Q: I need some
advice for dealing with a timid small business partner and a banker who lacks
vision. I have started a number of small businesses over the years, so I
clearly know what I'm doing. Our industrial distributorship is two
years old and doing okay. But it could be doing a lot better with a
bit of bravery. I have some great ideas for widely diversifying the
product line and integrating a bunch of other services. I also think
we should buy another company that I just heard is for sale, so we
can take advantage of the fact that they are the only service in
their field. I'm sure some of our staff could sell for both. Do I
need a new partner and banker, or is there a way to bring them
onside?
A: Entrepreneurs tend to be good at getting ideas, recognizing
opportunities and starting businesses. They are often not very good
at managing, which takes a different set of skills. It also takes
patience, which is often in short supply among entrepreneurs.
Wisdom and
success lie in recognizing your strengths and admitting your
weaknesses - yes we all have them. Then give yourself permission to
do what you do best and find other people whose skills complement
yours.
My advice is
to temporarily put on hold your entrepreneurial tendency to see
opportunities behind every lamp post. Two years is not a long time
to be in business. Now is the time to focus on your core enterprise,
not diversify into a variety of unrelated ones.
Get
organized, stop blaming others, and analyze what has to be done to
keep your business growing and put it on a firm path for the future.
Diversifying into a new area might be part of that. Or not. You'll
only find out by doing some research and revising your business
plan. If it still looks like a good idea, your partner and banker
will probably be onside.
If you
aren't disciplined enough or don't feel you can muster the
effort to keep slogging along without the adrenaline hit that comes
from always being in the start-up phase of your small business, then hire a manager. Or
sell the business to your partner and move on altogether.
