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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Are You Focused or Frantic?

April 8, 2017 No Comments

The world of business is often a fast-paced one, an environment which requires attention to many details and dynamics. Those new to the entrepreneurial experience are usually shocked by the sheer amount of things which need to be done. In response to these needs, some business owners try to attend to more than one matter at a time, a solution often called “multitasking.” Unfortunately, abiding by the adage “killing two birds with one stone,” is a counterproductive solution. When you multitask, you lose, plain and simple. Talking on the phone while picking-up groceries or walking the dog while replying to an email seem like smart time-saving ideas, but, they aren’t. You’ll forget the loaf of bread or to run spell check before hitting “send.” It’s a matter of attention, which is to say a matter of fact. We’re not biologically engineered to do multiple things at a time, which is why it’s tricky to pat your head and rub your belly simultaneously. When multitasking is attempted, your attention is less attentive to each task, and something inevitably gets missed. How to Maintain Your Focus in Business Let the nearby quote sink-in for a moment. How professional athletes, trained engineers, scientists, physicians do what they do best isn’t done by trying to do many tasks all at once. They use a process, an incremental approach to everything in a focused manner. When you play a game of chess or go into the gym, you do so with purpose. No matter what the experience, there is purpose, even watching a movie you’ve seen countless times has purpose–to unwind or just to re-live a feeling. It’s not a big surprise that big league baseball players can hit a pitch far better than the rest of us. Research on the game’s best hitters has shown that they have excellent hand-eye coordination and can respond quickly to visual cues. Indeed, one of the keys to a superior ball player’s performance is excellent vision and focus that allow him to see a baseball perfectly as it travels at high velocity toward home plate. —Forbes You’re in business for a purpose and a good one at-that. Regardless of what you sell, your aim is to fulfill a need and derive personal satisfaction, as well as a sense of accomplishment. Those are admirable but what’s probably holding you back from delivering your best is you’re not giving everything your best, you’re simply rushing through one task to get to the next–to rush through it as well. Your argument (read: rationalization) for doing so is that you simply don’t have enough time. Time management is an art-form, but it wouldn’t be as high a priority if you did not have to redo what you just did…again. By focusing, you’re not wasting time, you are ensuring thoughtfulness, quality, and attention to detail–the list goes on and on. What you need to do to succeed in business is be in the business of taking care of business. This doesn’t mean taking an important phone call while on the treadmill and juggling to eat your lunch without spilling it. The person you’re speaking to will certainly know what you’re doing, even though he or she cannot see you, precisely because your attention is distracted. That does not equal good business practice, it undermines and worse, inflicts damage. If “location, location, location,” means everything in real estate, then, focus is of the same importance in business. Here are some things you should be doing, every single day: Eliminate distractions. It’s not rude if you close your office door or go outside to sit on a bench to concentrate, it’s healthy for your psyche, and, for your business. Although I have a home office, I purposely operate out of a professional business office that provides the environment, the accountability and allows me to be more focused and productive. Distractions are the hobgoblin of business, the less, the better. Batch like tasks. If you read each email as it arrives, you’re doing it wrong. There’s an unseen, yet, really felt harm in doing so, because it breaks your focus. Batch similar tasks and schedule these in blocks. An example is email as the first, unfinished tasks as the second, new tasks as the third, you get the idea. Do what’s most productive and works best. Prioritize according to importance. Our natural inclination is to do what’s easiest or what we most prefer, but we also are quite aware of the consequences. If you’re doing this, it’s why you don’t feel much personal satisfaction and like you’re not really moving your business forward. Put everything in its place. You might call it O.C.D., but it’s actually very smart to have a place for everything and put everything in its place. I have very specific spots on my desk for client project priorities, my own business and personal business priorities, prospects, etc. Essentially, the only piles on my desk are those that are high priority so that my focus is aligned. The time you spend looking for this or that might be small, but add-up all those moments and you’ll marvel at the immense waste. One last suggestion is to harness the power of your body’s healing power–sleep. It’s hard to be an entrepreneur but it’s even more difficult when you’re making it more difficult by not getting a good night’s sleep. Instead of watching the late night news, I started going to bed earlier. As a result, I have been getting up earlier to go to the gym, which provided energy and clarity for creativity and productive focus during my day. Turn off the technology, let your brain rest, and rejuvenate each and every night. [shareaholic app=”follow_buttons” id=”26833294″]

Your Company’s Mission Statement May be Impressive But It’s Not Necessarily Why Customers Are Buying from You – Here’s What You Should Focus On Instead

June 7, 2024 No Comments

Your Company’s Mission Statement May be Impressive But It’s Not Necessarily Why Customers Are Buying from You – Here’s What You Should Focus On Instead There are many moving parts to opening, establishing, and growing a business. The number is so vast, that it’s difficult – if not impossible – to quantify every element. Unfortunately, some factors and circumstances make too many entrepreneurs believe they must buy into certain practices. Some of these are indispensable, but others aren’t necessary in every situation, and the company mission statement is one prime example. Although noble and laudable, a company’s mission statement is not why customers buy from businesses. The Purpose of a Company Mission Statement Let’s remember, that the purpose of a company mission statement is to provide a clear, concise explanation of the organization’s general purpose, objectives, and values. It serves as a declaration of the company’s reason for being, defining its culture, goals, and values. A well-crafted mission statement can inspire and motivate employees, attract potential customers, and convey the company’s commitment to its objectives and values to the public. It is supposed to be memorable, aspirational, and written with multiple audiences in mind, including customers, the general public, and primarily employees. By and large, these goals are usually reached. Still, it isn’t why people buy from companies – even those with rock-solid mission statements. The Three Real Reasons People Buy from Companies (And None are Its Mission Statement) People often choose to buy from a company not because of its mission statement, but because of the personal benefits they perceive they will receive from the product or service. This is because consumers are primarily motivated by their own needs and desires, and are more likely to make purchases that they believe will benefit them in some way. The key reasons why customers buy from a business are generally centered around three main areas: Saving time. If a product or service can save a customer time, whether it’s by making a task easier or more efficient, it’s likely to be well-received. Saving money. If a product or service can save a customer money, either by being cost-effective or by providing long-term savings, it can be a significant selling point. Making money. If a product or service can help a customer make money, such as by increasing their productivity or providing a new income stream, it can be a strong motivator for purchase. This perspective aligns with the view that customers are primarily self-interested. They are more likely to be concerned with the benefits they will receive from a product or service, rather than the broader mission or values of the company providing it. This is why it’s crucial for businesses to communicate the benefits of their products or services to potential customers, and to ensure that these benefits are aligned with their customers’ needs and desires. Ways To Show Your Customers How Your Products and Services Make Their Lives Better Of course, if it is true that people buy because they get something valuable out of it, then how do you show them how your products and services benefit them? Well, businesses can show customers how their products and services make their lives better by focusing on the benefits and outcomes rather than the features or functionalities of the product or service. This can be achieved through several strategies: Personalization. Tailoring the product or service to meet the specific needs of the customer can greatly enhance their experience and show them the value of the product in improving their life. Customer testimonials. Sharing stories of how the product or service has made a positive impact on other customers’ lives can be a powerful way to demonstrate its value. This can help potential customers see the product or service in a real-world context and understand how it could benefit them. Clear communication. Expressly communicating the benefits of the product or service can help customers understand how it can improve their lives. This can be done through product descriptions, marketing materials, and customer support interactions. Value proposition. A strong value proposition that clearly states what the product or service does and how it can improve the customer’s life can be very effective in showing the customer the benefits of the product or service. Demonstration. Showing customers how the product or service works and how it can be used to improve their lives can be very effective. This can be done through product demonstrations, tutorials, or user guides. Customer support. Providing excellent customer support can help customers see the value of the product or service in their lives. By quickly and effectively addressing any issues or concerns, businesses can demonstrate their commitment to customer satisfaction and show customers how the product or service can make their lives easier. Also, continuous improvement. Constantly improving the product or service based on customer feedback can show customers that the business is committed to making their lives better. This can build trust and loyalty, and encourage customers to continue using the product or service. 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 (602) 541-1760, or, if you prefer,

The Most Common Characteristics Successful Business Owners Possess that New Entrepreneurs can Emulate

January 12, 2023 No Comments

Starting a new business is a risky venture, and unfortunately, many start-ups do not make it. According to the U.S. Bureau of Labor Statistics, approximately 20% of small businesses fail within the first year, and this number increases to 50% within the first five years. While there are many factors that contribute to business failure, there are a few common reasons why so many start-ups don’t make it. To gain an advantage, successful business owners employ a number of traits and these help them overcome various obstacles that might otherwise derail their plans for building a profitable organization. The Biggest Reasons New Companies Fail Businesses fail due to a wide variety of reasons. But, the most prominent reasons come down to just five. First and foremost is the lack of planning. Many businesses fail because they do not have a solid business plan in place. Without a clear plan for how to generate revenue, manage expenses, and achieve their goals, businesses may struggle to succeed. Another common reason for business failure is a lack of financial resources. Many start-ups do not have enough capital to cover the costs of launching and operating their businesses, which can lead to financial difficulties down the line. Poor management is also a notorious culprit. Successful businesses require strong leadership and effective management, and those that lack these qualities may struggle to succeed. Poor management can lead to a lack of direction, disorganization, and conflicts within the company, which can ultimately lead to failure. It takes the lucky convergence of opportunity and ambition to create success. Successful business owners, regardless of industry, share a few critical traits that set them apart from the rest of society. Leveraging these skills allows them to turn their business ideas into profitable realities. —Forbes.com An inability to adapt is another factor. The business world is constantly changing, and those who are unable to adapt to these changes may struggle to stay competitive. Businesses that are resistant to change or unwilling to try new things may find it difficult to meet the needs of their customers and keep their businesses relevant. Finally, many businesses fail because there is simply not enough demand for their products or services. Without a sufficient customer base, businesses will struggle to generate revenue and may eventually go under. Successful Business Characteristics Entrepreneurs can Copy Starting a business is no easy feat, and it takes a certain type of person to be successful in the world of entrepreneurship. While there are many characteristics that successful business owners possess, there are a few that stand out as particularly important. By emulating these traits, new entrepreneurs can increase their chances of building profitable companies. Passion. Successful business owners are passionate about their ventures and the products and/or services they offer. This passion drives them to put in the hard work and long hours necessary to make their businesses a success. As a new entrepreneur, it’s important to be passionate about what you do, because this will help you persevere through the tough times and keep you motivated. Determination. Starting a business requires a lot of hard work and perseverance, and successful business owners are determined to see their visions through to the end. They are not easily discouraged and are willing to put in the effort necessary to overcome obstacles and achieve their goals. As a new entrepreneur, it’s important to be determined and never give up, even when things get tough. Adaptability. The business world is constantly changing, and successful business owners are able to adjust to these changes in order to stay competitive. They are willing to pivot and try new things in order to stay relevant and meet the needs of their customers. As a new entrepreneur, it’s important to be adaptable and open to new ideas, as this will help you stay ahead of the curve and keep your business moving forward. Confidence. Successful business owners are confident in their abilities and the value of their products or services. This confidence helps them to sell their ideas and convince others to invest in their ventures. As a new entrepreneur, it’s important to be confident in your business and your ability to succeed, as this will help you persuade others to believe in your vision and support your endeavors. Vision. Successful business owners have a clear vision for their businesses and are able to communicate this vision to others. They have a long-term plan for their company and are able to inspire and motivate their team to work towards a common goal. As a new entrepreneur, it’s important to have a clear vision for your business and to be able to communicate this vision to your team and potential investors. By emulating these characteristics, new entrepreneurs can increase their chances of building successful and profitable businesses. Remember that starting a business is not easy, and it will require hard work and determination. However, with the right mindset and approach, it is possible to achieve your entrepreneurial goals and build a successful company. What other qualities should entrepreneurs emulate from successful business owners? Please, go ahead and take a moment or two to share your own thoughts and experiences so others can benefit from your perspective! Are you interested in learning more about business? Then just visit Waters Business Consulting Group.