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I am looking for business owners who are using the
Internet as part of their strategy for growth. I have spoken to dozens
of trade association execs, asking for an introduction to one or more
of their members. The result is a collection of excellent stories
published during the first quarter of the year.
But it has not been as easy as it looks. Getting a busy trade
association executive´s ear is a challenge, as is running down the
business owner when there are a few minutes to talk. And then there
are all those interviews with less than perfect results. Sometimes,
the company is not online yet – still just talking about it. I began
to keep track of the reasons why they have not moved forward.
One son-in-law of a business owner told me he was excited about how a
web site would help them reduce overhead by putting all those
frequently asked questions about their warranty procedures online, and
by allowing customers to schedule warranty service via email. He got
together with a web designer who put together a great PowerPoint
presentation for dad.
He told me that dad sat through the presentation asking few questions.
He leaned back with his feet on the desk during with the designer´s
laptop perched a few inches away from his Red Wing boots. Looking
back, "the boy" believes he should not have scheduled the presentation
for 4:00 Friday afternoon.
Dad´s response to the ideas presented? He stood up, reached for his
jacket, and turned to his son-in-law and the designer and said, "Not
with my money you aren´t."
Last week we published the article, "How To Get Senior Management
Buy-In" for a reason. I spoke to so many people who seemed to have
well-thought ideas for developing an Internet strategy, but the idea
was scuttled by the senior generation (the people with the checkbook).
The decision to "wait for a while" was often supported by dad´s
cronies (who were resisting the inevitable), and often included others
in the business who feel threatened by the idea of the Internet.
Why are these forward-thinking ideas being rejected? Or are we nuts,
and the Internet is just a fad that will quickly disappear like Nehru
jackets and leisure suits? Half a lifetime spent working with family
businesses has taught me about the fears, concerns, and motivations of
America´s typical family business owner.
During those years, I helped business owners understand how to work
more effectively together through the succession process. Succession
planning is critical if a business is to survive from one generation
to the next. It deals with both operational and behavioral elements –
to take advantage of the family´s strengths and help them shore up
their weaknesses. In the right context, this addresses the most
effective ways for the business to grow, going forward into the next
generation.
From dad´s perspective, things are often going just fine without the
Internet. One wholesaler I called, at the suggestion of his trade
association, was so hard to reach I asked the receptionist if I could
have his email address to stop the endless rounds of telephone tag and
to see if he was interested in talking. The receptionist replied, "Oh,
we don´t use THAT around here."
When he and I did speak, his comments echoed what I´d heard from
others. Things were fine the way they are so he was holding off doing
anything. He said he had gone to register.com and secured their domain
name, just in case. He also seemed unconcerned about the effect on his
successors as their competitors get online. Why?
Often it is fear of failure --looking bad to their contemporaries and
competitors-- that causes them to hold back.
"What if we start with a web site and then don´t have the ability to
keep up with it? I´ve spent 45 years in this business and am on the
Board of the national association. I´m thought of as a successful
guy—heck, I am a successful guy. I am not going to get involved in
something which, if we don´t handle it right, can make me look bad."
He has always faced challenges, new technologies, etc. He and his
people have learned and adopted them. But not this time, too much risk
to his self esteem to turn something over to others who say they know
what to do and hope for the best.
Some family companies reach outside the family for talented
professionals who can help them. Bringing in professional managers is
not new and it is not easy. One company, EP Henry, did just that with
incredible success. It does take an enlightened view by the business
owner and it can be difficult – but the rewards outweigh the
difficulty.
"What if it works too well? I´m trying to slow down somewhat, get to
Florida a little earlier each winter and come back a little later in
the spring. If this thing is as great as my son-in-law says, next I´ll
have to go to the bank for more capital to grow or miss the
opportunity and then look really dumb. I can´t win."
I´ve heard this over and over. This fear is very real and never
addressed by the experts. The fact is just the opposite. The nature of
the "on the fly" Internet often allows companies to grow exponentially
with very little additional capital. And if their Internet strategy
works as well as the son-in-law believes it will, dad will be able to
spend a lot more time in Florida – checking in via the Internet both
before and after his daily rounds of golf.
After all, the Main Street equivalent of an IPO is an FLA. That´s when
dad moves to Florida.
Not only can the business grow, perhaps without the additional capital
required for another store, plant, shop, or warehouse; it may provide
opportunities for family members who would otherwise look elsewhere
for their career opportunity.
For those family members who don´t see themselves fitting into the
traditional roles the business provides, the Internet offers new
opportunities for them to create innovative positions within the
company. This is valuable, because when more family members stay
involved in the business, more revenue is likely generated.
Integrating the Internet into the business provides added
opportunities for smooth succession.
The business owners we have profiled so far have all said the same
thing, in different ways, "Jump in, get started whether you think you
are ready or not."
Owners of established traditional companies have three choices when it
comes to adding an Internet component to their business. They can
ignore it, since many of them report that their customers are not yet
demanding that they be available online. They can take the initiative
and use their flexibility to integrate the Internet into their
business quickly, before their competitors. Or they can wait until
everyone else has taken advantage of it and then try to catch up.
The opportunities available are unprecedented - never before have the
tools for growth been as available as they are today. But only those
who take the right steps at the right time will be the winners. A
carefully planned Internet strategy is vital in making the owner´s
dreams for the business come true.
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