Family Businesses & Buyouts

$100 Challenge Update

This project is complete.  I have begun working on my presentation for next week.

Weekly Readings & Studies

Case Studies:  I reviewed a case study of the DAG group and the Rogers Family real estate investment business.

Discussion Boards:  I researched businesses that are for sell in the area that I live.  I found a tutoring franchise that looked interesting.  My husband and I have talked about owning a business before.  The reality of this would most likely take a lot of savings on our part.  There was another discussion board about being a consultant for a family business needing to identify a successor.  This case study made me think of my grandfather who owned a ranch.  It’s not a portable business so his options were limited.  A succession plan was very important to keep his business going.

Acton Hero: Erick Slabaugh

http://www.actonhero.org/celebrating-heroes/stories-of-heroes/index.php?hero=erick-slabaugh

This is such a poignant hero to study during this week while our studies are focused on family businesses. Slabaugh brought Absco to the number one slot in their field. Listening to his story solidified what I have thought about some of the difficulties of being a business owner.  Peers might look at you differently because you may not have everything they do and you have to live a different lifestyle, but the quality of life later on will be flipped.  Then people saw you were "lucky," not realizing all the work it took to get you to that point. Slabaugh came back to his dad's business when things seemed bleak.  He helped turn things around, bought all the equity in the company and built the business into something phenomenal.

My favorite quote from Slabaugh during the interview was, "Entrepreneurship is a wonderful way to go. If you choose to, it can be an adventure, but it also comes with a responsibility."  This is such a great quote because it can apply to all entrepreneurs. 

Research, Ponder and Plan. Repeat.

This week, I have come to appreciate the power of researching and looking to others for advice.  In addition, getting a plan in writing has forced me to do research.  I don't want to put a plan together that will not be functional at a later time so I took time to focus on the business plans for my $100 Challenge and my long-term "Big Idea."  The business I have settled on for this semester long project is making handmade mini-crane origami earrings and my focus for my "Big Idea" will be on a financial services business.  Here are the highlights from a few assignments this week:

• StartupNation.com: The "Defining Dozen" and creating a business plan.  I lucked out this week by getting online early to review my assignments. I jotted down the "Defining Dozen" questions to fill out and the next day this content was not available on the website any longer. One of the downsides to using references from the web, they can decide to change their content and how accessible it is to users.  This is another reminder to me that if I find something useful on the web, it's best to document what I can, when it is available and reference the source. So often I find something and think "Oh, that's awesome advice!" I forget to save the website or information found and struggle to find it again later. Or worse, waste valuable time finding it again.
• Heather Evans, Inc. case study: Just because you were raised in a family with finance and get a business degree from an Ivy League school doesn't guarantee success.  Heather made a great business plan but seemed to fall short in focusing, relied on her own savings to fill in the financing gaps and did not pursue investors aggressively.
• Chapter 3-4 of E-Myth: I learned that skilled technicians with an expertise level within their field often choose to drop out of the rat race and start their own business because they are so great at what they do.  Many of these small business owners forget that a balance must exist between technician, manager and entrepreneur for their business to be successful.  When you start your own business, you don't get rid of the boss, you become the boss and you have to develop a split personality.
• Business Plans: No more stalling! I had to make a final selection for the $100 Challenge and "Big Idea." After completing reading assignments, including a study of the Harvard Manage Mentor topic Business Plan Development, I cracked my knuckles and got to work. 

 RESEARCH, PONDER and PLAN. REPEAT.