In July 2020 we have been focusing on how to begin the process of transferring leadership of a family business to children in preparation for an eventual transfer of ownership. This process, when done correctly, takes years and provides the next generation the skills and experience they need to successfully continue the mission of the company.
In June 2020 we have been focusing on the need to carefully examine business expenses, especially for companies that are struggling financially. When the economy is robust and companies are growing, owners worry less about what exactly they are spending money on. When the economy is in recession or a unique event like COVID-19 occurs, companies go into survival mode. That’s when they need to determine what expenses count as essential and what can be pared back or eliminated to save money and keep the business going. This kind of examination helps triage in the short term and creates growth in the long run.
Our topic for May 2020 has been the need for financial planning. Creating a financial plan is a crucial part of building business value and pursuing growth in the present as well as successfully transitioning to new leadership and ownership farther down the line. It may take an investment of time and effort, but it will make all the difference in your eventual outcome.
Our topic for April 2020 has been creating family alignment. Many problems that family businesses confront may seem to business owners like isolated issues but really stem from a lack of alignment between family members. When they correct the alignment problems, the entire business runs more smoothly. If you’re wondering how it’s possible to create better family alignment, read on.
Our topic for March 2020 has been a discussion of the duties of a chief financial officer. Many smaller companies do not have a CFO on staff to advise them about day-to-day operations and financial strategy. If you wonder if your company needs a full-time or part-time CFO or how retaining one might affect its growth and stability, read on.
Our topic for February 2020 has been a discussion of why business owners stay in their companies long past the time it would be best for them to exit. Too many owners are not prepared to exit their businesses, and many haven’t even given it serious consideration. Why not?
Our topic for January 2020 has been business processes and systems. We have gone over what each of these are, why they are useful for increasing productivity and profitability, and why implementing processes and systems is valuable in terms of exit planning.
Our topic for December 2019 has been the need for businesses to have a board of directors or a board of advisors in order to keep the owner or owners accountable and provide the wisdom and support the company needs to thrive.
Our topic for November 2019 has been the need for businesses to have a current and accurate business valuation done. The first step involved in exit planning is committing to the exit planning process, but the second is having a business evaluation performed. This allows the owner to make informed decisions on every aspect of his business moving forward.
Our topic for October 2019 has been buy-sell agreements. We’ve discussed what buy-sell agreements are and why having a well drafted, comprehensive, up-to-date buy-sell agreement will protect both a company and its owners from risk during a trigger event such as the retirement or the death of an owner.