It’s been a busy month for Reddit. July has included a major shutdowns, the loss of a CEO and the return of a co-founder who quickly cracked down on errant users. It’s a storyline that could inspire TV soap opera writers!
In reality, there are two, overlapping stories which offer valuable lessons in communication for all managers. (more…)
Do you know a business owner with a good idea for expanding their business but they “don’t have the time” to plan out let alone implement the idea? This is the reason a client engaged my services. His idea was a good one: A natural extension of his market with little competition. The owner just never took the time to create an implementation plan in the two years since conceiving the idea. Then the recession hit and the business’ lack of diversification almost put him out of business.
So what was my client (or any of us) waiting for? (more…)
Business planning is an integral part of the Succession Planning process. I was reminded of this when I read about a local lumber supply company closing its doors after 155 years of service. Curious if this was now a common phenomenon for retail lumber yards, a quick internet search revealed five closing announcements since February. All of them were family owned and, on average, been in business for 90+ years. One common theme for these closing was competition from big-box national chains.
This is where a good Succession Plan comes into play. (more…)
Imagine our country without a Constitution. Our founding fathers had the foresight to codify a basic framework of beliefs and laws in the form of the Constitution of the United States. Our Constitution continues to provide structure and unite us even in these times.
Every family owned business should take inspiration (more…)
Family businesses are on the threshold of a historic transition. As of a 2007 study, the median age of top executives in family businesses was 50 years old and 40% of them expected to retire by 2017. Baby Boomer owners are relinquishing the reins of their companies.
So you would expect businesses everywhere to have succession plans in place or to be deep into the planning process. Yet, (more…)
In a previous blog, I pointed out how Succession Plans are insurance for when the unexpected results in the business owner’s absence. The most common response to this I hear from business owners is: “Yes, but that’s not likely to happen to me.” While that may or may not be true, owners also need to ask themselves: “Can my business and my family afford the consequences if the unexpected happens?” Others’ experiences and the research provide a clear answer. (more…)
Miles Davis’ cantankerous personality is legendary. That is why I was pleasantly surprised to hear what his drummer, Jimmy Cobb, had to say about Miles’ leadership style. Mr. Cobb, the only surviving member of the sextet that created the groundbreaking Kind of Blue, was interviewed about the making of this album on BBC’s Witness. Here are some of the lessons from Mile’s leadership style that I gleaned from this interview. (more…)
You have insurance to protect your business in case of fire, theft, and accident. So, why would you leave the future of your business to chance? That is what you are doing if you do not have an up-to-date Succession Plan. I have too often talked to business owners who are ready to cash out but cannot because they do not have anyone prepared to takeover or could not get the price they were expecting for their business. This article shows how a well thought out Succession Plan addresses these issues and much more.
Employee Retention: According to a PricewaterhouseCooper study, voluntary turnover is on the rise and even higher for (more…)
Family businesses deserve to be pleased with their accomplishments. After all, according to an article in Bloomberg Businessweek family-owned businesses are responsible for 60% of all employment in the U.S., 78% of all new employment and add 50% to the national gross domestic product. The SBA points out that 90% of all businesses in the U.S. are family-owned. Family businesses are the foundation of our country’s economy.
The question is: How solid is the foundation of each, individual family business? (more…)