Legacy Business; Modern Failure – Three

In the Second Article I used a business, (under an assumed name) to give an essence of its degeneration.

The Business, which I called Question, began small, then expanded, and operated a number of different and assorted companies.

On paper the company seems strong and vibrant, but in reality it is badly managed, losing money, and a kind of juggling of revenues is used to fatten the balance sheet.

To know whether the company is viable before you invest or seek employment, there are a few tests you can run.   Be alert to these signs and you’ll know what to do,  including the viability of opening a competing business.

In the article; The Absolutely Worst Run Business I mentioned Cray Z. House, which was to be a kind of rest home/dormitory.   The persons ‘in charge’ appointed an enormously fat woman woman who can not walk fifty feet without a nebuliser as manager.  This is the red flag.   How can such a person possibly manage a premises?

Hence, who is in charge, be they the manager of a shop or a guest house is crucial.

The availability of the Manager is vital.  If the manager is ‘in the office’  and the office is not glass sided,  s/he has no idea what is happening.  This means service is not a priority.

The products that are sold should come with some kind of warranty.    If there is no warranty, if everything is ‘as is’,  do not shop there, and be aware than more people probably cease to shop there after the first failure and lack of  warranty.

Further, what is the cost of the product here compared to other places? Are prices written in stone or is their negotiation?

Items that come with a warranty should also specify if it is money back or repair.  When there seems a problem in fulfilling a warranty or there is no ‘on site’ place to have it repaired or policy which is pro customer, no matter what the ‘legacy’ was, this company is going out of business.

The major signs of a failing business are based on the persons granted the managerial position; those who are unfit, those who are unconcerned.

The business is surviving for reasons other than the proper management; which might indicate questionable and/or illegal practices.

Anti-Customer policies are adopted by failing businesses.   Unable to hire competent people, unable to refund money,  the only reason they still have customers is because of factors beyond the here and now.

For example, if the Company is the only one selling lawn mowers.   Since they are a monopoly, they do what they please.   As soon as another company began selling lawn mowers, people departed the original company in droves.

Why?

Because the only reason the Company was able to hold its market was because it was a monopoly, not because of good customer service.

Companies which suffer serious fall off in business when there is competition need to rethink their policies, their products and take swift action.

In many cases, the Original Lawn Mower distributor stays in business because it sells or leases property to other concerns, not that the business is profitable.

Legacy Businesses are those passed from father to son, (or various permutations thereof).

If one gets a list of all Millionaires in 1900 and compares it to 1950 there will be few ‘repeats’. If one takes that 1950 list and compares it to 2000 one gets the eerie sense that becoming a millionaire almost insures that your grandchildren will be working for wages.

This is because Legacy Businesses are born and survive on the skills of the first or second Owner.  The ability to pass on business acumen is not genetic.

People born into money do not know how to earn money.   They have a sense of ‘entitlement’ which prohibits their ability to give good service.