Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, May 14, 1995 TAG: 9505120011
SECTION: BUSINESS PAGE: F-2 EDITION: METRO
SOURCE: CAMILLE WRIGHT MILLER
DATELINE: LENGTH: Medium
A: While an entrepreneur knows a product well, businesses fail because the entrepreneur doesn't understand the other 95 percent of the business - accounting and law, for example.
The problem is likely more than cash flow. Every business, no matter how small, must have a team of experts advising the business. At a minimum, the team should include an attorney, a CPA and an insurance agent.
Virginia Garretson, president of Consumer Credit Counseling Service, finds that businesses in trouble often "don't have a business plan or the necessary tools to make the plan work." Garretson says signs of trouble include inability to pay taxes, lack of a business plan, working without a CPA, or inability to pay oneself.
John Jennings, director of the Blue Ridge Small Business Development Center, initiates discussions with troubled businesses by asking "probing questions first. What's the business about, who are the competitors, what are sales like, what are the expenses, what's the marketing plan?''
Jennings finds that while owners may say "I need more money," the real problem often lies elsewhere. A business idea may be solid, for example, but suffer inadequate marketing. In any case, Jennings notes, cash flow should not be a significant issue after five years.
Work with experts to find the source of trouble. Consumer Credit Counseling Service (563-0076) helps both households and small businesses. The Blue Ridge Small Business Development Center (983-0717), which offers seminars and counseling, works with new, growing and troubled small businesses. Both agencies operate with no charge to the client. Also, consider contacting the local chapter of Service Corps of Retired Executives, an organization that provides free consulting for small companies. Call 857-2834 to schedule an appointment.
Use both agencies to get your business (and home) on solid footing. Then create an advisory team to maintain your improved business position.
Q: I've been charged with forming a team as part of our restructuring. How do I turn this group into a team?
A: Keep in mind three considerations about this group: 1, the team; 2, the organizational goals; and 3, the members as individuals. Deborah Harrington-Mackin, author of "The Team Building Tool Kit" (American Management Association, 1994), says "a team is a means to an end. Successful teams are viewed as a strategy ... for achieving an organization's goals."
Whatever the type of team, effective teams have visible support from all management levels. Look for signals that you will have that support.
Before forming your team, Harrington-Mackin suggests describing "key activities the team will undertake, including specific objectives to be achieved, strategies, recommendations or analyses to be performed." Identify "results expected of the team" in measurable terms. Catalog available resources, from financial to subject matter experts.
Type and frequency of reporting? Skills and tasks needed? The team's authority level? Answer questions precisely. Clear goals mean more easily accomplished tasks and more enthusiastic members.
Once you've identified direction and members, establish the agenda: Share it in advance with team members. Start all meetings on time; this underscores the importance of the team.
Members should elect a facilitator, a recording secretary and a process observer. The observer keeps the discussion on track, encourages participation and coaches the facilitator on ways to improve team activity.
Attention to goals and concern for members underlie most successful teams. Both must be continually addressed if the team is to be successful.
Q: Two co-workers with a long-running feud independently come to me with stories about the other, wanting me to take sides. I can't. The whole thing makes me uncomfortable.
A: You're to be admired for refusing to take sides; however, you need an additional step. Simply listening to griping helps keep the feud alive. Listening also keeps you involved.
Each time you're approached with a story, stop the account immediately with "I get so worried when I hear upsetting things about anyone, I can't concentrate on my work. I've made a rule not to listen. I'm sorry you're having problems, I hope you can work it out."
If you feel uncomfortable saying this, practice in the car on your way to work.
You may have to repeat this to your co-workers several times, but your message will eventually come across. Your message won't resolve their problem, but it will get you out of a negative circle.
by CNB