Business Education

Entrepreneurs, Let’s Talk Frankly About the Dreaded “S” Word

There are many experiences entrepreneurs will thoroughly enjoy building up a business, but there are also circumstances they anxiously dread. The proverbial roller coaster ride of running a business is something that delivers a plethora of challenges and rewards alike. Still, for all the difficulties, most individuals learn to adapt and successfully transform problems into solutions by making them valuable learning lessons.

Although nearly half of all new businesses fail within the first 3 to 5 years, others cannot only persevere but profit and gain an impressive track record that even exceeds their expectations. Some entrepreneurs find themselves far more successful than hoped and enjoy long and fulfilling careers.

However, nothing lasts forever and this inevitability can be a very frightening reality for those who are unprepared. These individuals face a very stark set of circumstances, having to come to grips with the fact they cannot run the company forever because every entrepreneur must take on the unenviable challenge of handing the company over. Whether they want to utter the word aloud or not, all business owners must deal with the dreaded “S” word: succession.

Business Succession Planning Shouldn’t be So Scary

You went into business for yourself and now, it’s thriving. Earnings are up, costs are down, and you’ve got a great team around you, even better, very happy customers. At this point, it feels like everything has finally come together. You made it through the trials and tribulations, and now, you’re feeling financially secure. The future looks right, but then you realize your business won’t always be yours. Maybe you’re lucky enough to have trusted family step up and take your place. But, even family businesses aren’t immune from incompetent or lazy people who you just cannot trust to take the reins.

This means crafting a clear and actionable succession plan. Creating a succession plan is crucial for business owners, yet many are apprehensive about actually doing it. So, let’s talk about why it’s important and better yet, how to overcome that hesitation.

The Importance of Succession Planning

A succession plan is vital for business owners as it guarantees a smooth transfer of leadership and ownership when key figures retire, leave, or pass away. It helps maintain operations without major disruptions, preserves the company’s value, and secures its long-term legacy and stability during transitional periods. Here are the reasons why having a plan in place is critical.

First of all, a succession plan greatly aids business continuity. It ensures the company can continue operating smoothly in case of unexpected events like illness, death, or retirement of key leaders. Secondly, a succession plan helps to preserve value. A well-planned transition maintains the business’s value and reputation, protecting stakeholders’ interests. Third, it reduces uncertainty because it provides clarity for employees, clients, and partners about the company’s future direction.

Additionally, a meaningful succession plan facilitates strategic planning by encouraging long-term thinking about the company’s goals and leadership needs. What’s more, having a well-thought-out succession plan minimizes conflicts. This is due to the fact that clearly defined succession plans can prevent disputes among potential successors or family members.

7 Effective Ways to Overcome Your Apprehension

As you know, running a business isn’t just about managing employees or keeping customers happy. Often, the challenges are more personal. Many business owners find themselves sacrificing valuable family time, personal hobbies, and social activities in order to grow and sustain their company.

One of the most feared challenges is handing the company over to another person to run it. This can easily lead to unnecessary and perhaps damage-inducing procrastination. While apprehension about such scenarios is natural, it’s important to take control and get over your fear by taking the following steps:

Start early. Begin planning well before you intend to step down. This removes immediate pressure and allows time for careful consideration.
Break it down. Tackle the process in smaller steps rather than trying to create a comprehensive plan all at once.
Seek professional advice. Consult with lawyers, accountants, and business advisors who can guide you through the process and address specific concerns. An experienced business coach is an invaluable resource in these situations.
Involve key stakeholders. Engage trusted employees, family members, or partners in discussions to gain different perspectives and build support.
Focus on opportunities. View succession planning as a chance to secure your legacy and ensure the business thrives beyond your tenure. Also, educate yourself. Learn about successful succession stories in your industry to gain insights and inspiration.
Consider multiple scenarios. Develop plans for various situations (e.g., planned retirement, unexpected illness) to feel more prepared for different outcomes.
Regularly review and update. Treat the succession plan as a living document that evolves with your business, reducing the pressure to create a “perfect” plan immediately. (Be sure to periodically review and update your plan as needed so it accurately reflects the current situation and is viable for near-future use.)

By taking steps to overcome apprehension, business owners can better secure their company’s future and their legacy. Although doing so may create anxiety and uncover some unpleasant realities, this is absolutely necessary to maintain the health and integrity of the company.

Want to Accomplish More?

Do you want your company to grow faster and earn more while you spend more time with your family doing all the things you started your business to do?

We can make that dream a reality. Give us 30 minutes and we will show you how to get your life back. Skeptical? Good! Put us to the test.

You can call us for your free appointment at 480-636-1720, or, if you prefer, send us an email. You can also visit us at Waters Business Consulting Group to learn more about us and the services we offer.

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My Small Business Manager didn’t Manage the Business Well and Now it’s a Total Mess…What Do I Do?

June 23, 2022 No Comments

Some business owners run their company for many years, only to discover that they can’t do everything on their own. Once this inevitable realization materializes, most start to hire others to help them with various aspects of the business. Some even aspire to be largely absentee owners, leaving the day-to-day operations to a professional manager. So, they train someone up, giving them the responsibility of managing the company and then take a more offhand role, sometimes into a completely new venture or, to focus on one particular area. Typically, this goes fairly well, especially when said manager has been well trained. However, it sometimes ends in utter disaster and the manager winds up making a mess of everything. So, what do you do if you’re stuck in the latter nightmare scenario? What Good Managers bring to Small Businesses Before we get into how to fix a bad situation, let’s first look at why business owners hire managers in the first place. Usually, managers are brought on to handle all of the day-to-day activity. This allows the owner to put his or her efforts into expanding the business and even exploring new opportunities. A good manager will bring a nice return on investment, easily paying his or her salary, all while adding to the company’s bottom line. Bad management can impact employees and a company’s overall operations. Incompetent managers exist, and they can have challenges relating to staff members and keeping them motivated. In addition, substandard supervisors may not be able to balance budgets, increase revenues or capably perform other crucial tasks. —Houston Chronicle Small Business A good manager can really be an invaluable asset, being able to oversee employees, carry out projects, order materials and inventory, assign employees to various tasks and projects, and a whole lot more. In the end, the manager is also responsible for the public face of the company, particularly when the owners aren’t on site. Of course, there’s a great deal of trust involved here and unfortunately, that trust is sometimes betrayed. How Business Owners can Fix Mismanaged Companies If your small business has been mismanaged by an incompetent or uncaring manager, you’ve got your work cut out for you. The amount of damage he or she may have done may not be immediately apparent and will materialize over time. But, you can’t just wait to find out, you’ve got to leap into action immediately and do the following after letting him or her go: Talk to the employees. The very first thing you want to do is get a sense of the employees’ perspectives. You’re likely to learn a lot and some of it may take you completely by surprise. But, you’ll probably also get a kind of consensus and that will help you to know precisely what’s most important and how to prioritize what to fix first. Speak with vendors. This may sound a little odd but it’s probably worthwhile. Since vendors interact with the managers routinely, they will have different stories to tell and just like the employees, will probably give you some type of consensus. At the very least, you’ll find out how your former manager interacted with the vendors and if he or she had good or bad business relationships. Consult your customers. If you haven’t really heard any complaints from customers, this would be highly unusual. Although, your former manager may have been great in providing excellent customer service, while still mismanaging the business’ finances and/or mismanaging the team members. Regardless, getting your customers’ input is very important because it will let you know the reputation of your company. Lastly, you’ll have to go through the slow and meticulous process of piecing the operation back together. This might include having to make other personnel changes, establishing new relationships with different vendors, and possibly, having to repair customer relationships. Fortunately, a good business consultant can walk you through this very difficult process step by step. Interested in learning more about business? Then just visit Waters Business Consulting Group.

How Entrepreneurs Can Tell if Networking is Helping Their Businesses Grow

September 5, 2024 No Comments

Business Networking Pros and Cons: What You Need to Know Business networking can feel like a real-life roller coaster ride in constant motion. It can be exciting or uneasy with its ups and downs. Some entrepreneurs truly enjoy the experience. Others genuinely dislike it. And still, more approach it half-heartedly and network inconsistently. Regardless of which best describes you, chances are excellent you could use a few bits of good advice about how to get the most out of it. But just as importantly, you need to know when networking works for you and when it’s not. So, let’s break down the pros and cons of business networking so you can understand what you’re getting into. The Bright Side of Networking: Pros That Shine Before we get into determining if networking is helping your business, we’ll first take a look at its advantages and disadvantages. Although the reasons seem self-evident, there is a bit of nuance that lies underneath. Like many other things in life, there’s more complexity than appears on the surface. Now, here’s what you need to know about the pros and cons of networking: Expanding your circle. Networking helps you meet people you wouldn’t normally cross paths with. Think of it like throwing a big net into a pond—every fish you catch is a new connection. These relationships can lead to new opportunities, clients, and partnerships. The more connections you have, the wider your reach becomes. Knowledge sharing. When you network, you’re surrounded by people with different experiences and skills. It’s like attending a grand potluck dinner. Everyone brings their specialty dish, and you get to taste a bit of everything. By sharing insights and expertise, you can learn valuable lessons that might save you time and effort down the road. Boosting your visibility. In business, being visible is crucial. Networking helps put your name out there. The more you connect with others, the more they remember you when opportunities arise. This visibility can lead to referrals and recommendations that might not come your way otherwise. Also, building self-confidence and trust. Each time you meet someone new, you practice your communication skills. Over time, this builds confidence and fosters trust. It’s like training a muscle; the more you use it, the stronger it gets. This self-assurance can help you in pitches, presentations, and everyday interactions. The Flip Side: Cons That Can’t Be Ignored Of course, networking doesn’t always produce the desired results. It can be counterproductive and business owners need to understand why it doesn’t always work. Here are the most common pitfalls you should know about to make better use of your time: Time consuming. Networking can eat up a lot of your day. Attending events, meetings, and follow-ups can become overwhelming. It’s similar to trying to fill a cup with a fire hose; you might end up feeling rushed and burnt out. If you’re not careful, it can take time away from your core business tasks. High expectations. Some people enter networking with big hopes. They expect instant results and connections that turn into gold. But that’s often not how it goes. Think of business networking like planting a garden. It takes time for seeds to grow. If you aren’t patient, the wait can be frustrating and discouraging. Skill mismatch. Not everyone you meet will be in your industry or even understand your business. Imagine walking into a conversation about rocket science when you’re more into baking. This mismatch can make conversations awkward and unproductive. It’s essential to find the right circles that align with your interests and goals. And then, there is the potential for superficial connections. Not every connection will lead to a strong relationship. Often, networking can feel surface-level. You may end up with a stack of business cards but no real friendships or partnerships. Finding the Balance Business networking isn’t all sunshine and rainbows, but it has its bright spots. It’s a mix of chances and challenges. Knowing the pros and cons can help you approach networking with a clear strategy. Whether you’re diving in deep or dipping your toes, being aware equips you for what lies ahead. The journey can be rewarding if you navigate wisely. How to Know If Networking is Helping Your Business Grow Networking can feel like a puzzle for many entrepreneurs. It’s not just about handing out business cards or shaking hands. (Though you will do plenty of those things and more.) Because there isn’t a direct, detailed report to refer to, it’s hard to know when networking is paying off. So how can you tell if your networking efforts are really making a difference? Let’s take a look at how it breaks down. The Ripple Effect: Connections to Opportunities You’ve heard the cliche about tossing a stone into a pond – it creates ripples. Networking works the same way. The more people you meet, the more opportunities can come your way. Are you seeing new clients or partnerships popping up in your life? If your phone’s buzzing with inquiries or collaborations, that’s an obvious sign your networking is paying off. But, there are more signs networking is bringing in new opportunities. So, keep an eye out for a few key signs that your networking is effective: Increased referrals. Are you getting more referrals from new contacts? If people start mentioning your name positively, it shows your network is growing. New partnerships. Have you formed any new partnerships or collaborations? If you’re working with others on projects, that’s a strong indicator that your outreach is effective. Expanding your reach. Are you meeting people in different industries? If your network is stretching beyond your usual circles, you’re likely tapping into new markets and ideas. Tracking Your Connections: The Numbers Game In business, numbers matter. Track how many new contacts you make each month. Are those contacts turning into leads or sales? If you see a rise in leads, your networking is likely contributing to your business growth. It’s basically gardening for business; the more seeds you

Best Ways to Manage Your Time and Energy

May 24, 2017 No Comments

Building a business isn’t easy and it requires a lot of time and energy to be successful. For the majority of entrepreneurs, challenges are met by putting in long hours and trying to be more productive. However, this leaves little time for family and friends, exercise, and hobbies. While it’s generally accepted as just part of the cost of doing business, eventually, a hectic schedule and overdrive pace will take its toll. This can lead to health issues, deteriorating relationships, and personal dissatisfaction. You might also come to despise your own creation and view it as a curse, rather than a blessing. Best Ways to Manage Your Time and Energy If your business is an energy drain, it will do more damage than just make you tired. It will also cause you to make decisions that aren’t necessary in your best interest or your employees’. You’ll probably begin to rationalize assigning certain responsibilities to different team members, it won’t necessary be for the good of the company, but rather, just to give you a break. That’s not a good practice and will lead to even more poor decisions. The core problem with working longer hours is that time is a finite resource. Energy is a different story. Defined in physics as the capacity to work, energy comes from four main wellsprings in human beings: the body, emotions, mind, and spirit. In each, energy can be systematically expanded and regularly renewed by establishing specific rituals—behaviors that are intentionally practiced and precisely scheduled, with the goal of making them unconscious and automatic as quickly as possible. —Harvard Business Review If you feel tired, unenthusiastic, and generally uninterested, it’s because this very phenomenon is happening to you, and, it’s time to realize its unhealthy impact and do something about it. Your energy, like your time, as the nearby quote states, is finite. Both must be managed in order for you to be productive and content. If you’re not productive and content, then, you’re sabotaging your own company, and doing your employees and customers a disservice. The best way to manage your energy is to manage your time and here are some ways you can improve your time management skills: Create useful lists. One reason people tire is they are hand-wringing over what needs to be done and that often wastes enough time to cause them to rush. When you write down a list, you have a clear, actionable plan. Prioritize your lists and entries to ensure that you have ample time for what’s most important. This might take some time to master, but, eventually, you’ll become more organized and discover how much time was wasted when you didn’t have lists to follow. Minimize company meetings. The not-so-subtle truth about meetings is nothing actually gets done. Okay, so you lay out a course of action, or, come-up with a strategy, but, you don’t execute during meetings — you execute after them. So, keep company meetings to a minimum to increase productivity. Take advantage of waiting times. You wait in traffic, you wait at the doctor’s office, you wait, you wait, you wait here and there. What’s more, you’re fully aware of the fact that waiting means time is being wasted. So, make it productive. These are great times to go over or create to-do lists, write out a grocery list, reply to email, make a phone call, the possibilities go on and on. Stop trying to multitask. There’s a persistent myth that multitasking is a way to get more done in less time. However, when you multitask, you’re asking your body, mind, and senses to do something that isn’t natural. It’s counterproductive and conducive to making mistakes. Instead, focus on one thing at a time to do it right. Delegate responsibilities. Delegating doesn’t have to be a four-letter word. It’s part of being a good leader and giving others the power to unleash their own potential. It’s also a great way to avoid multitasking and get more done. When you accomplish something, be sure to reward yourself. Do so in a healthy, upbeat way and without excess. You’ll find that you enjoy what you do more and be more optimistic about the future. As you transition into 2016, knowing you have a finite amount of time to achieve your goals with the energy you have, what will you do different to better manage your time so that you remain energized, productive and get results? Want to find out about what a business coach can do for you? [shareaholic app=”follow_buttons” id=”26833294″]