Owner managed businesses make up a good chunk of the economy. Some of these are actually family businesses that are in the second or third generation and have been passed down through time while others are fresh startups that have been started in this generation. In all instances, owner-managed businesses have a number of characteristics that are endemic to this business type and that need to be clearly understood in order to ensure the longevity of the business and the work/life balance and health of the owner.
Since the structure was built up by the owner, the tendency of most owner-managed businesses is to have a dependence on the owner for a number of areas relating to the operation. This dependence can be due to a skill or knowledge that the owner has and that the people around him/her do not or it could also be due to the management and control aspects of the business that the owner has built and that are still dependent on the owner. Whatever the reason for the dependence, such a strong depedence on one person tends to hamper the business’ growth as well as to impinge on the owner’s personal life and free time.
Statistically many owner-managed businesses fail once the original owner starts to get out of the picture. This is not necessarily due to the fact that the business was mismanaged or that the business was not strong however most times it is due to the fact that there was no plan and preparation for the transition of power from the owner.
Working with many owner-managed businesses CMG Consulta help owners analyse and understand the current business situation as well as manage the expectations of the various stakeholders in the business. This understanding and our role as mediators in the process allows us to lay out a plan for a transition of power and control where the business can slowly start to operate itself with the owner/s slowly transitioning into different roles. This transitioning frequently leads to preparing a business for sale or merger depending on the owners’ wishes and plans. Please Contact us should you want to meet up and discuss your business’ future with us.