ago but not necessarily anymore.

In our office we call this the business owner’s wallpaper. Because they see it everyday with little thought and just accept it without regard.

For example, we are involved in a business where the previous owner was selling his trucks and buying new ones every year. Keeping his fleet new. However, the repairs when things went wrong were very high, and it tied up over a million pounds worth of capital.

We decided to change this. With our outside perspective, we saw that it made more sense to sell all the vehicles and lease brand new alternatives. We are able to add maintenance plans as part of the price and get new trucks when these ones became old. Releasing over a million pounds in the process, which could be better used elsewhere.

Because the vendor had ‘always done it that way’ he knew no different. And whilst it made sense to do that 20 years ago, now, with the price of money so low, leasing makes more sense. Allowing us to make a better return on the million pounds we are able to release.

You always need a fresh perspective on your business. Maybe you have your own wallpaper that needs change that you can’t see… 🤔

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Nathan Winch Private Investor

About The Author Nathan Winch

British entrepreneur and private equity investor with over 12 years experience. Having started, scaled and sold companies in medtech, SaaS and FMCG, Nathan’s specialities include concept commercialisation, supply chain mobilisation, acquisitions and horizontal integration.