Join Steve Van Diest, co-host of the Sharpen Podcast, as he dives into the intricacies of business acquisition with Jeremy Hunka, a member of the Summit team in Colorado. Jeremy, a former chemistry major turned entrepreneur, shares his journey of buying and running Summit Cabinet Coatings, a cabinet refinishing business in Northern Colorado.
In this episode, Jeremy discusses the transition from commercial real estate to owning a small business, the challenges he faced, and the importance of building trust with his new team. He offers valuable insights for both aspiring business buyers and current business owners considering selling their companies.
Discover the key criteria Jeremy looked for when purchasing a business, the significance of operational systems and company culture, and the personal growth he experienced through this entrepreneurial journey. Whether you're thinking about buying a business or preparing to sell, this episode is packed with practical advice and inspiration.
0:03 - 1:03: Steve Van Diest introduces the episode topic: buying a business, the lessons learned, and the kind of leader one becomes in the process. Guest Jeremy Hunka, who recently bought Summit Cabinet Coatings, shares his journey from being a chemistry major to entering commercial real estate and eventually buying a business.
1:03 - 5:16: Jeremy explains that Summit Cabinet Coatings specializes in cabinet refinishing in Northern Colorado. His journey began at age 27, leaving his commercial real estate job to pursue entrepreneurship. He shares that he did not come from an entrepreneurial background and initially considered other paths like ministry or teaching. His experience in real estate opened his eyes to the potential of win-win scenarios in business, leading him to explore buying a small business.
5:16 - 7:08: Jeremy wanted a business that would allow him more control over his time, especially as he and his wife looked to start a family. He aimed for a business that provided flexibility, had tangible outcomes, and met his financial needs. He avoided industries like restaurants and retail, focusing instead on businesses that made sense financially and operationally.
7:08 - 9:16: A year after purchasing the business, Jeremy reflects on the challenges of adopting an existing culture. He had to build trust with the team, as he was younger than the previous owners and had no background in cabinet refinishing. Despite these challenges, he was committed to learning and leading effectively, which helped him gain the trust of his employees.
9:16 - 13:00: Jeremy discusses the importance of trust in leadership, noting that he assumed trust would be easier to build. He spent time on-site with his team, demonstrating his commitment to learning the business and building trust through consistent presence. He reflects on how the previous owners set up a positive culture, which made the transition smoother, but also highlighted the need for him to establish his leadership style while maintaining that culture.
13:00-15:03: Jeremy shares the importance of realizing that transitioning into a leadership role is not always smooth, even if you're friendly and kind. He emphasizes the need to put in more time and effort to build trust with the team. The conversation touches on the initial fears staff might have when a new owner takes over, despite minimal structural changes. Jeremy reflects on the value of listening to his team and being transparent about the decisions he makes, which helped him build trust over the past year.
15:03-17:27: Reflecting on the past year, Jeremy acknowledges the challenges of being a business owner, including the stress related to cash flow, retention, and other responsibilities. Despite anticipating difficulties, he found the reality to be even tougher. He discusses the stress and pressure of having a personal guarantee on the line and the different kind of stress that comes with owning a business compared to a W-2 job. He also mentions starting therapy to work through personal challenges, like being conflict-averse and a people-pleaser, which have been heightened by the responsibilities of business ownership.
17:27-19:34: The conversation delves into the concept of "benevolent detachment," where Jeremy and Steve discuss the importance of caring and being kind as a leader while detaching personal identity from business outcomes. Jeremy reflects on the need to balance emotional investment in the business with maintaining a healthy distance to manage stress.
19:34-23:28: Jeremy offers advice to business owners considering selling their businesses, emphasizing the importance of trust and transparency during the transition process. He advises ensuring that operational systems are in place and that the business is appealing to potential buyers, especially younger individuals interested in entrepreneurship. He highlights the significance of having a reliable operations manager and transparent communication during the due diligence process, which can help build trust with the new owner.
23:28-25:04: Jeremy talks about his experience joining Acumen and the value of having a network of other small business owners for wisdom and insight. He appreciates the push and guidance from the group, even when it's challenging, as it has helped him grow as a leader.
25:04-End: Jeremy and Steve wrap up the conversation by discussing where listeners can find more information about the guest's business and Acumen. Jeremy shares his LinkedIn profile and website, and Steve encourages listeners to reach out if they're interested in cabinet services in Northern Colorado. The episode ends with Steve thanking Jeremy for sharing his wisdom and experiences, and inviting listeners to learn more about Acumen and their resources.