E218: Nathan Lenahan Discusses Hiring Operators for Small Businesses - Watch Here

About the Guest(s):

Nathan Lenahan is an experienced entrepreneur and former military professional. After serving in the army for six years, including multiple tours in Iraq, Nathan pursued a career in real estate investing and obtained an MBA from the University of Texas at Austin. He has since started and sold multiple companies, including a property management company and a tech-enabled real estate brokerage. Nathan is currently the owner of Bart's Heating and Air, an HVAC company, and the founder of Smooth Operators, a recruiting service that helps small and medium-sized businesses find skilled operators. With his extensive experience in hiring and acquisitions, Nathan is passionate about helping business owners find the right talent to drive growth and success.

Episode Summary:

In this episode, Nathan Lenahan discusses his journey from the military to entrepreneurship and shares his expertise in mergers and acquisitions. He highlights the importance of understanding the different phases of a business and hiring the right operators to drive growth. Nathan also introduces his recruiting service, Smooth Operators, which focuses on connecting business owners with skilled operators in the blue-collar industries. He emphasizes the significance of clear communication, setting expectations, and building trust in the hiring process. Nathan provides valuable insights into the challenges and strategies involved in acquiring and growing businesses, offering practical advice for both buyers and sellers.

Key Takeaways:

• Hiring the right operator is crucial for the success of a business acquisition. Understanding the owner's needs, preparing the role for success, and aligning incentives are essential factors to consider.

• Identifying the right operator involves assessing their experience, skills, and mindset. Different operators excel in different phases of a business, such as startup, growth, or maintenance. Matching their strengths with the company's needs is key.

• Building trust and open communication with operators is vital. Clear expectations, ongoing feedback, and a supportive work environment contribute to a successful partnership.

• The staffing industry offers opportunities for growth and acquisition. Nathan's company, Smooth Operators, focuses on connecting business owners with skilled operators in blue-collar industries, such as HVAC, plumbing, and electrical.

• When acquiring businesses, it is important to have a clear growth strategy. Organic growth through expanding services or geography, as well as strategic acquisitions, can help achieve growth targets.

Notable Quotes:

• "If you're not willing to operate the business yourself, don't buy it." - Nathan Lenahan

• "Behavior follows incentive. Make sure you align incentives with the desired behavior." - Nathan Lenahan

• "Knowing who you are makes it easier to attract who you want." - Nathan Lenahan

Article:

How to Successfully Acquire and Operate Small Businesses: Insights from Nathan Lenahan

Key Takeaways:

• Knowing who you are as an acquirer and as a company is crucial in attracting the right people and making successful acquisitions.

• When acquiring a business, focus on giving a fair price, taking care of the employees and customers, and honoring the legacy of the previous owner.

• When hiring an operator, be clear about your expectations, know what great looks like, and ensure that you are ready to let go and delegate responsibilities.

Introduction

Acquiring and operating small businesses can be a challenging yet rewarding endeavor. In this thought leadership article, we will explore the insights and experiences of Nathan Lenahan, an entrepreneur with a background in mergers and acquisitions. Nathan shares his journey from the military to the business world and provides valuable advice on how to navigate the complexities of acquiring and operating small businesses.

The Importance of Knowing Who You Are

One of the key lessons Nathan emphasizes is the importance of knowing who you are as an acquirer and as a company. This self-awareness plays a crucial role in attracting the right people and making successful acquisitions. By understanding your values, mission, and goals, you can effectively communicate your vision to potential sellers and employees.

When acquiring a business, Nathan suggests focusing on four key aspects: giving a fair price, taking care of the employees and customers, and honoring the legacy of the previous owner. By offering a fair price and favorable terms, you can build trust and ensure a smooth transition. Taking care of the employees and customers demonstrates your commitment to maintaining the business's reputation and success. Finally, honoring the legacy of the previous owner shows respect and appreciation for their hard work.

Hiring the Right Operator

Hiring the right operator is crucial for the success of any business acquisition. Nathan advises being clear about your expectations and knowing what "great" looks like in the role you are hiring for. By writing a detailed job description and understanding the skills and qualities you are looking for, you can attract the right candidates.

In addition to technical skills and experience, Nathan highlights the importance of hunger and motivation in an operator. A candidate who is driven, money-motivated, and willing to work hard is more likely to be successful in a leadership role. However, it is essential to strike a balance and ensure that the candidate aligns with your company's culture and values.

The Challenges of Acquisitions

Acquiring and operating small businesses is not without its challenges. Nathan acknowledges that there will be times when the owner needs to step in and take on operational responsibilities. It is crucial for the acquirer to have a deep understanding of the business and be prepared to handle various roles and challenges.

Communication and setting clear expectations are key to overcoming these challenges. Regular check-ins with the operator and open dialogue about any issues or concerns can help address problems before they escalate. By fostering a culture of transparency and accountability, the acquirer can build a strong foundation for success.

Conclusion

Acquiring and operating small businesses requires careful planning, self-awareness, and effective communication. By knowing who you are as an acquirer and as a company, you can attract the right people and make successful acquisitions. Hiring the right operator involves setting clear expectations, understanding what "great" looks like, and ensuring a cultural fit. Challenges will arise, but with open communication and a proactive approach, these challenges can be overcome.

Nathan Lenahan's insights provide valuable guidance for anyone looking to enter the world of mergers and acquisitions. By applying these principles, you can increase your chances of success and create a thriving business.

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