Family Business

What 1 Question Gets You the Right Consultant

Hiring the most relevant consultant to your business or industry is key to making changes within your company and making them efficiently. Turning processes around, creating relevant data and formulating meaningful financial information lie at the core of any business change.

The most important question is “What is your experience?”

It’s not just about consulting experience, but also hands-on, real practical experience doing what they will do for you. While the consultant

may have extensive experience, the people he sends you must as well. Experience is a result of years doing the work, the management or the financial control of a company. If the consultant they send looks like he or she is 26, the chance of their having years of experience greatly diminish. On the other hand, if you hire an IT consultant, that could be an advantage.

Bonus Questions

So here’s the rub.  If you hire an experienced consultant, will they know the current trends in business? What a great question to ask! How about, “What strategies have you recommended to businesses who are challenged with rapid growth?” “What fast track strategies have you suggested for the business office trying to keep up with uncontrolled growth?” Or to be more specific, “What software changes have you suggested when invoicing falls too far behind?”

These are questions specific to your goals. An experienced consultant who has kept up with current products and trends will more likely be able to help you resolve this.

Your savings will come in time (money) saved by the consultant and your business. The quicker you can resolve your situation, the quicker you’ll be saving. Remember as well, you need to dedicate a team of employees to work through this.

Consultants save you money in the short or long term.

In Business with Children – a Succession Story

Now that people are living longer, healthier lives, they are no longer willing to give up the reins of the family business sometimes even into their 80’s. That puts the next generation into their 50’s and 60’s. How do they plan for their retirement?

Jeff and his sister want to take over the family business from mom & dad who are in their 70’s. Mom & dad show no signs of letting go. Jeff is in his 50’s and wants to move the business along into the 21st century, increase revenues and provide for his own future. So, how does he fire mom & dad? People talking

Jeff is sensitive to the fact that his parents founded the business and are just as emotionally attached to it as they are
financially. They never set money aside for retirement and even though they take 8 weeks off in the winter to warmer climates, they still run the show from southern latitudes. Jeff feels like he can never assume full control. His sister is marginally interested in the future but deep down expects Jeff to take care of that. Another brother who is not involved with the business  lives on the west coast.

This scenario plays itself out too often. There have been few to no conversations about the ‘when mom & dad get older’; they’ve never initiated the conversation because they are living day to day until some outside force imposes a change. Many times, the younger generation doesn’t want to offend the parents and create a morbid discussion about “when you die”. So it is left untouched until it is too late. What is the best option in these cases?

It’s time for a talk around the campfire. A skilled business coach with the gift of sensitivity can bring this discussion to light with the entire family involved. In the scenario above, all members of the family, even the one not involved in the business, must participate in the conversation. After all, he is set to inherit a part of the net worth even if the other two siblings buy the business. ‘Ouch!’ Really? He’s ever done anything for the business. But, he is an equal sibling. You may think he deserves none of it, but he thinks differently. It may not be an equal share, but it’s still a share.

If this is being handled when it’s too late (death of a parent or both), this can get ugly. But if it is handled while they are still around, they can have input. The screaming can happen before the will is executed instead of after and normally it is split on a more even keel. There’s something about the parents not being around that elevates the conversation and settlement to an ugly level.

When the succession planning is done ahead with a third party leading the discussion, it is easier to discuss with a business consultant in the room. A good business consultant will regulate the conversation and bring the greed and control levers to a neutral position with thoughtfulness. All parties need to benefit in some form. Telling your parents that it is “time to step aside and let us take over” is usually realized by parents during the course of the conversations, making the end result easier.

So don’t wait until it’s too late. Find someone with the gift of compassion and start thinking of this 5 years ahead, make that 10 years ahead. Begin preparing the business for the change and for mom & dad to step aside. They’ll feel respected and appreciated for how it was done and will be prepared to make the move much easier.

Leading Edge Business Strategies, LLC is a consulting firm for small business. Paul Beaudette is the President and has over 30 years of successful business experience leading companies to sustainable profits, new growth strategies and business sustainability.

Cash Flow – the lifeblood of your business.

SMALL BUSINESS SPECIAL

Is cash flowing through your company like a river? Comes in fast and goes out faster?

Are your expenses under control or are there too many hands in the pot?

Are you making the best use of your cash and line of credit?

Are you forever surprised at the end of the year over money you have left (or don’t have left)?

Here’s your chance to get your business organized at the halfway point of 2017. Start off on the right foot with a cash flow projection that shows you real numbers that you can run your company and lowering your stress level by taking action six weeks before your cash and expenses become unbalanced. Always be prepared.

Call us today, get 8 hours consultation on a business channel, department or overall company process you need help on and you’ll get a free cash flow analysis that will help you finish 2017 with a real time view of the cash flowing through your company.

Create opportunities for adjusting prices.

Enable your ability to set money aside.

Pay bills on time.

Pay down that line of credit.

Know when to buy that new equipment.

Take advantage of discounted buying opportunities.

Don’t wait until its too late, call or email us today.

The Power of a Mentor

Every business owner/president/general manager should have a mentor. If you think that as an owner you know it all, you’re wrong. You may be successful up to this point, but you will get to the point where you’re faced with decisions that could take you either way.

Here are 4 reasons to find a mentor:

  1. You need someone to tell it to you like it is. As an entrepreneur, mentor1you live in a bubble of your own thoughts. Your thoughts are a result of what you read, the conversations you have with others, things you may have seen on TV, etc. Someone in the past has influenced you into the way you think today. With a mentor, you need to find someone that will tell it to you straight, someone who does not have a vested interest in your business or your anticipated reaction.
  2. You need someone who thinks differently than you do. If you’re in the tire sales and service business, you may have been doing newspaper or print advertising, perhaps even TV advertising. Find someone who can deliver new ideas to you from outside the tire service business. Perhaps another entrepreneur or a business coach who can deliver new ideas on promotion, dealing with customers, scheduling customers or whatever.
  3. You’re not looking for a friend. A friend has a vested interest in your feelings. That doesn’t mean you’re looking for someone who is rude or heartless. You just need someone who doesn’t mind disagreeing with you and telling you why. Someone you’ve never known before but knows something about business, usually works out better.
  4. Confidant – if you have confidential matters to talk over with someone outside your business or executive team, find a mentor whom you can talk to on a confidential basis. Business owners don’t always have someone to share their inner most thoughts and feelings with. Finding a confidant can be extremely stress relieving.

Vivek Wadhwa quote

Developing a relationship with a mentor is a sign of strength in an entrepreneur. Take care of yourself so you can take care of others. Mental alertness, comfort and acuity is key to operating a business. Whether you pay for a business coach who works in confidentiality or find someone you trust, make the move to ensure your success.

Paul Beaudette is an independent business coach with Leading Edge Business Strategies. His focus is on growing small businesses to better compete against national and global corporations.

Don’t just Survive, THRIVE !

Leadership from Gratitude

Not Management by Ego

by Paul Beaudette

The presidential candidates, Republican or Democrat, have all demonstrated one thing in common. An oversized ego is prevalent when you run for president.

After all, what are you selling? YOU! You are selling yourself to the people of the United States. How you go about it determines how much of a narcissist you are. We have seen extreme levels of narcissism, ego-centricity, pomposity and vanity, and these came from one candidate.

In business, managers, leaders and office holders often have the ego-driven need to attain such a position and then bask in the glory of “I’m in charge”. To a new manager, what may have formerly been co-workers, are now employees and the responsibility of this new manager. The transition has to be handled carefully and responsibly to maintain a working relationship, yet achieve the level of respect and allegiance that the manager seeks from the employee and vice versa.

egomaniac

Strong manager egos often displace the actual message being transmitted. Your title isn’t your role, your role is your title.

If the manager’s ego takes over, the relationship becomes one of title, not role. Too often, you’ll see people promoted to positions that they are not trained for because they are family, or a friend of the big boss and feel they are ‘owed’ that position. The damage potential that this has to the workers will begin to trickle down to customers and diminish customer loyalty. Employees begin feeling used, threatened and hurt. Turnover increases and the constant flow of new people begins to affect the bottom line. Morale is destroyed and theft and misuse of company property appears. Customers vanish.

How do you keep this from happening? Here are some suggestions:

  1. Hire right. Don’t take your hiring process for granted. It’s not filling in vacant positions with bodies. Look at it from a standpoint of the customer. The customer wants a friendly personality, someone who can answer product/service/process questions and someone who can be expedient and accurate.
    1. When there is no direct contact with the customer, use the same scenario as in #1, but change the customer to a co-worker, team leader or anyone else within the company.
    2. Depending on the position being filled, you may choose to have a personality survey performed. These give you the traits of the applicant against the traits you are looking for. They provide a good indicator if a match is possible. They are also useful after hire to coach the employee to success.
  2. For Pete’s sake, don’t promote people just because they are related or a friend. Promote them because they are leaders or have the potential to become leaders. Whenever you want to fill a leadership position, interview the candidates (including internal candidates) and ask them the tough questions. Find out how they have handled stress in the past, what examples they have of conflict they have encountered in the past and what they did about it. Those experiential answers will go a long way in your decision.
  3. When the candidate’s questions revolve only around pay, company car, benefits and such; question whether they are only looking at status versus the interests of your business. Ask why the position is important to them. Question how they would change an unproductive behavior in an employee. How would they handle an irate customer with a legitimate complaint?
  4. Get a fellow team member to interview the candidate. They know what it takes to do the job and can ask pertinent questions.
  5. The ideal candidate will be someone who will do the job because he/she wants to be a part of a better business. This person will want the customers to better themselves through the interaction with your company. They will be happier, feel good and be personally productive within their own business. The manager (leader) you are looking for is someone who is personally grateful for having improved the lives of employees or customers. Their primary goal is not make themselves look better and boost their ego. It is to serve others.

The fifth concept is not common in business. In fact, it’s rare. But the end product is a person who is rewarded for having created an outstanding team of employees and extremely satisfied customers. Steven Covey would always say, “Start with then end in mind”. Well, here it is. The customer is the end and if you work your way backwards from there, you’ll find that this personality type creates the environment and attitude you need to succeed.

Paul Beaudette is a business coach and consultant. With over 30 years of ‘boots on the ground’ experience, he has made businesses successful through his leadership, controlled management style and financial acumen. “Don’t just survive, Thrive”

Leading Edge Business Strategies