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As a business owner, you know what it’s like to lie awake at 2 a.m. Maybe it has happened when you are excited and full of new ideas for your business. More often, it’s because you are worried about issues you will face the next day. Sometimes, it’s because you just woke up with the solution to a problem. I’ve experienced all those emotions about my businesses over the years. Awake at 2 o’clock? is where I share them with you, and hopefully help with answers that will let you sleep.
John F. Dini, CExP, CEPA
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Small business owners are the Hunters of the 21st century. We are 3% of the US population, and yet we create over half of all American jobs. As Hunters, we may not be inclined to manage by the numbers or stick to systems. Are you a Hunter or a Farmer?
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How prepared are you to exit your company?
The Assessment breaks down the four major categories of exit readiness; Finance, Planning, Operations and Revenue/Profit.
Tag Archives: Baby Boomers
What’s in YOUR Nondisclosure Agreement?
A Nondisclosure Agreement (NDA) has become one of the basic standard documents in every company’s wallet. Between the rising swell of Baby Boomer owners entertaining exit planning, and greater caution surrounding the legal issues of strategic partnering, an NDA is … Continue reading
5 Responses to What’s in YOUR Nondisclosure Agreement?
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Choosing Not to Maximize Profits
The other day, a client asked me to review some questions from an MBA student studying business ownership. One of the questions was “Are you doing everything possible to maximize profits?” I’ve seen the same question asked in a number … Continue reading
3 Responses to Choosing Not to Maximize Profits
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John,
I agree with your premise, what the question should be is “Are you maximizing value?”
The very choices made by business owners include many of the above that lead not to short term profits but “hopefully” sustainable value.
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John,
Well said and of course there is the issue of reinvesting in the business for sustaining and growing profits, but over the long haul.
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I think that a good question is: Are you happy with your business?
Then ask: What in your business would make you happier?
Then, decide if you want to do it.
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One Response to What the Heck is Exit Planning?
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John,
Thanks, I have a small chocolate wholesale/retail business. I started 6 years ago and after growing from 3 part time employees and lots of self employment expenses, remakes etc. I have been just me myself and I. I work almost 24/7 and multi-tasking is the name of my game. Now, I am thinking of relocating out of state and downsizing because I love what I do, but to consult with my accounting person about planning for a closing of this business and starting the same business in a different state that I will eventually retire in. I feel I have learned what to do and what not to do, so I have about 1-2years to schedule the move.
Thanks, always enjoy your posts..
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Is Two Weeks Fair Notice?
I formerly employed an assistant who held a Masters Degree in Human Resources. On occasion she’d say “I love working here. I’ll never quit.” Of course, as a good employer I felt an urge to reply with equal commitment, but … Continue reading
7 Responses to Is Two Weeks Fair Notice?
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The article has a lot of prudent advice. However, if you added up the total number of times employees have lost jobs without fair notice or reason, and the number of times employers have had employees leave without fair notice or reason, it is not clear that employers would end up with the short end of that stick. The truth is that without mutual respect either party may treat the other poorly. It is because of mutual respect that you and your past employee parted on good terms. When employment is mutually beneficial and mutually satisfying, it will end appropriately even when the termination is inconvenient for one or the other.
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It is always important to outline in advance how a business relationship will end; Rather it is an employee, vendor or partner.
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Shouldn’t it be a two-way street?
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The laws today that protect employees in these situations are fair. Companies need to understand that employee loyalty (or lack of) is a product of their own making. When an employee puts their notice in, they’ve been ready to leave for awhile. You protect your investment in employees by making sure the investment continues to work for both parties. When it no longer does, you’re welcome to part ways if it’s for the right reasons.
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What if you have a holding company and employees work for separate incorporated companies under the umbrella and each individual company has less than 100 employees each?
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What Does HR Do?
What are the roles of a Human Resources professional in your organization? A common rule of thumb is that a company should have a dedicated HR function once it reaches 80 employees or so. This post comes from a recent meeting of … Continue reading
4 Responses to What Does HR Do?
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I think you have done a good job describing most aspects of the role of an HR professional, but you haven’t touched upon “discipline”. In our organization, 60 plus employees, we use an HR contractor. In addition to those areas mentioned, a large amount of their time is spent supporting supervisors and department heads on how to respond to issues ranging from harassment claims to customer service complaints, attendance and general behavior problems. You haven’t addressed activities such as tracking discipline, conducting investigations, coaching managers and employees with policy or behavior infractions. Would you assign such tasks to the HR role as described by your “peer group”.
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Hi John,
It is true, that, HR activities are very important if you grow, Choosing and Hiring qualified leads are crucial.
Thank you for sharing your knowledge unto us.
I really appreciate your work. Great job and Keep it up John! 🙂 -
Or, if you don’t want to worry about hiring a skill you have never hired before, and having a single role with nobody for that person to learn from, consider outsourcing those administrative, process and systems to experts you don’t want to “buy” in your small business. Also, outsourcing allows you to get the critical work done, by fully qualified professionals, without carrying non-revenue generating employees. Hence the birth of the PEO! We are growing like crazy because owners know they their time is better spen focused on profit and growth!
In some areas an NDA requirement preventing hiring any your employees have been found not legal because of is effect on freedom to find new employment for the employee. EG where there are limited opportunities for certain skill sets in the geographic area.
Good point Jim. That is why an attorney familiar with your jurisdiction is a must.
In many areas, employees’ response to an open advertised employment solicitation is normally not covered by the NDA’s restrictive provisions….while direct contact is. From a client perspective, it is important to note the difference and that the risk exists, but is essentially the same as it is in “normal” times.
Good point Richard. Actually most large companies won’t agree to a non-employment clause for just that reason. They don’t want liability (or screening responsibility) for normal recruiting activities. With smaller acquirers, JV and merger discussions, I have seen it included (subject to state unemployment law, as was previously noted.)
One of the biggest mistakes too many searchers/buyers make entering the buy/sell playing field is not getting their own NDA signed by brokers, owners and sellers of companies. (Not to mention some of the horrible NDAs foisted on searchers.)
• What about protecting the fact that you want to buy a business . . . and you don’t want your employer to know about it?
• How about the content of your financial statement and borrowing power?
This is why the advisory teams of savvy buyers and sellers include experts with a proven record of facilitating win-win deals that should occur.
• I, for example, won’t collaborate with buyers unless they hire the right kind of attorney and tax advisor at the right time and then properly engage those specialists. It’s good for all of us.
BTW, it’s 2 a.m. right now at home in Florida and I’m awake reading John Dini’s excellent website (awakeat2oclock.com) while awaiting a call from someone I’m helping in the UK.
• “Awake at 2 o’clock” . . . I wish I had thought of that title!!!!