bizjournals: New year is time for small business to find opportunities — bizjournals.com

Opportunity No. 1: Professionalize your business structurdeand operations. I frequently harangue the ownerx of growing family owned companiea about the need to convert from aMom ‘n Pop busines s style to a fully professional with a mission statement, a strategic plan to guidre decisions, an organizational chart and job descriptions, writtem policies and procedures, affordable and agreement on how to change ownership and managementr without undue confusion or conflict. The process can get a bit thornyg sometimes, but with strong commitment, a family can professionalize successfully. This should be the year for your Challenge No.
1: Respond to unforeseen businessa and familyfinancial demands. The 2008 economy had the finances of many familgy companies flapping like bed sheetsa ina windstorm. Lots of people can be leaders when times are but it takes a special person to lead when timewsare rough. Cash shortages, eroding markets and a near collapse of faitgh in the future are challenging many business ownerds to keep their headson straight, to cut costs without cutting their and to remain optimistic when it’sd tempting to turn company resources into persona l safety nets. Opportunity No. 2: Make crucial successioh decisions and acton them.
John Davis of Harvard Business Schoop urges family companies to plan when the times are But planning often has to be done even when timeaare bad. Leadership and ownership succession alwayds profits from a fresh look at what the family businesxs needs forcontinued success. When conditionsw are calling for reviews and revisions in many succession planning can benefit from theanalysis that’s being done for othedr reasons. Challenge No. 2: Make crucial successionm decisions and acton them. On the othert hand, thoughtful planning for family ownershipp continuity can be warped by a sense of crisis broughtf on by tougheconomic conditions.
If temporargy conditions make you wonder if the business really isa success, it might be hard to see the characteristicsz that have made it successful in years past and that shoulrd be maintained into the future. Keep a cool head. Opportunity No. 3: Buy low. What’s Warren Buffet’ds current advice to stocm investors? Buy! That perspective can be translated into golden opportunitiesd for family owned companies that have a comfortabld reserve and can afford the risk of expandiny at the bottom of the If you have the meanzsto buy, the prices are not likely to get much Challenge No. 3: Avoid selling low.
But if you’ree an acquisition target and prefer tostay independent, put up everuy ounce of fight you have to avoid selling at the bottom of the Actually, family owned business often have greated ability to withstand tough timesw because they can hunker down and live off the land withoutr being harassed by outside shareholders. Grit your teeth and lean into the Opportunity No. 4: Watch for the opening of new businesw doors.
President-elect Obama has promised to stimulatse the economy outside of bloated corporations and floundering financial That can mean new busines s opportunities for family companies in such area s as infrastructure rebuilding and Ifyou don’t know how to pursud government contracts, this would be a good time to learn. Challengs No. 4: Grow your businesse in a tight credit The bankers are likely to keep wearinhtheir “Just Say No†T-shirts for much of 2009.
That meanas owners of family businesses of all types and sizes should grab theifr bootstraps and find ways to grow and diversifygthat don’t rely on the formal financial industry. Look for familyh members and friends who have the meansw and the confidence to lend orbuy in. Consider turnin g some unproductive assets intoneeded liquidity. But don’t go to your credit cards. Opportunity No. 5: Make even the greatesrt challenge intoan opportunity. OK, maybde every cloud doesn’t come with a built-in silvef lining.
But the business-owninbg family that has self-confidence, sound core values, and its eyes on the horizoj can convert even the uncertainties of 2008 into a pathwau upwardin 2009. Try it and see. And when you look back on all this and remember you read ithere first.
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