Ohio Business Coach Ralph Berge » Succession Management http://www.ralphberge.com Top Ohio Business Coach Tue, 26 Apr 2011 20:48:29 +0000 en hourly 1 http://wordpress.org/?v=3.1 When is the Right Time to Exit Your Business? http://www.ralphberge.com/224-when-is-the-right-time-to-exit-your-business.htm http://www.ralphberge.com/224-when-is-the-right-time-to-exit-your-business.htm#comments Tue, 06 Jul 2010 14:31:04 +0000 Ralph Berge http://www.ralphberge.com/?p=224 What can exiting from your business mean to you?  It can be as emotionally difficult as a bankruptcy or forced liquidation or it can be a planned sale with all debts paid, money for retirement and peace of mind. Planning for succession means you should plan to sell when the sale will provide the funds necessary to retire or move on to a new opportunity. It can also be passed on to your heirs, employees or partners with proper pre-planning to fund the sale.

Ralph Berge is an Ohio Business Coach who helps business owners plan their succession management.  “Succession management is an exit strategy that simply means you have planned your transition and you are ready to take advantage of the options available to you’ says Berge. Call Ralph Berge, Action Coach 440-838-0991 to get moving on your business exit strategy.

]]> http://www.ralphberge.com/224-when-is-the-right-time-to-exit-your-business.htm/feed 0 Exit Your Business on Your Terms http://www.ralphberge.com/207-exit-your-business-on-your-terms.htm http://www.ralphberge.com/207-exit-your-business-on-your-terms.htm#comments Mon, 05 Apr 2010 12:37:20 +0000 Ralph Berge http://www.ralphberge.com/?p=207 What can exiting from your business mean to you?  It can be as emotionally difficult as a bankruptcy or forced liquidation or it can be a planned sale with all debts paid, money for retirement and peace of mind. Planning for succession means you should plan to sell when the sale will provide the funds necessary to retire or move on to a new opportunity. It can also be passed on to your heirs, employees or partners with proper pre-planning to fund the sale.

 Ralph Berge is a Cleveland Business Coach who helps business owners with succession management.  Succession management is an exit strategy that simply means you have planned your transition and you are ready to take advantage of the options available to you. Call Ralph Berge, Action Coach 440-838-0991 to get moving on your business exit strategy.

]]> http://www.ralphberge.com/207-exit-your-business-on-your-terms.htm/feed 0 Exit Your Business on Your Terms… http://www.ralphberge.com/191-exit-your-business-on-your-terms%e2%80%a6.htm http://www.ralphberge.com/191-exit-your-business-on-your-terms%e2%80%a6.htm#comments Mon, 11 Jan 2010 13:52:21 +0000 Ralph Berge http://www.ralphberge.com/?p=191 What can exiting from your business mean to you?  It can be as emotionally difficult as a bankruptcy or forced liquidation or it can be a planned sale with all debts paid, money for retirement and peace of mind. Planning for succession means you should plan to sell when the sale will provide the funds necessary to retire or move on to a new opportunity. It can also be passed on to your heirs, employees or partners with proper pre-planning to fund the sale. 

Ralph Berge is a Cleveland Business Coach who helps business owners with succession management.  Succession management is an exit strategy that simply means you have planned your transition and you are ready to take advantage of the options available to you. Call Ralph Berge, Action Coach 440-838-0991 to get moving on your business exit strategy.

]]> http://www.ralphberge.com/191-exit-your-business-on-your-terms%e2%80%a6.htm/feed 0 You Built It….Now What Do You Do With It? http://www.ralphberge.com/176-you-built-it%e2%80%a6now-what-do-you-do-with-it.htm http://www.ralphberge.com/176-you-built-it%e2%80%a6now-what-do-you-do-with-it.htm#comments Mon, 16 Nov 2009 14:28:36 +0000 Ralph Berge http://www.ralphberge.com/?p=176 Many small business owners have the goal of handing the business over to a family member when they reach a certain age. That’s fine, but will that person be able to run the business then? Does he or she need particular qualifications? Will he or she need special training before they can take over? All this has to be thought through years in advance. It’s time for the business owner to be making a plan for succession management.

Other considerations will be based on your own importance to the business. If it literally can’t get along without you because of your expertise or some other factor, what happens if you’re forced to exit by illness or accident? Your plans for the value of the business when you leave it could be totally negated unless you’ve planned for such a contingency.

If your intention is to sell the company at a certain point in time your strategy will be to enhance the value of the business between now and that date by increasing the worth of its assets. How you do that depends on many factors, but for some firms it’s going to require a sustained drive for a larger customer base and/or an expanded range of products. For others it can mean an emphasis on research and development to develop and patent new products or processes.

To get the best possible price when selling the business it’s essential to maintain accurate and verifiable records from day one. Most buyers looking to purchase a business generally want to see at least three years of financial information.

 

 If you haven’t considered these questions, you likely don’t have a plan for succession in your business. This lack of planning for succession is putting you, your company and family at risk. Find time to at least consider the full potential of that risk.

]]> http://www.ralphberge.com/176-you-built-it%e2%80%a6now-what-do-you-do-with-it.htm/feed 0 When Is the Right Time? Exit Your Business on Your Terms… http://www.ralphberge.com/174-when-is-the-right-time-exit-your-business-on-your-terms%e2%80%a6.htm http://www.ralphberge.com/174-when-is-the-right-time-exit-your-business-on-your-terms%e2%80%a6.htm#comments Fri, 13 Nov 2009 21:28:19 +0000 Ralph Berge http://www.ralphberge.com/?p=174 One of the most overlooked questions in any small business is “When do I get out of it?” There’s no easy answer to this question, but it’s something every business owner needs to know and plan for succession.

Part of every business plan should be an estimate of the lifetime of the business. Are you in it for five to ten years with the idea of selling out for a profit at a predetermined time? Is it meant to be a family business you want to pass on to your children when they’re able to take it over?

An exit strategy or a succession management plan may also become necessary because you no longer enjoy owning the business. Circumstances change and for many entrepreneurial business owners once the excitement of getting the business ‘off the ground’ has faded there’s insufficient satisfaction to be gained from just running it.

Many key decisions of your business will be determined by the strategy you have for your exit from it. An example of this is financing. If you only plan to be in the business for a few years your financiers will want their money back quickly and your business structure will have to be able to ensure this. Your plan will answer their questions. A formal exit strategy not only helps you to decide on the right time and place. If done properly it builds the value of your company and provides security for your and your family.

]]> http://www.ralphberge.com/174-when-is-the-right-time-exit-your-business-on-your-terms%e2%80%a6.htm/feed 0 Invest Time in Planning Your Exit http://www.ralphberge.com/156-invest-time-in-planning-your-exit.htm http://www.ralphberge.com/156-invest-time-in-planning-your-exit.htm#comments Mon, 31 Aug 2009 14:22:06 +0000 Ralph Berge http://www.ralphberge.com/?p=156

Take time every day to think about your eventual exit. This time is well spent. It will produce real value and make earnings from anything else you would do with this time pale in comparison.  Real wealth comes from the exit of the business not from the regular earnings of the business. Most owners have 90 percent of their wealth tied up in their business. Doesn’t it make sense to plan for harvesting and preserving your wealth? We call it succession management, which is about creating value for your company and yourself.  

What should you think about? Look from the outside in.  Determine who should eventually own your company and why. Take a buyer’s view of what will make the business more attractive from a strategic standpoint.

·         Should you devote resources to developing proprietary and unique products or methods?

·         Is new equipment necessary now and what is the shape of your physical assets?  

·         Can you develop a brand? Branded companies are sold as a multiple of sales, rather than a multiple of earnings.

·         Document and protect your technology.

·         Can you corner a market or niche and become a price leader.

·         Are you recognized? Do you have a good public relations strategy?

Are your contracts and agreements written so they would provide value to a purchaser of your company?

Often, language in contracts can be problematic for buyers and investors.

]]> http://www.ralphberge.com/156-invest-time-in-planning-your-exit.htm/feed 0 Let’s Look at a Few Options for Your Business… http://www.ralphberge.com/150-let%e2%80%99s-look-at-a-few-options-for-your-business%e2%80%a6.htm http://www.ralphberge.com/150-let%e2%80%99s-look-at-a-few-options-for-your-business%e2%80%a6.htm#comments Mon, 10 Aug 2009 14:08:51 +0000 Ralph Berge http://www.ralphberge.com/?p=150 Wait for a buyer…

According to Deloitte’s Entrepreneurship UK: 2008 survey: 35 percent of business owners said they will wait for a third-party offer for their businesses. Owners in this group believe that one day a buyer will contact them, negotiate a sale, and that will be that. Well, this is a decision of sorts—but one that flies in the face of reality. While few businesses are being sold today, there will likely be a significant number of Baby Boomer business owners vying with you to sell their businesses when the M&A market recovers.

In a competitive buyer’s market, only the best-prepared businesses sell for top dollar. And the owners of those well-prepared businesses will be those who made the decision to act to prepare their company years ahead of the actual sale. 

Liquidate…

Liquidation is a common exit path for owners of companies whose cash flow is flat and has little probability of improving—absent the design and execution of a business/exit plan. If you find yourself in this group, we recommend that you meet with your tax and other advisors to do the planning necessary to create the most tax-efficient liquidation possible. 

Succession Management/ Exit Planning…

Planning for succession and your exit from your business is not an event, but a process that should begin years in advance of your anticipated departure. The first step of the process is to develop a vision for you, your family and the team who will manage and perhaps own your company. Then establish goals (aligned with your vision) or a pathway that leads you toward your vision. This is clearly the best and most profitable road to your future.

]]> http://www.ralphberge.com/150-let%e2%80%99s-look-at-a-few-options-for-your-business%e2%80%a6.htm/feed 0 Part – 9…Five MORE Things to Consider When Selling Your Business http://www.ralphberge.com/110-part-9%e2%80%a6five-more-things-to-consider-when-selling-your-business.htm http://www.ralphberge.com/110-part-9%e2%80%a6five-more-things-to-consider-when-selling-your-business.htm#comments Fri, 15 May 2009 14:43:23 +0000 Ralph Berge http://www.ralphberge.com/?p=110 Your family business succession plan will guide you to creating value in your business. Your goal is to create a commercial, profitable enterprise that works without you. This process takes many steps, but the smart business owner knows that the real value of any company is found when they exit the business. Therefore, having an exit plan that includes succession planning is crucial to the success of any organization.  These five items are key ingredients to any succession management plan.

 

1.       Review / upgrade software and technology

2.       Report all sales

3.       Consider a product display or showroom

4.       Systematize processes

5.       Prepare for the unexpected in selling the business

]]> http://www.ralphberge.com/110-part-9%e2%80%a6five-more-things-to-consider-when-selling-your-business.htm/feed 0 Part -3…Five MORE Things to Consider When Selling Your Business http://www.ralphberge.com/98-part-3%e2%80%a6five-more-things-to-consider-when-selling-your-business.htm http://www.ralphberge.com/98-part-3%e2%80%a6five-more-things-to-consider-when-selling-your-business.htm#comments Fri, 01 May 2009 15:32:32 +0000 Ralph Berge http://www.ralphberge.com/?p=98 Business succession management means your exit plans need to be clear in not just in your own mind, but in a written document that explains how your business operates. Working “ON” your business means working on these five things:

1.       Cross train employees

2.       Create employee manuals

3.       Understand the sales process and timeline

4.       Emotionally detach from the business

5.       Remove non-operating assets

Invest your time in building your business by talking with Ralph Berge, Cleveland business coach about family business planning.

]]> http://www.ralphberge.com/98-part-3%e2%80%a6five-more-things-to-consider-when-selling-your-business.htm/feed 0 Exiting Your Business http://www.ralphberge.com/33-exiting-your-business.htm http://www.ralphberge.com/33-exiting-your-business.htm#comments Thu, 26 Mar 2009 04:55:00 +0000 Ralph Berge http://www.ralphberge.com/?p=33 What can exiting from your business mean to you? It can be as emotionally difficult as a bankruptcy or forced liquidation or it can be a planned sale with all debts paid, money for retirement and peace of mind. Planning for succession means you should plan to sell when the sale will provide the funds necessary to retire or move on to a new opportunity. It can also be passed on to your heirs, employees or partners with proper pre-planning to fund the sale.

Ralph Berge is a Cleveland Business Coach who helps business owners with succession management. Succession management is an exit strategy that simply means you have planned your transition and you are ready to take advantage of the options available to you. Call Ralph Berge, Action Coach 440-838-0991 to get moving on your business exit strategy.

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