Parents, don't let your money spoil the kids

There is a good article in today's Globe and Mail that talks about how wealthy parents talk - or don't talk as the case may be - to their children about money. Click here to read the article.

I was particularly interested in the part of the article that covered the concept of making sure the children understand that any inheritance left to them is a gift and not an entitlement. I whole-heartedly agree that this is something the kids should be brought to realize, but I also know it's just not the norm in our society. The sense of entitlement that I see in families of every economic bracket is very strong.

In any event, the article was interesting and thought-provoking, and will make a great read if you are wondering what you should be telling your children about the family finances.

Half of owners of small business to retire in next 10 years

Yesterday's edition of the Ottawa Citizen carried a really interesting article about business owners wanting to retire and sell their businesses over the next ten years. What will that mean to them in terms of their financial plan? What will the huge number of businesses changing hands mean to Canadians as a whole? The big picture is bigger than most realize, as this article points out.

There may not be enough buyers for businesses at the right time. Many business owners are going to walk away from all of those years of investing their time, money and effort with absolutely nothing to show for it, because they aren't planning ahead. The article estimates that the number of business owners who end up with nothing could be as high as half of current small and medium-sized businesses.

Click here to read the article.

The best way to ensure that your lifetime of working for yourself leaves you something to retire on is to plan your exit well in advance. Planning for ten years down the road is not too early, though it may feel that way when your days are busy with running a business. Now is the time to start considering your options - whether you want to train a family member to take over, sell to employees or sell to a complete stranger or competitor.

If you need help getting started or getting organized, please refer to my book called "Succession Planning Kit for Canadian Business".

Protect your business from your spouse

Have you made your spouse a shareholder in your business? Many couples set things up this way even when the spouse really has nothing to do with the business. If you have made this arrangement, or are considering it, you should read the attached article from http://www.capitalmagazine.ca/. It will tell you the pros and cons and help you think through the decision. There is some really good, straightforward information here. Click here to read the article.
The attached photo is also from http://www.capitalmagazine.ca/ .

The 5-Minute Exit Plan

I've received a newsletter from my pal Stuart Neal of Western Business Brokers, which contains a good article called "The 5-Minute Exit Plan". Click here to read it. These guys have a ton of good information for business owners who are considering selling their business either soon, or "someday".

Business succession planning workshop - FREE!

Business owners in Alberta, check out this free seminar coming up on April 26. There are some top-notch people presenting at this event, so it will definitely be worthwhile. If you're one of the many business owners out there who know you need a succession plan but are not sure where to start, start here. The notice below includes a phone number and email address you can use to reserve a seat. 

Business Succession Planning, Before During & After

If you are a small family business owner you must attend this workshop at the Derrick Golf and Winter Club April 26th 2012 7.30 am to 10.00 am.

The decision to exit a business is a serious step in the evolution of every business owners life.

Business owners need to be aware of all aspects in order to achieve the desired outcomes.

This presentation will discuss all you need to know. 

Topics covered include:

• What you need to do before selling - presented by Gene Eberly of TD Waterhouse 
• Business valuation, Sales process & Negotiation techniques - presented by Stuart Neal of Ambergate Group Inc.
• How to incorporate sales proceeds into life goals - presented by Sarkis Hakopdjanian of TD Waterhouse 
• Free of Charge

Space is limited.

Please telephone or email Sarkis at TD Waterhouse to confirm your attendance: (780) 448-8222 sarkis.hakopdjanian@td.com

We look forward to seeing you there!

A joint presentation hosted by TD Waterhouse and Ambergate Group Inc.

 

What would someone have to pay you for your business for you not to come to work tomorrow?

When I talk to business owners about the future of their businesses, I often hear about vague plans to "sell someday when the time and the price are right". Unfortunately the plans go no further and I suspect that some business owners wonder if they've already missed good opportunities.

The attached article from http://www.capitalmagazine.ca/ suggests a new way to think about that "someday". The author, the well-respected and knowledgeable John Warrillow, asks how much money someone would have to pay you today for you not to come to work tomorrow. Click here to read the article. I bet it gets you business owners thinking.

The attached photo is also from http://www.capitalmagazine.ca/ .

Don't gift businesses to family

This article from http://www.capitalmagazine.ca/ offers some simple advice to business owners thinking of gifting their  business to their children. He says not to do it. Click here to read the article and find out why.

The attached photo is also from that article in http://www.capitalmagazine.ca/.

Core values: family business planning

I found this article from http://www.capitalmagazine.ca/ fascinating because it showed so very clearly how much different it can be from one business to another - and one family to another - to pass a family business to the next generation. The people who are the focus of the article get along a heck of a lot better than many families I've encountered, and it's great to see how they are rewarded for their co-operative attitude by the continued success of their business.  Definitely worth a read. Click here to read it.

Dispelling the family-owned business retirement myth

This article from http://www.symcoandco.com/ discusses how business owners think about their businesses and their retirements. It gives some thought-provoking insight into changing how business owners think. Click here to read the article.

Save tax when selling a business

This article from http://www.capitalmagazine.ca/ contains a wealth of information for business owners who are in the planning stages of succession planning. It talks about capital gains tax and the lifetime capital gains exemption. And it's easy to read! Click here to read the article.  The attached photo is also from that webpage.

How to exit your business how and when you want to - free workshop

My friends over at Western Business Brokers are participating in what promises to be an excellent workshop for business owners. And it's even free! They sent me the following notice:

How to Exit Your Business When & How You Want To - Free Workshop

If you or someone you know has a controlling interest in a business generating more than $5 million dollars in annual sales please register for this free and highly informative event run jointly by the

TD Waterhouse Private Client Services Group and Ambergate Group Inc.

The decision to exit a business is a serious step in the evolution of every business owners life.

Business owners need to be aware of all aspects in order to achieve the desired outcomes.

This presentation will discuss all you need to know. 

Topics covered include:

What you need to do before selling,  

Business valuation, Sales process & Negotiation techniques, 

How to incorporate sales proceeds into life goals, 

Free of Charge

Where: Derrick Golf and Country Club
When: November 30th 2011 at 7 am sharp
Space is limited.

Please telephone or email Lois M Labahn to confirm your seats: (780) 448-8386, Lois.Labahn@td.com

We look forward to seeing you there!

Married to an entrepreneur

Now here is something we don't see much written about - what it's like to be married to someone who runs their own business. If you think your spouse isn't involved in your business because he or she isn't a shareholder, click here read this story from the Globe and Mail.

Upping business value

The business owners out there who are considering selling their business one day will find the attached article interesting and useful. It's from http://www.capitalmagazine.ca/ and contains several good ideas for making sure that you are able to get the best possible price for your business. Click here to read the article. The attached photo is also from http://www.capitalmagazine.ca/.

After an estate freeze, who should inherit the frozen shares?

From time to time, I talk about estate freezes here on this blog, as they are a very popular method of transferring a family business to the next generation of entrepreneurs. After an estate freeze, the former business owner usually owns preferred ("frozen") shares in the value of the common shares that were transferred to the new owner. So the question then becomes: who should inherit those frozen shares?

I'm attaching a link to an article from http://www.capitalmagazine.ca/ that compares the tax and business effects of leaving those frozen shares to various beneficiaries, such as a spouse, a trust, or children. Click here to read this very informative article. It's essential reading for business owners who have gone through an estate freeze or are contemplating doing so.

The attached photo is also from http://www.capitalmagazine.ca/

Succession planning and your business

This new article from http://www.getgrowingforbusiness.scotiabank.com/ talks about the components of a successful business succession plan, as well as an outlook for Canadian small businesses. Click here to read the article.

Jack Layton's untimely death proves succession planning can't start too early

The folks over at Canadian Capital have put together an excellent group of articles and videos about estate planning and business succession planning. They make the case that finding a replacement for the late Jack Layton, head of Canada's Official Opposition, is much like finding a successor for a business owner. To read the article and access the other materials, click here. The attached photo of Mr. Layton is from http://www.capitalmagazine.ca/.

Tips for planning an exit from your small business

Getting started on planning to leave your business can seem overwhelming. Articles like this new one from http://www.entrepreneur.com/ help to give some structure to the process so that it seems less daunting. Click here to read the article.

Life insurance fertilizes next generation of farmers

Estate planning for farming families is complex. It's also very satisfying for a practitioner like me, because there are so many effective strategies that can be used to help transfer the family farm to the next generation. The attached article from http://www.capitalmagazine.ca/ describes how life insurance policies and mortgages can be used to meet the needs of all parties to the transaction. Click here to read it. The attached photo is also from that story.

2011 Succession Planning Conference - Toronto

Canadian Insurance Top Broker and Canadian Capital are joining forces to present a full-day succession planning conference for business owners. To learn more, click here.

Does your business succession plan include "going public"?

This down-to-earth article from http://www.forbes.com/ is a good discussion of what it's really like to take a private company public, how often that really happens, and who should consider it. Click here to read the article.