Entrepreneurial Tightrope: Time to expand? Depends . . .
— -- Hello Gladys, My father has owned a medical supply company for more than 30 years. It is rather small but has supported our family from the beginning. My father suggested that I come into the business with him after I graduate from college this spring. I am toying with the idea. I believe my father kept the company small because that worked well for him. I, on the other hand, would be interested in expanding. I would want to develop the operation to the point of providing a good income for me as well as to provide a substantial retirement income for my father. Does opportunity knock for a company that has been around for a long time and whose owner has kept it small? — Ted
Opportunity has nothing to do with how old the company is or whether the owner has deliberately kept it small. I don't believe opportunity "knocks." I think opportunity is something that we go looking for; it does not always look for us.
With that thought in mind, you have all the opportunity in the world to take the family medical supply company to any level you choose.
However, there are a few things you might want to consider before you go seeking opportunity and expanding the company.
Have you learned all you can about the medical supply business? And, in particular, are you fully aware of your father's business? This is a big question involving several points and considerations:
•Becoming familiar with the company's current customers. How are they being served, and what are their expectations? You don't want to lose them in the course of expansion
•Suppliers and vendors. Who are they, and are they delivering up-to-date service and products? And under what kind of arrangements? I met a young man who took over the family business while the father was recovering from surgery and nearly lost the entire company because he didn't understand the arrangement his father had with his suppliers. His manner in dealing with them was more forceful than his father's. They responded by holding up deliveries during the holidays — normally the company's most profitable time — until they received payment in full. They were more flexible when the father was running things.
•Become familiar with the current business plan before updating it.
•Your marketing plan is important. Talk with your father to learn more about existing markets. His lengthy business experience can help you. Decide which target markets to go after and the best method to use.
•Develop a list of professional advisers you can call on, such as lawyer, accountant, marketing consultant, banker or other financial expert, etc., or get to know the ones your father currently uses and discuss your plans with them for input.
Next, how does your father feel about expanding the business? What are his retirement goals?
There are many senior entrepreneurs who have no desire to retire. One of the advantages of working for yourself is that there is no mandatory retirement, and if you feel like you want to slow down a little you can always hire a manager.
An uncle tells me that my great-grandmother started selling and serving meals from her home in order to raise money to help build a new church. Long after the church project was over she was thrilled with the amount of money she was making and continued the venture. At that time she was in her mid-80s. She then invited my grandfather and uncle to enter the business with her.
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