Have you ever caught yourself saying “I’ll get around to it,” or “Someday I’ll get that done” regarding items on life’s “to-do list”? For over 75% of the U.S. population, completing their estate plans is often put off. The drawback to postponing this particular “to-do” item is that “someday” becomes the day when an unforeseen event or crisis happens.
Approximately 75% of business owners are expected to transition out of their businesses in the next 10 years. Eighty to ninety percent of business owners have most of their wealth tied up in their businesses. Even with a large amount of their wealth concentrated in a single place, 83% of business owners have no written transition plan and 49% of business owners have done no exit planning. With all the businesses for sale in the United States, only about 20% result in a successful sale.
I worked in and owned a business with my family for almost 20 years. In my experience of working with my family, along with advising family business owners and next generation leaders, I found the following keys helpful in building a peak performing family team.
Many entrepreneurs think succession planning is not needed until the owner is ready to retire or resign; however, it is never too early to begin succession planning. Planning early and communicating it often can allow for a smooth transition of leadership and possible enhance, rather than detract from company growth.
I’ve focused this post on the critical nature of having a clear, realistic Mission & Values statement to ensure your team is aligned — because without team alignment, you won’t be able to drive growth.
In 2017, congressional leaders pushed the largest tax reform bill in the last 30 years through Congress in record-breaking time. The bill is infamously mysterious. Most Americans know little except for Congressman Ryan’s promise for future taxes “to be done on an index card.”
What does this new legislation mean for them? And what does it mean for the growing entrepreneurial community — working out of our many co-working spaces, like WeWork?
Strategic thinking is a reflective state of mind focusing on the performance of the business to gain insights on impacts made. Simply stated, choosing what not to do in the coming year. Yes, I said it, “what not to do”. Let’s practice strategic thinking by stepping into the executive zone and asking some tough questions that will offer business insights.
It is often the entrepreneur’s advanced juggling and multi-tasking abilities that were the greatest asset in surviving the start-up phase that become the greatest liability in successfully navigating the growth phase.
Owners wishing to sell their businesses often look to key employees as a way to transition the business to someone who knows and understands the business and often has a similar vision for the business.
Many of us know stories of small businesses succumbing to fraud committed by employees and third parties whether that is employees embezzling funds or third parties scamming business owners out of the company’s cash flow. In either event, individuals can be quite clever in disguising fraud or passing off a scam as legitimate. Business owners should be prepared to spot signs of fraud and have tools in place to prevent fraud in the business.