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August 2026 Response - Leadership Training/Mentoring Corner

Posted by [email protected] on 09/15/2026 12:00 am  

THE LEADERSHIP TRAINING/MENTORING CORNER

       

In the August 2025 Newsletter, we started a series called “The Leadership/Mentoring Corner” in which we posed a thought-provoking situation for you to think about and put yourself into, asking yourself, “What are your next steps?”  Below is the situation that was in the August 2026 Newsletter.

 

AUGUST LEADERSHIP SITUATION

 

George works for a service provider business that has been in operation for more than thirty years. The owner of the business knows the service that is the main source of revenue inside and out, but he is not good with operations, finance, or marketing. The owner has told George he will sell the business at some point, and he hopes that George will consider purchasing it with some potentially favorable terms. On occasion, the owner frequently lashes out at employees over small or meaningless issues, which has caused a number of good tenured employees to leave the business over the past thirty years. 

Most currently, revenue has dropped year-over-year for the last three years in a row. Expenses have remained relatively flat, but with revenues being off, profitability has reversed and turned into operating losses. The owner has become frustrated that the business is not doing better and has increased his outbursts with employees to the point that a number of the key management team employees have recently left the business. George and the owner are the only employees left on the management team. 

The owner has put some personal cash into the business but does not have much personal liquidity left and has openly talked about filing Chapter 11 or maybe even Chapter 7.

George has a family with a non-working spouse and two children ages 8 and 10. One child needs costly medication, so George can’t be without a family health insurance plan. 

What actions or steps should George be taking short-term and long-term?

 After polling several Silver Fox Advisors, the following steps and/or actions are being recommended.

  1. George might want to consider finding employment elsewhere as quickly as possible.
  2. If George does not have an employment agreement or any other kind of non-compete agreement in place, he may want to explore leaving the company and starting a business on his own, and possibility not even in the same industry.
  3. George might want to explore the possibility of trying to purchase the business from the owner, potentially before a bankruptcy filing but also after a filing. George should seek the assistance of the appropriate legal counsel before going down either of these courses.
  4. George might want to suggest to the owner that he shuts down the business using the proper legal processes and start all over again with a new entity. Maybe with George or without George.
  5. A determination needs to be made as to how loyal the business’s customers are, or would they potentially jump to another service provider if things start getting too difficult to deal with.

If you need assistance in becoming a better leader, I recommend you start by contacting Silver Fox Advisors. Silver Fox Advisors are former or present business owners themselves, and they have leadership experience in running a business, and in some cases several businesses, and have dealt with unforeseen and unplanned situations throughout their careers. We encourage you to visit our website at www.silverfox.org to select a Silver Fox Advisor and also to learn more about the Silver Fox Advisors, as well as our great programs and community outreach endeavors. 

                                                                                                                                                                    

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