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 ...
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 ...
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 ...
Avoid Gap Shock by Preparing a Strong Personal Hedge
My mission is to advise business owners on how to achieve the strongest possible position for the sale of their business to outside or inside buyers. I can’t stress enough how important it is to have a strong and diverse Personal Hedge. Being prepared financially can eliminate the gap shock when it comes time for you to transition your business.
What is a Personal Hedge?
A Personal Hedge is the accumulation of assets outside your business that ultimately enables you to achieve the cash ...
Lasting Relationship Advice for a Family Business
I grew up in a family business. My father began a small nursery which eventually grew into a successful and highly profitable business. However, he never had a business plan. I nagged him for years about it until he finally understood how important a succession plan would be for the business, the employees and our family. He died suddenly just a week after we met to discuss what would happen when he was ready to transfer the business. Unfortunately, none of the ideas we discussed had a chance ...
Building Your Future By Design
Do you know the actual date that you wish to stop working in and for your business? Do you know how much money you will need to live a comfortable life as a retiree? Do you know what your business is worth in cash today?
All business owners part with their businesses voluntarily or otherwise. All owners want to receive – or have their heirs receive – the maximum amount of money when the business changes hands. And, let’s face it, money is an important measure of success.
Unfortuna...
Planning for Your Business in the New Year
Many people use the start of the new year to set goals personally and professionally. As a business owner, you should also take advantage of this time to plan for your business.
Here are 5 tips to help you get started:
Take Stock -
In my book, Designed Destinations, I talk about “The Size of the Pot” which urges business owners to know the actual current value of their businesses. Do you know the value of your business today in cash? What other income do you have outside of your ...
Financial Adviser Lawrence Ganim authors book on retirement planning for entrepreneurs
This article was published on WestfairOnline.com on November 3, 2017 by Phil Hall. To view the original article, please click here.
To financial adviser and wealth management planner Lawrence Ganim, the greatest challenge faced by entrepreneurs is not getting their businesses up and running, but what to do when the time comes to step away from the controls.
"I've been working for entrepreneurs for over 30 years and I've never had an occasion where I met a successful entrepreneur who had ...