Articles
What Will Be Your Legacy?
Our days are numbered. One of the primary goals in our lives should be to prepare for our last day. ~ Billy Graham What makes greatness is starting something that lives after you. ~ Leonard Bernstein The Reverend Graham’s quotation no doubt refers to larger issues than business management. However, baby boomer business owners would be wise to heed his words in the context of business exit planning. As retirement draws closer, business leaders must prepare for what comes next. Financial planning is obviously a critical aspect of exit planning. You need to ensure that you will have assets and income sufficient [...]
Are You Putting Your Company’s Creativity to the Test?
Companies say they value creativity, and if your company is like most, you're probably among them. The question is, are you really doing everything you can to unlock the creativity within your organization? Are you doing everything possible to ensure that the creativity that your company needs is being accessed and used to its fullest? Are Your Greatest Assets Being Utilized? Many companies overlook the fact that their greatest assets are actually their employees and when it comes to creativity, employees often have quite a bit to contribute. No matter what job description an employee may hold, whether it be [...]
Exit Planning? Time to Start is Now!
As one of the 22 million business owners in the United States, you are likely over 50 years old. According to a 2005 PriceWaterhouseCoopers survey of companies in the $5 million to $150 million of value range, there's a two in three chance that you plan to leave your company in the next 10 years. Yet, only 22% of you report having done a great deal of succession planning. In fact, you are more likely to have an idea of what you will do, should you become disabled, than you are to have plans for your own voluntary and inevitable [...]
7 Universal Value Drivers to Aid Your Exit Plan or Succession Plan
1. Focus on increasing cash flow 2. Develop operating systems that improve sustainability of cash flows 3. Improve facility appearance 4. Pay down debt 5. Document sustainability or earnings 6. Implement a strategy to grow the company 7. Build a strong management team and groom a successor
The hidden costs of ineffective leadership–7% per year
According to a recent study by the Ken Blanchard companies, the costs associated with ineffective leadership run approximately 7% of gross revenues per year. Think about it; if the company has revenues of $3 million per year but they are not being lead and managed well they are losing approximately $210,000 per year of gross profit per year. Ouch! No small company could possibly invest more than a small percentage of that lost profitability into even the most robust leadership development program. Is your company doing anything to stop your profitability erosion?
Is Your Company Slowly Dying Under Your Watch
During a recent monthly business review meeting with an executive team of a privately held company we were working through a number of important issues, one of which was succession planning for the firm, a topic people had been deferring for sometime, thinking it was important but not urgent. One of the partners looked around the room and said, "Holy ###, I am only now realizing that all eight of us are within seven years of each other in age. We are all in our late 50s and we have no younger people that we are really assessing and developing to [...]