Showing posts with the label business strategy

Why owner-managed companies must use the good times for strategy

I see many owner-managed businesses on the verge of collapsing. It isn't so much the economy that is bad, but rather that a bad economy exposes poor management practices. The fact is that without the cushioning of a strong economy, most owner-businesses are exposed as badly managed. They simply aren't competitive.  As I consult on business development, I see nepotism to the point of incompetence, zero evident succession planning, owners being treated as gods, and no healthy debate to challenge the thinking. Things become stale.  To be fair, this is the natural path of all owner-managed businesses unless intentional countermeasures are taken. All owners are treated like gods - they often started the business from scratch and now provide a livelihood to staff. No wonder they are revered. Nepotism is standard practice and an accepted, effective tool to manage risk - it's not all bad. The problem isn't so much the existence of these factors, but that left unchecked, they b