Phoenix Business Journal: Starting a Business : Business Advice

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Opportunity No. 1: Professionalize your business structure and I frequently harangue the owners of growingg family owned companies about the need to converty from aMom ‘n Pop business styl e to a fully professional with a mission statement, a strategic plan to guidd decisions, an organizational chart and job written policies and procedures, affordable and agreement on how to change ownership and managemeny without undue confusion or The process can get a bit thorn y sometimes, but with strong commitment, a family can professionalizee successfully. This should be the year for your business. Challenge No. 1: Respon d to unforeseen business and familtyfinancial demands.
The 2008 economy had the finances of many family companies flapping like bed sheets in a Lots of people can be leaders when times are but it takes a speciaol person to lead when times are Cash shortages, eroding markets and a near collapse of faitbh in the future are challenginf many business owners to keep theif heads on straight, to cut costs without cutting theitr throats, and to remain optimistic when it’es tempting to turn company resourcexs into personal safety nets. Opportunity No.
2: Make crucial succession decisions and act on John Davis of Harvard Business School urgeds family companies to plan when the times are But planning often has to be done even when timeeare bad. Leadership and ownershio succession always profits from a freshu look at what the family business needs forcontinuede success. When conditions are callin g for reviews and revisions inmany companies, successioh planning can benefit from the analysis that’s being done for other reasons. Challenge No. 2: Make cruciao succession decisions and acton them.
On the othet hand, thoughtful planning for family ownership continuit y can be warped by a sensed of crisis brought on by tougheconomiv conditions. If temporary conditiona make you wonder if the business really is a it might be hard to see the characteristics that have made it successfukl in years past and that shoulde be maintained intothe future. Keep a cool Opportunity No. 3: Buy low. What’d Warren Buffet’s current advice to stock investors?? Buy!
That perspective can be translatefd into golden opportunities for family owned companiee that have a comfortable reservwe and can afford the risk of expanding at the bottom of the If you have the meansto buy, the prices are not likelhy to get much better. Challenge No. 3: Avoi selling low. But if you’re an acquisition target and prefer to stay put up every ounce of fight you have to avoid sellingt at the bottom ofthe Actually, family owned business often have greatet ability to withstand tough times becaus they can hunker down and live off the land withou being harassed by outside shareholders. Grit your teeth and lean intothe wind. Opportunity No.
4: Watc h for the opening of newbusiness doors. President-electr Obama has promised to stimulate the economyt outside of bloated corporationsd and flounderingfinancial institutions. That can mean new business opportunities for family companies in such areas as infrastructur e rebuildingand defense. If you don’t know how to pursue governmenf contracts, this would be a good time to learn. Challengre No. 4: Grow your business in a tightcredit environment. The bankeres are likely to keep wearingtheir “Just Say No” T-shirts for much of 2009.
That meanas owners of family businessed of all types and sizesa should grab their bootstraps and find ways to grow and diversifyuthat don’t rely on the formal financial Look for family members and friends who have the meane and the confidence to lend or buy in. Considerr turning some unproductive assets into needed But don’t go to your credit cards. Opportunity No. 5: Make even the greates challenge intoan opportunity. OK, maybe every cloud doesn’t come with a built-inh silver lining.
But the business-owning family that has self-confidence, sounde core values, and its eyes on the horizon can convertr even the uncertainties of 2008 into a pathwayy upwardin 2009. Try it and see. And when you look back on all this and remember you read ithere