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The Westerly Sun (RI) |
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| Practical advice Trio uses experience, advice to help businesses grow Aaron Greenberg The Sun Staff Published: November 25, 2007 Practical advice Trio uses experience, advice to help businesses grow WESTERLY - Business is, by its nature, a challenge. Questions fly out at business owners and management from all directions: How do you gain customers? How do you keep them? How do you keep costs down? Is it the right time to expand services? If sales are stagnant, how do you solve the problem? Even for the most adept managers, there are times when a voice of experience can help, offering unbiased advice. That's the job of Practical 3 Business Advisors, a trio of consultants who have over 100 years of experience in business between them, including running diverse enterprises. Since small and mediumsized companies don't have the luxury of a board of directors, Practical 3 offers itself as something like a part-time board. "We provide that kind of barometer," Steve Gordon, one of the advisors, said. "The learning curve can be very steep, and very expensive. We can help smooth out the learning curve." There isn't a simple credo or five-point plan behind Practical 3, or promises of a quick fix. The advisors point out that while there are many common issues from company to company, they can help with every step from starting a company to selling a business, from how and when to grow to how to handle a sudden reverse. What that means is taking an honest look at what each company needs - especially regarding the makeup of its business plan - as well as offering fresh opinions on what options lie ahead. The trio also makes it clear that their role is to advise, not to run the companies or create massive overnight changes. The three advisors - Gordon, Bob Hoffman, and George Jenssen - trace their partnership to when Jenssen and Gordon were offering pro bono work for SCORE, a volunteer network helping small businesses. Jenssen's background is in manufacturing, Gordon's in construction. Hoffman was operating Sandy's Fine Foods on Route 1, and preparing to retire. Gordon, a regular customer, spoke with him. "He had an interest as well in business, and in sharing his knowledge," Gordon said. "He suggested it." Over the course of a single lunch meeting a year ago, Practical 3 was launched. It took a little longer to come up with a catchy, appropriate name, but Jenssen took care of that. One of the practical lessons the trio had already learned was that they could accomplish more by charging a fee than doing pro bono work. It's important that both sides, the consultants and management, take each other seriously. That rarely happens in free seminars. "They really pay attention when they're paying for your time," Jenssen said, adding that Practical 3 has to prove it is worth the value. "We feel very strongly about that," Hoffman said. "If they sit and talk with us, it's something that will provide value for them." Yet their philosophy is grounded in what drove them to do pro bono work - share what you know about business to help people avoid common mistakes. It's a form of community service. As a result, their first meeting with a client is always pro bono. One of the most important parts of helping a company move forward is to find out exactly what its goals are. As simple as that might sound, the advisors of Practical 3 point out that many businesses don't spell out their goals. That's where a business plan comes in. "The business plan itself forces you to look at issues," Gordon said. "Everybody has strengths and weaknesses. Our job is to point (weaknesses) out and help them strengthen that area." It's especially important at the beginning of a venture. Have you thought everything through? New businesses usually fail because the owners underestimate the tasks ahead, or don't have a clear vision of what they need to do to break even. Practical 3 doesn't try to discourage people from opening a business, but to realize just how hard it is to accomplish. "The best thing we do for someone who wants to build a business is hold their feet to the fire to develop a business plan," Gordon said. If they are realistic and can manage to put together a solid business plan, the chances of beating the odds become much greater. Identifying the goals in a business plan is only part of the solution, however. "You don't just stick it in a drawer, but use it as a dynamic document," Gordon said. "Like a compass for a boat," Jenssen added. Like being on a boat, the conditions constantly change, and businesses have to be ready to regularly re-evaluate what they are doing. "Over the years, 32 years, (Sandy's) continually changed its focus because the niche we had became more popular," Hoffman said. His experience includes expanding, then selling off stores that had been successful before they could become cumbersome. There were also major changes in competition, notably Stop & Shop coming in across the street. "Business is dynamic. You may solve it for today, but not six months from now," Jenssen said. Hoffman points out that a company can make itself stand out in a variety of ways, not just finding another product - "It could be price, service, or availability." Even when it becomes clear that it is time for an owner to put the business on the market or turn the reins over, there's a lot to consider. Hoffman went through a lengthy transition period at Sandy's, six years. He identified a successor in a former employee who came back. They worked together, going over the ropes. "When they were ready for it, I was willing to let it go," he said. Knowing when to let go can be very difficult, especially for someone who started or changed the face of the company. Hoffman believes that every business owner needs an exit strategy. "As soon as you get in the business, you should plan how you will get out of the business," he said. "You get involved with it, and eight to 10 years down the road, it's your baby," Gordon said. "You can be pragmatic about it and say, 'OK, I will have to eventually let go of the reins.'" A typical fear, both of those who own a business and employees in key roles, is to share information. Jenssen said he has seen companies, and workers, prevent themselves from moving forward by being so protective as to not share. "Protecting" oneself can not only harm the company, but limit promotions. Employee satisfaction and participation are very important in Jenssen's view. "You can't believe how much you can get out of people when they have something to gain from it," he said. When staff is engaged in the conversation, most of the good ideas seem to come from lower ranks, he added. It doesn't hurt to hash out ideas - in fact, the trio doesn't always agree at first on how to proceed. By teaming up and comparing experiences, they are able to provide even stronger advice. "We often end up with a totally different solution than when we started the conversation," Jenssen said of their internal meetings. Practical 3 serves as facilitators as well. Since forming the group, the advisors have formed a network to aid in the fields their own 100 years of experience don't cover. For instance, they helped a medical doctor with an invention by matching him up with a lawyer knowledgeable in international law to help with patent concerns. Practical 3 can be reached at its Web site, www.practical3.com, by mail at P.O. Box 1168, Westerly, RI 02891, or by calling any of the three advisors: Hoffman at (401) 742-5312, Jenssen at (401) 2862408 and Gordon at (401) 7419659. Practical 3 services businesses as far as Providence, Hartford and New Haven. Copyright 2007, 2008, Westerly Sun, The (RI), All Rights Reserved.
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