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News of the day - Being stranded on base We have been observing an unfortunate turn of events in a small business we have known for many years. We are concerned. Across North America, we have a generation that is aging out. They are individuals who were born in the late 1940's through the early 1960's. Whether by way of success, age, the pandemic, or other circumstances in their life, they are looking to leave the business. What we see as "stranded on base" is the business, key employees and family members working in the business. While we will expand on the options next, they are: sell to family member, sell to employee, sell to an outsider or close the business. The business I am thinking about has two generations currently in the business. The pandemic has been a big challenge to them as a lot of their merchandise sells to people for social events that have not happened in the past two years. They have closed off multiple sections of their building and squeezed their inventory to what remains. You can easily tell they have not been buying merchandise because they don't have the winter merchandise on hand. It appears the older generation is tired. The concern is the next generation. Past the point that the older generation is transferring a very challenged business to the next generation, they have done a great disservice to their child. Creating a baseball analogy, some business owners bring their child into the business and place them on third base. All the child has to do is wait there time and then trot to home place and assume the owner's position when the parent retires. The problem is the child never had to learn the challenges of batting and getting to first base. They never had to learn how to get to second and third. They have little understanding of that part of the business. The child in the business area we are describing has a different experience. They came into the family business and worked as a salesperson. However, that is all the child has ever done. All these years of working for their parents and they have not had the experience of learning how to own the business. Their child is stuck on first base. While these two examples all deal with family, an owner should think about how they are going to leave the business. If one of the possible answers is selling to an employee, you should take a look at the baseball analogy to see what position the employee is going to be left with as an owner. Surely you don't want to see the business fail because of someone not having touched all the bases.
Article of the Month - Are you making an investment? When a person purchases an existing business, or starts a new business, it is exciting to watch as the management and ownership skills begin to expose themselves to that individual, the employees, the customers and people who enjoy watching the "newness" unfold. We most frequently see one of two types of individuals; one is the person who can see the opportunity and need for the products and services they want to provide. The other person is the one who simply wants to work for themselves; they are buying a job. While this concept works for many of us for a long time, we want to point out that when you are ready to retire it is more difficult to sell a job to someone. They probably want to buy a business.
Who is visiting Small Business Conversations this month? - Ken Banks of the Retail Advertising Hall of Fame Every year we look forward to reading the review by Ken Banks of the advertising seen during the holidays. Because of the pandemic there have been a lot of changes to the messages businesses are wanting to convey to their existing and potential customers. Ken visits Small Business Conversations in February to give some great ideas of points you should consider as you advertise in 2021.
Book of the Month - Getting Things Done by David Allen We observe many a business owner who is disorganized. And, we observe many who are procrastinators. If they are putting 50 hours a week in their business, it is not 50 hours of productive ownership work, but a combination of these factors as well as not allowing the staff to make decisions. We call that micro-management. Getting Things Done by David Allen is very different from a time management course. Instead it works on two things - order and action. We think it is a great book.
Internet Tool for Your Business - Understanding your financial statement One of my ongoing biggest fears is the small business owner who says something to the effect of, "my accountant watches this stuff for me". It is your business. No one will watch it as carefully as you do. But what if you don't fully understand what you are seeing? What if you don't understand the information provided to you? This month's Internet tool for your business is an interactive piece from the Profits Plus website which will walk you through the formation of your financial statements. As you click on each link there is an explanation as well as that part of the financial statement showing on your screen. We have been told this tool is a great teacher. We hope you find it valuable to your business.
Staff Incentive for Your Business - Recognition This month's staff incentive can work for your business twofold; for your employees and for yourself. The first is a simple incentive of speaking of employees by first name. Instead of, "let me get someone to take care of this", a change to, "Ben knows more about this than anyone". Ben gets recognition which builds his self esteem, and at the same time you will have a business where you are not seen as the one individual who everyone goes to for answers. Then you can occupy more of your time with owner duties. We want to recognize A Carrot A Day by Adrian Gostick and Chester Elton, whose book provides the basis for each month's incentive idea.
What's coming up that you can promote? - April Let's lift some spirits of your customers. What is there to celebrate? Each edition of Small Business News shares ideas for celebrations for you and your customers. Examples of events for the month of April include: Lawn and garden month National wildlife week - April 5 - 9 April Fool's day - April 1
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DECEMBER 2024
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With over 25 years of frontline experience Tom Shay is America's leading Small Business Management Expert. He's a "Must Have" for your next event.
Small Business
Whose job is this, anyway? Have you heard that before? The December Small Business Article of the Month offers ideas from those who have found solutions.
Small Business
Past our announcement that the December newsletter starts our 26th year, we are discussing what is and what is not a problem.
Starting with, all these announced closings of retail operations is not a problem indicative of retail. It is an indicator of chain stores trying to correct the problems they previously made.
We came across a solution of tasks not getting done as well as tasks not done correctly. We created an owner's manual for our business. Details in the Article of the Month.
Atomic Habits by James Clear. Have you ever caught yourself saying that you had gotten out of the habit of doing something? Perhaps it is something you need to continue to do? This book can be applicable to personal and business life.
