Small business baby boomers - the end in sight

I saw an article today from Bloomberg BusinessWeek on the increase in Baby Boomers in the US who are looking to sell their small businesses.

While this is no surprise, considering the ageing population in First World countries, it made me reflect on how unready many small business owners are when they get to this stage of their business life.

As I wrote in The Small Business Success Guide, more than 60 per cent of small business owners and up to 78 per cent of family business owners have no succession plan for their businesses.

However, to effect a sale of their business, owners should have the end in sight up to five years before they actually want to retire.

To get them started, here are some questions they should consider:

* Why would someone want to buy my business?
* What's it worth?
* What processes do I have in place so someone could walk in and start trading tomorrow?

In The Small Business Success Guide, I suggest that the best way to pinpoint a buyer is to use your networks.

Would a supplier be interested? What about a business associate? Start having some informal discussions well before you want to retire and, if you think someone may be interested in buying your business, put together a plan to make it happen. 

Very few businesses are sold because someone knocks on your door. Be proactive: it's up to you to give every prospective buyer an overwhelming sense that it's a worthwhile investment.
 
Here's to your success!

Margie

Plan your small business like an election

The announcement today by Prime Minister Julia Gillard (‏@juliagillard) that the next Federal election will be held on September 14 has sent waves of wonder through the business community. Why announce it eight months out? How many months of political ads and door stop interviews do we really need to be exposed to? 

But if you set the political agenda aside for a moment, the announcement is really just like a small business letting their customers in on their strategic plan. Most of us wouldn't do it. But why not?

Strategic planning is all about considering the big picture, knowing where you want your business to go and how this all fits together.

Just like an election announcement, it needs to be articulated by the business owner. The question is, would it hurt if your customers knew what you wanted to achieve out of your small business?

Why not make today's election news a good excuse to start having some strategic conversations with your customers? Find out exactly what it is that they want, why they want it, how you can better deliver on their expectations. Then take a good look at your competition.

Having a few strategic conversations might just help you pip the opposition at the post on polling day!

Margie 

Cash flow checklist: How to manage your costs

Are you managing costs? So many small businesses I know have great intentions, but they operate on a fine line between keeping the costs of doing business under control, and getting swamped when unexpected bills crop up.

The trick, according to Avron Newstadt, of Expense Reduction Analysts, is to get into a cost management mindset.
If you can say 'yes' to the following statements, then you are a business that has the potential to manage your costs well:

* You dedicate ongoing and regular time each week to the principle of cost management

* You have developed a cost management culture in your business, so that your staff know it's important

* Your staff think before they spend

* You have systems in place to track your costs

* You keep your finger on the pulse of a wide range of costs out there in your marketplace.

Give it a go!

Margie