24 Nov Top 10 Items Baby Boomer Business Owners Need to Address
10. Boomer Owners can stay and still be free…business succession and exit planning is also for owners who plan to be involved in their businesses, in some capacity, into their Golden Years, while pursuing other endeavors. https://www.youtube.com/watch?v=ZZo56n7657o
9. Within the marketplace, business owners are starting to pay attention to succession planning…why? There are five million Baby Boomer Business Owners planning on leaving within the next ten years and the market for your Company is not the same as when you took over from the generation before you or started your business.
8. Take time to know the Gen Xers…competition for the Xers’ talent is very intense due to the significantly smaller size of this generation which means less available key employees. Take a look at this next generation of owners who are ready to assume leadership positions and operate businesses. It is imperative today to ensure the time to recruit new employees and identify your key employees—those with all the right stuff—and start a conversation about what their future within the company holds.
7. Begin Business Independence Planning now…the process of identifying and then putting a plan in place to build business value through focusing on those Value Drivers that will build your business value. The most successful business owners are able to build strong, stable and independent businesses that operate successfully even in the absence of the business owner.
6. Due Diligence…act now and ask yourself, “would you be an investor in your business?” Look at your business the same way a potential buyer would approach purchasing your Company by looking at all risks and opportunities.
5. Time is your greatest asset…the more time you have to plan and prepare, the better off you will be. It can take 6 to 8 years to become independent from your business. It is never too early to start.
4. The banking industry won’t go “deep” to compete…the banking industry use to help next generation owners buy out the current generation, but with the current lending restrictions it is much harder to get loans for this purpose.
3. Are you going to be able to find your right Advisor…with 5 million owners leaving within the next ten years, you need to start working with your “right” advisor now and begin planning before the “right” advisor for you isn’t available to help you.
2. Be a mentor… Effective mentoring and training from you, the owner, is what is critical to creating the next generation of successful managers and owners of your business.
1. Truly understand COMMUNICATION…as the business owner, it is up to you to communicate and express realistic expectations, challenges and the importance of adaptability to those you are mentoring, whether a key employee, family member or outside potential…the key to building business value and creating independence is to be candid about what is involved. To do that you need to be a great communicator!