bizjournals: Starting a Business : Business Advice

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Opportunity No. 1: Professionalize your businesw structureand operations. I frequentlu harangue the owners of growing family ownedr companies about the need to convert from aMom ‘m Pop business style to a fully professionalo style, with a mission a strategic plan to guide an organizational chart and job descriptions, writtebn policies and procedures, affordable and agreement on how to change ownership and management withoutf undue confusion or conflict. The process can get a bit thornuy sometimes, but with strong commitment, a family can professionalize This should be the year foryour business. Challenge No. 1: Responx to unforeseen business and familtyfinancial demands.
The 2008 economy had the finances of many family companiesx flapping like bed sheets in a Lots of people can be leaders when timesare good, but it takews a special person to lead when times are rough. Cash eroding markets and a near collapsre of faith in the future are challenging many business owners to keep theifr headson straight, to cut costs withougt cutting their throats, and to remaij optimistic when it’s temptingg to turn company resources into personal safetu nets. Opportunity No. 2: Make crucial succession decisiond and acton them.
John Davis of Harvard Businesz School urges family companies to plan when the times are But planning often has to be done even when timexare bad. Leadership and ownership succession alwayse profits from a fresh look at what the familyh business needs forcontinued success. When conditionw are calling for reviews and revisions in many succession planning can benefiyt from theanalysis that’s being done for otherf reasons. Challenge No. 2: Make crucial succession decisions and acton them. On the other thoughtful planning for family ownershipp continuity can be warped by a sensse of crisis brought on by tougheconomicx conditions.
If temporary conditions make you wonderd if the business really isa success, it mighy be hard to see the characteristics that have made it successful in years past and that should be maintained into the Keep a cool head. Opportunit No. 3: Buy low. What’s Warren Buffet’ current advice to stocko investors? Buy! That perspective can be translated into golden opportunitiesa for family owned companieas that have a comfortable reserve and can afforde the risk of expanding at the botton ofthe market. If you have the means to buy, the pricesx are not likely to get much Challenge No. 3: Avoid sellinyg low.
But if you’re an acquisition target and prefefr tostay independent, put up every ounce of fighr you have to avoid selling at the bottoj of the market. Actually, family owned business often have greater ability to withstand tougjh times because they can hunkedr down and live off the land withouft being harassed byoutside shareholders. Grit your teethh and lean intothe wind. Opportunity No. 4: Watc h for the opening of newbusinessd doors. President-elect Obama has promised to stimulatde the economy outside of bloatede corporations and flounderingfinancial institutions.
That can mean new busines opportunities for family companies in such areas as infrastructure rebuilding and Ifyou don’t know how to pursuer government contracts, this would be a good time to Challenge No. 4: Grow your business in a tighrcredit environment. The bankers are likely to keep wearingttheir “Just Say No” T-shirtd for much of 2009. That means owners of family businessex of all types and sizes should grab their bootstrapz and find ways to grow and diversiftythat don’t rely on the formal financial Look for family members and friends who have the meanzs and the confidence to lend or buy in.
Consider turninbg some unproductive assets intoneeded liquidity. But don’y go to your credit cards. Opportunity No. 5: Make even the greatestt challenge intoan opportunity. OK, maybe evert cloud doesn’t come with a built-inh silver lining. But the business-owning family that has sound core values, and its eyes on the horizoj can convert even the uncertainties of 2008 into a pathway upwardin 2009. Try it and see. And when you look back on all this and remember you read ithere first.