Planning for the Future Has Family-Owned Businesses Falling Short
There are a lot of things that family-owned businesses (FOBs) do better. They’ve made more money and outperformed non-FOBs in the long run, and they’re better at balancing the past and the present. However, when it comes to planning for succession, they are falling short, and without an Ownership Conversion Plan, the future of the business is left uncertain.
A 2012 Harvard Business study found that only 41% of family-owned businesses had an effective CEO succession planning process, ...
Keeping It In the Family
Does your family have an heirloom they’ve passed down through the generations? Maybe you have one of your own. The first dollar your business ever made? A ticket stub from the movie your grandparents saw on their first date? These mementos tell your family history, no matter small or large, they represent a legacy. Your business is a part of that legacy.
I’m sure that on more than one occasion, your business has felt like another member of the family. You probably talk about your ...
Bring Joy to Your Business
Preparing for retirement doesn’t have to be miserable. When the leader of a business retires, it affects the entire organization. A positive succession experience can be good for workplace morale, but in the same way a negative exit of leadership can cause strife and stress throughout the business. While retirement can feel like a personal milestone, business succession impacts all who depend on the business, including employees, their families, and the community.
56% of family business ...
Freeing Yourself From the “Work Trap”
Your commitment to your business is evident every day. The work and effort you put in is what’s made you successful, but beware! The “work trap” may be waiting for you!
What’s the work trap?
As a hands-on business owner, so much of your time is spent working IN your business, increasing profitability, managing risks, strengthening marketing, managing the day to day responsibilities. None of these are bad things per se, but they can often hinder the time you spend working ON the ...
The True Cost of Not Having a Business Succession Plan
The new year is a time to enact change. Your resolutions are set, you’re motivated to take action, and you’re excited about the possibilities. It’s the perfect time to turn that enthusiastic attention to your business succession plan, or perhaps the lack thereof.
Without timely planning, the odds are against you.
The reality of business succession is that it takes longer than you think. Too often planning is left until “tomorrow,” which of course never comes. In ...
Luck, Unconscious Planning & Other Concepts You Need to Let Go Of…
I’m sure you can think of specific moments where luck was on your side, where serendipity has helped move your business in the right direction, but I’m sure you wouldn’t contribute all of your success to it. So, it makes sense that you wouldn’t leave the future of your business up to luck either, right? Wrong. The unfortunate reality is that an estimated 63% of business owners lack a written strategic plan for exiting their business, meaning a majority of business owners are leaving ...
Know Your Destinations: Creating a Map of Your Ownership Conversion Plan
Your designed destination is just that – designed. Very few, if any, business owners can give a finely detailed vision or strategy for their lives after retirement. Even the most mature entrepreneurs may rely on just a feeling or abstract dream that comes to mind when thinking about retirement, still lacking a developed plan to reach that destination. This is why the first step of Ownership Conversion Planning is to develop a clear idea of where you want to go in your business and your ...
The Butterfly: Transforming Your Business to Attract a Buyer
Regardless of your Designed Destination, the ultimate goal of your Ownership Conversion Plan (OCP) is to make your business move-in ready. This means taking steps to resolve issues that could potentially reduce the value of your business in the case of both an inside and outside transfer. Think of it this way: you’ve brought your business through the egg, caterpillar and cocoon phase and your buyer is looking for a full-grown butterfly. Taking the time to overhaul the seemingly minor details ...
Seven Steps to Your Ownership Conversion Plan™
Creating a consciously designed Ownership Conversion Plan™ (OCP) ensures business owners are in full control of a realistic and timely approach to passing on their businesses. An effective OCP is achieved in seven key steps:
Cement Your Future Vision – Start by assessing your retirement goals. What is your ideal vision for your business, your family, and your retirement?
The Size of the Pot – Take stock of your assets. What is the value of the business and what assets do you have ...
Building Your Ownership Conversion Plan™ Team
Entrepreneurs spend years working on their business and building it up to be a successful venture. When I talk to them about bringing in a team of trusted advisors for succession planning, many want to hide their checkbooks thinking it will be too expensive. However, planning the sale or transfer of your business is no time to cut corners.
Your Ownership Conversion is about selling your life’s work on your terms to outsiders, insiders or family members. It is a strategy comprised of ...
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