By Jorge Ferguson,2014-07-09 08:55
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    Pyramid Business Coaching

    “Our business is helping your business”

    BUSINESS COACHING: Developing an Owner’s Manual

    If you are a small business owner, this article is for you and about your current challenges. If you are considering starting a new business, this article may provide you another perspective to include in your evaluation. If you are employed and not thinking about starting your own business, this article may be a resource that could become relevant in the near future given today’s economic environment with many companies having to layoff employees.

    A popular definition of INSANITY is doing the same thing over and over and expecting different results. A variation of this definition for the small business owner is running your business the same way day in and day out expecting improved financial results. If you are an independent small business owner and are satisfied with the financial results of your businessCONGRATULATIONS! If you are like

    the majority of small business owners and are working harder and harder in your business and still not achieving expected results, keep reading.

    Based on statistics from the U.S. Census Bureau and the U.S. Department of Labor, 65% of independent small businesses go out of business in the first five years. The primary reason for most small business failures is that they simply run out of money. Conversely, other statistics show that over 75% of all new franchise businesses are still in business after five years. Why such a startling contrast between failures of independent small businesses and successful franchise businesses? What is the primary difference between the typical independent small business owner and a franchise owner? It is not that the franchise owner works harder or longer hours or is smarter or even has more experience. In fact, franchise owners generally have not ever worked in the franchise line business before owning the franchise.

    No, there must be some fundamental common denominator that is part of a franchise business that is missing from a new independent startup business. Give up? It is actually

    very simple and intuitively logical. By design, a franchise owner is provided instruction and training in how to run the franchise business.

    The most famous example of franchise training is McDonalds University. Ray Kroc created Hamburger U to ensure that each new franchise owner received extensive training and instruction on every facet of running a McDonalds restaurant.

    In short, the franchise owner is provided an owner’s manual that describes all of the details of what and how to do marketing, sales, customer service, human resources and financial management. The basic value proposition of buying a franchise is that all of the details of running the business have already been developed and tested. The cost of the development of the franchise owner’s manual is included in the

    franchise purchase fee.

    Glen Runyon Your Coach (985-626-5609)

    Pyramid Business Coaching

    “Our business is helping your business”

    An independent startup business owner typically has the technical background in the

    startup line of business. This experience is usually why to the owner decided to “go

    to work for myself rather than working for someone else.” The startup business

    owner usually has put together a financial plan of the startup and operating costs for

    the first year of business. The startup business owner may also have retained a

    CPA firm to perform tax accounting and maybe even a lawyer to provide advice on

    the business structure. The startup business owner believes that since he has

    worked in the chosen line of business before that he knows how to run the business.

The missing element for the independent business owner is the lack of a tried and

    true owner’s manual. That’s where a licensed professional business coach can help.

    A professional business coach is an expert in various areas and processes of

    business. In practice, a coach takes the time to understand the owner’s business completely and provides systematic development strategies that help the owner

    reach their goals by developing their owner’s manual.

Figure 1 Pillars of Business Profitability

Referring to the graphic in Figure 1, business profitability is supported by five pillars

    in the structure representing major business strategies. These business strategies

    are equally important to the success of any size business. Arguably more important

    to the success of a small business is the owner’s leadership, the people who work in

    the business and the business systems that document how the daily activities of

    running the business work. The point is that the development and documentation of

    the business processes that ultimately comprise the owner’s manual are a

    fundamental requirement in building a sound small business foundation.

If you are a current small business owner without a documented owner’s manual

    does not necessarily mean your business will fail to survive longer than five years.

    However given the dramatic difference in the survival rate for new franchise

    businesses compared to independent startup businesses, why not develop an

    owner’s manual for your business to essentially have the same advantage of a

    franchise business and therefore dramatically improve the probability of your

    business survival!

    Glen Runyon Your Coach (985-626-5609)

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