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Keep Both Hands on the Wheel

 

John Kielich, CPA - Managing Director for Kolb+Co. M&A Advisers   email | bio 
LeAnne Foster, CPA - Senior Associate for Kolb+Co. M&A Advisers   email
February 2012

Despite laws and warnings, people continue to drive cars with one hand as they navigate their telephones and text messages.  We are all probably guilty of this practice, but we, also, all probably agree that this can be dangerous.  Multitasking has its merit, but certain activities deserve your undivided attention - like driving a car and running your business. Driving your business with only one hand on the wheel can be a dangerous habit.

Owning and successfully running a business takes your full attention.  Get distracted for a minute and any number of things can happen: a new competitor can come into the market, a new technology can be developed, a major supplier can go out of business, or a major customer can stop ordering.  This is by no means a complete list, but it certainly identifies things that most businesses have had to deal with, especially in the last few years. Although these are issues that all businesses will likely have to address at some point, the goal is to take steps to prevent the issue or be prepared to counteract the issue when it arises.

Step back and be as objective as you can about your business.  Ask yourself the following questions and your response should any of these situations occur. 

• Do you have a plan of action if your major supplier suddenly goes out of business?  If that thought causes panic perhaps you had better start looking now for an alternate supplier and divert some of your current business to them to start building a relationship.     

• Do you have too much business concentrated with one or a few customers?  Start building some new relationships and finding some new sources for business.  

• What will happen to your business if your technology becomes out-of-date or obsolete?  If you don't have the energy to try to keep up with the latest technology then hire someone who does.  We all know the energetic individuals who are always looking ahead to what is next and are excited to see what changes it will bring.

It is altogether too easy to get engrossed in the day-to-day requirements and take your eyes off of the strategic direction of your business.  However, you may find yourself in a crisis situation if you do not take time to step back and objectively look at your business from the "30,000-foot level." You must keep both hands on the wheel to keep your business viable, growing and saleable.