3

We are wood logging and saw timber company, already running this business for 59 years. At present, we are still doing it the traditional style without any help from electronic devices. Sales and Accounts department using hand written invoices and recording (paper work).

Throughout the years, the economy, price, and usage of wood has been hurting us really bad. On top of that, the employees are stubborn, the other old (age 70+) shareholders are even worst. Reluctant to learn new knowledge and technology which leads to unable to follow/predict market trend.

I did not study Business nor Economic but I am pretty sure these factors are really bad for a business. I have held a meeting with the shareholders by giving out some ideas like marketing, advertising, and use system to provide sales chart, costing, reporting etc that might help in management decision making rather than solely depending on the employee to provide the information.

With all these issues and headache, I am not sure what are the approach I can take to tackle every each of them? What are the basic strategy to strengthen the business?

Improve this question
2
  • Unless everyone is willing to give you full authority to run the business, there isn't much you can do. Nothing lasts forever.
    – keshlam
    Commented Sep 4, 2015 at 16:05
  • You may not be able to get others to share an overall vision (especially if they think of it as unproven newfangled ideas that are risky to their already dwindling equity). Not right away. Perhaps you can prove value from smaller authorized or skunkworks projects you can change more of their minds. Probably there are only one or two key people who need to be convinced.
    – Spehro 'speff' Pefhany
    Commented Sep 6, 2015 at 13:46

3 Answers 3

Reset to default
8

If you can't resolve profitability, the other problems aren't going to matter. So let's start with that.

I did not study Business nor Economic but I am pretty sure these factors are really bad for a business

What you will need to do is to quantify how you plan to increase sales and decrease costs. Make it about the bottom line. If you don't have the business skills, hire them in. A good financial person can turn unprofitable busiesses around. I've seen it happen.

On top of that, the employees are stubborn

Again, if you want to get buy in from the shareholders. They need to give the authority to deal with recalcitrant staff.

...other old (age 70+) shareholders are even worst

The shareholders need to understand that by increasing profitability, you are increasing the amount of money they'll make from it. Given they are at retirement age, you would think there is some interest in getting something to retire with.

But in the end, if you cannot convince the shareholders to take proactive measures to save the business, then there is very little you can do to prevent the decline.

Improve this answer
4
  • From the shareholder perspective, they are like 'the business is getting worse, so we will just reap what we're able at this moment, let us not take any action that might cause unnecessarily trouble'. In fact this is what I have heard from their conversation. What can do when so much ego at present? Often, I am deep down depressed by this, often I am wondering am I too optimistic to believe that the business will recover if I did anything, or should I go with the flow, or might as well quit and look for better prospect.
    – 4 Leave Cover
    Commented Sep 4, 2015 at 5:49
  • 4
    In a nutshell, if the owners wish to wind down the business that is entirely their choice. Unless you have their buy-in and the authority to take action that may prevent the business from failing, there is absolutely nothing you can do.
    – Jane S
    Commented Sep 4, 2015 at 5:52
  • 1
    To maintain the business for almost 6 decades sounds "pretty", but to losing it would be pretty awful. Although I'm not the founder, I am the potential heir (if only the business did not close down). I will give my self some time to adapt and accept the fact. I have walk the talk but without power I'll just obey the nature of typical Asian-minded business culture. Thanks Jane.
    – 4 Leave Cover
    Commented Sep 4, 2015 at 8:57
  • 3
    @4leaveclover It's far from petty to want to save a family business. But unless there is a will to save it by the owners, there is little chance of doing so :(
    – Jane S
    Commented Sep 4, 2015 at 9:19
2

Call the Business School of your local state university and see if they work with businesses like yours as a MBA class project.

Improve this answer
1
  • 2
    That would be good advice, but if the shareholders aren't open to change, it will go nowhere.
    – DLS3141
    Commented Sep 4, 2015 at 12:30
1

Based on what you said, it sounds like lack of technology isn't the problem here. The problem is more with the lack of interest in your industry in general.

Unless you're saying that by using technology, such as online services, it can increase your market?

For me personally, as a customer, I dealt with custom shops online that's halfway between new and old style with the "new style" being mostly on the internet with a page. I find these shops better since most of the time you can speak to the actual owner and they can do things just the way you like. They still do the old style "over the phone and paperwork" system by you calling a number on the website. The website looks straight out of 1998.

Reputation is everything though in these smaller sectors. On the site mentioned above, it was mostly by word of mouth that's shared on forums and other areas. I believe since wood working is so niche industry, people are looking for specific services and if you can build that reputation, people will catch on and start going to your site for service. Who will you appeal to? The mom & pop furniture shop that does custom building and need timber from you? And they might be half way across the country and they're just looking for someone like you to delivery a product that they need at a good price.

Improve this answer

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .