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".

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".

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/.

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!

Selling a business - myths and misconceptions

Are you a business owner wondering how and when to sell your business? Are you getting the right information and advice? Are you sure that you've set your price properly? I've talked to dozens of business owners who are trying to gather information and sell their businesses on their own, simply because they don't know where else to turn. The following article is a good starting place. It was provided to me by Stuart Neal of Western Business  Brokers. Click here to read the article.

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.

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.

Business owners: building value in your biggest asset

This excellent article is from http://www.capitalmagazine.ca/ and talks about what business owners can do to increase the value of their businesses. This might be important for you whether you plan to sell the business and retire, or pass it down to your children. Click here to read the article.

Business valuation 101: What's goodwill worth?

Talk about something that business owners really need to know! Many business owners who are interested in selling their business to retire really don't know how to put a dollar figure on goodwill. This article from capitalmagazine.ca addresses that question. Click here to read it.

Business succession planning how-to videos

Scotiabank's "Get Growing for Business" webpage for small business owners has a series of four videos aimed at helping you sell your business. They cover topics like valuing your business and negotiating the sale. You can watch one or all of them online by clicking here. There are plenty of other good articles there too.

Partial sale of a business allows owners to have their cake and eat it too

I received this notice from my friends over at Ambergate Group/Western Business Brokers. It talks about two ideas, but the one that I thought would be of particular interest to business owners considering their succession planning is that of selling part of the business but staying involved. It's referred to in this article as the "have your cake and eat it approach", and that seems an appropriate title. Click here to view the article.

Make sure your business isn't a one-shot deal

Is selling your business going to be part of your business and personal estate plan? If so, read this article from the Globe and Mail's John Warrillow on making your business more sellable.

Your strongest suitor may be a customer

When owners of small businesses are ready to retire, they often think of selling their business to "someone". But who is that "someone"? This article by John Warrillow of the Globe and Mail makes an excellent point - that a customer could be a good buyer. Click here to read the article.