By Craig Siiro
For the past 30 years, I have aided the development of entrepreneurial companies using the “Evolution of a Business” model.
Among the highlights of the model, which is based on a Harvard Business Review article, is the fact that many entrepreneurial businesses start with a person who feels they have identified a better or revolutionary way.
Often a single leader at the outset, ideally a management team as the business matures, the success of these businesses is frequently based on the owners’ “intestinal fortitude”—their commitment to overcoming the challenges inherent in starting a business.
In good times and in challenging ones, it’s strong leadership, supported by sound financial and operating systems, that keep entrepreneurial businesses running.
It’s a model that I’ve seen repeatedly demonstrated in my clients, including one that recently faced a stiff challenge.
Expecting a revolution
The company was founded by man who worked in the printing equipment industry who believed a new technology would revolutionize printing on substances beyond paper.
Armed with his idea, technology and funding from friends and family, he started the company.
And, based on his leadership and a strong core of employees who developed the operational and financial systems, the company did, in fact, revolutionize the printing industry.
Financial disaster
As the business matured, national opportunities presented themselves. And, since growth was their main driver, the company, which now featured a strong leadership team, grew significantly.
Based on the needs of a single customer, the company expanded to Texas. As that customer continued to grow, it represented a higher and higher percentage of the printing company’s revenue.
Then the worst happened.
When the customer lost a significant contract and went bankrupt, it was a financial disaster for the printing company, itself teetering on bankruptcy.
Saving grace
What saved the company was simple: strong leadership.
Exhibiting the steady intestinal fortitude necessary to own a business, the company’s leadership team demanded that no one in the office talk about closing the company and worked through the tough decisions required to keep the business afloat.
Through their hard work and buoyed by a motivated work force, not only did the company remain in business, but was sold for millions of dollars a few years later.
It a case study that offers a vivid and inspiring example that I’m happy to relate to the entrepreneurs I work with today. And although there are many lessons woven throughout the story, the one that I always underscore is: there’s no substitute for strong leaders with a belief in the power of the business and its people.
For 10 years, Craig Siiro has served companies of all shapes and sizes as the founder of Integrated Consulting Services. As someone who is passionately devoted to helping entrepreneurs succeed, he is part of Sage’s trusted pool of entrepreneurial resources and is frequently referred to the firm’s clients.