What business challenges are you facing?
How can I understand the difference between running a family business and a non-family business so I can understand how to effect a change?
All businesses should be run in a professional manner, ensuring the correct roles are assigned to the right people. This applies in both family and non-family run businesses. On a day to day basis, there should be no difference between family businesses & non-family businesses. Roles and experience must be clearly defined for all staff members. Family relationships can create extra layers of complexity within a family business. it is imperative that disagreements must be kept out of the work place, like in any other business.
The organisation must reflect the business strategy. Scale Infrastructure keeps pace with scale of demand/productivity/revenue. Create and agree a defined business plan. Once in place, the approach to implementation must be disciplined, measurable and reviewed. Everyone's role must be clear in terms of the plan and everyone must be held accountable ensuring consistent communication.
Cash flow problems can result from a large number of different situations. A proper understanding of how the business is run can help to avoid cash flow problems. It is imperative that the business must understand the cash flow within the company. Effective management information needs to highlight levels of profitability. Ensuring key members of the team understand fully the difference between profit and cash can ensure everybody is focussed on cost reduction and effectiveness.Ensuring that payment schedules to suppliers are in line wtih payments from customers will also help to avoid any issues. If there are current cash flow problems, maximising credit terms, negotiating strong trade terms and implementing effective payment strategies where possible can help to alleviate some pressure.
Being a business owner can be a lonely place. Often, many businesses experience the same challenges to growth, and sometimes gaining an independent insgiht from those who have faced these challenges can be extremely useful. At BHP, we hold strategy days with Senior Management teams to ensure the business plan is aligned to the business strategy and that the strategy is relevant to the marketplace in which it operates. We also look to focus on the shareholders overall objectives for the business, and how these can be achieved.