Do You Remember Your “Why”?
What are you working on today? What will you accomplish this week or month? Who is demanding your time and attention? Are you really satisfying their requests? Why did you get out of bed this morning? Why are you the owner of your business? What is your passion and purpose? Do you remember your “Why”?
Many times, individuals become business owners out of frustration with their prior employer or due to a curiosity of finding a better way to do something; few open businesses to get rich. There was an initial spark that caused you to venture out and challenge the norm or old way of doing things. The spark grew into a flame of desire and passion, which was your purpose and reason why. Do you remember your “Why”?
Now that you have the wonderful life as a business owner — serving your customers and clients with happy long-term employees, maintaining relationships with vendors, and enjoying the many recent years of economic growth along with outstanding profits, without too many cares, have you planned for what is coming next? Do you remember what you were trying to accomplish many years ago and “Why”?
My why or purpose in life is to serve others by helping them reach their goals. I know I will not become rich compared to many people and I do not care, if I can be a part of their success. I have the love and support of my family and friends along with a strong witness of my Savior, Jesus Christ, who has provided an example of how I can best serve others.
Are the things you are doing today and this week really helping you achieve your why? Do you remember your “Why”?
These questions may also relate to your business, yet you need to be sure you, individually, are truly satisfied and happy as well.
Fundamentals:Operations – Part 2
“To achieve great things, two things are needed;
a plan and not quite enough time.”
– Leonard Bernstein
What are Operations?
As discussed last time, the purpose of operations is to manage the resources needed to create your company’s products and services. It involves having the systems and processes in place to deliver on the promises made to your customers in an efficient and effective manner, while providing the opportunity to scale up, thereby increasing the value of your business.
A basic operations function encompasses development of a detailed plan to achieve optimum balance of needs or demands with the available resources. The planning process addresses the following:
(1) identifies the goals or objectives to be achieved
(2) formulates strategies and tactics to achieve them
(3) arranges or creates the means required
(4) implements, directs, and monitors all steps in their proper sequence
At this point, you may want to consider bringing on a Chief Operating Officer (COO), either as a fulltime C-level team member or on an outsource basis. Many owners, especially in smaller firms, run all aspects of the company, including operations. COOs take on a large share of this responsibility when it comes to day-to-day operations and continual improvement of the firm’s efficiency. They must know what’s going on in every area, including marketing, sales, manufacturing, and finance. COOs report directly to the CEO and oversee various department heads and mid-level executives. A strong COO reduces the company’s risk, which increases its value.
Especially for those thinking about making a successful transition out of the company, it is important to begin giving up some operating responsibilities now. Ask yourself, is it time to create a COO position and fill it with a good leader?
The Five D’s: Divorce
“In every marriage more than a week old, there are
grounds for divorce. The trick is to find, and continue to find,
grounds for marriage.”
– R. Anderson
In our last newsletter, I introduced the concept of the “Five D’s,” five major events that can create severe disorder in a business. These are:
It is imperative that owners have a contingency plan for each to give the business a fighting chance of surviving with the business intact. According to Web MD, the second item on our list, divorce , is also the second most stressful life event, wedged between the death of a loved one and moving to a new home.
The mental, emotional and financial trauma of divorce can create serious consequences insofar as how owners run their businesses, treat their employees and customers, and even pay their vendors. At the very least, it provides distractions that can keep your organization from running at peak efficiency; at its worst, the cost of divorce can drain the company coffers and drive it into bankruptcy.
Many owners don’t see it coming or think it could never happen to them.
Early preparation is the best defense, which may include a prenup, placing the business in a trust and creating a detailed buy-sell agreement.
If looming or in process, with the court classifying your business as marital property (acquired during your marriage), it is important to maintain good records and obtain a professional independent valuation. Then if you need to transfer a portion of the business or pay for a portion of the business under a court-order to your ex-spouse, it will make things easier to have arranged to make payments over time.
One piece of good news is that it’s unusual for a business to be sold off completely to satisfy a divorce settlement, as it would deprive the business owner of the future income needed to pay support payments.
“Inspect what you expect! In my career I have often found that ownership and managers rely on staff reports without ever taking the time to actually conduct a physical inspection. We all have different standards for cleaning, organizing, presentation, etc. If you aren’t inspecting what your people are cleaning, how do you know they are meeting your standards? If you haven’t checked the stock room lately, how do you really know it’s ordered properly? If you haven’t watched how your team greets a guest, how do you know it’s an acceptable greeting?” -Sheri Long
If you’d like your favorite saying featured in a future newsletter, please email it, along with a brief commentary, to ChuckM@EagleCorporateAdvisors.com.
Henderson Chamber of Commerce
-Roadmap to Success Series
October 3, 2019
Business Valuation: What’s it Worth to You?
Business owners frequently wonder, “What is the value of my business?” The answer is, “There’s no easy answer.” It depends on your goals, your transition timeline and the overall business climate, among other factors. In this workshop, I will discuss the many methods of business valuation, as well as how to enhance business value to maximize your long-term benefits, no matter your ultimate goal.
Please join me Thursday, October 3, 2019 from 7:30 a.m. – 9:30 a.m. in the HBRC Seminar Room (in the Wells Fargo Building), 112 S. Water St., Henderson, NV 89015.
I look forward to seeing you there.
Complimentary coffee, bagels, pastries and fruit will be provided.
Free for Henderson Chamber Members
Additional $10 for walk-ins
Entrepreneurs, when starting out, often wear many hats and perform many tasks. But if the company is going to grow and evolve over time, the owners need to perform less hands-on technician work — in the words of “E-Myth” author Michael Gerber — and more process-driven managerial work. But how do they break out of their rut to make that leap?
It may require bringing in an objective outside specialist to provide professional assistance. This is one of the reasons Eagle Corporate Advisors was founded — to bring Chuck’s more than 25 years of experience to bear on challenges facing business owners. And to show them a new way of doing things that can put them on the right track; no matter their goals.