Team Development Stages In Changing Times

The business world is always changing, but sudden changes cause disruptions to all businesses, with teams and individuals finding themselves having to navigate new and different ways of working effectively together.

There are several stages involved in group development, and in each one, the members of the team experience several issues that lead them eventually into the following stage. If the team doesn’t work effectively together, they may struggle to move through each stage at the right place. Should the team become stuck at any stage, the impacts can be negative and severe on the organization’s productivity and overall culture.

With this in mind, managers and business leaders alike must understand how each stage can impact their team and learn how they can help them to move effectively through each stage in times of extreme change. The Global Resources LLC team is well-placed to offer such advice.

Forming – Stage 1

The first stage is to adapt to a new way of working effectively together. Taking the people-first approach is vital here. Ensuring every member of the team has everything they need to work effectively in the new environment and that they have help to address obstacles is key.

Storming – Stage 2

In this second stage, the team begins to execute projects and daily tasks. Conflict and stress often arise at this stage between members of the team. The answer is to focus on alignment and adjustment. Targets and goals often require adaptation to fit the changing circumstances and teams must be aligned in the way projects and tasks will be carried out.

Norming – Stage 3

In the third stage, communication improves, with the team beginning to gel. Working collaboratively becomes easier and conflict and tension reduce as the team becomes increasingly aligned as they move towards implementing their common goals. Focusing on this stage on supporting business continuity and project management is important. Leaders must carry on fostering alignment and communication between members of the team, allowing them to make decisions independently while checking in regularly with the team.

Performing – Stage 4

In the 4th stage, the group will be more collaborative, confident, self-sufficient, and motivated. As a result, higher levels of innovation and productivity is possible. At this time, although the leader will remain involved, they should allow the team to be more autonomous and self-sufficient. An open-door policy is a good idea at this stage.

Adjourning – Stage 5

Depending on the project or team, there could be a fifth stage – adjourning. At this point, deliverables and projects will be completed and the team will begin a fresh project or be reassigned. At this point, the process will begin again starting at stage 1.

The Five Stages Of Development

Recognizing and understanding all five stages of development is vital for any business leader, especially when the world of business is becoming increasingly susceptible to change. Taking advice from professional consultants like those at Global Resources LLC is the best way to ensure smooth and effective progress through each stage.

How Can Strategic Tax Planning Lower Your Business’s Tax Liability?

The business tax landscape is in a state of constant fluctuation, and businesses large and small are always trying to keep up with changes. Extra regulations and guidance are issued almost every month and change has become a new normal. It couldn’t be more important, then, to adopt strategic tax planning strategies to lower your business’s tax liability.

If you read our Global Resources LLC reviews, you’ll see that we can offer effective strategic tax planning advice that will greatly benefit your organization. Here are just a few of the strategies that we would recommend.

Bonus Depreciation

The rules for bonus depreciation have recently been expanded to allow taxpayers the full expensing of used and new qualifying property that is placed in service before the year 2023. This creates major incentives for investing in tangible depreciable property as well as computer software. The allowances for bonus depreciation have increased up to 100% from 50% for any qualified property that has been acquired then placed in service at any time after 27th September 2017 up to 2023. An excellent strategy is to plan any eligible property purchases to assure that this yearly bonus depreciation and asset expense election is put to maximum use.

Opportunity Zones

The new opportunity zones tax incentives enable investors to defer their tax on capital gains through investment in Qualified Opportunity Funds. The taxpayer can defer their taxes by reinvesting the capital gains derived from asset sales into qualified opportunity funds during 180 days commencing on the sale date that gave rise to the capital gain. After it has been rolled over, this capital gain will remain free of tax until either 2026 comes to an end or the fund is divested.

When an investment has been held for 5 years, the basis is stepped up by 10%. If it’s held for 7 years, the step-up is 15%. If it’s held for a minimum of 10 years, the capital gains over the rollover amount are exempt permanently from taxation. However, to get the maximum potential benefit from this strategy, the taxpayer has to have invested in the Qualified Opportunity Fund before 31st December 2019.

Corporate Alternative Minimum Tax Rescinded

Another tax planning opportunity comes in the form of AMT credits which can offset regular tax liabilities for years following 2017. Moving forward, prior AMT liabilities can offset regular tax liabilities for all taxable years after 2017.

Not only that, but AMT credit can be refunded for all taxable years starting before 2022 and after 2017 in an amount that equals 50% (or 100% for the taxable years starting in 2021) of the total excess credit for that tax year (subject to the 6.2% sequestration rate).

Getting Tax Planning Advice

Instead of looking at new tax provisions separately, it’s important to take a holistic view of changes to assess the impact they may have and to develop effective tax planning strategies. The company’s entire tax liability must be determined and the planning structured so the organization’s full picture is addressed. To achieve this, getting advice from a professional team of consultants is the best way forward.

A Guide To Getting Buy-In For Digital Change Projects

When you’re working on improving a work system or process, you’re sure to encounter several challenges, and many of them will involve people. Employee uncertainly, difficulties in training, and rebellions against change are all commonplace. Often, challenges to project outcomes come from those who are doing the job.

So, how can you get buy-in for such projects amongst your employees? The GR-US.com team is here to offer you some expert advice.

Inclusion

The top way to get everyone involved in your digital change project is to ensure that they are all included right from the beginning. In order to ensure they remain involved throughout, they need to remain engaged. It’s vital to avoid the all-too-common problem of reaching the project’s end and realizing that somebody who’s going to use the system hasn’t been included throughout all the project’s stages.

Clarity

A common mistake business leaders make is to confuse people in order to make it appear as if they know what they’re talking about. It’s important to be clear at all times with stakeholders since it improves trust between all involved parties. Empathizing with them, reiterating things you’ve been told by them, and talking their language will show them that you understand their problems and have a real desire to assist them in improving their working practices.

Job Security

Digital improvement and automation both have a major effect when it comes to feeling job security. Yet, making sure employees feel very secure in their roles is a key element in delivering a project successfully. Finding ways to reassure them their responsibilities and role are going to be redirected, not made obsolete is vital.

Listening

A helpful way to gain employees’ buy-in to your digital change project is to facilitate workshops designed to listen to their views and ideas. If you listen to what your stakeholders are saying then reiterating the issues and ideas back to them in the language they understand, they’ll come to believe that they’ve designed their own solutions.

There is no more effective way of obtaining employee buy-in to your project than by having those who will be responsible for actively executing the new processes believe they came up with the solution themselves. Whether true or false, people usually feel more passionate when they believe they’re doing something that they were responsible for rather than something that anybody else has done.

A Successful Buy-In

If you follow the steps outlined here, you’ll find that obtaining employee and stakeholder buy-in to your latest digital change project will be easier than you imagined. Although reticence and opposition are common in such circumstances, with the right approach and by taking a people-centric approach to implementing change, you’ll find that the process is simpler and quicker than you thought.

Taking advice from a team of professional consultants is the best way to ensure that your team gets on board with your latest changes so that your operation can run smoothly with seamless adaptation to the new ways of working.

A Guide To Boosting Your Small Company’s Value

If you’re running a small company, you are probably looking for some expert advice to help you boost your business’s value. Luckily, there are a number of things that you can do.

Making sure that your organization stands out from the crowd is the single most important thing to try when it comes to increasing your company’s value and, to this end, there are several valuation models to choose from. Most offer different advantages as well as disadvantages concerning assessing your company’s value fairly. Yet, all have a single thing in common – profitability and growth remain the primary drivers for creating value.

Whether the valuation model indirectly or directly focuses on profitability and growth as primary drivers, they always have a major role to play in the business valuation process. Why is this the case? Simply put, when your business delivers high returns consistently, your business creates value that extends beyond the values recorded on your company’s balance sheet.

How can your business’s value be actively increased in practice? The answer lies in having a business valuation carried out by a professional team. If you read our Global Resources LLC reviews, you’ll see that many other small business owners have achieved great success in reaching their business goals thanks to our business valuation service. So, let’s take a look at how this can help.

What Makes A Small Business Valuable?

Uniqueness and predictability are the two primary points that make a small business more valuable than its industry peers. However, there are other points to consider that will be reviewed in any business valuation. These include:

  • Business growth
  • Recurring revenue
  • Unique services or products
  • Location
  • Clean books
  • Diversity
  • Happy customers

Once all of these things have been evaluated, the next step is to track results.

Tracking Your Company’s Results

All of the above points are linked to profitability and growth. This is why having an annual business valuation makes sense. Knowing precisely where your business stands in terms of all the above factors will allow you to continuously track improvements. This allows your conversion rate to increase, your costs to reduce and your productivity grow.

Understanding Your Business Valuation

Purely from the valuation perspective, the key topics include predictability, growth, clean books, and recurring revenue. All of the other factors in the list above generate the key drivers. The Global Resources LLC valuation process takes all of these points into consideration to emphasize profitability and growth.

Once you know your company’s value, you can then align your actions with your business’s value-creating goals. This helps you build a more valuable, stronger company that makes higher returns and enjoys significant growth in its marketplace.

It is only by knowing your company’s worth in its present state that you can determine how best to improve it. Let our experienced consultants help you to understand your small business’s value clearly so that you can give it the boost it needs to achieve even greater success.

Meetings – Are They Time-Wasting Or Top Priority?

When strategic planning for any organization, meetings are arranged in different ways. Yet, however, they’re scheduled, ensuring that those meetings take place is still essential in order to fulfill your company’s objectives and goals. The key is to ensure that meetings are productive and non-time-wasting.

All-too-often, companies arrange meetings without planning effectively how the time will be spent. This results in pointless meetings that lack purpose and achieve little or nothing of importance. So, how can this be prevented in your organization?

Saying No To Meetings

If your calendar is constantly overflowing with scheduled meetings, it’s likely that you’re working in an organization that has a pro-meeting culture. This isn’t unusual. It also isn’t unusual to accept an invitation to a meeting even if you know already that attending it will achieve little and may even be counter-productive. Yet, this isn’t a positive culture for your company. Promoting a healthier attitude towards meetings is, therefore, important. Every team member should be thinking critically before sending or accepting a meeting invite about whether the meeting needs to take place at all, and if it does, who really needs to attend.

If you check out our Global Resources reviews, you’ll see that companies can revolutionize their operations simply by beginning to think more critically about their meeting culture. By simply making a rule that each meeting has to have an arranged agenda, it becomes easier for invited participants to check to see if their presence is necessary or not. It also creates a positive cycle during which those organizing meetings must think about what needs to be accomplished and articulate the agenda clearly before commencing the meeting.

Tracking The Results Of Meetings

While adding a pre-arranged agenda into every meeting goes a long way towards measuring improvement, this isn’t usually enough. Meetings aren’t valuable in themselves. Only the results of the meetings have value. You should, therefore, implement a general rule that each meeting should result in an action item, whether that be a meeting summary, a follow-up survey or a list of items to action afterward.

Reforming Your Company’s Meeting Culture

With a reformed meeting culture in your organization, it’s possible to achieve more and to see positive results quickly. It needn’t be difficult to implement change in this respect. By following the tips suggested here, you’ll find that it’s easier than you imagined to eliminate unproductive and time-wasting meetings from your schedule and to, instead, only arrange meetings that have a recognized agenda, that are useful and relevant to the company’s goals and that have results that are properly followed up afterward.

The Global Resources LLC team is on hand to offer their advice and consultancy services to any company wanting to reform their organization’s meeting culture. Our experienced business and management consultants can offer you all the help you need to give the structure of your meetings an overhaul and to ensure that only the most vital personnel are invited to attend the most relevant meetings in the future.

Preventing a Financial Crisis in Your Small Business With Correct Valuation

If you’re running a small business, there’s always a danger that you may fall prey to short-termism. This phrase is sometimes used to refer to the phenomenon of excessively focusing on results in the short-term at the expense of value creation and long-term business interests. Although this is a trap that many small business leaders fall into, it’s one that every company owner should be aware of and avoid whenever possible.

Short-Termism In Practice

There have been many examples of this in popular culture and living memory. We need only look at the early 2000s and the bursting of the dot-com bubble to see a classic example of short-termism in practice. Investors and banks alike forget the vital principles of value creation. They were so keen to get involved with the latest rapidly-growing technology companies that they carried out virtually no research and made no proper valuations. As a result, they made significant financial losses when it became obvious over time that internet companies simply didn’t have the competitive advantages that had been assigned to them by the market.

During the 1990s, the East-Asian debt crisis is just one example of short-termism that failed an entire market, while the 1980s’ loan and savings catastrophe in the USA is another. Both of these spectacular failures happened because of high-risk investments that aimed to turn impressive profits with a short-term perspective.

It’s clear that short-termism is often destructive for markets, and history has revealed this many times. If a focus on only the short-term result is allowed to get in the way of longer-term actions that create value, the balance will be skewed negatively. As a consequence, the market’s credibility will eventually be undermined, fewer investments will be made and, potentially financial disaster will ensue.

The Importance Of Long-Termism

There is some disagreement amongst researchers about why short-termism happens. Some say that it occurs because, as human nature, we yearn for immediate gratification. Meanwhile, others say that greed is to blame. However, whatever the cause, most experts agree short-termism is both expensive and irrational. Eventually, the rules of economics prevail. This is why an accurate and sound business valuation prevents you from becoming caught up in group thinking and market trends.

Long-term strategies to create value serve both the market and your company well. You must generate profits and cash to create more value. Focusing on growth first in the home of generating profits and cash is considerably riskier. It’s essential to view long-term goals in more credible ways.

Seeking Professional Business Valuation

The upshot of all this is that it couldn’t be more important to seek out a professional business valuation for your small company. Global Resources LLC can offer an expert consultancy service to value your company and give you a clearer picture of your organization’s overall worth. Whether you’re running a small or medium-sized business, our skilled team is on hand to help so that you can achieve your business goals in the most effective manner.

A Guide To Start-Ups Business Valuation

Business valuation is very important for any company. If you know what your business is worth today, you’ll be well-placed to determine its value tomorrow. However, the majority of valuation models take their basis from hard facts and historical revenue figures. If you’re running a start-up, you simply don’t have this information to hand. With a mature company, common valuations can be carried out by examining the earnings before interest, depreciation, amortization, and taxes. Yet, start-up businesses usually are in a fairly unstable stage in terms of revenue. With that in mind, how can you value a start-up?

Recapping The Valuation Basics

There are several factors to bear in mind when you’re valuing any start-up organization. Balanced supply and demand is just one key element that raises a start-up’s valuation. Two more are the founder’s positive reputation and properly-functioning channels of distribution.

There are, however, some factors that may lower the valuation. These include high competition, an inexperienced management team, and low margins. When valuing start-ups, pre-revenue valuation models have significant importance. This is because most start-ups have no revenue, to begin with, let alone profits. Usually, valuation comes into play if business owners want to bring in more capital via investment. You should remember that business owners usually want their company to be valued as highly as possible, but investors want the lowest possible valuation so they can maximize their ROI.

Using A Valuation Framework

The team at GR-US.com most commonly uses a valuation framework for start-ups that combines several different valuation models to find a sensible average. As start-ups rarely have any historical numbers to use, the models take their basis from well-founded predictions. The Comparable Transactions Method is a useful model for this, involving finding out the amount that similar companies within your region and industry are worth.

The Berkus Method

The Berkus Method is another popular valuation model used for start-ups. This method involves asking yourself if you think your company will be capable of reaching revenue of $20 million by its fifth year of trading. If the answer is yes, you begin considering sound ideas, quality management, product rollout, strategic relationships, and prototype. This model shows clearly how start-up valuations are constructed on future development prognosis.

The Scorecard Valuation Model

This is an elaborate approach to the valuation of start-ups. It involves determining an initial company value, then adjusting it in accordance with 12 different risk factors including manufacturing risk, stage of your business, potential lucrative exit, and technology risks. These factors are weighed up and modified depending on the impact they are likely to have on your company’s overall success.

Valuing Your New Start-Up

A business valuation represents the best starting point if you need to bring more capital into your business. It helps you look more objectively at your company and to base the argument on figures. Remember, no valuation is permanent. Your valuation can still be influenced by your actions, particularly when your business is a start-up!

The Pitfalls of Failing to Prepare for Transitioning Your Business Leadership

If you’re running a small family-owned business, you will probably agree that planning for its future is a key priority. Yet, surprising statistics show that just 40% of those running small companies of this kind have thought about implementing a succession plan. Why is this the case?

Contemplating Letting Go

Perhaps the biggest single reason why those running small businesses struggle to implement a succession plan is that they simply can’t imagine ever being able to let go of their life’s work. After dedicating their energy and time to their business over so many years, it can seem impossible to envisage a future without it. Whether their major concern is that the company couldn’t survive without them at the helm or whether they simply worry about what their next chapter will hold, it can be hard to consider the possibility of letting go of the reins.

Although it’s hard to contemplate handing over the business to someone else, it’s important to think about succession planning from a different perspective. Imagine a relay race where the second runner is ready to receive the baton, but the first runner refuses to let go. The race cannot be won in such a way. It may be difficult to hand over control to a new generation but it’s vital to ensure the transition is successful.

What Comes Next

Most people who run their own business enjoy their job. They love the perks and prestige that their work brings with it. As lifespans increase, the idea of retiring at 65 has become more alien. With people living on into their 80s and 90s, there seems to be less pressure to step down. However, again, it’s important to consider the next generation. If retirement is extended into the business leader’s 70s or even 80s, where is the next generation’s incentive to wait until the baton has passed on? There is an ever-present risk that the younger generation, tired of waiting to take over the helm, go off to seek opportunities with another firm, leaving the family business high and dry.

Anyone leading business needs to take the time to reflect on what their next chapter is going to look like. It’s highly unlikely they’ll be spending the next two decades traveling the world or playing golf. Most executives who retire are keen to use their experiences, skills, and energy in a new endeavor, perhaps by mentoring the next generation or even by starting up another business. If the succession plan is to be successful, this issue needs to be addressed.

There Is No Successor

Sometimes, the business founder wants to step down but is finding it hard to source a suitable successor from within the family. This may or may not be the truth. Often, there is a family member who is ready and willing to take over but the founder fails to recognize their management potential.

Remember that failing to plan is, essentially, planning to fail. A successor is made, not born. In successful cases of a business transition, the successor isn’t simply launched into the top position. They must first learn the business from the bottom up.

Developing a plan for succession is a road map for pinpointing then selecting a suitable successor, mentoring that person and allowing them the opportunity to practice their leadership skills. This multi-layered process requires considerable input, not only from the founder themselves but also from other business stakeholders.

Avoiding Adverse Consequences

Failing to develop future talent is something that could eventually risk severe negative consequences for both the business and the family. Should the founder suddenly become seriously ill or even die, a transition would need to take place suddenly and this could lead to crisis decisions being made that would result in disruption and disharmony.

By taking a proactive approach to identifying a future leader and by making preparations for the transition process long before it becomes necessary, it’s possible to mitigate any negative results. Transition isn’t an event – it’s a process. Global Resources LLC, as specialists in the management consultancy field, can help you to plan your exit strategy so that a seamless transition is possible when the time comes to move onto pastures new.

Should You Be Setting Smart Goals in Your Strategic Plan?

Setting up your strategic plan for your business is a key element of ensuring your organization’s success. You need to envisage where your business is heading so that you can find the best and most effective route there. Yet, once your strategic plan is in place, you need to work out how you’re going to track your success and measure it as it comes along. This is where setting smart goals can make a big difference.

Quantitative and Qualitative Measurements

Two kinds of measurement exist when it comes to assessing your progress towards your company’s strategic goals. Qualitative measurements assess quality, whereas quantitative measurements use actual figures to determine how near or far you are from the point that indicates success. The key is to set a date by which point your company should have gone from its existing point to where it needs to be. This makes an enormous difference when it comes to the amount of energy and time is put in so success can be achieved.

Lagging and Leading Indicators

Goal-setting should also have to lead and lagging indicators to assure greater success.

Typically, lagging indicators are historical, and are outcomes of things that you’ve already achieved as a business. While lagging indicators are simple to measure, they’re hard to influence or improve. Leading indicators, on the other hand, are something that can be controlled, for example, the number of incidents, meetings or sales calls that you’re able to initiate. Conversely, they’re difficult to measure, but simple to influence or improve.

You can set goals with leading and lagging indicators by creating and executing your strategic business plan successfully. Your goals should always dictate the action items that you intend to implement rather than the other way about. You need to have a target in your mind first before you can commence any actions to reach it.

By using a mix of lagging and leading indicators, you can create a strategic plan that is much more robust. This is because you will have strategic priorities that have goals that can easily be measured. Tracking your progress and monitoring how much progress still needs to be made towards your strategic plan’s execution will, therefore, become easier.

A mix of leading and lagging indicators will help you create a more robust strategic plan because your strategic priorities will have measurable goals. Tracking how much you have done and how much you need to do towards the execution of your strategic plan will become easier.

Seeking Professional Strategic Planning Advice

For many small business owners, it can be difficult to implement an effective strategic plan, let alone work out how to measure its success. That’s where professional business consultancy services can prove to be indispensable. The team at Global Resources LLC at GR-US.com can offer outstanding management consultancy to ensure that you maximize your company’s potential by helping you to set smart goals and then to implement them in your long-term strategic plan.

How to Prevent Family Business Succession Failure?

Successful family businesses are the result of risk-taking, due diligence and a lot of hard work. So, it comes as no surprise that families that own their own business often want to see it pass on to the next generation. However, this can often prove to be surprisingly difficult. Under 12% of all families, businesses manage to survive into a third generation. This is a sobering statistic. So, why is succession planning so difficult when it comes to family businesses?  More importantly, how can a family that owns and runs its own business make the best transition decision for them and, in turn, prepare the next generation to implement that decision?

The New Generation Are Unprepared or Disinterested in The Business

It can be very intimidating for the next generation to try to step into the business founder’s shoes. How will they replicate their family member’s success? It’s all-too-easy to feel inadequate and to lack self-confidence. As a result, this can have a seriously negative impact on risk tolerance, drive, passion, and resilience – all key characteristics to be a successful business leader. With no systematic process in place to ensure the next generation is well-prepared for the challenge, it can seem almost impossible to find a competent manager to take over the business.

Let’s add into the mix the possibility of family resentment. If the business founder has spent long hours working away from home to build up their company, the next generation may have developed a sense of resentment towards the business, showing unwillingness to have any connection with it at all. So, how can this be overcome?

Cultivating Pride in Business Ownership

When the next generation feels proud of the business that they are poised to take over, they are more likely to step up to the plate willingly and successfully. This can be achieved by telling the story of how the business was established, the vision of its founder and the values that have sustained the company so far. Storytelling is a connective tool between the generations, and while those stories remain alive within the family’s collective conscious it ensures that the company’s core values remain intact in the long-term.

Exposing the Next Generation to The Business

It’s important to create a range of opportunities for the next generation to find out more about the business that they will one day inherit. Mentorship programs, facility tours, shadowing executives, internships and summer jobs can all be learning experiences to determine which family members are ready and willing to take over the business one day.

Educating on Business and Financial Fundamentals

To take over the family business, the next generation must have a strong understanding of business and financial fundamental concepts. Not only must younger family members understand the company’s financial history, but they must also be aware of its current financial health and the possibility of its future growth.

When family members aren’t properly educated about business fundamentals, misunderstandings can occur surrounding compensation, dividend distributions, valuations, operating reserves and much more. With the right knowledge, disruption can be prevented to the business caused by unrealistic expectations. This basic level of financial education must begin as early as possible, with the next generation being given opportunities to sit in on financial discussions and to help in managing the budget. 

Building the Foundation for a “Systems-Based Company”

There are two types of small and medium-size businesses: people-based and systems-based.  Many small businesses are people-based businesses that are dependent on the knowledge and skills of the founder and key managers who have been responsible for the success of the business.  Too often the key elements of success of a people-based business are found in the mind of the key individuals and do not transfer to the next generation. To ensure success for the second and third generations, the business must be built on a solid foundation with systems that will endure over time.  Systems-based companies have developed cash management systems that can predict the cash needs of the business 8, 10, and 12 weeks out so there are no surprises.  Systems-based companies have cost control systems that track variances in material, labor and overhead costs in comparison to prior years so that adjustments can be made to ensure profitability targets are met.  Systems-based companies have bidding procedures that properly account for all costs, including overhead, into each bid.

Seeking Professional Advice

When it comes to planning for your business to pass on to the next generation, it can be tempting to delay the inevitable. Yet, according to Global Resources reviews, making exit strategy plans well in advance has been proven to have the best results when it comes to ensuring a smooth succession.

Make sure you take professional advice as quickly as possible if you’re keen to pass the baton on to the younger generation, and get help to devise a strategic plan that will work well for your business.