Posts Tagged ‘Project management’

Planning your business exit

At some point in the life of your business, you will start thinking about selling, retiring or passing the torch to someone else. If that time is now—or it’s coming up within the next five years—you need an exit strategy.

Often called a succession plan, this document will prepare you to transfer control of your business to your successor. You will want to maximize the value of your business before you sell, to ensure a smooth operational transition to the next owner.

CanadaBusiness.ca is packed with information for Canadian entrepreneurs, including ways to plan your exit (http://www.canadabusiness.ca/eng/93/876/). Here are actions to consider:

Start as early as you can

Research by the Canadian Federation of Independent Business found that:
• only 10% of Canadian small business owners have a formal, written succession plan;
• 38% have an informal, unwritten plan, and
• the remaining 52% have no plan at all.

Far too many entrepreneurs miss the opportunity to earn top dollar from the sale of their businesses and the ability to ensure a trouble-free transition.

Surround yourself with experts

Build a team of advisors to help you plan your business exit. These can include lawyers, accountants, tax specialists and management consultants.

A chartered business valuator can be an important resource. Valuators can place an objective price-tag on your business by conducting in-depth research and analysis. They may also help locate solid buyers.

By working with a team of outside experts, you will get valuable, independent advice to help guide your succession planning.

Prepare a plan

As you consider your exit, there are many decisions to make. Look at your company’s long-term potential, markets, positioning, strengths, weaknesses and opportunities. Then ask:
• What skills will your successor need?
• How involved do you want to remain in the business?
• What tax considerations will impact the transfer of ownership?
• How do you ensure your own financial security when you leave?

Research and document these questions. It will help you make these important decisions.

Craft a solid exit strategy

When exiting your business, you can wind down the business, transfer it to family, or sell it.

Winding down your business will not require a great deal of advance planning, but you should carefully consider how to sell your assets and meet your legal obligations.

If you are transferring the business to family members, consider these points:
•  Communicate your intentions clearly and involve them early.
•  Explain the transition process to them so they know what to expect.
•  Establish clear guidelines for who does what.
•  Explain how you will continue to be involved in the business, if at all.

If you decide to sell, then your primary goal is to maximize the price potential of your business. You will need to evaluate your business’ worth, which can be done with the help of a chartered business valuator. You can locate one on the Canadian Institute of Chartered Business Valuators’ website at www.cicbv.ca.

Remember that advance planning and a thoughtful, strategic approach can maximize the money in your pockets and ensure a successful transition.

More information is available at www.CanadaBusiness.ca or by calling 1-888-576-4444 (TTY 1-800-457-8466).

Posted by Ashley in Getting Organized on December 9th, 2011

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(S)he shoots! (S)he scores!

Any seasoned athlete will tell you it takes hours of practice to score a goal…and it doesn’t hurt to know in your mind’s eye where you’re planning on shooting the puck or kicking the ball before you actually do it. Setting and achieving goals for your small business is really no different.

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As I’ve mentioned, setting a goal or making a plan doesn’t guarantee success. But it’s vital to helping:

· Work out what you really want to achieve.

· Design a plan of attack.

· Give you the motivation to put your plan into action.

· Keep track of where you’re going by helping you point your time and energy in the right direction.

So, as we usher in a brand new year, how do you set goals for the next 12 months?

Small business advisor Ray Silverstein breaks it down using the SMART system:

S – Specific

M – Measurable

A – Achievable

R – Realistic

T – Timely

Specific, achievable and realistic mean that instead of saying, “I want to make a lot more money this year,” plan to increase your revenue by a concrete and attainable amount.

Measurable means framing your goals in a way that allows you to measure them monthly, quarterly or within a time frame that makes sense to your business.

Timely means giving yourself a realistic horizon for achieving your goals and breaking them down into smaller increments to make it easier for you to see your progress.

Silverstein also suggests you don’t simply keep your goals locked away in your head. Keep a written record of your goals so you have a real document you can go back to when you need to check up on your progress.

Finally, he warns against BHAGs – or big, hairy, audacious goals. For example, though transforming your business into the next STAPLES or Research In Motion might be your ultimate goal over the long term; it probably isn’t a realistic one to achieve by January 2011. However, expanding your customer base by 10% might be. Focus on something realistic that will evolve with hard work, and be SMART.

Remember, as an entrepreneur, your personal and business lives go hand in hand. Make sure to set some goals for you and your family too.

What goals have you planned for 2010? Be specific – we’d love to hear them!

Posted by Lynnette in Growing Your Biz on January 4th, 2010

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The battle begins: Starting to think about a business plan

Every year, universities and MBA programs in Canada, the US and around the world hold business plan competitions. There’s even an inspiring new movie about them. For entrepreneurs with big dreams, the business world’s version of Battle of the Blades brings together competitors who aren’t just out for the cash prizes, seed financing or pro bono business services. They’re looking for feedback from experienced and successful businesspeople who were once in their shoes. Because if you’re serious about making your business dream a reality, a creative original business plan can make the difference between success and failure.

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Not that a plan is the be-all and end-all.

“In preparing for battle I have always found that plans are useless, but planning is indispensable.” – Dwight Eisenhower, US President, 1953-1961.

As General – and then President – Eisenhower understood, you want to write a business plan not because you expect everything to go according to plan, but because the process of planning helps you:

1.    Organize your thoughts and ideas
2.    Be realistic about the financial future of your business
3.    Understand the life/work implications of your choices
4.    Anticipate problems and develop proactive solutions
5.    Discover the real value of your offering
6.    Communicate better with your partners, staff and suppliers
7.    Focus your efforts

Whether you want to meet with potential investors or a property manager about leasing office space, a good business plan is a necessity. It shows that you’re serious about your business, and that you have a vision and roadmap to make it succeed.

In an upcoming post, I’ll offer more details about getting your business plan started. In the meantime, you can learn more by clicking “Your Small Business Plan” from our partners at BizLaunch.

What questions and concerns do you have about writing a business plan?

Posted by Lynnette in Getting Started on November 23rd, 2009

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