Business going haywire (small business, sales, financial, investors)

[toneloc007]

"Business going haywire"


Ok I need some advice on what I should do. My youngest brother and his partners just started a new business that is marketing a great product. Its in the field of marketing. I got on just for now to generate some money for myself because I have been out of work. I basically am a tele-sales person. So I am in the office all day and I see and hear EVERYTHING that goes on, meetings, conversations on phones, etc. My brother and his main partner both have no experience running a business. They have all the experience in their field when it comes to putting all together, its not there. Well, its gotten to a point now where there is some serious friction between him and his partner and their investors. I see all the things that they are NOT doing, for I've owned my own business. They're business IS falling apart for the wrong reasons. What should I do? Your input is greatly appreciated.

Thanks

[riveree]

I'm going to move this one to the Business section so you'll get more feedback.

[dugdogmaster]

What's the business? What are his views vs. yours vs. his partners and investors?

[toneloc007]

Originally Posted by riveree

I'm going to move this one to the Business section so you'll get more feedback.

Thanks!

[toneloc007]

Originally Posted by dugdogmaster

What's the business? What are his views vs. yours vs. his partners and investors?

Its not so much about their views as its their techniques. There is no structure what so ever. When they hold meetings there is not set goals as far as what they want to accomplish in the meeting and its pretty much a free for all when it comes to the floor. I've told him that they need to have minutes taken, a time keeper, etc. but they just don't apply those things. And also the bad thing is that he really bad mouths his investors. In my opinion if he doesn't like dealing with the investors, why did he get involved with them. He's got a business in marketing. Its marketing a new style of discount card which works off referrals. The concept is great and they have everything in place for it work but its the structure of their business thats falling apart. If any of this makes sense....

[Movie Lover]

I've been through this one myself and it collapsed mine totally. You see, the other guy I put as the manager ended up taking over completely - not listening, not doing things, using his size and stature to intimidate me. There needs to be either one person at top and another a little lower down, the lower down one needs to learn, no matter how much better in the world he may be, that the boss is the boss regardless of wealth, possessions, etc. The friction between me and the other guy is totally in place for me putting him in his place, and he ain't gonna like it. In fact, he won't know its coming.

[dugdogmaster]

It does. And that is no way in which to run a business meeting, or a business period. You need to really get it through to your brother to make some changes, otherwise his business will go belly-up, for no other reason than there is no structure to it. A business needs good structure more than anything else, as long as the investors are still backing. First, you need a mediator. It can be someone either independent from the company, or someone from within that has a cool head about them. Secondly, you're right about minutes needing to be taken. Thirdly, he needs to appoint department heads/managers. Fourthly, your brother needs to come up with standard operating procedures(SOPs) for these managers to abide and operate by. I suggest these SOPs be put together during these meetings in group sessions, with the personnel he wants as department heads, everyone participating in order. It can't be a quagmire. And he mustn't pick favorites. He needs to pick people he really thinks can do the job that needs done. And it's not going to happen overnight, putting things like this together take time. It sounds to me, from what you're saying, that this company needs nothing more than just some structure to it. I think you need to really sit down with your brother and discuss this with him, outside of work, with a cool head. I assume you and your brother trust one another? You two need to have a brainstorming/think-tank session together. Peace, and good luck.

[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?

[ShakenStirred]

Originally Posted by toneloc007

"Business going haywire"


Ok I need some advice on what I should do. My youngest brother and his partners just started a new business that is marketing a great product. Its in the field of marketing. I got on just for now to generate some money for myself because I have been out of work. I basically am a tele-sales person. So I am in the office all day and I see and hear EVERYTHING that goes on, meetings, conversations on phones, etc. My brother and his main partner both have no experience running a business. They have all the experience in their field when it comes to putting all together, its not there. Well, its gotten to a point now where there is some serious friction between him and his partner and their investors. I see all the things that they are NOT doing, for I've owned my own business. They're business IS falling apart for the wrong reasons. What should I do? Your input is greatly appreciated.

Thanks

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.

[toneloc007]

Originally Posted by dugdogmaster

It does. And that is no way in which to run a business meeting, or a business period. You need to really get it through to your brother to make some changes, otherwise his business will go belly-up, for no other reason than there is no structure to it. A business needs good structure more than anything else, as long as the investors are still backing. First, you need a mediator. It can be someone either independent from the company, or someone from within that has a cool head about them. Secondly, you're right about minutes needing to be taken. Thirdly, he needs to appoint department heads/managers. Fourthly, your brother needs to come up with standard operating procedures(SOPs) for these managers to abide and operate by. I suggest these SOPs be put together during these meetings in group sessions, with the personnel he wants as department heads, everyone participating in order. It can't be a quagmire. And he mustn't pick favorites. He needs to pick people he really thinks can do the job that needs done. And it's not going to happen overnight, putting things like this together take time. It sounds to me, from what you're saying, that this company needs nothing more than just some structure to it. I think you need to really sit down with your brother and discuss this with him, outside of work, with a cool head. I assume you and your brother trust one another? You two need to have a brainstorming/think-tank session together. Peace, and good luck.

Great advice...I've talked to him but its been in a casual setting...I'll have to just set some time for meeting one on one specifically for that. Thanks!