management

If you’re trying to expand your business, missing critical elements can derail your efforts to grow. Entrepreneurs need to consider several important things before deciding to grow their small business. Listen to find out if your company is ready and fit to grow.

To listen to the episode hit the play button.

To download the episode, right click on this link  and choose Save Target As.  Go to the folder where you want to save the recording on your device and click Save or hit Enter.

Make it easier to get upcoming episodes by subscribing to the show on iTunes . Subscribing to the show will automatically download the episodes on your preferred listening device so you can listen to them when and where you want. And hey, if you like what you hear, please leave the show a great rating and review while you are there on iTunes.

Show Notes

In this episode we look at important things entrepreneurs need to consider as they decide to grow their small business to make sure that their company is ready and fit to grow.  Lisa uses her concepts of the 5 P’s, Planning, Practices, Process, People and Profit to explain how missing some of these pieces can derail a company during its growth phase.

Key Points

*Many companies find that what worked when they were smaller are no longer as effective in a larger growing company.

*Many of the growing pains companies face can often derail growth for a business that is not ready and fit to grow.

*Entrepreneurs often underestimate the impact growth can have on their people, operations and even their bank account.

*Having an overly optimistic mindset while valuable in start-up, often mask or downplay problems associated with the growth phase.

*One of the growing pains companies can face is allowing sales growth to destroy their brand and Lisa explains that in the episode.

*No one can be certain that they are ready to grow however entrepreneurs need to recognize that growth will change how they do business in many ways.

*Many entrepreneurs notice a change when their company reaches over 50 employees. These changes are especially noticeable in their operations, communication and need for specialization.

*Lisa uses an example of her experience in a technology company to explain the idea of specialization and more focused roles during growth periods.

*A way business owners can determine areas that need to be in place or improved in their business is to examine their company with a critical eye. This enable them to see the growing pains and work to correct problems as they arise.

*Lisa explains what she looks for in her work with clients to determine where they are falling short and the things that are holding them back from being ready and fit to grow.

Resources and Links

Sign up to take the Healthy Biz Quiz – Take the Healthy Biz Quiz and automatically receive your score along with tips and information that can help you create a business that is healthy and fit to grow. Follow this link to sign up.

You may also want to check out these helpful episodes:

Do You Have A Healthy Business?

How to Scale Your Business-Part 1

How to Scale Your Business – Part 2

 

 

Note: Links in this post may be affiliate links.  Lisa Roberts is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com.

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Get all the updates and information Lisa shares from Business Rx and the Healthy Business Healthy Profits show! You’ll get information, tips and strategies on growing a healthy successful business. Don’t worry, I won’t bombard you with emails.  At most, you’ll get something from me every few weeks. You can sign up  Here

Lisa Roberts is a business operations consultant who advises growth company entrepreneurs in successfully managing growth and the challenges they face along the way. She has over 25 years of experience in operations, finance and administration and spent several years in executive roles at a high growth company. She recognizes that there is a fine line between success and failure in a growing business and that entrepreneurs need to focus on managing finances, creating a sound operation and employ good business practices to stay on track.   You can find out more about her here

How to Successfully Manage Uncertainty in Your Business

Ask any business owner, they’ll tell you that uncertainty in business is one thing that will never truly go away. Uncertainty is the one constant that was there, is there and will be there in the future.

There will also be something that will “upset the apple cart” and we as entrepreneurs must be ready to manage through it.

However, there are many factors that are out of our control and yes we have to manage those too!

Entrepreneurs can never know what the next thing is that creates questions and uncertainty in our businesses. Factors like the economy, politics, world events and technology have certainly created uncertainty in business a lot lately.

What Keeps You Up at Night?

That’s a favorite question that people ask entrepreneurs. You hear it asked by reporters, investors and anyone trying to get at the answer to the question – “what are your most pressing business problems’.

Entrepreneurs politely answer the question but we know that none of us wants to be kept up at night worrying about a problem, much less one that we have little chance of controlling. Those things like the economy, politics and changes in the world are for the most part not in our control and thus create uncertainty for us.

How Do We Manage Uncertainty in an Uncertain Business World?

Whether we want to admit it or not, uncertainty in business will never go away. The best thing to do is to admit it and move on.

It’s hard to figure out in an uncertain world when to play it safe and when to get aggressive. For years due to the economy, technology and the geopolitical environment these things have made it harder for businesses to make decisions.

So why is it that some entrepreneurs manage uncertainty better than others?

Since we can’t control things like the economy or politics, we have to focus on what we can do in our own business.

Control What You Can

There are plenty of things that you can control in uncertain times. Two things to control are you and your management team. Maintain focus on the things you and your team can control and don’t waste time, money and energy on the things you can’t.

Focus on controlling your business; your finances and your operations. Know where you stand financially, fix what may be broken in your operation and make improvements to build an even stronger business in that can weather uncertain times.

Stay Current on Issues Affecting Your Business

I’ve mentioned things like the economy, politics and technology that can largely be out of our control, but not all of it. It’s important to stay up to date on issues that can directly affect your business.

Do your best to stay on top of the issues that affect your market and your industry. Whether it’s joining an industry association, doing research or just staying current in business news, it’s important to know what could impact your company.

Know What You Don’t Know

It’s hard to know everything there is to know about running a business. Entrepreneurs need the help of experts from time to time to help them deal with challenges and uncertainty.

Be honest with yourself about what you don’t know and get help when you need it. It’s okay that you are not the smartest person in the room. Experts can help clear up ambiguity or answer questions about issues your business faces. They can help you remove doubt and set you on a path to effectively manage the uncertainty.

Maintain Good Networks and Relationships

Having good networks will help you with knowing what you don’t know. Connecting with professionals like bankers, accountants, lawyers and other experts helps get answers to questions, lessen the uncertainty you’re feeling or can at least put your mind at ease.

Maintaining good relationships with your network as well as your customers, partners and employees is another way to successfully manage uncertainty. When things in your business are uncertain it’s good to have people you can rely on to keep your business steady and moving ahead.

Manage the Fear

Uncertainty and doubt are springboards for fear. It’s easy to let one emotion begin to control your other emotions. Fear can lead us to do things we ordinarily wouldn’t do. Don’t let the fear lead to making bad or irrational choices.

In addition, don’t let the uncertainty cause you to overreact and make kneejerk decisions. When uncertainty in your business rears its head, take time to analyze what is really going on and decide what impact it has on your business. It’s true you may not have all the answers but reacting for the sake of doing something about it isn’t always the right choice either.

Stay Calm

Uncertainty can create a feeling of overwhelm and downright frustration when you don’t know what to do about a given situation. Employees pick up on those cues and can begin to worry about what is wrong with the business. That worry can lead to an unfocused staff and things can start to slip through the cracks.

Be sure to remain calm in uncertain situations and communicate to your staff so they understand the issues you face. Your staff can be a source for ideas and solutions in uncertain times. They can also help you stay focused on the things that matter most in your business and help you stay on track running the operation.

Stay Positive

Managing uncertainty means that sometimes things aren’t going to go your way and can set your business back. It’s important to stay positive when your company faces an obstacle. It may be the first real setback you face but it probably won’t be the last.

Once again, your staff will take cues from you when your company hits a roadblock. They’ll react to your reaction and will follow your lead if you don’t manage it well. Stay positive and use the opportunity to make your business better. Instead of dwelling on a setback, just learn from it and move on.

Uncertainty is Here to Stay

There’s no way around it. Entrepreneurs have dealt with this for hundreds of years and will continue for hundreds more.

Successfully managing uncertainty means staying on top of what’s going on inside your business and in your industry, controlling what you can, knowing when you need help and managing your relationships and your own actions.

“It’s not my job” is one of the last things entrepreneurs want to hear when they are running a fast growing business. Job descriptions can help you fix it.

To listen to the episode now hit the play button above.

To download the episode to listen to it later, right click on this link  and choose Save Target As.  Go to the folder where you want to save the recording on your device and click Save or Enter.

Make it easier to get upcoming episodes by subscribing to the show on iTunes . Subscribing to the show will automatically download the episodes on your preferred listening device so you can listen to them when and where you want. And hey, if you like what you hear, please leave the show a great rating and review while you are there on iTunes.

Show Notes

“It’s not my job” is one of the last things entrepreneurs want to hear when they are running a fast growing business.  In this episode, we explore why using job descriptions is one important ingredient in running a healthy business.  We look at why some companies avoid using job descriptions and explain the reasons why they can help you create a better workplace as well as add value to your business.

Key Points

*Startups and small companies sometimes avoid using job descriptions because they are seen as a formality that will get in the way of entrepreneurial spirit.

*Entrepreneurs can start to see problems when they don’t take time to define the skills and requirements needed to perform roles in their business.

*As a company grows, employees will begin to wonder about career paths and advancement and will question what’s next for them in your company.

*We discuss some of the problems that result from lack of job descriptions, pay rates, job titles, workload and performance.

*Job descriptions act as not only a management tool but a communication tool that help with existing employees but also for recruiting new employees.

*Having good job descriptions are the basis for enabling good pay decisions as well as complying with laws and regulations.

*Using written job descriptions is a business practice that helps manage a growing business and adds value to your company.

Resources and Links

Link to Entrepreneur Magazine article mentioned in the episode: This Startup Launched Without Titles or a Traditional Business Structure. Here’s What It’s Doing Now

Information on Fair Labor Standards Act in the U.S.

Link to episode mentioned:  Employee Handbooks are a Necessary Evil for Your Business

To read more about this topic, you may want to have a look at this from my blog. Five Warning Signs Your Company Needs Job Descriptions

If you would like to talk to Lisa about this topic or any operational problems in your own business then set up a  Quick Care Consultation session with her by following this link.

 

Note: Links in this post may be affiliate links.  Lisa Roberts is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com.

Sign Up to Get Updates

Get all the updates and information Lisa shares from Business Rx and the Healthy Business Healthy Profits show! You’ll get information, tips and strategies on growing a healthy successful business. Don’t worry, I won’t bombard you with emails.  At most, you’ll get something from me every few weeks. You can sign up  Here

Lisa Roberts is a business operations consultant who advises growth company entrepreneurs in successfully managing growth and the challenges they face along the way. She has over 25 years of experience in operations, finance and administration and spent several years in executive roles at a high growth company. She recognizes that there is a fine line between success and failure in a growing business and that entrepreneurs need to focus on managing finances, creating a sound operation and employ good business practices to stay on track.   You can find out more about her here

Entrepreneurs look to outside investors to raise money to finance growth. If a business has real problems money isn’t necessarily the answer.

To listen to the episode hit the play button above.

To download the episode, right click on this link  and choose Save Target As.  Go to the folder where you want to save the recording on your device and click Save or Enter.

Make it easier to get upcoming episodes by subscribing to the show on Apple Podcasts .

Subscribing to the show will automatically download the episodes on your preferred listening device so you can listen to them when and where you want. And hey, if you like what you hear, please leave the show a great rating and review while you are there on Apple Podcasts.

Show Notes

Entrepreneurs look to outside investors to raise money to finance growth. There is a lot to consider when deciding if this is the right path for you and your business.  If a business has real problems money isn’t necessarily the answer.  In this episode we discuss what investors look for before considering whether your business is right for them. We use some case studies to illustrate how things can go wrong when a business has real problems.  We’ll discuss what you need to be ready for when taking money from investors.

Key Points

*Investors create new demands on a company and the entrepreneur especially around planning, results and reporting.

*Our case study entrepreneurs weren’t strong in the areas of finance and operations and began to struggle.

*Using the show Shark Tank to illustrate, Lisa describes some of the key weaknesses the entrepreneurs had that she gleaned from her research.

*Lisa talks about how these weaknesses contrast with elements investors look for in business owners.

*She describes key areas that investors consider when reviewing a business including the market, company valuation and the management team.

*Using examples from the case studies, we look at areas where business problems were not being addressed whether through lack of experience or simply being ignored by the entrepreneur.

*Investors such as venture capital and other professional investors create a heightened sense of urgency due to an increased focus on returns and growth.

*Entrepreneurs should expect a greater focus on the market, business management and money management once outside money is invested.

*Lisa discusses some of the dangers a company suddenly flush with money can face and some of the mistakes one case study entrepreneur made.

*She gives us a list of 5 top factors entrepreneurs need to think about and be ready for before they consider taking investor money.

Resources and Links

Book mentioned in this episode:

Think and Grow Rich,  by Napoleon Hill find it here  

Note: Links in this post may be affiliate links.  Lisa Roberts is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com.

Sign Up to Get Prescription for Success!

Get all the updates and information Lisa shares from Business Rx and the Healthy Business Healthy Profits show! You’ll get information, tips and strategies on growing a healthy successful business. Don’t worry, I won’t bombard you with emails.  At most, you’ll get something from me every few weeks. You can sign up  Here

Lisa Roberts is a business operations consultant who advises growth company entrepreneurs in successfully managing growth and the challenges they face along the way. She has over 25 years of experience in operations, finance and administration and spent several years in executive roles at a high growth company. She recognizes that there is a fine line between success and failure in a growing business and that entrepreneurs need to focus on managing finances, creating a sound operation and employ good business practices to stay on track.   You can find out more about her here

To learn more about getting in touch with Lisa to discuss a problem you may be having in your growing business, find out more about a Quick Care session here .

One daunting part of running a business is making the decision to hire your first employee.

Your second, third and 30th isn’t very easy either!

If you started your business on your own, one of the biggest hurdles you climb is to bring others into your business. There’s a lot to think about when your first start hiring employees.     And let’s face it; you can only grow so much on your own before you realize you need help to continue growing.

Let’s look at some of the things you need to consider before you hire for your growing business.

Knowing You’re Ready

Something led you to this place. Running your business has become overwhelming and you know you have too much on your plate. Before long, there are some critical tasks that you put off or worse, tasks are just not getting done.

It may have gotten so bad that you accepted work only to have trouble getting it done or maybe you have even had to turn work down. Your schedule has gotten so filled that you don’t have time for family, friends or simply time to unwind.

You may have come to the decision to hire because of an opportunity. There is new business you can secure or you have a new idea to create more sales. The problem is you can’t take on much more so you need to do something.

Taking the Plunge

Ok so, you’ve made the decision, to hire your first employee and if business is really good maybe you’ve decided to hire a few employees. Now what?

If you’re thinking about the first person you need to hire be careful not to fall into the trap of thinking that you need a clone of yourself.   Stop! I’m here to tell you the chances of that happening are slim if not impossible! To find someone who does everything you do, understand all about your business and can replace you is a fantasy so let it go!

Instead, one way to think about who you need is to think about your strong and weak areas. There are certainly things that you’re doing in your business that you are not necessarily good at. Make a list of things that you’re doing that could be done by someone with the skills needed to perform them well.

Another approach is to look at the tasks that you’re doing and consider them in the context of where is my time better spent. Running a small business, you are certainly doing much of the work and some of that work can be done by someone else with your oversight and management.

As you develop the list of tasks that someone else can do, think about whether the position is full-time, part-time or if it could be outsourced. In addition, think about the skills that are needed to perform the position(s) you are creating. You’ll need that to start developing your position or job description anyway.

Make Sure you’re Really Ready to Hire

If you’re someone who has little or no management experience you need to make sure that you’re ready to hire someone and make them successful. Whether you like it or not, they will need to be supervised and managed.

You’ve defined the skills and one that you may not be thinking about, and you should, is to find someone who can work with minimal supervision. In a small growing business, chances are you won’t be with them 24/7. Searching for someone with good judgement and the ability to work fairly independently can take some of the burden off of you.

To be ready to hire, you’ll also need to commit to training your news hires. Hiring someone new is a big commitment and yes it will take up your time, especially in the beginning. To make your new employees successful, you need to commit time to training them on your business. They need to understand the tasks they will perform as well as the latitude they have to make decisions independently. You’ll save time, money and frustration in the long run to commit training time up front.

One quick word about titles before we go any further in this article.

Sometimes I see business owners give out titles like they’re Santa on Christmas morning. Maybe it’s a nice shot to the ego to say that you’re growing so much that you need a VP of this or that. If you’re business is small and these are your first few hires, resist handing out big titles too early.

You’ll thank me later when months from now the employee walks into your office to tell you they looked at Salary.com or Glassdoor.com and they think are not paid enough in lieu of their title!

Other Considerations for Hiring

You’ve more than likely thought of this already. Can your business afford to hire someone?

Yes this is a big step and your business needs to absorb the cost of new employees. In your cost decisions concerning new hires don’t forget to calculate the cost of your salary load. That’s the cost of the added taxes, worker compensation and fringe benefits in addition to the pay for new employees. The salary load can be 1.25 times and up to 1.4 times the pay for that employee depending on your benefit offerings. That $40,000 salary turns into $52,000 with a 1.3 load, given an estimate of all the added costs and benefits, so keep that in mind.

Depending on your company’s profit levels, the added costs for hiring new employees will have an initial hit to costs and profit as the employee ramps up. You’ll need to make sure that you’re ready for that when you commit to hiring new employees.

Once you’ve decided to hire employees there are a host of considerations surrounding employment laws and employee rights that you need to keep in mind. Know the rules that apply to you concerning employment before you bring in new employees. There are also considerations depending on the number of employees you have and these rules can change as your company grows larger. Make sure you understand them or consult with an expert who understands the laws in the area in which your business operates.

It is not uncommon for smaller businesses to hire family and friends or even friends of friends. A word of caution is warranted when you consider hiring family & friends. Skills for the job should come first and before the friendship. Hiring family and friends can work for your company but keep in mind that if things don’t work out, it can get complicated. Your first priority should be to get the skills you need.

Decide to Hire the Right Way

Making those first hires in your business is a big step for any business owner. Go into it with your eyes open.

Take care to consider all that goes into making sure that you get the right people to help you drive your business forward.

Once your business grows past the point of a handful of employees, it’s time to start thinking about an employee handbook.  In this episode you’ll learn why you need a handbook and what types of policies you need to include.

To listen to the episode hit the play button above.

To download the episode, right click on this link  and choose Save Target As.  Go to the folder where you want to save the recording on your device and click Save or Enter.

Make it easier to get upcoming episodes by subscribing to the show on Apple Podcasts .

Subscribing to the show will automatically download the episodes on your preferred listening device so you can listen to them when and where you want. And hey, if you like what you hear, please leave the show a great rating and review while you are there on Apple Podcasts.

Show Notes

Once your business grows past the point of a handful of employees, it’s time to start thinking about an employee handbook.  In this episode you’ll learn why you need a handbook and what types of policies you need to include.  We’ll also talk about who needs to be involved in creating your employee handbook and give you some tips to keep it up to date.

Key Points

*Complaints and legal actions against companies happen with greater frequency.

*Having clear policies and work rules in your employee handbook can help protect your company.

*Your employee handbook can serve as a communication and training tool especially for staff that manages people.

*There are several tools and templates on the internet that can help you get started drafting your handbook, but an attorney should always be involved in the process.

*Developing the employee handbook and the policies that go with it force you to commit to and be consistent with your stance on things like work conduct, leave policies and other important company standards.

*Listen to find out the many U.S. government laws and regulations that govern the employee – employer relationship.

*Find out some tips in finalizing your employee handbook and managing its’ communication going forward.

*Your handbook and policies need to be clear, consistently enforced and consistently applied to all employees in the company.

Resources and Links

Employee At-Will – learn more about that here

Note: Some states have certain exceptions to the at-will doctrine.  Check with your particular state to find out if there are exceptions that apply to your business.

If you’d like to work with Lisa to get advice on this topic or others that we’ve covered on Healthy Business Healthy Profits, then set up a Quick Care Consultation session.  Learn more about that here.

Sign Up to Get Updates

Get all the updates and information Lisa shares from Business Rx and the Healthy Business Healthy Profits show! You’ll get information, tips and strategies on growing a healthy successful business. Don’t worry, I won’t bombard you with emails.  At most, you’ll get something from me every few weeks. You can sign up  Here

Lisa Roberts is a business operations consultant who advises growth company entrepreneurs in successfully managing growth and the challenges they face along the way. She has over 25 years of experience in operations, finance and administration and spent several years in executive roles at a high growth company. She recognizes that there is a fine line between success and failure in a growing business and that entrepreneurs need to focus on managing finances, creating a sound operation and employ good business practices to stay on track.   You can find out more about her here

Ever been faced with a problem in your business?

Sure we all have!

Some problems are straight forward others more perplexing.   Ever think about what can be “at play” when problem solving in your own business?

Let’s face it, sometimes we’re just too busy to be faced with yet another new problem because we as business owners just need to get past it. We need to relieve the tension, frustration and just make the thing go away. But we know that can be a little dangerous because coming up with the quick fix may not be the right fix.

Did we know what the core root of the problem really was before we decided to implement that quick fix?

What gets in the way of good problem solving?

There are a lot of things that can get in the way of good problem solving and many of them have to do with people and mindset.

You know the old saying that goes a little bit like if all you have is a hammer you see everything as a nail. There is bias, mindset and even feelings that can go into trying to solve a problem.

In your business you have people; people that may have preconceived notions about the situation you’re facing. You may even have them too!

Let’s take the company that has a lot of politics and hidden agendas that swirl around.

Do you think that is a good environment for problem solving? Me neither.

Culture plays a role

Your business culture can play a big role in your success or failure at solving problems. That political/hidden agenda company, they’ll have a hard time getting to the true root cause of problems. Protecting their turf or attempting to place blame elsewhere will certainly cloud the picture when you’re trying to get to the root cause of a problem.

How about the company that doesn’t foster good communication? They too will struggle to solve problems. If you and your management team don’t ask questions and encourage honest feedback, how will you begin to understand what’s gone wrong?

Teamwork can affect problem solving

It’s easy for a company that grows to begin to struggle with teamwork. As you become a larger company, you’ll have departments with department managers and the silos can begin to form. No matter how you break down your company into departments, they will still need to work together as a team. Coordination across departments becomes much more important as you grow!

That coordination becomes even more difficult as each individual department has its own goals and priorities that may compete with other departments. When faced with a problem that involves multiple departments, a lack of teamwork and cross-departmental cooperation will make solving the problem much more of a challenge.

Bias plays a role

Think about the hammer and nail quote.   There was a bias because of the tool the person had. The same can be said for bias based on your background, your specialty and even your past experiences.

I’ll tell you a quick story that might illustrate this better. It happened to me a few years back.

A business colleague who was a builder bought a double lot property that she wanted to split into two lots.   The problem was the existing house was built in such a way that it was too close to the property line of the other lot where a new house would be built.

The architect and the builder looked at the problem through a pure construction lens and decided that they need to pay to have the house raised and resituated on the lot. The amount to perform that task was tens of thousands of dollars. They thought they had no other choice.

I had walked by that house several times while walking my dog. The builder asked my opinion. I came at it from my perspective, a practical person with a business background. I asked a simple question, what is the room that stood on the property line? It was a sunken living room that she noted wasn’t necessarily “in style” any longer. So I asked why don’t you just chop it off and add a room in the back.

It was a simple question but one that from their point of view they never considered. In the end, that’s what they ended up doing because it made more sense from a cost standpoint and an aesthetics standpoint.

The moral of the story is that sometimes bias and viewpoint can get in the way. Seeking out differing views from different angles can find a solution to a problem that might otherwise be missed.

8 Ways to foster better problem solving in your business

Here are a few things to keep in mind when trying to solve problems in your own business.

  1. Foster honest communication in your business to get input.
  2. Be aware of “hidden agendas” and be sure that you squash those with open minded communication and culture
  3. Be cognizant of biases – seek differing opinions both inside and outside your company.
  4. Ask questions – challenging, thoughtful questions can open minds as well as mindsets.
  5. Resist the quick fix – don’t let the tension of the problem make you fix the wrong problem 
  6. Foster and reward collaboration – both among team members and across departments.
  7. Create a safe, open culture – encourage feedback and participation and eliminate fear and judgement.
  8. Don’t forget the big picture – having too narrow a focus in problem solving can lead to fixing one problem, but breaking something else in your business operation.

 

Business owners need to resist the urge to “just make problems go away”. Create a company and culture that gets the root of your business problems to make sure that you are truly fixing the right problem.

Healthy Business Healthy Profits podcast is on a break for the summer.

In the meantime, Lisa is lining up a lot of new guests and information to help you lead, run and grow a healthy business.

Stay tuned for the next episode in September!

To be sure you don’t miss an episode, sign up for Prescription for Success, my monthly newsletter, in the sign up box.

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Running a business involves some level of risk no matter what type of business you’re in.  Entrepreneurs need to identify risk, assess it and then manage it.

To listen to the episode hit the play button.

To download the episode, right click on this link  and choose Save Target As.  Go to the folder where you want to save the recording on your device and click Save or Enter.

You can make it easier to get upcoming episodes by subscribing to the show on iTunes . Subscribing to the show will automatically download the episodes on your preferred listening device so you can listen to them when and where you want.

And hey, if you like what you hear, please leave the show a great rating and review while you are there on iTunes.

Show Notes

Running a business involves some level of risk no matter what type of business you’re in.  In order to successfully manage risk, it’s important that you identify the potential threats you face and take steps to management and mitigate the risk.  In this episode, we’ll identify the main risk categories and explain the types of things you need to look for in your business. We’ll also discuss how you can start to assess risks and address it your own business.

Key Points

*Common categories include Operational, Business, Legal, Strategic and Compliance

*Operational involves the risk that something about your processes, policies or systems have failed or are inadequate in some way. It can include things like system breakdowns, errors and problems with your business practices.

*Business risk surrounds running your operations profitably.  Financial risk falls under this category as well and that has to do with the ability to meet your debt obligations. Examples include not generating enough revenue or cash to operate your business, not having enough demand for your products or the risk that you default on your obligations.

*Legal involves your contracts, legal entity, disputes and lawsuits.  It typically involves your company agreements and includes things like shareholder lawsuits, vendor disputes, contract violations, product lawsuits etc.

*Compliance relates to laws and regulation that are required by some government entity.  Examples include employment laws, tax and financial reporting requirements, industry specific related regulations etc.

*Strategic is the risk that come about based on your strategy or plans.  The risk that your strategy failed in some way, you are unable to compete effectively or that something in your business plan put your business at risk.

*Two other categories have gotten attention in recent years and they are Emerging Risk and Reputation Risk.  Emerging relates to changes that may be emerging like new disruptive technologies, new regulations etc.  Reputation refers to situations that have put your company’s brand and reputation in danger due to things like bad press, product recalls, cyber security issues etc.

*A business can never fully eliminate it, but they can take concrete steps to mitigate it in their business.

*An assessment can be done with your management team and business advisers to help you identify and address the risk in your business.

*The steps to perform an assessment include identifying, assessing, prioritizing and addressing the risk factors in your business.

*Assessing each risk involves determining the impact by estimating the likelihood that it happens and the potential cost to your business.

*Addressing it can be done through business policies and procedures as well as creating checks and balances to help mitigate that particular risk.

*It’s important to get assistance from professionals such as your insurance, legal or risk management professional so that you are able to clearly define and address your company’s particular profile.

Resources and Links

Lisa mentioned a survey at the end of the show that looked at the types of litigation that are trending in 2016.  Here is a link to the press release about that survey with links to access the survey report itself.

 

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Lisa Roberts is a business operations consultant who advises growth company entrepreneurs in successfully managing growth and the challenges they face along the way. She has over 25 years of experience in operations, finance and administration and spent several years in executive roles at a high growth company. She recognizes that there is a fine line between success and failure in a growing business and that entrepreneurs need to focus on managing finances, creating a sound operation and employ good business practices to stay on track.   You can find out more about her here by following the link.

Companies transform as they grow.  You need to transform too and become a new type of leader for your growing business.

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Show Notes

Companies transform as they grow.  You need to transform too and become a new type of leader for your growing business. Entrepreneurs can fall into a trap where as they try to manage everything in their growing business, they struggle, just to keep up.  Once that happens, some of the critical decisions and strategies he or she should be focusing on, get left to the backburner.

In today’s episode we’ll talk about some of the symptoms to look out for and what entrepreneurs need to do actually grow with their company.

Key Points

*When a business is smaller it is all about the entrepreneur, but as it grows it moves to being all about the organization the he builds.

*At some point, a business becomes too large for an entrepreneur to manage and he must begin to build an organization that can help him effectively execute and continue to grow his business.

*Entrepreneurs can fall into this trap of not growing with their business.

*Symptoms include doing too much of the day to day tasks, micromanaging, decision bottlenecks, surprise problems, frustrated by workload and the lack of strategy and direction.

*To make a successful transition and grow into a new type of leader, entrepreneurs need to recognize that they can’t do it all and learn to delegate and develop trust in their staff.

*Creating trust to effectively delegate involves setting up staff for success with good hiring, clear communication and a clear organizational structure.

*Businesses can easily get into trouble if entrepreneurs become a decision bottleneck and aren’t making the transition to create structure with the staff responsibility and span of control.

*Businesses can stagnate if an entrepreneur is not making the transition from manager to leader.

*Entrepreneurs need to focus on long-term strategy, communicating the vision, mission and goals, challenging the status quo and inspiring and motivating the staff.

Resources and Links

Have you fallen in the trap of not growing with your business?

Set up a session with Lisa Roberts to talk about getting out of the trap to grow a healthy business.  Use this link to set up a session with her by following this link.

 

For further reading on the subject of leadership, check out some of these books:

True North, Bill George with Peter Sims http://amzn.to/2nIJY0U

Good to Great, Jim Collins http://amzn.to/2nIH6RW

The 21 Irrefutable Laws of Leadership, John C. Maxwell  http://amzn.to/2o2BvGu

Note: Links in this post may be affiliate links.  Lisa Roberts is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com.

Sign Up to Get Updates

Get all the updates and information Lisa shares from Business Rx and the Healthy Business Healthy Profits show! You’ll get information, tips and strategies on growing a healthy successful business. Don’t worry, I won’t bombard you with emails.  At most, you’ll get something from me every few weeks. You can sign up  Here

Lisa Roberts is a business operations consultant who advises growth company entrepreneurs in successfully managing growth and the challenges they face along the way. She has over 25 years of experience in operations, finance and administration and spent several years in executive roles at a high growth company. She recognizes that there is a fine line between success and failure in a growing business and that entrepreneurs need to focus on managing finances, creating a sound operation and employ good business practices to stay on track.   You can find out more about her here

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