I had the opportunity to engage with an employee of a business I visited recently and she described the business as a “Fruit Salad”. “That’s an interesting description” I said, “what does that mean” I asked.
She said that the owners were the cause of this fruit salad description because they all had a different view on how and what should be done in the business. Each of the owners wanted things done differently. So the message to the employees was mixed to say the least.
There was no consistent way to do things, no structure, no rules of engagement for all concerned. How inefficient was this business, how open was this business to things going off track. If there were no standard policies and procedures then anyone could most likely do anything the way they thought best.
Having a business run like this is a recipe for disaster and fought with potential to implode. Setting up a structure in a business that has multiple ownership is extremely important from the get go. Not only are the team confused and less productive, the customers will more than likely be confused.
Is it egos that allow this structure to continue? Is it ignorance of what to do? Is it that the owners really want the business to be run there own selfish way. Is it simply that these owners don’t really care or worst still can’t recognise what is really happening in their business?
How hard is it to put structure in place, lay down policy and procedure, articulate these to all concerned, just imagine a new employee joining this business, especially one that has come from a structured organised business. What would that employee think, more importantly how long would they stay.
Sort that bowl of fruit salad if you have one, if you don’t know how then get help, its never to late. The type of business structure you choose will affect your taxation position, your personal legal liability and the life of your business. It is important, therefore, to choose the right structure.
Monteck Carter will challenge your business thinking and strategic planning so you achieve your plans. Keeping in regular contact, we ensure you’re always working towards the business’ goals. Monteck Carter will provide suggestions which will help you make the right decisions. Give us a call to see how we can help you 09 273 3682