Offering Solutions for Small Businesses

James Vardaman, Jackson Yeager and Laura Marler at Layhill Precision Fabrication

Photo by Megan Bean

Offering Solutions for Small Businesses

By Kathy Kenne

Do you know how many small businesses in Mississippi are family-owned? Would it surprise you to learn it’s 90 percent? That translates to a substantial impact on our state’s economy. Is anyone doing something to help these businesses grow and thrive? At the MSU College of Business the answer is a resounding “yes!”

The COB’s Family Business Education Initiative (FBEI) held its inaugural training seminar in February of this year. Local businesses in the fields of propane, air conditioning and heating; metal fabrication; trucking; abrasive coatings and funeral services attended the event, which featured College of Business professors addressing topics focused on best employment practices. The seminar was kept small in order to foster discussion amongst those attending.

“I found the topics to be forward-thinking with a focus on high efficiency,” shares attendee Jackson Yeager, Operations Manager for Layhill Precision Fabrication. “It was a very professional event.”

Dr. James Vardaman, Associate Professor and Nancy Allen Fellow of Management, and Dr. Laura Marler, Associate Professor and Bobby and Barbara Martin Fellow of Management, were collaborators in getting this initiative off the ground. Any time a new program is put into place, it requires the efforts of engaged, passionate and knowledgeable individuals. Vardaman and Marler are two such people. As they talk, their energy is contagious. They both believe strongly in the University’s mission of outreach to the state and aren’t content to sit in any academic “ivory tower.”

Marler’s passion comes from being reared by an entrepreneurial father in her home state of Louisiana. From an early age, he involved her whole family in making business decisions, which eventually led to her brother’s becoming a part of the family businesses. Marler chose a career in higher education, but her research interests lie in discovering what makes family businesses tick. She is continually asked by her father how she is making her research applicable in a way that can help small business.

I see how hard my father and brother work to make their businesses successful,” states Marler. “It means a lot that we have an opportunity to help companies discover and implement more effective practices which will help them grow.

Vardaman, also a native of the South, believes strongly in the talent Mississippi has to offer. His outreach efforts are motivated by a desire to disprove negative stereotypes some people have about the state. He believes that Mississippi is a great place to live and desires to help create job opportunities through business growth that will encourage people to stay in or relocate to the state.

The idea for FBEI began as Vardaman was thinking about Mississippi State’s position as a business leader in the state. Under the leadership of Management & Information Systems Department Head Dr. Jim Chrisman, MSU is ranked number two in the world for family business research.

Vardaman enlisted colleague Marler and local business consultant Joe Beall for a brainstorming session, and the sparks for FBEI began to fly.

It’s amazing how many small businesses are struggling because they don’t have full time HR or safety managers like large industries do,” says Beall. “They need those services but can’t afford full time people dedicated to them. So the owners and managers need affordable training in these areas.

After recognizing the need, the team started looking for ways in which their knowledge could be brought to bear.

“The E-Center was doing a great job helping student start-ups,” says Vardaman about the MSU Center for Entrepreneurship and Outreach. “We needed to complement their work by offering our expertise to help already existing small and family businesses grow and sustain themselves.”

“We met with [Dean] Sharon [Oswald] in May, and by the end of the summer we had figured out what we wanted to do,” adds Marler. “She’s been incredibly supportive. Without her, this never would have happened.”

The first FBEI seminar focused on employees – acquiring and retaining talent, compensation practices and company culture.

Photo by Megan Bean

Like good researchers, their planning was followed by focus group studies with business owners in Columbus, Starkville and West Point to help Marler and Vardaman determine the greatest needs. They learned that some of the biggest concerns were in the areas of employee relations. They determined that this first FBEI seminar would focus on the topics of acquiring and retaining talent, led by Marler; compensation practices, led by Dr. Danny Holt, and company culture, led by Vardaman.

“In my session, we talked about fostering a culture in which employees want to work,” says Vardaman. “Your employees need to know what you need from them. They need to know your goals and values. We discussed ways of transmitting those things that are important to the company’s vision to its employees. I also told them that my research has found that if people have groups of friends at their workplaces, they are much less likely to leave their companies during tougher times.”

“In discussing hiring practices, we talked about using structured interviewing processes to make sure they were comparing each candidate on a level playing field and not getting caught up in whether they ‘clicked’ with someone,” adds Marler. “We also talked about very practical, low cost ways to help new employees integrate into the company since that is a vulnerable time for retention.”

Some of the lessons learned are already making a difference for those who attended.

“We’ve adapted our onboarding process for new employees based on information from the seminar,” says Yeager. “We spend time acclimating them so that they feel a part of the team. One day may be dedicated to meeting people, another to a plant tour. We’re more intentional about that now.”

Timing and cost were key factors in making the FBEI seminar practical. For so many attendees the warm weather months are busiest, so holding the event in February was important. The half day format seemed to work best, too. In a small business, every hour leaders spend at the office is critical. In addition, the cost to attend was kept reasonable, so as not to impede participation.

And what does the future hold for FBEI? Beall would like to see growth.

“There is a need to build leadership skills,” he says. “This next generation who’s taking on the mantel of running the family business isn’t afraid to ask for help. They have all sorts of needs, from learning effective hiring practices to managing regulatory issues. This seminar was very well-received, and they would like to attend another one.”

There are plans being made for a second seminar early in the year, then perhaps a move to a biannual format from there. The organizers want things to develop organically, with demand dictating the future. They want to know that what they are doing is germane to the needs of the state. Those who attended the seminar certainly feel that it is.

“What we learned could be applied to a lot of businesses,” sums up Yeager. “And the state would be better for it.”

Family business and small business owners at the inaugural FBEI training seminar heard about what goes into sustainable performance excellence.

Photo by Emily Daniels