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Big Challenges for Small Business Owners
Small business owners wear many hats and make many decisions each day. Most of these decisions are small and have minor impacts. Some decisions, however, are common to most small businesses and can have far-reaching, fundamental impacts. As a starting point, let’s look at three fundamental challenges:
The first big challenge facing most small business owners is finances. As the CEO of a start-up frequently said to me, “Cash is king.” Businesses exist to make money and most small business owners run their finances without adequate planning or oversight. They monitor bank balances, accounts receivables, and expenses, but most don’t have a basic financial forecasting, reporting, and review structure in place. Additionally, many don’t have the forethought to establish a line of credit or other funding sources to help them remain solvent when inevitable financial speed bumps occur.
If your business needs some help in the financial area, here is a short “best practices” checklist to consider:
- Get help to create a basic financial reporting (KPI) structure, such as within QuickBooks or your chosen accounting software
- Document financial reporting requirements and ensure they are followed by you, your employees, 1099’s, etc.
- Establish a recurring schedule for reviewing results and forecasts for all important financial data, such as cash, revenue, accounts receivable, and major expense categories
- If not yet established, investigate funding options such as a bank/SBA loan, line of credit, credit card, silent investor, or personal funds… before you need the money
The second big challenge facing most small business owners is people because every person is critical to the operation. One poor performer can have unforeseen negative impacts. A sudden resignation by a key contributor can slow production. Finding new talent can be difficult, or motivating and retaining talent can be overlooked.
If your business needs some help in the people area, here are a few ideas to consider:
- Take the time to consider carefully the performance of each member of your current team
- Determine those employees who are critical to your success and what you will do to motivate and retain them
- Determine those employees who are not performing and what actions you will take to address this
The third big challenge facing most small business owners is time. Few seem to have enough of it, even if they are working 60 hours a week or more. After working long hours for years, they begin to feel they have become a slave to their business … that the business is running them rather than they are running the business.
If you are working more hours than you want and not on a track to improving this, here are some ideas to get more of your life back:
- Jot down the actions you take for a day or two, then review your list and decide what you can stop doing with no/minimal impact
- Take a good long look in the mirror and ask yourself “Am I failing to delegate work that others could be doing?”, then delegate appropriately (the topic of a future blog post!)
- Establish more organizational structure in your daily activities, such as a daily “to-do” list and time scheduling for key activities to do daily, weekly, and monthly
- Make a commitment to yourself to reasonable work hours and hold yourself to them, which will motivate you to eliminate or delegate low-value work
Most small business owners I meet have all of these problems, in varying degrees. If you are a business owner who doesn’t have any of these big challenges, it’s possible you are overlooking one or more of them.
Think again. Don’t skip over this opportunity to improve your business and your work/life balance!
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Richard Kirby (www.richardkirby.net) is “The K Factor”, an executive coach who provides inspiration and guidance to small business owners and corporate executives who genuinely seek success at a higher level.
Richard Kirby (www.richardkirby.net) is “The K Factor”, an executive coach who provides inspiration and guidance to small business owners and corporate executives who genuinely seek success at a higher level.
770-366-5875
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Jim Weber, Managing Partner
ITB PARTNERS
Webinar – Three Pillars For Success – October 10 at 2:00 p.m. Eastern
“Three Pillars For Success” Webinar
Join Us, October 10 at 2:00 p.m. Eastern To Hear Jim Weber Present
The Three Pillars To Success
Description
Get Serious about creating an effective business development plan!
Jim Weber is President of New Century Dynamics Executive Search, and Managing Partner of ITB Partners, Management Consultants. He will be presenting “The Three Pillars for Success.”
This webinar is designed to help you if you are trying to attract new clients/customers, looking for a new full-time job, or considering a career as a Freelancer.
ITB Partners is a Consortium of independent management consultants providing high value-added solutions to your problems. For more information, please visit our website at www.ITBPartners.com
For more information about ITB Partners, please visit our website; https://itbpartners.com
Thank You!
| Jim Weber | Managing Partner | ITB Partners |
| 770-649-7051 | Jim.Weber@itbpartners.com |
Self Awareness and Career Alignment
I landed a new client this week, referred to me by another of our coaches. The client, John, had recently purchased a franchise for an online business. He reached out to us because he’s having trouble generating revenue. John’s an occupational therapist. This is his first experience as an entrepreneur; however, he has the presence of mind to know that he needs help. As we were getting to know one another over the phone I asked about the training he had received from the franchisor. He provided a brief overview but admitted that he wasn’t comfortable with some aspects of the Brand’s training, especially regarding customer acquisition. That revelation gave me a clear direction for our first meeting. There is obviously a disconnect between John’s desire to have a business and his willingness to follow the franchiser’s model for success. To be helpful, I must understand his rationale for acquiring the franchise compared to his personal strengths and interests.
After reflecting on our conversation, I thought of another friend and former colleague, Susan. I recall that Susan and I left a previous employer at the same time. She immediately signed up for a seminar to help her chart her next career move. One important topic of the seminar was achieving self-awareness. After the seminar, she told me that her biggest revelation was that she was not meant to be in sales, that she should look to further her career in a staff function. That made sense to me. Later, she told me that she had taken a position with a major financial services company as a Financial Advisor, a euphemistic term for sales. Of course, she wasn’t happy in that role and soon moved on.
You’ve probably noticed that people employed in the same occupation have similar personalities and interests. The differences become more evident when one considers vastly different occupations, like engineers and people engaged in the performing arts. Consider the personalities of salespeople as compared to librarians or academics. Or, more to the point of my work, employees compared to entrepreneurs. The most significant attributes of entrepreneurs include creativity, passion, persistence, optimism, and decisiveness. They are also independent, confident, and disciplined. These attributes make sense to me given the risks assumed by entrepreneurs. Any given line of work will have the greatest appeal to a specific type of individual. To the extent that you “know yourself,” you will be in a better position to choose an appropriate career path.
It is said that knowing who you are, self-awareness, is of critical importance for a successful life. So, what does one need to know about oneself to achieve self-awareness? In business, companies begin their strategic planning cycle by conducting a SWOT Analysis. SWOT is an acronym for strengths, weaknesses, opportunities, and threats underlying the planning process. These four areas of interest are evaluated against the competition. They may continue their internal assessment by evaluating their capabilities, i.e. market penetration, distribution network, financial resources, adaptability, intellectual capital, R&D, etc. The evaluation of these attributes and issues will result in strategic options to consider and ultimately a three to five-year plan.
Achieving self-awareness for an individual involves a similar process. Taking stock of one’s skills, strengths, and weaknesses is easily understood. What are you good at doing? Additionally, one should be familiar with their belief system, including values, interests, and the general direction you want to take in life. What is important to you? What motivates you to get out of bed in the morning? Understanding the personality types that give you energy as opposed to those that zap your energy may be important. What situations do you find stressful and try to avoid, compared to those you find exhilarating and attractive? Fortunately, there are diagnostics to help you understand yourself, such as the Myers-Briggs Type Indicator (MBTI), Predictive Index Behavioral Assessment, Birkman, and Minnesota Multiphasic Personality Inventory (MMPI). One of the benefits of these diagnostics is that they provide general guidelines as to occupations that align with your personality and interests. To the extent that you are aligned with your work’s occupational requirements and skill set, you will have a greater likelihood of success and happiness. If you haven’t had an opportunity to take one of these diagnostics, or if significant time has passed since you did, I recommend that you do so. In doing research for this post I found several articles that present thoughtful questions to help you better understand yourself. Links to some useful articles are included hereinbelow.
In “The Art of War,” Sun Tzu restated the already established axiom, “Know yourself, know your enemy, and you shall win a hundred battles without loss.” Socrates said that the unexamined life was not worth living. When asked if he could be more specific, he replied: ‘Know yourself.’
Articles of interest:
https://learnoutlive.com/sun-tzu-didnt-invent-know-yourself-know-your-enemy/
https://www.essentiallifeskills.net/knowyourself.html
https://www.prolificliving.com/get-to-know-yourself/
https://www.aconsciousrethink.com/7419/get-to-know-yourself-better/
https://www.aconsciousrethink.com/7419/get-to-know-yourself-better/
https://www.wikihow.com/Get-to-Know-Yourself
https://www.theschooloflife.com/thebookoflife/know-yourself/
https://studentaffairs.duke.edu/career/know-yourself
Thank you for visiting our blog.
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Jim Weber, Managing Partner
ITB PARTNERS
The Three Pillars of Success
Jim Weber Presents “The Three Pillars of Success “to the August Atlanta BENG Chapter Meeting
Jim Weber, Managing Partner ITB Partners, founder of New Century Dynamics Executive Search and the author of “Fighting Alligators: Job Search Strategy For The New Normal” presented “The Three Pillars For Success” to The BENG Atlanta Chapter in August.
This discussion is meant for career-minded professionals who are gainfully employed, or between situations, and independent business owners looking to become more successful.
To view this presentation, Click Here!
Thank you for interest in ITB Partners.
I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
Your feedback helps me continue to publish articles that you want to read. Your input is very important to me so; please leave a comment.
Jim Weber, Managing Partner
ITB PARTNERS
The BENG Atlanta Chapter September 10 Breakfast Meeting Featuring Dan Jourdan
CLICK HERE TO REGISTER
Description
“The No Excuses Guide to Selling Yourself & Achieving your Goals.”
Date And Time
Tue, September 10, 2019
7:30 AM – 9:30 AM EDT
Location
Refund Policy
Refunds up to 1 day before the event
Eventbrite’s fee is nonrefundable.
CLICK HERE TO REGISTER
10 Industries You Probably Never Think of as Franchises – Leslie Kuban
When you hear the word “franchise,” what image pops up? Most likely, it’s a fast-food chain; and, even more likely, it’s your favorite fast food. Is it time for lunch yet?
If you’ve dismissed franchise ownership because you don’t want to flip burgers or make sandwiches, you’re missing out on a vast world of opportunities.
Yes, the number of franchises in quick-service restaurants continues to grow, but these are by far not the only successful option. According to FRANdata, an independent research company for the franchising sector, there are more than 230 different industries represented in franchising; and, additionally, 200 new brands enter the market each year.
You may think most of these businesses are run by small independent owners or large corporations. Not true. Let’s take a closer look at 10 out-of-the-box categories crushing it in franchising.
1. Coworking Spaces
Responding to the increasing trends toward shared services, remote working, and short-term fractional work, more small businesses, and larger companies are opting for co-working environments over traditional brick and mortar leases. Can you say, “recurring revenue?”
2. Yoga and Dance
The boutique fitness industry is exploding and now yoga and fitness dance concepts are making their mark. Drivers include the demand for fun fitness activities in a community setting coupled with the high costs of healthcare.
3. IT Services
From cyber-security to strategic growth initiatives, managing your company’s IT services can be a huge headache. Outsourcing overseas often provides lackluster service. Businesses want trusted, local expertise they can count on for the long-term.
4. Drug Testing
It’s hard to imagine a private or public-sector employer without a substance abuse policy. The demand for reliable, fast, accessible testing options is intensifying.
5. Swim Lessons
When I was a kid, my parents taught me how to swim by tossing me in the neighborhood pool. Times have changed and parents are demanding more effective and healthier methods. Not just about learning to swim, the franchises in this category are addressing a safety need in underserved communities.
6. Nail Salons
Perhaps the best example of an industry once dominated by small, independent shops is nail care. The demand for more sophisticated, experienced-based nail care is driving growth. Franchising has nailed this industry with clinically clean, semi-absentee, multi-unit opportunities.
7. Retail Resale
We’re not talking consignment shops. Franchising is transforming the resale market by offering gently used specialty items at affordable prices. The sweet spot of this niche lies between expensive retail stores and low-quality, second-hand thrift.
8. Music Instruction/Enrichment
Music is more accessible than ever; yet, traditional schools are still reducing fine arts programs, thus, driving the demand for quality music instruction and enrichment. Gone are the days of the old-lady, piano teacher. Franchising has turned up the volume on music instruction, making it fun and cool to learn.
9. Tree Removal and Care
In my neck of the woods, trees are everywhere. Care and removal of trees is no longer a business for “Chuck in a Truck” (with a chainsaw) in this $17-billion industry. This is a classic example of franchising bringing professionalism and systematization to a fragmented, high-demand service…and reaping the rewards.
10. Digital Marketing Consulting
The majority of businesses in America are small businesses with a small marketing staff and even smaller marketing budgets. It’s no wonder B2B franchise models exist across the globe to assist businesses with their online marketing strategy and execution.
Because there is such an abundance of profitable franchise ownership opportunities that exist outside of fast food, me and 14 of my friends got together to dispel that myth in the Amazon bestselling book, More Than Just French Fries.
You too can grow a profitable business through the franchise model and it doesn’t have to cost a fortune or take up all your time. Semi-passive business ownership is accelerating as families look to side-gig options for a more secure future. I recommend that anyone exploring franchise ownership keep an open mind and consider a variety of different businesses in different industries, even the ones that surprise you.
If you’ve dismissed franchise ownership because you don’t want to flip burgers or make sandwiches, you’re missing out on a vast world of opportunities.
Leslie Kuban is a nationally recognized franchise industry expert, CFE (Certified Franchise Executive) and Market President of FranNet in Atlanta; a locally owned and operated franchise consulting firm. Leslie and her team have helped close to 500 individuals and families achieve their dreams of business ownership through a no-cost, extensive educational and coaching process.
Connect with Leslie online or call 770-579.3726 to start the conversation today.
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Your feedback helps me continue to publish articles that you want to read. Your input is very important to me so; please leave a comment.
Jim Weber, Managing Partner
ITB PARTNERS
Exit and Succession Planning is a Team Sport
We have advisors and coaches in all facets of life. But in this most important area for our future, for our family and for our retirement, most business owners are pretty much just “winging it”. Oh, they may have an accountant but not much more of a team to focus on exit planning in all its complexities. An advisory team is critical for successful succession planning.
Business owners start their companies to create their future. But they often lose sight of the key to making that future happen – building value. They get caught up in the day-to-day and don’t get to implementing the sustainable, positive change that allows them to transition on their own terms.
Consider: “…78 percent of small-business-owner clients plan to sell their businesses to fund their retirement. The proceeds are needed to fund 60 percent to 100 percent of their retirement needs. Yet, less than 30 percent of clients actually have a written succession plan…”
http://www.cnbc.com/2015/04/13/ew-small-biz-have-an-exit-plan.html [I would suggest that 30% is generous, and even if accurate, that those plans are not very effective, for growth or for exit planning.]
When I speak on exit planning/succession planning/transition planning, I outline a proven 7-step process. Forming your advisory team is one of those steps.
Build a Team of Advisors.
Nobody knows everything. Many of my clients are in creative industries, designing, creating, building. You don’t want me in that role. But I have worked with many organizations and have a different experience and skill set than my clients. I bring ideas and experience from many industries and many client engagements. The other critical exit planning team members bring their own expertise to the table. These should include:
- Exit Planning Consultant / Coach
- CPA
- Financial Advisor
- Business value expert
- Business Attorney
- Insurance Expert
- Estate Planning Attorney
- Banker
- Business Transaction Expert
When I work with a client, we build this team. The players may already be in place. Or, we may bring in advisors where there is a gap. Either way, we need this core team working with the owner. A business is complex. A marketing action impacts finance, HR, and more. Big decisions need to take into account the effect on the whole organization and should support clear goals focused on building value.
The client receives much better advice and guidance with this approach.
This does not mean that you are going to start hiring all of these people and employing them full-time as you work toward your transition…especially if you have a few years to go. But, you should use them strategically as you build your business/succession plan. For major decisions on growth, expenditures, hiring, exit-readiness, business value, deal structure…engage their expertise!
The Bottom Line
Find advisors who understand what you are all about, your growth and exit planning objectives. More importantly, find advisors with whom you feel comfortable. Make sure that they can work together and collaborate on your behalf.
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David Shavzin, CMC
770-329-5224
david@GetOnTheValueTrack.com
The Value Track
Succession Planning / Exit Planning, Building Transferable Value for Sale
Thank you for visiting our blog.
I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
Your feedback helps me continue to publish articles that you want to read. Your input is very important to me so; please leave a comment.
Jim Weber, Managing Partner
ITB PARTNERS
Jim Weber To Present “The Three Pillars For Success” BENG Atlanta Chapter August Meeting
Join Us for the August Atlanta BENG Chapter Meeting featuring Jim Weber
Jim Weber, Managing Partner ITB Partners, founder of New Century Dynamics Executive Search and the author of “Fighting Alligators: Job Search Strategy For The New Normal” will be joining our BENG Atlanta Chapter in August. Jim will be presenting: “The Three Pillars For Success”
This discussion is meant to career-minded professionals who are gainfully employed, or between situations, and independent business owners looking to become more successful.
REGISTER
Date And Time
Tue, August 13, 2019
7:30 AM – 9:30 AM EDT
Location
REGISTER
ABOUT BENG:
The Atlanta chapter of the Business Executives Networking Group (BENG) is a multidiscipline, independent group of job seekers, those currently employed and business networkers, who are willing to help others. Current membership includes mid to senior-level executives with over ten (10) years of business experience. Past attendees have come from the financial management, information technology, legal, manufacturing, engineering, transportation, logistics, distribution, and general management industries. We actively seek new members from all disciplines.
Monthly meetings are structured to help each member get the maximum benefit.
BENG Networking Meetings:
- Are approximately two hours in length.
- Are typically held monthly.
- Range from 10 to 30 attendees, but the average is 20.
- A skill-building presentation.
- Allows each attendee 30 seconds to introduce themselves, talk about their background and expertise, and to present their Target Companies and networking needs.
- Please bring business cards and your marketing plan if you have one.
Networking meetings provide members with an opportunity to sharpen their networking skills, meet peers from various disciplines and share business opportunities and job leads.
REGISTER
Erica McCurdy to present “Your Customers Are On LinkedIn, Shouldn’t You Be?”
Erica McCurdy to present to AMERICAN BUSINESS WOMEN’S ASSOCIATION MONTHLY LUNCHEON (AUGUST)! Follow this link to register! https://lnkd.in/eMrNBUC
AMERICAN BUSINESS WOMEN’S ASSOCIATION MONTHLY LUNCHEON (AUGUST)
You can learn more about Erica and her business and family practices at www.McCurdySolutions.com and www.ATLDIV.com
About this Event
Join the American Business Women’s Association for their monthly lunch and learn series. You will be treated to our guest speaker, Erica McCurdy.
Let’s spend 30 minutes together to QuickStart the process of growing your influence, increasing your opportunities, and MAKING MORE MONEY leveraging the power of LinkedIn. We will begin with a quick group activity to learn how to fast-track connecting in a group setting, and move through refining your profile, developing connection strategies, and taking the skills you already have and use on Facebook, Instagram, and Twitter, to make them work for you in the structured world of LinkedIn.
Integrating the best in coaching, psychology, goal-setting, and accountability, Erica McCurdy has earned a reputation for being one of the best coaches in the Metropolitan Atlanta area. She is an active member of Forbes’ Coaches Council and a credentialed member and mentor coach for the International Coaching Federation (ICF). As a Master Certified Coach, she holds four specialty coaching certifications: Certified Professional Master Coach; Certified Business Coach; Certified Group Coach; and Certified Youth, Parent, and Family Coach. Erica has been recognized four years in a row as a “best of” business in her industry, listed four years running as a “Top Atlanta Coach” by Experteer, is an instructor in the ICF Core Competencies, and is a proud coach and mentor for the Navy SEAL Future Foundation. You will find her regularly featured on MSN, US News, Recruiter.com, Forbes, Business News Daily, Fox News.com, Elite Daily, Best Company, SparkHire, AARP Life Reimagined, LiveStrong, GoodEveryDay, Money For Lunch Radio show, Money Nomad, FlexJobs.com, Bustle Magazine, and more. In addition to her executive career, she has founded several start-ups including her favorite, Georgia Sanitation, Inc. which she sold in 2006. A native Atlantan who is committed to her community, Erica is a passionate Rotarian, Paul Harris Fellow, a member of the National Society of Leadership and Success, and a past president and sustaining member of National Charity League.
You can learn more about Erica and her business and family practices at www.McCurdySolutions.com and www.ATLDIV.com