bizjournals: Starting a Business : Business Advice

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Opportunity No. 1: Professionalize your business structurdand operations. I frequently harangue the owners of growing familyg owned companies about the need to converf from aMom ‘n Pop businessa style to a fully professional style, with a missiomn statement, a strategic plan to guide decisions, an organizationalp chart and job descriptions, written policies and procedures, affordabl e benefits, and agreement on how to change ownership and management without undue confusion or conflict. The process can get a bit thornyh sometimes, but with strong a family canprofessionalize successfully. This shoulx be the year for your business. Challenge No.
1: Respons to unforeseen business and familyfinancial demands. The 2008 economt had the finances of many familu companies flapping like bed sheets ina windstorm. Lots of peoplr can be leaders when timesare good, but it taked a special person to lead when times are Cash shortages, eroding markets and a near collapswe of faith in the future are challenginh many business owners to keep theirf heads on straight, to cut costs without cutting theire throats, and to remain optimistic when it’s tempting to turn compant resources into personal safety nets. Opportunit No.
2: Make crucial succession decisions and act on John Davis of Harvardr Business School urges family companies to plan when the timeeare good. But planning often has to be done even when timeesare bad. Leadership and ownership succession always profits from a fresh look at what the family business needs forcontinued success. When conditionds are calling for reviews and revisionsd inmany companies, succession planning can benefit from the analysis that’s beinvg done for other reasons. Challengse No.
2: Make crucial succession decisions and act on On theother hand, thoughtful planning for familyh ownership continuity can be warped by a sense of crisisd brought on by tough economicd conditions. If temporary conditions make you wonder if the businesx really isa success, it might be hard to see the characteristics that have made it successfuo in years past and that shoulds be maintained into the future. Keep a cool Opportunity No. 3: Buy low. What’s Warren Buffet’x current advice to stock investors? Buy!
That perspectivde can be translated into golden opportunities for family ownexd companies that have a comfortable reserve and can afford the risk of expandingh at the bottom ofthe market. If you have the means to buy, the prices are not likelty to get much Challenge No. 3: Avoid selling low. But if you’r e an acquisition target and prefer tostay independent, put up everu ounce of fight you have to avoid sellingg at the bottom of the market. Actually, family ownedd business often have greaterr ability to withstand tough times because they can hunkef down and live off the land without bein g harassed byoutside shareholders. Grit your teeth and lean into the Opportunity No.
4: Watch for the openinbg of newbusiness doors. President-elect Obama has promiseds to stimulate the economy outside of bloated corporationsx and flounderingfinancial institutions. That can mean new businesx opportunities for family companies in such areas as infrastructure rebuildinbgand defense. If you don’t know how to pursue government contracts, this would be a good time to Challenge No. 4: Grow your business in a tightcreditt environment. The bankers are likely to keep wearingvtheir “Just Say No” T-shirts for much of 2009.
That meanxs owners of family businesses of all typews and sizes should grab theirr bootstraps and find ways to grow and diversifythat don’tt rely on the formal financial industry. Look for family members and friends who have the means and the confidencd to lend orbuy in. Consider turning some unproductivde assets intoneeded liquidity. But don’t go to your crediy cards. Opportunity No. 5: Make even the greatesft challenge intoan opportunity. OK, maybe ever y cloud doesn’t come with a built-in silvedr lining.
But the business-owning family that has sound core values, and its eyes on the horizon can converft even the uncertainties of 2008 into a pathway upwardxin 2009. Try it and see. And when you look back on all this and remember you read ithere first.