Just Like the Big Guys
Issue #57
June, 2, 2008
One of my long time customers, Jeff, owns and operates a very successful manufacturing company. His facility is clean, well organized, and he is quite proud of the level of quality and the rate of production that has been achieved. With less than 100 employees, he is clearly operating a small business.
Jeff recently shared with me a conversation he had over lunch with a friend who also happens to be a consultant. Jeff had mentioned to his friend that he was faced with a compliance issue as a result of not being knowledgeable of the appropriate regulations. His friend replied "Jeff, your problem is that you run this company like a mom-and-pop business, when in fact you are exposed to most all of the same rules, regulations, liabilities, etc. that large companies are faced with. You need to start thinking like a big company."
Jeff took his friend's advice to heart. He decided to designate a position in the company to manage these issues, and he is already committed to educating himself more on the various regulations in order to improve his organizations accountability and responsibility.
In looking back on my thirty-seven years of working with small businesses, from a risk management view, most have been run like mom-and-pop operations. Interestingly enough, those who have taken the time to manage risk also tend to do a better job managing other aspects of their business.
This reminds me of a seminar I attended many years ago. The presenter shared his ten commandments on running a successful business, for which I do not remember any except the tenth and last one. He said that you may not like the "system", however it will always be there. Your choice is to fight it, or learn it and use it to your advantage.
The system we operate in today has so many rules and regulations that it seems overwhelming, yet we are exposed to them, and we need to start managing them, just like the big guys.
Kempkey Insurance Services goes beyond insurance by designing and implementing risk management programs for growth oriented businesses. We help our clients maximize the value of their insurance dollars and minimize their potential for unwanted surprises. Ed Kempkey can be contacted at (888) 536-7539 extension 2188, or at ed@kempkey.com.