NBSW 2023 Succession Planning in Small Businesses » Succeed As Your Own Boss
Table of Contents
#Smallbizchat Podcast LIVE is a monthly video interview show where small business owners can get answers to their questions.
The focus of #Smallbizchat is to end small business failure by helping participants succeed as their own boss.
Please join us live every third Wednesday of the month from 8-9 pm ET Live on my SmallBizLady Facebook Page, YouTube Channel and LIVE on Twitter.
Barry Banther is a family business expert. As a Senior Partner of Banther Consulting Group, Barry has been helping families work together in business and live together in harmony for over three decades. He has been the lead consultant on over 400 engagements to help improve small business performance. From strategy and planning to succession and exit strategies, Barry’s clients depend on him. A client and president of a 120-year-old family business. Described Barry this way, “Barry is a leader of leaders. His wisdom, encouragement, and knowledge have helped us grow personally and professionally for the past ten years.” For more information: www.barrybanther.com
SmallBizLady: What is the first decision a family in business together must face?
Barry Banther: There are lots of roles in business; employee, manager/leader, or owner. Every family member needs to understand who they are and what are their responsibilities and limitations.
SmallBizLady: Does Succession really work in a family business?
Barry Banther: Unless you are in England, family succession hardly works. (And it’s not working too well for them right now) determine how each family member can beat success in life. Focus on that, and if it happens to for the business then good, but if not, the family should support their individual path.
SmallBizLady: How do you exit a family business?
Barry Banther: As an owner, you can exit by a qualified family member taking over, a qualified employee taking over and reporting to a board of directors, or you can sell the business. Any of the three requires a minimum of 5 years of preparation and preferably a decade.
Why Every Small Business Needs a Business Advisor
Michele Phillips is veteran entrepreneur and seasoned business coach with over 20 years of experience. She knows the excitement and challenges that come with leading a team and business, both large and small. Michele succeeded in an industry where 80% of businesses fail, not only did she grow but successfully exited her company after 8 years. She scaled her business to seven figures with 14-17% profit year-over-year. Beyond her experience as an entrepreneur, Michele also excelled in sales and project management in the corporate banking world. For more information: www.cultivateadvisors.com
SmallBizLady: Why is it important for small business owners to have a business advisor, especially one with entrepreneurial experience?
Michele Phillips: Being a small business owner has many joys, but it can also be lonely work. Working with a business advisor can help small business owners feel less isolated and more in control of their business. To truly benefit from the experience, it’s recommended that small business owners work with an advisor who has direct experience as a former business owner.
A business advisor who has owned and operated a small business can provide valuable insight and empathy to the unique challenges that small business owners face. They understand the day-to-day realities of running a small business and can offer practical advice and guidance based on their own experiences. It can also provide a level of credibility and trust. By having access to someone who understands the unique challenges of running a small business, owners can feel less isolated and more in control of their business.
SmallBizLady: How can a business advisor help small business owner improve their financial planning?
Michele Phillips: Small business owners often have limited resources and must make critical financial decisions to ensure the long-term success of their business. However, managing finances effectively can be challenging, especially for those who lack financial expertise. A business advisor can provide valuable guidance and support to help small business owners develop and execute a sound financial plan.
Firstly, a business advisor can help small business owners develop a budget that accurately reflects their revenue and expenses. Secondly, a business advisor can assist with financial forecasting, which involves projecting future revenue and expenses based on historical data and industry trends. By having a clear understanding of their financial future, business owners can make strategic decisions to optimize their operations and improve their bottom line.
Lastly, a business advisor can provide guidance on cash flow management, helping small business owners create a cash flow forecast to identify potential shortfalls and make necessary adjustments to their operations. This can help prevent cash flow problems and ensure that the business remains financially stable.
SmallBizLady: Why should every small business have a business advisor?
Michele Phillips: Small business owners face a variety of challenges on a daily basis, from managing cash flow to attracting new customers to staying on top of industry trends. Without the right support and guidance, it can be difficult to navigate these challenges and achieve success. This is where a business advisor can be invaluable.
- Expertise & Advice: A business advisor can provide valuable expertise and knowledge that small business owners may not have. They can offer advice and guidance on everything from financial management to marketing to HR, based on their experience working with other businesses.
- Accountability: A business advisor can help small business owners set goals and hold them accountable for achieving them.
- Outside perspective: A business advisor can provide an objective, outside perspective. They can identify areas for improvement, offer suggestions for new strategies, and help entrepreneurs see their businesses in a new light.
- Networking: A business advisor can introduce entrepreneurs to other professionals in their industry, help them make connections with potential partners or customers, and provide access to a wider network of resources.
By working with a business advisor, small business owners can overcome challenges, achieve their goals, and take their business to the next level.
Handling Collections in Your Business
Dee Bowden is the founder of BCS Solutions and Author of the book Collect the Cash. She works with small businesses who want to solve their cash flow problems. Her mission is to keep businesses in business. After collecting $6 Million dollars in 60 days while working for a small IT company, Dee recognized small businesses also fall prey to revenue loss because they don’t collect outstanding invoices. Her revenue recovery strategies have been featured in Forbes, Black Enterprise and Thrive Global Magazines. One of her strategies used to collect the cash was reciting an affirmation specifically for companies that have outstanding invoices due. For more information: https://collectthecash.biz/book/
What is your collect the cash system?
I think about Collect the Cash the term of 3 Keys: Problem Solving, Customer Service and Gratitude.
What is one reason business owners ignore accounts receivable aka Collecting the Cash?
Business owners often push accounts receivable onto the back burner, assuming that leaving well enough alone is perfectly fine. However, poor AR practices cause several issues for businesses. Failing to follow up with past-due accounts in a timely manner, poor AR practices suck time, money and productivity from a business. They often produce a ripple effect that touches virtually every aspect of running a company. The worst part of all is that many of the problems are easily avoidable.
What tracking system should a business have to manage Accounts Receivables?
Establish a Proactive Collections Process. Make collections a top priority and enforce it by establishing a clear, concise collections strategy. Ideally, aim to intervene early. When an account slips into the past-due column, your team should be all over it and know what to do. The fortune is in the follow-up.
What systems are needed for invoicing to collect the cash quicker?
- Bill Electronically – If you have the means to do so, start billing customers electronically. While there will be some who can’t support electronic invoices and payments, but most companies are on board with this these days. The fewer paper checks that you must process the easier and more accurate the entire process will be.
- Make sure you prepare a proper invoice with a PO Number and submit it to the right department.
Did you find these interviews helpful? Please tell me how they helped and then share them.
Would you like to be a guest on #Smallbizchat Live?
If you are a small business owner, author, or subject matter expert, we’d love to have you appear as a guest on #Smallbizchat LIVE. Submit your name, headshot, Twitter handle, bio, website, topic and 3 questions and answers in paragraph form to demonstrate your expertise. To submit your materials to be a guest on #Smallbizchat click here.
