Weekly Business Idea

June 1, 2018 – Do You Want to Be Great or Good?

Posted on | June 1, 2018 | No Comments

Main Idea:

Are you putting off selling your house because you dread the to-do list?  Would a real estate professional tell you that you had to replace the carpet, update the kitchen or redo the master bath?  Would you spend 2 weeks fixing the garage door, replacing the toilet that doesn’t flush, repainting the upstairs bedrooms and a whole host of things that you have just lived with?

Expansion of the Idea:

Most of us tend to put off things until we have to do them.  And sometimes as in the case of selling a home, we may not know what we need to fix until a professional tells us that something needs to be done before we put it on the market.  The problem with waiting until we sell is that we don’t get to enjoy the benefits of the repair or replacement.  We just live with the old.

The same is true of our businesses.  Most businesses are not organized and run with an exit plan.  This exit or succession plan could include being prepared to sell to an outsider or given to a family member.  It really doesn’t matter what your plans are.  It is important to have a plan and to organize the management of the business towards that plan.  It doesn’t matter if you are 60 or 30 years old.  You may have just started the business.   It is critical to think about where you want to go.

In his book, “The E-Myth Revisited”, Michael Gerber talks about creating businesses that really work.  In “Seven Habits of Highly Effective People” by Stephen Covey, one of the key concepts is to begin with the end in mind.  Both of these authors are really talking about the same problem that exists in small businesses.  We need to create businesses that have systems and processes that lead to the results we want.  But first we have to define what we want and where we want to go.

Just as we enlist a real estate professional to help with the sale of our houses, small business owners need outside input on getting their businesses working the way that they need them to work.  This could include systems, goal setting, strategic planning or reporting.  Every business has different needs.  The problem that small business owners have is that they don’t always know what they need.  Outside perspective really helps.

I have seen a number of situations where a small business owner says that they want to sell their business and the business is not ready for sale.  They can try to clean up some systems to provide a quick fix.  This will help but normally they will end up selling for significantly less than what the business is worth.  However, if they had begun the process 2 years ago or longer, they will end up realizing a lot more on the sale of the business.  The bonus is that normally when you improve how you manage your business, you will end up making a lot more money and have significantly fewer headaches before you sell.

As Jim Collins says, “Good is the enemy of Great.”  Because we have good companies, we don’t have great ones.  The question for you is:

Do you want to be great or good?

Questions to consider:

  1. Is my business good or great?
  2. Are there areas that need improvement?
  3. Do I have a robust reporting mechanism and management system?
  4. Who am I getting input from?
  5. Who should I involve in running the business?

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  • About

    These weekly ideas are brought to you by FitzGerald & FitzGerald P.C. For more information about how to use these ideas with your small business contact Tim FitzGerald at trfitz@fitz-net.com.