This Is Your Life - What A Show Might Say Of Your Small Business Time?

INTRODUCTION:

Many of you would have seen the show "This Is Your Life" which originated in the US in the 1950s and was then adapted in various other countries such as Australia and New Zealand. Basically, prominent individuals would be surprised by a television host who would then proceed to go through their life from start to finish with friends and family members interviewed along the way.

This got me thinking if I looked into the future, what would this look like if they were talking to a small business and going through the trials and tribulations of its life. Who would turn up on stage? What would be the good bits, bad bits and the things that really were milestones that mad all the difference? Or will there be bits where we would wish they could edit and look back on and say what the hell were we thinking then or why didn't we take action?

Figure 1: Regrets, I've had a few (but not too many!)

1. SMiths Shoes - Starting Out

Host: "Your parents, John and Judy Smith decided back in 1972 that they had a great idea to make money. They saw a gap in the market for European shoes and with your incorporation suddenly you were born. Within six months sales had tripled and you learnt to walk. Things seemed to be going along fine and life seemed good. It was a very busy time and excitement was in the air and everyone was enjoying the determination and happiness you were displaying as you made you way into the business world.

In almost no time you were growing up and it was decided that it was time to find new premises (a move from the garage) and employ some more people. What do you remember?"

Smiths Shoes: "Yes - the excitement of early days! We were definitely going to conquer the world. I loved it. Certainly wasn't prepared for what might happen along the way but that was the attraction and thrill of the chase. I was determined to put my heart & (ahem) sole into it though".

2. Obstacles Along The Way

Host: "On the surface everything looked wonderful, but you started to sense something was wrong. You could feel growing pains. The very fuel you needed to keep going (cash flow) seemed to be sparse and whilst you knew that you were on a good thing, stressful times followed. You didn't quite know what was happening or why it was happening but you knew you had to do something."

Quote from behind the curtain "It was  a great business but it needed help! I knew that with a bit of assistance and some strategic planning and cash flow management, we could get the fuel back into the engine and get it to roar!"

Host: "That's right, (Smiths Shoes nodding) it's your small business accountant and advisor John Boots!" (curtains rolls back - hugs and kisses).

Host: "John, what did you think when Smiths Shoes walked in the door?"

John Boots: "Well, it needed a bloody good polish! (crowd laughter) I could see a lot of stress but I decided to put myself in its shoes (more laughter) and so I mapped out a plan that would ensure they not only survived but thrived".

Figure 2: These boots were made for walking!

3. Breakthrough Moments

Host: "After realising that you needed to talk to your customers more and find out what they liked about European shoes, what was difficult in finding them, latest styles and which types of customers liked which type of shoes, you hatched out a plan with John. You discover that men aged in the 30s to 50s who need to wear suits for work mainly in capital cities are keen to look sharp. You find that many shoe stores don't like to store shoes from overseas as they often have quality control issues and many are brought back from customers seeking refunds. You decide to go on a trip to Italy to find out more."

Quote from behind the curtain: "We got on famously and the moment I introduced him to pizza and Italian red wine, I thought he'd never go home!"

Host: "That's right, it's your Italian factory supplier from Venice, Scarpe Belle!" (more hugs)

Host: "Tell us about Smiths Shoes?"

Scarpe Belle: "Well, he told us what he was hoping to do, how many pairs he was going to sell annually and what was stopping people from buying from stores. We sat and listened, showed him around and so we worked out what needed to be done. We did a lot of business in Italian restaurants and we nutted out solutions for each of the stumbling blocks. Within 2 years we exceeded sales expectations by 200%! It's been a wonderful relationship."

4. Near Death Experiences

Host: "Things are just going so well  for you and by the late 1990s, you become one of the top selling wholesalers in the country . But then you start to slow down. You are very ill. You are confronted with a disease known as the internet. Suddenly sales from retail stores are starting to drop and your customers are complaining. People work out they can buy shoes online from anywhere without leaving their homes and they can search for the best price. One by one your retailers start to shut their doors. You are forced to put people off."

Smiths Shoes: "Yes it was bloody tough and we didn't see it coming. We really thought things would just keep going like always. We decided we had to change strategy and fast. We went back to the drawing board and once again researched our customers in this new age technology. We worked out what they liked about online and what they didn't. What things went well and what things made their experience terrible. We spoke to John Boots (small business accountants Sydney & Dubbo) and we worked out a new three way budget (cash flow forecasts) and we talked to Scarpe Belle. We arranged finance with our banks and we invested in new products and new distribution channels. We took on social media and we upped our web presence. We guaranteed free shipping if the shoes didn't fit right when received but we also took steps to make sure this would rarely occur just through the ordering process. It was close but we survived!

5. Today

Host: "Well Smith Shoes, today you have an enormously successful small business with over 100 employees and a business that is just about to list on the stock exchange. With a small business valuation of $5,000,000 things are looking pretty good. You have expansion plans that will see you get further ahead of your competition. What are your plans?"

Smiths Shoes: "I'm just grateful that we are still here! It's been a great ride but one we would never have survived if we didn't take action early. Business survival is not about turning up hoping things will get better, It's about real business planning and our advisors fortunately helped us through that."

Host: (handing over a book with streamers coming down and crowd cheering and clapping -cue the music)"Smiths Shoes..... This Is Your Life!"

CONCLUSION:

 What will your business "This Is Your Life" look like? Will it end up like Smiths Shoes or will it stop after about 5 years or just close down after 20 with no succession or ongoing legacy?