Are You Optimistic?
My job is often to be very candid with my clients regarding an outsider’s perspective on the condition of their business. That sometimes carries with it a depressing attitude back from prospective clients or actual clients when they have put a lot of blood, sweat, & tears into their business, which for many could be classified as their “baby”. That reality or slap in the face could become a big weight that may threaten their motivation to do what is required to push forward with improving the business or turning it around, in the worst case. Every owner is different with different dreams, aspirations, goals, and tactics that must be taken into consideration when planning the next step towards that dream. The one universal truth required is the consistent and ever-present utilization of optimism.
Optimism is an important element in business. There can be a lot of obstacles that keep us from reaching an optimistic mindset. However, optimism accompanied with a good plan followed up with action is powerful. We are always in charge of the trajectory of our mindset and, therefore, our business. If you begin to believe that the world is working against you, every failure will feel like a justification for that feeling. Failures are simply opportunities to learn, grow, and improve. We must see these new understandings as the currency for success. There will always be media or cycles in the market. It’s critical to remember that success is found in the way we react and respond. An optimistic outlook and strategy can boost the morale of your team and encourage new ideas. It can also reenergize your own determination. Opportunities are out there if you are willing to take a chance and have the confidence to realize you are the one with the knowhow to make the most of it.
Fundamentals:Legal Part 3
“If you change the way you look at things,
the things you look at change.”
-Wayne Dyer
It’s all too easy to assume that the legal side of your business is performing seamlessly. More often than not, there are crucial areas in need of prompt attention. Across the board, legal issues warrant your time and focus because they can make or break your endeavor. What too many business owners lose sight of is that action protecting the legal side of their business actually increases the value of the business.
During critical times of need, most owners and executives rely on outside professionals, such as attorneys and accountants, for advice to help save businesses. Yet, they should be teaming up with outside professionals on an ongoing basis to enhance the value of what they are building. Regular counsel from an independent, highly experienced advisor has undeniable business benefits. Depending on a variety of factors, it might make sense to establish a board of directors or a board of advisors. Ideally, your board will provide insight into trends, provide new perspectives, influence strategic decisions, and increase your accountability. So, what are the differences between these two types of boards?
The Board of Directors
- How Many: There isoftenan odd number (five or seven people) to help with voting.
- Who They Are: They have no business ties to the company, and are chosen based on their experience in the industry, a special skill set or expertise, or their ability to provide useful deliverables.
- Their Focus: They manage the CEO and formally approve all key company decisions. They support the company’s vision and protect the interests of the organization and its shareholders.
- Their Compensation: They are typically paid to attend meetings and reimbursed for travel expenses.
- Their Liability: They have a legal duty to the company and can be found liable if mistakes are made. Insurance is necessary.
A Board of Advisors (Less formal structure than a Board of Directors)
- How Many: As many people as necessary to achieve goals and help grow the business.
- Who They Are: Generally they are mentors with specific industry knowledge. They possess specific skills that are missing in the organization.
- Their Focus: Priority is advising and assisting the CEO and top executives or managers.
- Their Compensation: They typically receive lower compensation for attending meetings than do a Board of Directors.
- Their Liability: With limited exceptions, they cannot be held liable for mistakes; therefore insurance is unnecessary.
When you are ready to discuss the possibility of forming a board to assist with the growth of your business, I am available to help you identify the gaps in your management team’s knowledge and experience, and to help you weigh the differences between a Board of Directors and a Board of Advisors for your particular situation.
The Five D’s: A Bonus 6th D
“Don’t Want to ’Do It’ Anymore”
A close examination of processes and scenarios will fortify your business in the event of Disagreement, Divorce, Disability, Distress, or Death. These 5 “D’s” are possible scenarios faced by all businesses. A well-prepared business contingency plan gives your business the ability to maintain the course, or to effectively change direction in event of the unforeseen. But what if you someday decide that you have lost all passion for your business, get worn out and tired, and think it might be time to walk away? Here we’ll discuss this sixth “Bonus D” that I’ll call “Don’t Want to ’Do It’ Anymore.”
Burnout happens. Compound it with several additional life or business issues, and you might decide you want to call it quits. We all have days where that crosses our mind, but if this thought – or dreading the next day – continues with you for weeks and months, it might be for real this time. You know you have a responsibility to your employees. You know that if you simply closed the doors that your family would miss out on the financial benefit of a carefully planned merger or sale.
Some business owners reach this headspace but can’t bring themselves to tell anyone. They might be embarrassed to share their challenges with others who were around during the good times. Spouses have sacrificed for the sake of the business, and friends could have even loaned money during challenging times. Business owners secretly dreaming of escape don’t want to let people down.
How can the flame be re-ignited? What would it take in terms of time & money? How does the business owner/CEO overcome this fate? Who is the best person to talk to?
Dealing with any one of the D’s is never an easy conversation, but you, your stakeholders, and your family will gain invaluable peace of mind once you take the first step by reaching out to Eagle Corporate Advisors.
As the old saying goes, “It’s lonely at the top.” This is especially true for business owners, who often find it difficult to share their fears, frustrations and difficulties with friends, family members or even other entrepreneurs.
Trusted business advisor Chuck Mohler likens the situation to sitting across the desk from an empty chair, symbolizing the challenge of finding just the right person to not only understand the issues but assist in developing viable solutions.
Armed with more than 25 years’ experience helping organizations large and small, along with multiple professional certifications at his disposal, Chuck is the best choice to take that seat and provide the meaningful guidance you need.
Contact him today at (702) 451-3250 or ChuckM@EagleCorporateAdvisors.com.