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Leadership Training - August 2026 Situation

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?” 

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 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?

Please provide us with a brief write-up of What should George’s next steps be? Send your write-up to Lynn Rosado at [email protected]

In our September 2026 Newsletter, a team of Silver Fox Advisors will provide responses to what they would have recommended to James that he do based on the situation detailed above.

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. 

Business Tips From the Editor - July 2026

BUSINESS TIPS FROM THE EDITOR

July 2026

Richard T. Hendee, Editor
The Silver Fox Advisor

                          “Poor Market Validation"

Poor Market Validation is one of the factors leading to many business failures after the first couple of years of operation. Just because an entrepreneur has what seems to be a good offering or a wonderful idea, that does not guarantee success in a very competitive marketplace.

I have often seen situations where the offering was tested with friends and relatives, who often are not the most ideal individuals to approach because they may have certain biased opinions due to the personal nature of the situation and not necessarily the business nature. 

Additionally, if the offering or idea is something new that has never been available in the marketplace before, there is not much in the way of research that can be obtained to determine if the offering is something that is needed and will actually sell. Further, price points come into play also, whether the offering or idea is a good one or not; if perceived in the marketplace as being overpriced, then it may not fly off the shelf as anticipated. 

Something that I don’t think is used enough in product validation is a “Focus Group”. If done by experienced professionals, “Focus Groups” can provide great insight into product or service market acceptability as well as pricing. It is my understanding that some of the larger grocery store chains, like HEB, use established “Focus Groups” for testing of products with their private label before the product hits the retail shelves. One example I heard about is an HEB ice cream tasting “Focus Group”. When HEB rolls out a new flavor of ice cream, it goes through this ice cream “Focus Group”. Apparently, HEB wants its “Cookies & Cream” ice cream to taste better than any of the other “Cookies & Cream” ice creams on the market, so this ice cream tasting “Focus Group” goes through many rounds of taste testing until there is a consensus among the group that the HEB product is the best on the market. When I heard about this ice cream tasting “Focus Group,” I tried to find out where I could sign up!! 

It is a shame that more new business owners don’t do a better job in market validation before they risk their own capital and the capital of others before they open their doors for business.

I recall a situation in my neighborhood when a business opened up in a small neighborhood strip center. The business was called “Zesty Fruit Treats”. I didn’t know the owners, nor did I ever go into the store, but I had a pretty good idea when their sign went up that this concept likely had not been market tested. I am sure the owners thought the idea was wonderful, which it may well have been.

But in reality, most fruit does not have a long shelf life, so if the inventory didn’t turn over quickly, I would think there would be a lot of lost inventory. From a sales standpoint in a local neighborhood retail center, you probably have maybe three window time frames to sell your product: In the morning as people head out to work, in the late afternoon when the workers come home from work, and in the evening after families have had dinner.

In the morning, Zesty Fruit Treats was competing with all the coffee and pastry shops. After working all day and driving in traffic, most people just want to get home. As far as after family dinners, Zesty Fruit Treats was competing with all the ice cream and cookie shops.

I wish my example had a happier ending, but Zesty Fruit Treats did not last long. 

The example I used here were both food-related, but the same thing is true for other products and services as well. Just think about it: how many nail salons and dry cleaners can one neighborhood support? Further, from a B2B perspective, how many IT service providers can the business community support? Or how many commercial insurance agencies are needed in the business community? Some market validation could very well shed some interesting insights!

If you are a small business owner with a market validation issue, don’t jump off the cliff without spending some time and money on a proof of concept and market acceptability. Seek the advice from one of our professional Silver Fox Advisors who can provide guidance as you chart that course into uncharted waters. We encourage you to visit our website at www.silverfox.org.  There you can learn more about our great programs and community outreach endeavors, or about selecting a Silver Fox Advisor whom you can engage, or perhaps even about becoming a member yourself.