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November 2025 Leadership Training/Mentoring Situation Results
THE LEADERSHIP TRAINING/MENTORING CORNER
In August of this year the Silver Fox Advisors introduced a new offering in its monthly newsletter which is called the Leadership Training/Mentoring Section in which we posed a thought-provoking situation for you to think about and put yourself into the situation detailed and ask yourself – “What are your next steps”. Below is the situation that was in the November 2025 Newsletter.
NOVEMBER LEADERSHIP SITUATION
You have the opportunity to expand your business to a new market about 200 miles away completed a business plan and loan request package, which you presented to several banks; all of them have declined your request.
Your brother-in-law has offered to provide you the money needed to expand your business, but he wants to take a security interest in your company’s fixed assets (land and building) and obtain a minority interest in your company, which converts to a controlling interest if you can’t pay the loan back.
WHAT SHOULD YOUR NEXT STEPS BE?
We polled some of the Silver Fox Advisors, and below are some recommendations on what your next steps should be:
- Doing business with a relative usually is risky not only just from a business standpoint but also from a personal relationship standpoint. When a tough
- The brother-in-law’s position of wanting to take a security interest in the business’ fixed assets seems reasonable in that most lenders would likely require the same thing. However, taking controlling interest if the debt is not paid, again, could be very problematic with the family dynamics in play.
- Not having the information of what industry this business is in our Advisor did comment if it is a restaurant, simply do not do the deal and maybe don’t even consider the expansion plan.
- All of our Advisors recommended having a lawyer involved in the transaction, one who is independent of all the parties and their respective other family members.
- One suggestion that seemed to make a lot of sense was seeing how the owner of the business put the business plan and loan request package together that was presented to the banks, which all the banks turned down, it would be a good idea to get a professional business advisor involved to review the business plan and loan request package to make sure all the key elements are included for a lender to make a favorable decision. Things like a set of well-thought-out financial projections with detailed assumptions that support the data are key. Also, the business owner’s business experience and expertise need to be included along with a listing and description of any outside consultants that the owner uses in making critical business decisions (many business failures are caused by a business owner’s lack of wssential business knowledge and experience). In addition, a detailed source and use of the funds needed for the project should be included, with at least 10.0% or 20.0% coming form the owner’s own capital and not borrowed funds.
Do You Appreciate Your Employees and Do They Respect you
BUSINESS TIPS FROM THE EDITOR
December 2025
Richard T. Hendee, Editor
The Silver Fox Advisor
"Do You Appreciate Your Employees and Do They Respect You"
One thing I learned early on in my career was that I could not do everything that needed to be done on my own. I discovered that I needed to have good employees working for me that I could trust and that I could count on.
The sooner you learn that your employees are people too, and that they want to be appreciated for the work that they do, the more success your business will have. I have heard comments from managers and business owners like, “They should feel lucky that they have a job”. And I have also heard, “I pay them well, and I expect more from them”.
On my way up the corporate ladder, I always tried to learn as much as I could about what my employees' job duties and responsibilities were, and often would actually work in various positions so I had a knowledge of what their jobs were. Further, they would see me jump in when conditions warranted, and I rolled up my sleeves and worked alongside them to get the job done or the project completed.
I also became aware that most people like to receive positive feedback if they did something right then and there, and not wait until annual review time to hear encouraging comments. I frequently carried gift cards or cash with me, and as an acknowledgement of a job well done would give an employee a gift card to a restaurant to take someone he/she cared about out for dinner on me.
Further, when I saw an employee troubled by something, I would ask what was worrying him/her and was there something I or the company could do to help. Also, at annual review time I would ask my employees what they wanted to do in the next 12 months to improve themselves. Often, I would hear comments back like, “I want to take a management course so I can advance my career”. So, I would help them get enrolled in an on-line course or an evening class at a community college so they could get what they needed to achieve their individual goals.
The net result was that my employees knew I appreciated them, and they had respect for me. How did I know this? Well, as I advanced within a company, or if I left a company to advance my career, I always had employees who would call me and ask if there were any openings that they could apply for. In several cases I had three or four employees who worked for me at three different companies.
If you need help with developing a set of management skills that foster good employee relationships, I would recommend you seek an experienced business advisor, coach, consultant, or mentor with a financial or business background for your business: Contact a Silver Fox Advisor. Remember, having experience on your side always helps.
We encourage you to visit our Website at www.silverfox.org or www.silverfoxadvisors.com to select a Silver Fox Advisor and also to learn more about the Silver Fox Advisors and their businesses, as well as our great programs and community outreach endeavors.
