By Alvin E. Terry, MBA/Business Consultant
New Year’s Resolutions should have been made by now and already implemented with a new business plan. If you have a family owned business, I hope that all of the family members who are directly involved in the operations of the business have had an opportunity to add some valuable input to help ensure that the business can continue to be successful. It’s time to make some new money and collect the old money that is carrying over from 2014 on the books.
You really need to get through the first quarter of the business year to gauge exactly what the business environment is looking like. Did you lose customers last year? If so why? Did you gain new customers? If so how? Is it time for a staff change with new responsibilities? Should we consider new hires or layoffs? Have family members decided to pursue other job opportunities in the job market due to burn out in your business?
Did the chemistry work between the family members or did everyone outgrow their nerve endings? Did anyone in the family have false expectations or not know what to expect on what it takes to run a business?
Did you have a business development committee, an advisory board, or outside mentors? Did they perform up to your expectations? Did they help contribute to your company’s bottom line or just give suggestions and advice that did not have any measurable impact to the success of your business?
Did your banker help guide you through the rough patches while waiting on your accounts receivables to come in?
Whether you have a product or service, are you continuing to provide added value to your customers? Do you need to upgrade your product or your service? Is it time for pricing adjustments?
Obviously, there are a lot of moving parts in keeping a business on track. Every business, whether family owned or not, experiences the same challenges on a daily basis.
Fortunately, with the right team of mentors and armed with current market information, you can help keep your family business on track.
Pros:
- Starting a new business or continuing a family owned business tradition has been the backbone of American entrepreneurship.
- Mostly everyone can name at least 10 family owned businesses in America. Just to name a few: Ford, Dodge, Heinz, Firestone, Johnson & Johnson, Campbell, Sears, Woolworth’s, Wal-Mart, Mrs. Baird’s Breads, Mars Candies, Mattel Toys, Sherwin-Williams Paints, McDonald Douglas, Wilson Footballs, and Harley-Davidson.
- Someone had the original vision and passion to pursue the manifestation of that dream until it became a reality. They saw the end in mind even before they got started. All business dreams start in the same way. They are a magical potion. It’s just the sheer determination and the relentless pursuit to get it done.
Cons:
- Remember, there is always another side to the story. There will always be other points of view. It’s just part of human nature, coupled with the business environment. All family members will not always buy into that dream. Some will be forced into it because that is the way it is going to be or because that is the way it has always been.
- Now, here comes the resistance with negative points of view, the naysayers, the saboteurs, the slackers, and other personalities that you never knew existed.
- Keep in mind, not necessarily will everyone in the family buy into your business dream of being part of your family business. You just have to educate yourself and succumb to the realization that other members just might have their own dreams and aspirations, and as individuals, they might want to pursue other options in life. This should be discussed with all family members who you are considering including in the day-to-day operation of the business. Listening and not just hearing becomes very important at this juncture. Keep emotions out of this discussion and replace them with positive alternative courses of actions that will keep you and the business on track.
Running a business, whether family owned or not, will always have its challenges. Continuing education is an ongoing basis and can definitely help stem the tide of any frustrations that you will encounter. After taking in all of the above, you and your family members will eventually decide to continue with the status quo or make the appropriate adjustments.
Alvin E. Terry, MBA is the President of Dynamic Business Builders. For more information on business or real estate, you can be contact him by email at [email protected] or by cell at 713-392-9107.
