Empressofbiz, Biz tips: Family owned businesses...beating the odds

   Growing the Family Business…
Beating the odds!

JoAnn R. Forrester

Did you know that over 70% of family owned business want their busienss to  continue to the next generation  Yet, according to the Small Business Administration only 30% percent of family owned business make it to the next generation.   

 Why? What  happened? And what can be done to change the outcome? It is frustrating to watch a good business go down.   All the time, effort  and resources it took to build…and then its gone. 

Some Family Owned businesses close voluntarily because the next generations do not want to take them over…they were the parents dream and not theirs.     

Others close because due to the lack of  proper financial and business planning to pay taxes and cover the business during the transition.

A  Family owned business may limp along with disinterested owners and eventually has to be sold at a value significantly lower than its prosperous days.   

Fourth:   One issue that is hard to face and yet is the key to a successful transition is the “ talent pool.”  Do your heirs  have what it  takes to be the boss?  They may be willing, but lack the capability and personality  to be the CEO.  Or, if other family members  are involved, he or she lacks the ability to work as a team. We all know FOB’S that have failed due to the inability of the family members not willing to separate the personal issues  from the business.

If the FOB wants to continue a succession plan, both financial and personal development  must be in place EARLY.  Training of family members can begin young.  Being in business should be seen as fun…not a drudgery.  

I know one FOB who takes her daughter to the “shop” once a week and her job is to greet customers and make sure they are comfortable in the waiting room.  She gets paid to work that day…and at 10 years of age she is already coming up with suggestions on how to treat the customers.  And her ideas are considered and a few have been implemented.

The two E’s are important.  Education and experience elsewhere is essential.   It allows them to see how businesses operate elsewhere and then they can bring in fresh ideas to the business.  

Long range planning is essential  for a family owned busienss to succeed to the next generation.  More on this on upcoming  columns.

EMPRESS OF BIZ! Listen! Learn! Prosper! -Interview Diane Fletcher..

EMPRESS OF BIZ! Listen! Learn! Prosper! - Live  & Prosper  Recorded Episodes:

Please join me on the Empress of Biz, JoAnn R. Forrester as I interview Author, Speaker & Human Rights Advocate Diana Fletcher

Diana Fletcher, The Stress Reducing Coach, author, and motivational speaker is an expert at helping people reduce stress and achieve optimal health no matter how busy and hectic their lives are. Diana is the author of five books, including:

* Happy on Purpose: Daily Messages of Empowerment for Women
Reduce your Stress Month by Month Stress Reducing Strategies Creating Space: 38 Strategies to Help You Make Time for What’s Important
Diana has developed powerful programs that enable people to successfully reduce stress. Her presentations and workshops offer simple yet effective techniques that people can implement immediately to reduce their stress. She has recently become involved in a mission to end human trafficking by bringing awareness to this issue and raising funds to support women and families affected by trafficking. 

Diana is hosting a special fundraiser and awareness event entitled Close to Home, on July 23rd at 5:30 pm at AJ Palumbo Hall, Carlow University, Pittsburgh, PA

Learn more about Dianahttp://www.facebook.com/l/3AQEiVAVwAQHgFRnk_nU8dkM-BBMOP2sc-S3HZiEAP31VZw/www.ThoughtsByDiana.com 

Empressofbiz guest Stephen Wilson, Writer Using your talents to help those in need.

EMPRESS OF BIZ! Listen! Learn! Prosper! - Live & Recorded Episodes:v

When tragedies and disasters happen we all feel  the urge to help.  Some can go  in person and serve on scene  and the rest of us send money to help.  And yet the urge to send more than money remains.  One group, ' Indies in Action"founded by Stephen Wilson, consisting of  artists, writers, poets  etc  have banded together to   create  books to give a voice to those in distress and sorrow and to  to raise money.   Join me as I interview Stephen L. Wilson writer and the founder of "Indies in Action"  as we learn how his group works and how we can help.  ...  Their latest efforts focuses on the  May of 2013 storms and tornadoes ripped through the midwestern United States leaving destruction and desolation in many areas. One of the hardest hit states was Oklahoma. "Twist of Fate" is an anthology of writing, poetry, prose, and artwork from contributors around the world, better known as the group Indies In Action.....
100 % of the proceeds from the sale of the book "Twist of Fate" will go to benefit tornado victims in Oklahoma through the May Tornadoes Fund, administered by the United Way.

Join in on Thursday June 27 at 11am EST .  If you cannot listen now...you can listen later.

EMPRESS OF BIZ! Listen! Learn! Prosper! - THE POWER OF EVENTSBUR..

EMPRESS OF BIZ! Listen! Learn! Prosper! -
TODAY on the Empress of Biz...LISTEN! LEARN! PROSPER! Promotion is vital to your business. A fantastic way to do this is Eventsburgh. In business we all struggle and spend lots of $$$'s to get people to attend our seminars, workshops presentations, seminars and networking events. Today we are going to TALK and  LEARN  about Eventsburg, a site you need to know about and use.  .. Listen to  HOW two  Pittsburgh entrepreneurs with a tremendous new media following decided to combined forces to purchase, rescue and expand Eventburg.  Eventsburg was scheduled to shut down in June..but when Jill Kummer "Blacktie Pittsburgh" and Joanne Quinn Smith "Techno Granny" looked at the site they realized Eventsburg had tremendous potential for national exposure and promotion.  Users can post  in any city or zip code in the country and it is FREE!  Learn More about the power of this site from one of the owners, Joanne Quinn Smith, "Techno Granny" and PPLMag.com as she shares the story and the opportunity of Eventsburg...
SPECIAL BONUS LEARN how YOU CAN GET $50 CREDIT ON PREPAID SERVICES COMPLIMENTS OF THE EMPRESS OF BIZ!

EMPRESS OF BIZ! Biz Tips, Listen! Learn! Prosper! Anna Marie Gire Women's Yellow Pages

EMPRESS OF BIZ! Listen! Learn! Prosper! - Publishes of the Pittsburgh Yellow Pages...

Special guest on the Empress of biz, the publisher of the Greater Pittsburgh 20130-2014 Women's Yellow Pages, Anna Marie Gire. Join me as we discuss her new publication and the status of women business owners.
Did you know that women owned businesses generate   3. 1 Trillion dollars to the U. S.  Economy?
Tune in and listen to the GOOD News about  business.

EMPRESS OF BIZ! Biz Tips, Listen! Learn! Prosper! Anna Marie Gire Women's Yellow Pages

EMPRESS OF BIZ! Listen! Learn! Prosper! - Publishes of the Pittsburgh Yellow Pages...

Special guest on the Empress of biz, the publisher of the Greater Pittsburgh 20130-2014 Women's Yellow Pages, Anna Marie Gire. Join me as we discuss her new publication and the status of women business owners.
Did you know that women owned businesses generate   3. 1 Trillion dollars to the U. S.  Economy?
Tune in and listen to the GOOD News about  business.

How to prevent cyber crime

How secure are your small business assets from fraud, identity theft and cyber crime?

According to the Association of Certified Fraud Examiners (ACFE), companies with less than 100 employees can lose approximately $155,000 as a result of fraud each year. Small businesses also have a higher fraud rate than larger companies and non-business owners. 

One of the most frequent sources of fraud is credit card abuse,  due to the fact that few business owners make the time to go through every line item on their bill.  They also are careless in mixing their business and mingle business and personal accounts.

Other sources of fraud stem from an overall lack of security across the business – such as inadequate network and computer security and a lack of background checks when hiring employees.

Don’t be a victim! Here are some tips you can take to better protect your business from some common forms of fraud and cyber crime.

Protect Your Credit Cards and Bank Accounts:

1,  Since this is a common area of fraud, this one goes at the top of the list. Start by separating your personal banking and credit cards from your business accounts – this will ensure fraudsters don’t get their hands on ALL your money. Separating your accounts will also make it easier to track your business expenses and report deductions on your tax return.

2.  Use your cards wisely. Don’t hand over your plastic or your card number to employees or 

companies with which you don’t have a familiar relationship. 

3.  Switch to online bill pay or make sure you store paper bills securely. 

4.  Use a secure mailbox for receiving and sending bills. If you don’t have one, deposit your mail directly at the post office

5.Lastly, be sure to check your online banking every day for suspicious activity.

Secure Your IT Infrastructure

6.  Every business owner should invest in a firewall as well as anti-virus, malware and spyware detection software. Backing-up is also a must and will make it a lot easier for you to continue working in the event of a cyber attack.

7.  Use a Dedicated Computer for Banking

This is a great idea from Forbes magazine’s 5 Ways Small Businesses Can Protect Against Cybercrime.  Use a dedicated computer for all your online financial transactions and, ideally, make sure it’s one that isn’t used for other online activity such as social media, email and web-surfing which can open up the machine to vulnerabilities. Avoid mobile banking if you can.

8.  Have a Password Policy

Another easy step you can take to protect your IT systems is to institute a password policy. 

• Make sure you and your employees change them regularly (every 60 to 90 days is good rule)
• Set rules that ensure passwords are complex (i.e. contain one upper case letter, one number and must be a minimum of eight characters)
• Use different passwords for different online and system accounts
• Use different banks for your accounts for personal and business accounts.

9.  Educate Your Staff

Employees are perhaps your biggest point of vulnerability when it comes to fraud, but they are also your first line of defense. Hold regular training sessions on basic security threats (online and off) and prevention measures – both for new hires and seasoned staff. Enforce the training by instituting policies that guide employees on the proper use and handling of company confidential information, including financial data, personnel and customer information.

9.  Consider Employee Background Checks

One of the first steps to preventing fraudulent employee behavior is to make the right hiring decision. Basic pre-employment background checks is necessary business practice for any employer, especially for those  who will be handling cash, high-value merchandise, or have access to sensitive customer or financial data.

10.  Insure Your Business

Fraud and cyber crime does happen; however, you can still seek to cover your damages by purchasing an insurance policy that protects you against any losses that you may incur from crime or fraud. 

Make sure you know  what your bank is willing to do to help you out if your credit card or business account is compromised.

Information from www.sba.gov and recommendations of clients of S. I. Busienss Associates.