Gelu Business Advisors

Letting Go While Still Keeping Control

Active business owners often put off thinking about how to pass their business on to a child, or other family or non-family successor, because they don't want to think about retirement--just like they don't want to consider the possibility of premature death.

Yet this failure to carefully plan for their succession, both as regards management control of the business as well as ownership of business assets, is cited as the main reason why only 30% of family-owned businesses continue into the second generation and only 10% make it as far as the grandchildren.

Success and failure

Failure is not a single, catastrophic event. Neither is Success a bolt of lightning or a chance lottery ticket.

We do not fail or succeed overnight.

When we fail at anything it is the inevitable result of an accumulation of poor thinking and poor choices. Failure is nothing more than a few errors in judgment repeated every day.

Increase your profits with effective follow up

Everybody knows that sales are vital to building a profitable business. But, few people understand the importance of maintaining a permanent reservoir of potential customers (I call them "hot prospects") from which sales can be made now or very soon. The majority of businesses put most of their time and effort into continually attracting new prospects. They spend very little or no time and effort on following up with previous prospects. Attracting new prospects is important. It's also expensive. Following up with previous prospects is important, too. In comparison with finding new prospects, it's very inexpensive.

Profit Orientation

Why do some business owners/managers hit the profit target more often than others? They do it because they keep their operation pointed in that direction. They never lose sight of the goal - to finish the year with a profit. Keeping this goal in sight is especially critical for the owner/manager of a small or medium-sized businesses as the depth of resources is often more limited. You must keep informed, make timely decisions, and take effective action. In effect you must control the activities of your company rather than being controlled by them. Here are some suggestions to help you to meet that objective.

Adapt these suggestions to your situation. They should help you call the shots to keep your company headed in the right direction - toward profit.

Business Planning Pitfalls

As you develop your business plan, it's easy to make mistakes or leave out important elements. Here are a few of the most common business planning pitfalls and some tips on how to avoid them.

Create a vision. It's tempting to roll up your sleeves and plunge right into the details of your business: evaluating products, studying market segments and sizing up your competition. Yet it's possible to get so caught up in the process of planning a business that you lose sight of what you're planning for.
Before you get lost in the details, take a step back. Outline a clear vision and a coherent set of values for your company. Develop a mission statement and use it to define short-term goals and priorities. Once you have a clear road map for your business, you can plan your journey with more confidence.

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