Business going haywire

[toneloc007]

Originally Posted by ShakenStirred

You cannot ignore the facts...75% of all small businesses fail within the first 3 years. A lot of the time it is due to the things you have described in your post. Do you think the discourse between the people involved is going to cost them the business?

If so, here is some input from a business owner who's been in the same situation you have. You said you see all the things they are NOT doing, and their business is falling apart for all the wrong reasons. If this is the case, there is nothing you can do to save this business, they have to work it out for themselves. You getting involved would just force you to side with either your brother, his partners or the investors, none of which sounds particularly appealing.

Me personally, I would, and have done so, started my own business and corrected all the mistakes that I saw happening. It happened to work very well, and within 3 years, I bought my former employer and main competitor for a serious discount. Is this a pleasant situation to go through, absolutely not!! But being a business owner, as you should know, takes great fortitude and an ability to conduct business absent of emotion and feelings. I understand your brother is involved, so removing your feelings from the situation is probably very difficult. However, if you can do this and approach it as if all these people were strangers that you were seeing do this with the business, how would you handle it. Many years ago, I fired my own brother from my fathers firm due to his abusing his status as "the owners son." He went on to join the military, do 2 tours in Iraq, and we get along fine today.

It may sound cold, but often times anothers misfortune is a chance for opportunity, and this is how business is often times birthed. Just like all the people losing their homes to foreclosure these days....I truly feel for them, but by the same token, somebody is going to buy that home at a deep discount and make money on it. That is how capitalism operates. So if somebody is going to make money on it, my question is, why not you??

That's just my take on it, but regardless of how things turn out, I wish you luck. You're in a tight spot, and usually there is no easy solution to these types of problems.

I agree with you. I have no desire to get in the business that they are in, I'm in the process of re-starting my business but this is the first real business my brothers owned so I'm just wanting to help him out. But your're right about having to play the bad guy. Its unavoidable. I might just have to do it for his sake. Thanks for the input!

[dugdogmaster]

Welcome, I'd take ShakenStirred's advice as well Again, good luck

[aaauger]

I agree with dugdog. In a good economy, you can struggle and muscle your way through lack of business skills and learn as you go. But a bad economy isn't so forgiving.

Having intelligence and a skill doesn't automatically translate to the ability to run a business. It is a whole separate set of knowledge. I had an employee once who said he could run a business because he saw how easy it was for me. 1) he didn't wasn't ready and 2) it's not easy.

[del4mc]

I see these same things happening a lot myself with other startups. They need to ask for help before it is too late to save the business. In these economic times... now is a good time to invest and build the business in anticipation of the growth that is 1 to 2 years away. Remember... profit is king in business and cash flow is the life blood. Check out SCORE and ASBA to see if they have any free to low cost programs available to assist the business owners. Another option is to hire a business coach. All of the suggestions listed above are good starting places to kick start the business.

[8 SNAKE]

Originally Posted by Movie Lover

And guess what - when you get the business all sorted out - it will go belly up. It will be DEPRESSION TIME. You wanna commit financial suicide with a business during these times?

There's very little validity to your statement and it's so broad that I can't take you seriously. If the OP's brother is marketing a discount card that will help people to save money, the business may thrive during difficult economic times.

[toneloc007]

Originally Posted by del4mc

I see these same things happening a lot myself with other startups. They need to ask for help before it is too late to save the business. In these economic times... now is a good time to invest and build the business in anticipation of the growth that is 1 to 2 years away. Remember... profit is king in business and cash flow is the life blood. Check out SCORE and ASBA to see if they have any free to low cost programs available to assist the business owners. Another option is to hire a business coach. All of the suggestions listed above are good starting places to kick start the business.

I finally sat down with him and his partner. We met at a Starbucks and talked about the business. I gave them my take on how they were doing and where I thought they were heading if they didn't address some issues that are key to keeping their new business afloat. They both were a little defensive but overall were receptive. They did acknowledge that there was really no structure and that no one ever mentioned it which was quite surprising being that investors are involved. So I kind of laid out a guideline for them to follow and some pointers on how to run successful meetings and how to delegate responsibilities and set deadlines and goals. They seemed to be receptive, the question is do they apply it. I no longer work with them so we'll see. I'm in the process of getting MY business up and going.

[del4mc]

The problem they may encounter after your meeting is followup to keep on track. If you need any help in getting your business up and running... let me know. remember... an Action Plan might be more beneficial to you than a Traditional Business Plan.