Articles

It Is Sometimes Lonely At The Top!!!

It Is Sometimes Lonely At The Top!!!

June 2025

Richard T. Hendee, Editor
The Silver Fox Advisor

Something I have seen in my years of experience in advising small businesses that is often very disturbing is a business owner who is not able to identify or accept that the business either has a revenue issue or an expense issue (sometimes both) and then seeks to borrow additional money to keep the business going. There comes a point when the cash flow generated from a business operation simply can not cover the debt obligations. 

Typically loan payments are made from the profits a business is able to generate. If the business is losing money month after month, then it is not generating the profits needed to pay loan payments. Therefore, adding an additional loan payment is not the answer.

When you are a business owner, it is sometimes a lonely place to be. Let me share some examples with you, some of which you may have experienced.

You may have an employee who is key to the operation of the business and who is having some performance issues. This has caused you to lose many a night’s sleep going through various scenarios in your mind. You really can’t discuss this situation with other employees at the company because some of those employees may work for this person, and you do not want the key employee to get feedback from other employees that you are not happy with his or her performance. Further, you really don’t want to take this issue home with you and spend your family time hashing over things from work. So, what do you do?

Another issue is you may also be having some business financial issues that you don’t want to share with your employees for fear they may think they could lose their jobs if the business can’t make a payroll. Again, taking this issue home could also upset your family, so the result is – what do I do next!

Yet another issue some business owners struggle with is when do I look at an exit plan and how do I even go about executing that kind of thing. Once again, you do not necessarily want your employees to know you are thinking about selling the business; they may fear losing their jobs or someone new buying the business and making a whole lot of changes. So here you are in the same place – what now! Talking to yourself and kicking the same ideas around and getting the same unsatisfactory answers is not very productive.

In all of these situations what I recommend is the business owner seek the advice and counsel of a trusted business advisor or mentor. Typically, a business advisor or mentor has either been through all the situation heretofore described, or he or she has consulted with other clients who have experienced similar situations.

Further, with a trusted business advisor or mentor getting from point A to point B usually takes less time, and you are not typically reinventing the wheel.

If you need assistance in finding a trusted business advisor or mentor, I recommend you start by contacting the Silver Fox Advisors. Silver Fox Advisors are former or present business owners themselves, and they have experience in owning and running a business, and in some cases several businesses. 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.              

June Business Tips From the Editor

BUSINESS TIPS FROM THE EDITOR

June 2025

Richard T. Hendee, Editor
The Silver Fox Advisor

“TECHNOLOGY - My Most Valuable Asset”

Probably one the most over looked valuable assets businesses have today is centered in its “Technology”.  The overall value is not listed on the businesses balance sheet other than the value of the hardware (computers, printers etc.) or some specialized software system like NetSuite, which has either been depreciated off the books, or based on the value of the individual piece of hardware or software system, simply expensed in the year it was purchased.

But the real value in a business’ technology (from a very broad sense) lies in the information and data stored on various hardware devices and/or software systems. Information like customer files and details, accounts receivable and accounts payable records, general ledger data, financial statements, tax returns, bank statements and records, fixed asset registry, inventory records, employee records and files, payroll data, policies and procedures (some of which may be proprietary), and the list goes on. Some of this information and data maybe backed up “on the cloud”, but other files and records may be on individual devices or on some main frame stored in the closet.

Have you ever thought about what it would cost to rebuild all of this information and data, let alone how long your business would be potentially shut down if one day all this information and data were gone or inaccessible?

Many small businesses can’t afford to have an IT expert on staff, so the business owner’s brother-in-law may be the business’ IT expert because he “knows what he is doing”. Other businesses contract with what is known as an MSP (managed service provider). But not all MSP’S are equal. Some are very good for small operations, but potentially can get bogged down on larger more complex situations or when their client base gets larger than they have the ability to service.

Because of the tremendous exposure businesses have to the loss of these files and records from hackers and other forms of data loss, like human error or employee theft, protecting these files and records should be a top priority. But, unfortunately in most businesses it is not a major issue, primarily due to the cost, the lack of knowledge or what are seemingly more important issues that the business owner needs to take care of today, after having already put in a 15-hour day. 

If you need help with your business’ most valuable asset, I would recommend you seek an experienced business advisor, coach, consultant or mentor with a financial or business background for your Company: 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.