Boomer Business Owners Are Missing Out On Cashing In,
Unless They Start Preparing Properly for Sale
TORONTO, ON, March 31, 2017 - Boomers (born 1946-1964) own about 63% of private companies in both Canada and the United States. Of the businesses available for sale, 70-80% don't sell. Incredibly 44% of Owners say they aren't familiar with their transition options, 24% do know what their choices are and 32% are not sure. As for getting help, 88% have not yet established a formal transition team.
Author Eric Gilboord says "Owners need to get started now, preparing their business and themselves for transition." Or the impact on their personal finances will be devastating. Many Owners are carrying on business as usual. The current thinking of many smaller Owners is to take as much money out of the company as they can for the next few years, and then sell for what they can get or simply close down. Neither solution is in their best interest."
The holidays are right around the corner. You have a not too frequent opportunity to speak with your entire family about the future. To talk about the business and what is going to happen.
Scheduling meetings or lunches or whatever to try and get to everyone during the year could be overwhelming. So how about taking advantage of the holidays? When pretty much everyone is already there. As for those who are not, there's always the phone.
No, I'm not talking about starting a bun fight. How about a quiet, private conversation with each family member individually. Take their temperature on how they perceive the business and their role or non role to date. What are their expectations for the future?
The most important interview I've ever done.
What is EBITDA?
Signed, Not an Accountant
Excerpt from my book 'Moving Forward'.
Commonly abbreviated as EBITDA, it is an accounting measure to calculate a company's net Earnings, Before Interest expenses, Taxes, Depreciation and Amortization are subtracted. Used as a proxy for a company's current operating profitability. Hope this helps.
This post is an excerpt from my book 'Just Tell Me More'.
Lists like this one are usually made up of financial reasons for the failure of a small business. Unfortunately there are also many sales and marketing reasons. Fortunately, there is a positive step that can be taken for each one that will greatly increase your chances for success.
“These actionable tips are the responsibility of everyone who works with you. Make sure they know and understand them. Forward this blog to your team NOW!” EG
1. Face Your Weaknesses. Failure to face up to your weaknesses and a lack of effort to take advantage of your strengths can keep your business in a no-growth mode.
Take two pieces of paper and list your company’s strengths on one page and its weaknesses on the other. Note the ways you can make your staff, customers, prospects, and other business associates aware of each of your strengths. On the page of weaknesses, identify steps to correct each problem. Discuss the points with your staff and develop a schedule to address them. No, it’s not really as bad as you think.
2. Take Action. Talking about the great marketing program you have been developing and following through with it are two very different actions. Implementing the program is the key to marketing success. Plan all you want, but be prepared to act on all the steps you have identified. Don’t be surprised to discover that there are some steps you hadn’t initially considered.
As Mike Tyson so eloquently stated "everybody has a plan until they get punched in the face".
Extended Version: Many boomer age business owners have been putting off transitioning their company for so long, it's now the accepted status. Or they promised their spouse, the team, advisers and most importantly themselves, five more years and I'm out.
But suddenly circumstances change and you're faced with an unsettling feeling in the pit of your stomach. You want out, but you're trapped, for at least a period of time. And it's always longer than you want it to be.
Could be changes in the business environment are making it too much work. New competition is coming out of nowhere. They're well funded, younger or seasoned owners getting back in the game, more aggressive and kicking your butt. Higher interest rates, cross border restrictions and you get the picture.
You Can Handle the Truth (about selling your company) I Know You Can
The first thing I'm consistently told by my readers, when we meet in person or speak on the phone, is they respect the honesty and tell it like it is attitude in my writing. I take that as a badge of honour. So thank you.
The truth and cutting to the chase is and always has been important for any successful business owner. I respect you by offering the truth and I expect to receive it back. Trust is earned over time and we slowly develop an honest relationship.
I think you do want it and you can handle it. One of the tools you used to build your successful business was and still is a strong BS meter.
My son and I got into a conversation about Trump the other day. And of course the inevitable what do we do here in Canada about our own leadership.
As we talked I realized that our discussion was less about the specifics and more about our own generational concerns and how the implications would affect us personally.
So with that clarity I understood we likely would never agree on everything and we both need to work hard to appreciate the impact the upcoming changes will have on each other.
An email I recently received. I am expecting an offer from my partner to possibly buy me out. If this falls through I will contact you.
My response. Thanks for the update. Food for thought. I recently had a conversation with another Owner we have been talking with over the last couple of years. His plan was to buy out his partner of 30 years or have the partner buy him out. The partner chose to be the Seller.
The Buyer, our contact, chose to do the deal on his own. We offered our services but he declined as he knew his partner well and they have had a 30 year relationship. After literally a couple of years of discussion the deal was supposed to finally close on January 2, 2017.
It's easy to get caught up in the day-to-day only to miss the big picture. Consequently, opportunities can disappear as quickly as they came. As a business Owner, this can be an easy trap to fall into. We all do it. I'm not suggesting you ignore the small stuff, just don't get personally involved in every decision. Have someone else take care of it.
Why would you hand off important and not so important decisions? Because if you and your staff continue to run the business as if you're the only one who can make the right choices or solve the problems, you will live to regret it. If you don't already.
Eventually the reality will hit you, you're not running the company, it's really running you. Instead, you should be thinking about the bigger, more important issues. Like how exactly you're going to get out.
Unemployment Going Up, As Boomer Owned Businesses Shut Down,
Unless They Start Preparing Properly For Sale
TORONTO, ON, January 25, 2017 - Boomers (born 1946-1964) own about 63% of private companies in both Canada and the United States. Of the businesses available for sale, 70-80% don't sell. Incredibly 44% of Owners say they aren't familiar with their transition options, 24% do know what their choices are and 32% are not sure. As for getting help, 88% have not yet established a formal transition team.
Author Eric Gilboord says "Owners need to get started now, preparing their business and themselves for transition." Or the impact on families and local communities will be devastating. We need to create jobs not lose them. Shuttering the doors of long-term businesses should not be the go to option considered by Boomers."
FREE 50 page sample and table of contents for my latest business growth book.
Download sample here.
Put on your earbuds and grab a snack. Listen to my interview where I talk about leading edge thinking on buying and selling businesses. Runs exactly from 5:30 to 28:00.
I strongly recommend you listen a few times. With your work partner, spouse and your selling or acquisition team.
Some food for thought before handing your business over to a next generation family member.
I remember meeting the Owners of a small business. He had worked hard and the company had provided his family with a comfortable life.
There were 3 sons. One worked occasionally in the business, wasn't suited to take over and never really did much with his life. A second son had other ambitions and enjoyed a very successful career in law. As for the third son, unlike his brothers, he worked in the business full time, made a living and started his own family.
So when it came time to think about transitioning and rather than selling the company to an outsider, the Owner along with his spouse made a decision based on emotion and blood.
11 Affirmations Successful People Repeat Every Single Day
by Jeff Haden Contributing Editor, Inc.
It's not that often I download a post and look at it several times a week. I did with this one. So thank you Jeff. Cheers, Eric
The thought is parent to the deed--and that's especially true where success and happiness are concerned. Accomplishments are based on actions, not on thoughts--yet the thought is always father to the deed. Achievement starts with an idea, a perspective, a point of view, or even just an attitude. (Ideas, perspectives, and points of view like these, for starters.)Here are some of the things extraordinarily successful people say every day--and how those statements spur them to take actions that lead to even greater success:
1. "I can't do everything today, but I can take one small step."
You have plans. You have goals. You have ideas. Who cares? You have nothing until you actually do something.
Every day, we let hesitation and uncertainty stop us from acting on our ideas. Pick one plan, one goal, or one idea. And get started. Take one small step. (For example, here's how to start a small business while still keeping your full time job.)
The first step is by far the hardest. Successive steps are always easier.
You can pick up a copy at Amazon http://www.tinyurl.com/buybreathe
If you have a question you think I can answer, please email me email@example.com
This post is an excerpt from my book 'Just Tell Me More'.
In a small business, you often wear both the sales and the marketing hats. What is the difference between sales and marketing? Marketing researches the opportunity, prepares the strategy, produces the tools to inform the prospect, and places the potential sale on the table. The salesperson works with marketing to confirm the opportunity, contribute to the strategy, use the tools to inform the prospect, and move the opportunity off the table and into the cash register.
It is important to maintain objectivity when marketing. Include others in as many stages of the process as possible. They may see something you don’t see or add ideas you haven’t considered. That way, mistakes can be minimized and opportunities can be maximized. Every day, new and exciting elements and challenges are being tossed into the marketing mix. There is no reason to be overwhelmed by all of these choices. Seek professional advice from marketing suppliers or go to seminars and workshops. There are many qualified marketing resources to guide you through this exciting jungle.