Employee’s Guide:
Approaching the Business Owner
Considering employee ownership is a significant decision for any business. Approaching the business owner about employee ownership requires careful preparation, clear communication, and a collaborative mindset.
By following our step-by-step guide and demonstrating the benefits, you can advocate for a model that offers a host of benefits to the business owner and employees.
10 steps to approaching the business owner
Step 1: Research and Preparation
Before initiating any conversations, gather as much information about employee ownership as you can. Understand the benefits, the outcome and how employee ownership can positively impact the company's culture, productivity, and financial stability. Having all this in place will help you conduct a well-balanced conversation and instil trust that you know what you are talking about. Start by looking at our Insights section to help you build these out.
Step 2: Understand the Owner's Perspective
Put yourself in the shoes of the business owner. Consider their goals, concerns, and motivations for selling or making significant changes to their business. Understanding their perspective will help tailor your approach and address any potential reservations about employee ownership. If you think they haven’t considered selling yet, you may want to avoid an approach that talks about ‘selling’ and steer the conversation more towards employee ownership in general terms, like ‘business proposal’, to gauge their interest.
Step 3: Take our readiness test
If you haven’t already, we suggest you take our quick readiness test. Answer a few simple questions about the business to see if it is in fact ready to move to employee owned. You can then take the free report to the business owner in support of your proposal.
Step 4: Schedule a Meeting
Once you feel ready and have your readiness test report. It’s time to request a meeting. Choose a time when they are likely to be receptive and have sufficient time to discuss the topic thoroughly. You may also want to consider taking a colleague for support, maybe someone from the leadership team. Clearly communicate the purpose of the meeting to ensure they are prepared. Try not to use a subject title like; “selling your business” or “retirement options”. Structure it towards the benefits of employee ownership.
Step 5: Present the Benefits
During the meeting, clearly articulate the benefits of employee ownership – use your research from Step 1. Highlight how it can align the interests of employees and the business, encourage a sense of ownership and commitment, and instil trust, so the business owner feels empowered that you and the rest of the leadership can take this on.
Here are some examples:
Offers a great alternative to a trade sale
Simpler, faster, minimal cost solution
Reduces risks associated with trade sales
Preservation of Company Legacy
Creates a more positive social, financial and economic impact
Offers a Fair Value Sale
Step 6: Address Concerns
Anticipate and address any concerns or objections the business owner may have. Common concerns may include loss of control, financial implications, or complexity of implementation. Always, offer solutions or examples to alleviate their worries. And remember the Valloop Exchange is minimal cost for the business owner as well as a simplified process, allowing everyone to stay in control and work at their own pace.
Step 7: Provide Examples and Case Studies
Support your proposal with real-world examples and case studies of businesses that have successfully transitioned to employee ownership, if they are in the same town or city – even better. Share relevant data and success stories to demonstrate the viability and positive outcomes of such a transition.
Step 8: Offer Collaboration
Emphasise that you are proposing employee ownership as a collaborative effort to strengthen the company's future. Encourage the owner to engage in open dialogue and explore potential solutions together through the Valloop Exchange platform.
Step 9: Discuss Next Steps
After presenting your case, if you feel it’s gone well discuss potential next steps or offer a follow up conversation. This may involve further research, consulting more with Valloop, or forming a small task force to explore implementation options in more detail.
Step 10: Respect the Decision
Ultimately, respect the business owner's decision, whether they decide to pursue employee ownership or not. If they choose not to proceed, remain positive and approach the subject in another 6-12 months. Circumstances change all the time so don’t be disheartened.
