Instead of dismantling faltering businesses, owners, investors and board members are advised to look at what the company does well − and where it’s receiving failing grades.
Aptos, Calif. (PRWEB) November 10, 2005 -- Business communication consultancy One Straight Line, LLC (http://www.OneStraightLine.com) cautioned against dismantling faltering businesses. Instead, owners, investors and board members are advised to look at what the company does well − and where it’s receiving failing grades.
Speaking on a panel discussion on repurposing at the Entrepreneurship Program of the M.I.T. Club of Northern California, David Leland, One Straight Line principal, explained to audience members that investors would be wise to look at core business shortcomings of their portfolio businesses, rather than firing executives, vendors and rank-and-file employees during troubled times.
"There’s typically a knee-jerk reaction when a company under-performs. Hasty decisions are often are based on fear and the illusion that doing something, anything, dramatic will stop the bleeding," said Leland, who was joined on the panel with a venture capitalist and an entrepreneur. "Rather than get caught up in finger-pointing, who’s right and who's wrong, the first order of business should be getting back to basics."
Leland, co-author of The Entrepreneur’s Concept Assessment Toolbook, said boardroom politics is about the fastest way to pound the final nails in a faltering business’ coffin. Though often used, such an approach does little to get to the root of the problem.
"If you’re really serious about saving the business, take a hard look at your product line," Leland said. "If your products are sterling and still not selling, chances are there’s a communication breakdown between the company and the customer. In other words, the customer has a nightmare. Do you know what it is? If not, find out, and find out now."
Warning signs of business troubles include consistent underperformance, employee turnover, inconsistent direction set by leadership, customer dissatisfaction, and stakeholder revolt. The important thing to remember is not to panic −- even though large sums of money are at stake.
“When you know and practice what you do consistently well, your focus is automatically drawn to those you are best equipped to serve,” said Leland, referring to the notion that there must be a straight line between what a company does best and its customer base. “It isn’t enough to be in business just to make money. To really succeed you have to earn your money by delivering beneficial value to your customers.”
About One Straight Line
One Straight Line, based in Aptos, Calif, helps its customers effectively assess areas where communication lines are broken. Leland and his partner, Michael Knowles, have appeared on national business radio advising listeners how to take what they do best and focus it on success.
One Straight Line also offers business assessment and improvement workshops and is available for speaking engagements. A free biweekly newsletter is available by subscription through the company web site.
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