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Business inbreeding…. A deadly mistake….

A common trait among small businesses is “business inbreeding”. This occurs when an owner manages an enterprise using only his own expertise. If the system does not work, he develops another and tries it for a while. This self-developed management system crosses all the areas of running a business and includes marketing, finance, management systems and technology, along with any other aspect that is required to grow a business.

The hope for this type of business growth is that it can survive long enough and grow enough to bring in another level of management with expertise in the disciplines required for business growth and profitability. At that point one hopes that the original founder will let go of most of the management areas and concentrate on his own area of expertise.

Each person has strength in some facet of a business operation. It could be one of the overall management facets mentioned above, or it could be in the area of production or even something as simple, yet very powerful, as enthusiasm and belief.

Driven by ego and pride and sometimes by a lack of understanding as to what support is needed and where to obtain it, a business owner shuts all exterior senses and makes an attempt to do it all alone.

I don’t want to limit this inbreeding to just very small companies. The next level of inbreeding occurs when a business, with some expertise and luck, manages to grow to a 2 to 5 million dollar business and all the management functions remain in the hands of the original owner. At this stage, inbreeding can be recognized as a slowdown in growth, (hitting the business glass ceiling), management and HR issues and the realization that competition is taking a bigger piece of the pie.

The overall management of a business is a very complex process.  In my experience, a support group with individual expertise in the essential management aspects of growing a business is needed for survival and sustainability.

Within my consulting group I have access to over 20 experienced men and women who specialize in one or more of the essential management tools. This includes everything from supporting a one-person operation to multi-national organizations.  Another aspect of our support system is the development of peer advisory groups. This method is one of the most useful and unfortunately, one of the best kept secrets in the business world.

Stepping out of the “box” and “dating” other support options is necessary at all stages of business growth. I use the term “dating” because it is important to know who you bring into the inner-sanctum of your business life. “Dating” is the precursor to marriage, which is a commitment to a consulting or peer group to walk your business life with you.

If you won’t be better tomorrow than you were today, what do you need tomorrow for?  Rabbi Nachman

Nick J. Petra CFP   providing immediate resources for business growth through Strategic Duck and www.onebizcentral.  We have someone that can handle your exact business need.

 

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