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As I was growing up, my parents were in the hotel business. In fact, on one occasion, he owns three hotels. My father passed away when I was very young, and my mother kept running the hotels. He performed well, but soon he realized that the three hotels were very high for him, so he sold two of them.
He proceeded to invest in the rest of the hotel. He expanded the dining room and introduced “Seasling Stekes”, which was a huge hit movie at the time. He made a complete renovation of the “tap” room and introduced daily entertainment for guardians. People were talking about my mother’s great business woman! However, my mother never talked to me about business. He kept everything near the vest, and I never praised what he did. But then, I really didn’t care. I was very busy playing games and chasing girls!
Related: 7 Things I wish I know before starting a business
Secondary
It did not look like the other generation would play a role in this business. My sisters got married and left. My brother became a lawyer and went to Boston, and I decided to become an electrical engineer because he was getting the highest salary after graduation (there is no good reason to become an engineer, as you will see). Somewhere between my Sophomor and Junior years, I have a desire to become a business.
After some research, I contacted a tailor in Hong Kong and pursued some of his famous suit. I never implemented it because, in the final analysis, I couldn’t even imagine a boy’s own measurement! For my senior years, I started thinking seriously about my mother’s hotel. One day, I returned from classes and I found out that the hotel was burned. A lot for hotel business!
My uncle as my guardian
My mother’s brother, Uncle Can, was a very successful business of distribution. In fact, my mother told me that in 1959, she was offered $ 14 million for her business. It was always a big event when Uncle Cain came to meet. He pulls into his caadelic, and I take his bag home. He always gave me $ 5, and at that time it was a lot of money.
When I graduated from college and went to Boston, I decided that if I ever moved my business, I need a business center. My father passed away when I was young, and my mother never did business with me – so Uncle Ken was the answer. I called it and we started dinner meetings every other month or more, and I would put it in black with questions about business.
One evening, I met him in his office and met me when he finished a meeting and asked to wait. The walls of the office did not go to the ceiling, and I could hear their conversation. It seemed that he was talking about buying my uncle’s company. I heard a person saying, “Your company is only worth your luggage, and we value it $ 250,000.” I thought, “Wait a minute, it’s 1969, and 10 years ago, the company worth $ 14 million – and now it costs only, 000 250,000!”
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Techway
This is a true story. As they say, “I can’t make this item!” My uncle fell in love with his company. It became his “baby”, and he could not abandon his “baby” with devastating consequences. This five -minute “snapt” had a major impact on my business philosophy. But most of the businessmen consider their companies to be their “children” and keep them too long. Business, like everything, has a life -long cycle.
Business Life Cycle
Let’s talk about a business classic life cycle. The number of years relies heavily on the particular industry. In a high -speed industry like high technology, the time from startups can be a few years, while a slow -paced industry like insurance can take many years.
Each company reaches a level (level) where, to reach the next level, they need capital infusion. This is usually in revenue between $ 5 and $ 10 million. The company may need new management because the business owner may not have proper management skills, and the company may need a CFO to deal with the financial needs of development. The company will need to increase marketing efforts and hire more capable soldiers. The company may need to open regional offices to tap new markets. The company will need more space to keep growing support and management staff.
Before the height of the bell size curves, where the business growth is slowing (but still growing), how to decide how to enforce a new growth in the next level. If the owner has the ability, energy and excitement, he can find the capital, through a loan or equity to fund a new growth increase. If the owner does not have qualifications, energy and excitement, hopefully he has put the company in a position to find a “right buyer”.
Related: Studies show that businessmen really like their children like their children
If the owner waits until the company starts to decrease, it will not only be more difficult to find the “right buyer”, but also to purchase funds for organic growth. I just imagine what my uncle Kane would realize with the sale of his company if he had followed the strategy and did not consider his company his “child”.
As I was growing up, my parents were in the hotel business. In fact, on one occasion, he owns three hotels. My father passed away when I was very young, and my mother kept running the hotels. He performed well, but soon he realized that the three hotels were very high for him, so he sold two of them.
He proceeded to invest in the rest of the hotel. He expanded the dining room and introduced “Seasling Stekes”, which was a huge hit movie at the time. He made a complete renovation of the “tap” room and introduced daily entertainment for guardians. People were talking about my mother’s great business woman! However, my mother never talked to me about business. He kept everything near the vest, and I never praised what he did. But then, I really didn’t care. I was very busy playing games and chasing girls!
Related: 7 Things I wish I know before starting a business
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