Family Businesses That Work Well Together

I recently read a good article on the FastCompany.com site titled How Great Family Businesses Skirt The Feuds, And Other Pitfalls, on how three different family businesses have managed to run successful organizations without the resentments and turf wars that often infiltrate such situations.

This article discusses the importance of trust and collaboration, and clear delegation of responsibility.  While these are not radical concepts in the business world, they often become more challenging within the family dynamic.  It's interesting to read how these businesses navigated these issues.

If you work in a family business, I'd be interested in hearing how you have dealt with the complexity of running an operation and keeping peace in the family.

“Delegate and Trust”

I recently read an article in the April edition of Entrepreneur Magazine by Christopher Hann, entitled “Control Issues -  as your company grows how do you transition from start-up entrepreneur to leader?" The online version is titled a bit more pointedly: Can You Evolve From Control Freak to Emotionally Intelligent Leader?

Mr. Hann quotes extensively from Professor Ed Hess and his book Grow to Greatness: Smart Growth forEntrepreneurial Businesses. Professor Hess’s research has shown that successful entrepreneurs go through stages: from owner to manager to leader to coach. In this process, Hess says, they often need to adopt personal qualities that conflict with their very makeup. That is they must delegate and trust.

I can identify very well with this. I owned several businesses in my career from retail, distribution, assisted living and others. I learned many times the hard way that delegation of responsibility and trust is the only way your company will ever become truly successful.

As an example, I once went away for a three week executive education course. I would diligently call in each day to check on what was going on. A few days after I left, a real disaster occurred. Certain industries, as you know, are bound by specific rules and regulations, and even one employee violating those regulations can injure the entire business’s standing. In other words, a disaster. And not a good time for me, the owner - the Boss - to be away. But my COO was ready for the task at hand, and handled everything to a satisfactory resolution. I didn’t even learn about the matter until after the fact! It was then that I realized the power and potential of delegation and trust.

I won’t kid you; delegation and trust is very difficult at first for most of us small business owners.  You really have to hire well.  And train well.  And communicate well. But once you’ve got the right people in the right jobs, you’ve got to get yourself out of the way and let them do their jobs themselves.  Once you break through that barrier it will allow your business to thrive.

Identify and focus on your strengths - this is where you will do your business the most good - and delegate those other tasks to trusted associates. Try it, you’ll like it. And so will your management team.

Best,

Jeffrey Ross

If you would like to discuss business & leadership matters further, please feel free to contact me. I would be happy to meet with you.

I recently read an INC. article by Damian Bazadona entitled “6 Traits of Great Leaders”

He nailed the most important ones. His entire list is extremely important to a leader's personal and professional success.

However, I would like to submit there is a seventh trait: the ability to give responsibility to others and let them do their best.

Many entrepreneurs cannot get it through their heads they cannot do everything themselves. They must give responsibility to their managers to get the job done well and many times better than the entrepreneur alone.

In the many businesses I owned and managed, giving responsibility to others to get the job done was, quite frankly, difficult to do early on. However, once I learned this was the only way a business would grow and prosper, I found it much easier to delegate.

Read the article; tell me what you think.

Business for Sale?

I was reading an interesting article the other day on selling one’s business, and some thoughts came to mind.

As you grow your business, you must always keep in mind that everything has a life-cycle. If you subscribe to this belief, you must always keep in mind that your business will probably be sold one day.

In order to realize full value for all your years of hard work, you should pay very close attention to the questions raised in this article; it has some great stuff in it. And frankly, if liquidation is a real consideration, then it is probably too late to do anything else.

That said, an executive coach can keep you centered on the areas that are most important in growing your top line and, more importantly, your bottom line. A coach will make you aware of the unstated assets that are not on your balance sheet such as Quality of Management, and the value of your name, just to mention a couple of important items.

Here are some situations where a good Executive Coach can help you get maximum value:

• Identifying and clearly articulating the owner’s personal and professional goals
• Identifying the priorities to make the business more valuable in sales, profits and quality of management
• Identifying and articulating the Uniqueness of your product or service
• Strong financial controls
• Re-investment in plant and equipment
• Awareness of your competition and what they are doing in the marketplace
• Employee compensation and motivation
• Having someone where you may have an opportunity to talk, express your fears, wants needs and desires.

Being at the top can be a very lonely place.

What thoughts are on your mind concerning your business? Perhaps we should talk.

The Relationship with Your Bank

Banking Relationships – Are You in Love with Your Banker?

There is a series of television commercials wherein one of the characters says how much he or she loves his/her bank. They are humorous commercials - humorous because they are kind of over the top. Love your bank?? They are humorous because they are absurd. Love your bank???

Those of us unaffiliated with any banking institution (be it professionally or through family ties) rarely work up to that level of affection for our bank and banker. But in reality, that is a shame, and not so absurd.

Think about it. If you are a small business owner, your banker has played a role in starting, maintaining, and protecting your livelihood. In a perfect world, the financing your banker has done for you over the years inspires something in you close to love. And with this kind of relationship, you can go to your banker and discuss any financial challenges you might be experiencing or anticipating, rather than waiting for your annoyed banker to contact you when you've been repeatedly late with payments. It may not exactly be romance, but this kind of corporate love has benefited many businesses, and many banks, over the years.

However, what if the day comes when the spark is no longer there? Maybe your banker retires, and the new guy who took over doesn't really “get” you or your business. Maybe the personal attention you used to get doesn't seem so personal any more. The magic is gone.

It is okay to look around for other options. In fact, I would say you owe it to yourself and your business to look at other options. Think of it this way: banks are in business to serve you – you are not in business to be beholden to any bank! So if your banker is not showing you enough love, there are other suitors out there. Just do your due diligence, because, as you know, all that glitters is not gold.

Explore your options, and find a banking relationship that you love. You, and your business, are worth it!

Spring Cleaning Your Business

Many of us recall a time in our lives when "Spring Cleaning" meant a weekend full of family chores designed to put winter and its necessary tools away, and to bring out the implements of spring and summer. It was a good time to open the windows and sweep out the dust accumulated over a long cold winter, not to mention getting rid of things that were worn out or broken, or shop worn. Hey, guess what... not only is this still a good practice for your home, but it may apply to your business as well.

Spring Cleaning Your Products / Services

You know your business. You know what sells, and doesn’t sell. So why are you still offering products or services that aren't selling? Are they still relevant in the market? If not, get out the broom and sweep!

Use your time wisely. The time you waste trying to sell something nobody wants is time you could have been selling them something they want and need. The decision to stop offering a product or service is sometimes an emotional one, especially if it is one that put you on the map. But business sense dictates that you keep your inventory fresh and relevant at all times.

Spring Cleaning Your Clients

The old axiom about 80% of your business coming from 20% of your customers is never exactly accurate. But it is usually close enough to make a legitimate point. The point is, there are approximately 20% of your customers that you want to take special care of - make sure you do that! That is the customer segment that usually deserves the bulk of your attention. But in reality, who always seems to get most of your attention? It's the unpleasant, once-in-a-blue-moon, never-satisfied, slow-to-pay guy that you took on as a favor years ago. You know what? It may be time to sweep him out, too. The time you spend on this guy can be used instead with more interesting and profitable customers and prospects.

Spring Cleaning Your Employees / Associates

It is always difficult to view personal relationships through the cold logical eye of business. Yet it happens that there are people who may no longer be benefitting you businesswise. Maybe someone on your team hasn't fully bought into the program; perhaps someone has resisted newer technology. Maybe you make it an annual practice to terminate the lowest-performing 10% in your organization. Your business is trying to move forward, and maybe there is a person who is holding back. Maybe your business would move faster without the resistance. Time for spring cleaning!

As the economy strengthens, your road to financial recovery is tough enough. You don’t want to be carrying extra, non-essential baggage of any kind. Open those windows, and find that broom. You’ve got some spring cleaning to do!