Every month we invite a BEC member to write a guest blog. This month BEC Founder and sponsor, MD of The Future Ltd has written a piece on Owner Managed Business
Definition of an Owner Managed Business is defined as businesses where the owners, family members or shareholders are involved in the day-to-day decisions and activities of the entity or are directors of the company.
For the owner, managed businesses its essential time is allocated to work on the business to understand today, future, profits, your team and especially customers.
From research undertaken in most cases an exit strategy is not even discussed as especially in family businesses there seems to be an unspoken word that the next generation will take over, this is not always the case so it’s best to be prepared.
Across many boardrooms and specifically owner managed businesses my research has shown common Challenges and Opportunities that need to be discussed:
OWNER MANAGED BUSINESS some of the CHALLENGES & OPPORTUNITIES
PROFITS: The introduction of NEW TECHNOLOGY where investment is required is essential for some businesses to stay ahead.
PEOPLE: Your team and structure, recruited initially in the early days have been loyal. It’s essential they are ready to deliver against the new challenges and opportunities in the future. This could be through training and guidance directed by the board members. If you ignore this it may affect business profits!
CUSTOMER – Are you fully aware of the customers’ needs and do you understand if your existing service is still delivering the same value. If you don’t know the answer to this question it is important to speak to your customers and act (this will affect your business growth).
EXIT STRATEGY – All of your hard work, in most cases the business is considered as your pension at the end of your career. It’s essential the board team think about this and create a plan early (at least 3 years before you are thinking of selling). There are many organisations who will acquire your business and discuss with you extensively about how, what, when and where.
Research findings: Owner Managed Businesses
Thriving techies (29%): Especially positive about the current UK economy and expect to grow their business over the next 12 months through key opportunities such as domestic growth and the introduction of new technology.
Pressed parents (12%): Mixed feelings about the health of their business, they also share a level of dissatisfaction in their levels of work stress and do not feel as if they have adequate time to recharge with the family.
Source: http://bit.ly/2BUneSP 27.2.18
In summary, it’s essential to review all of the key touchpoints within your organisation to ensure you stay ahead, for growth, for your exit or to deliver huge profits!
If you require further information www.thefutureltd.co.uk