Business Education

I Took Over the Family Business but My Parents won’t Let Me Run It

You have taken over the family business. At least ostensibly. But, it appears that your parents (maybe one in particular), has yet to truly let go of the company. That is to say, your parents collectively, or mom or dad, are still running the day-to-day operations, even though they’re not supposed to do so any longer. It’s driving you crazy, and what’s more, it’s beginning to create a confusing situation among your employees. Worse still, you’re not getting the control and respect you deserve. So, what can you do?

Common Family Business Challenges

When a child or children take over the family business from their parents, it is not at all uncommon for the parents to stick around for a little while. However, if they continue with their normal presence and engagement, it can create a number of problems. First and foremost of course, is the fact that successors aren’t seen as true authority figures. But, that’s not all.

While business owners typically make more money by selling to a third party, many want to keep their companies in the family. ‘If it’s a growing and thriving business, it should appreciate and produce income for the kids,’ says Amelia Heath, a lawyer in Portland, Ore., with Davis Wright Tremaine. ‘If the kids are involved, then giving them the business can be a good choice.’ —Kiplinger

Because the children’s role has been marginalized, they don’t feel comfortable or empowered to make any needed changes. Obviously, the employee’s disposition at large will also be affected by this type of situation. In short, it creates an awkward and uncomfortable scenario that just can’t be tolerated.

How to Take Over a Family Business from Parents Who won’t Let Go

If you’re experiencing these types of circumstances, you’re probably very unhappy, to say the least. Though you appreciate your parents’ past and current contributions, you’re now the one that is supposed to be running the business. Even though they’ve passed it off to you, they’re still holding on to their previous roles. So, here are a few helpful suggestions:

Have “the talk.” While it’s either the last thing you want to do, or you’re eager to jump into it, you’ll have to have a firm yet caring discussion. Get the point across that you greatly appreciate all they have done and would also be equally grateful to help you out as you need it, but you must take on the position they’ve passed to you to honor their legacy. In other words, treat them with respect and gracefully allow them to transition out of the company.

Speak with your employees. Next, it will probably be necessary to speak to the employees in much the same way. That is to say, that you are now the one that is in charge of the business and they should look to you. Give them a little leeway with this, because if your parents are still even marginally involved, they’ll naturally feel obligated to listen to them. However, given a little time, the entire dynamic will change and the employees will respect your place as the head of the company.

Get all your vendors up-to-date. The same thing holds true for vendors. Because they have a long-standing relationship with your parents, they will also feel more comfortable doing business with your folks rather than you. Just as with the employees, this too will change over time.

Make necessary changes incrementally. Another way to make the transition go smoother is to hold off making any big changes in the short term. (At least, those things that can wait.) This way, your parents won’t feel as though they’ve been doing something wrong, or that you’ve been itching to making changes they’ve long resisted.

What other suggestions do you have? Please take a moment to share your thoughts and experiences so others can benefit from your perspective!

Interested in learning more about business? Then just visit Waters Business Consulting Group

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5 New Product Rules Every Entrepreneur Should Know

May 24, 2017 No Comments

Consumers are truly creatures of habit. In fact, the average family purchases the same 150 products again and again, which accounts for a whopping 85 percent of all needs, according to a study conducted by Harvard Business School. Of course, that means when a new product appears on the market, its got to somehow work its way into those recurring purchases. It’s no secret that consumers are quite brand-loyal, so, this presents an even larger challenge. When you stop to consider your own purchasing habits, you begin to realize just how loyal you are to certain brands. Carving out market share is difficult enough, but, even more so when a product comes from an unknown or relatively new source. 5 New Product Rules every Entrepreneur should Know There are some 250,000 new product launches globally on average, per year. Obviously, very few make it past the first couple of years, as clearly evidenced by the nearby quote. What’s more, companies often fail to recoup development costs. In the grocery industry alone, the failure rate is even higher, ranging from 70 percent to 80 percent, according to research done at the University of Toronto. …the fact remains that the success rates of new product introductions and innovations have improved little over the last 20 years. Booz & Company reports 66 percent of new products fail within two years, and Doblin Group says a startling 96 percent of all innovations fail to return their cost of capital. —Fast Company For small-sized American food businesses, the success rate is even more sparse, coming-in at just 11 percent, which regulates an eye-popping 89 percent to failure. The top culprits of failure are poor product quality and design, but overestimating demand, bad pricing and timing, as well as incorrect positioning also make the list. The statistics go on and on when it comes to new product failure, so, it’s important to know what makes products get past their introduction to the public and sell. Here are five new product rules every entrepreneur should know and follow: It must have at least one solid advantage. There are several advantages a product can have and among the most persuasive are value for the money, prestige, effectiveness, convenience, and high-quality. If you look over this list again, you’ll find at the heart of all these is providing for want and need. For instance, the iPhone revolutionized the mobile phone industry — it fulfills a need, is a high-quality product, and provides many conveniences. The product must fit into consumers’ routines. If a product won’t easily fit into consumers’ routines, it won’t sell on the market. A product must be able to accommodate buyers’ routines because, as mentioned above, people are creatures of habit. Some products are able to break this rule, but these are few and far between. It’s got to work right out-of-the-box. American consumers love convenience, and, are very annoyed when a new product proves to be anything but convenient. Most people cringe at the phrase “some assembly required,” because of past experiences. Make a product that works right out-of-the-box and it has a much better chance of success. The benefits should be obvious to consumers. When consumers can readily identify the benefits of a product, they are more likely to buy it. Stop to consider the last time you were shopping for a specific type of item and compared brands. It’s highly probable you purchased the one you could easily spot its benefits. It can be given away for nothing (or part of a promotion). The Clorox company began marketing its first cleaning products to businesses and this approach failed. However, one owner’s wife saw that it had marvelous residential use potential. She gave small bottles of it away and soon after, sales skyrocketed. When consumers are given the opportunity to “test drive” products for free or at a low cost, they are more apt to purchasing it again and again. Though these elements will all increase the chance of success for a new product, it’s important to understand the market and to have an executable plan to be successful. We have several Clients that have new and innovative products that are succeeding because they have followed these five rules. Let us know your new product ideas and make certain yours meets these five new product rules. Want to find out about what a business coach can do for you? [shareaholic app=”follow_buttons” id=”26833294″]

How to Tell When a New Business Client is Lying to You

January 28, 2020 No Comments

We’ve all been betrayed in one way or another. Some situations are worse than others. But, all things being equal, it’s better to be safe than sorry. There’s an old saying in the real estate industry, “Buyers are liars.” (Although, this is true in just about any line of work, law, financial, retail, and countless others.) The point being, human nature is what it is and there’s just no way around it. Why It’s so Important to Avoid Liars Okay, you can probably think of a dozen reasons liars can be trouble. They cause feelings of betrayal, anger, resentment, regret, and basically a whole host of negatives. But, even if you’re able to get past the personal hurt, there’s the logistical fallout. The vast majority of customers are truthful. But the lying happens often enough to get under your skin. What’s more, deceitful customers pose a risk to your business. If they’re willing to lie to you, what does that say about their character? Would they also be willing to fabricate an errors-and-omissions claim for personal profit? —EOforLess.com Such consequences include but not limited to: being embarrassed by peers, trouble with client relations, upset in the workplace vis-à-vis team members, and plenty more circumstances. Plus, just a single lie can hurt your bottom line in a serious way. How to Tell When a New Business Client is Lying to You So, how do you spot a lie before it causes all sorts of trouble in your business? Well, it isn’t easy, there’s no question about it. But, there are some ways to tell when a client is lying to you, like the following: It sounds too good to be true. Okay, this is probably cliché’ but it’s nevertheless true. When someone tells you something that sounds too good to be true, it more than likely isn’t true. What’s most problematic is that in the moment, it’s easy to fall for. Their social media is a red flag. Some con artists make their lives to look out-of-this-world, luxurious and exciting. Others have absolutely no social media presence at all. In either case, it can tip you off to someone who is trying to hide something because there’s no information at all. Or, a person who is trying to fool everyone else by making their life look irresistibly envious. There’s difficulty answering simple questions. Here’s another bit of advice you’ll hear from experts on the subject of lying — the fibbers might have a lot of trouble with answering simple questions. (Conversely, when there’s inconsistent but a lot of detail, that’s also a telltale sign.) His or her past tells a completely different story. If you have a bad feeling, listen to your inner voice and get a bit of background from people in his or her past (if possible). Just asking a few key questions can tell you a lot, a whole lot. What other advice do you have to offer through your experiences? Please comment and let others know! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Cheap But Meaningful Ways to Boost Your Company’s Local Awareness

June 8, 2023 No Comments

In today’s competitive business landscape, it’s crucial for small businesses to enhance their local awareness and brand recognition to stay ahead. While advertising and marketing campaigns can be expensive, there are cost-effective yet meaningful ways to increase your company’s visibility and establish a strong presence in your local community. Cheap But Meaningful Ways to Boost Your Company’s Local Awareness Obviously, this is all easier said than done. With all this in mind, let’s go ahead and explore several inexpensive strategies that can help boost your small business’s local awareness and improve brand recognition. Community Involvement and Partnerships Engaging with the local community is an excellent way to enhance your company’s visibility and build meaningful connections. Consider sponsoring local events, sports teams, or charitable causes that align with your business values. Participate in community service activities or collaborate with other businesses to host joint events or promotions. These activities not only showcase your brand but also demonstrate your commitment to the community, fostering positive word-of-mouth and strengthening your reputation. Example: If you own a bakery, partner with a local charity to donate a portion of your sales to a cause. This initiative not only supports a worthy cause but also generates positive exposure for your bakery, as customers appreciate businesses that give back to the community. Online Presence and Local Directories Having a strong online presence is essential for increasing local awareness. Create a professional website that highlights your products or services, and optimize it for local search engine optimization (SEO) to improve your visibility in local search results. Register your business with online directories and review platforms such as Google My Business, Yelp, and TripAdvisor. Encourage satisfied customers to leave positive reviews, as online reviews play a significant role in building trust and attracting new customers. Example: If you run a boutique clothing store, optimize your website by including location-specific keywords and updating your Google My Business profile with accurate information, attractive images, and positive customer reviews. This increases the likelihood of your store appearing in local search results when potential customers are looking for nearby clothing stores. Social Media Engagement Utilize social media platforms to engage with your local audience and promote your brand. Regularly share valuable content, such as tips, behind-the-scenes glimpses, or customer success stories. Encourage user-generated content by running contests or featuring customer photos. Engage with followers by responding to comments and messages promptly. By building an active social media presence, you can foster a sense of community and increase brand recognition among your target audience. Example: If you own a coffee shop, use Instagram to share aesthetically pleasing photos of your drinks, cozy corners, or latte art. Encourage customers to share their photos using a branded hashtag, and feature their pictures on your profile. This not only creates buzz but also encourages others to visit your coffee shop to experience the ambiance themselves. Local Collaborations and Cross-Promotions Collaborating with other local businesses can be mutually beneficial in terms of brand exposure. Identify complementary businesses in your area and explore opportunities for cross-promotions or joint marketing efforts. For example, you can offer exclusive discounts or package deals when customers make purchases from both businesses. By tapping into each other’s customer base, you expand your reach and increase awareness of your brand within the local community. Example: If you own a gym, partner with a nearby health food store to offer a discount coupon for a gym membership when customers make a purchase at the store. This encourages a healthy lifestyle and exposes your gym to potential customers who are interested in fitness-related products. Local PR and Media Coverage Building relationships with local journalists, bloggers, and influencers can help generate media coverage for your business. Reach out to local media outlets, offering them story ideas or insights related to your industry. Consider hosting local events or participating in local trade shows, which can attract media attention. Being featured in local publications or online platforms increases your company’s visibility and establishes you as an authority in your field. Questions Example: If you operate a pet grooming salon, collaborate with a local pet blogger or influencer to offer tips on pet grooming or demonstrate grooming techniques. This partnership can lead to a feature article or blog post that introduces your business to a wider audience. What other suggestions would you include for how to boost a company’s local awareness in meaningful ways but doing so inexpensively? Please take a moment to share your thoughts and experiences so others can benefit from your input! Interested in learning more about business? Then just visit Waters Business Consulting Group to learn more about us and the services we offer.