FINANCIAL POST
CAPITAL IDEAS UPCOMING EVENTS SEPTEMBER 30: A L B E R TA B O O ST R STA G E P I T C H E V E N T Join us for BoostR Stage, our live pitch event, where BoostRs (YOU!) get to fund local Alberta entrepreneurs. ■ Where: Theatre Junction (608 1 Street S.W.) ■ When: 5:30 p.m. to 8:30 p.m. ■ Admission: $20. More info at albertaboostr.ca NOVEMBER 23-24: WOMEN IN LEADERSHIP AND BUSINESS CONFERENCE Forum designed for leaders, managers and entrepreneurs who want to advance their career and grow their business. ■ Where: Hyatt Regency, 700 Centre Street S ■ When: 8 a.m. to 5 p.m. each day ■ Admission: $895-$1295. More info at wilbconference.com
For more great events, visit capitalideascalgary.com/ calgaryevents.
COMMUNITY QUESTION
What support have you found for your innovative idea?
T H U R S D A Y, S E P T E M B E R 1 7, 2 0 1 5
CA LG A RY H E R A L D
B8
C A P I TA L Q U E S T I O N
WHEN SHOULD YOU START PLANNING FOR SUCCESSION? Entrepreneurs share how they’ll transition ownership of their business “I suggest you start planning for succession when you are planning your company. A year or two into your business, I suggest talking to an expert on succession planning. Some experts deal with the tax implications and preserving wealth for your retirement and future generations. Other experts are merger and acquisition professionals or business brokers who specialize in getting top dollar for the asset you are building. It’s far too often that I’m approached by a business owner eager to sell right now, but under less than ideal conditions. These professionals are happy to meet with business owners early and develop a relationship that will hopefully lead to them becoming a client in the future.” Steve Fylypchuk, president and broker at Murphy Business Alberta, murphybusinessalberta.ca
Monica Kretschmer, founder of Canadian Business Chicks (canadianbusinesschicks.com) suggests planning for succession early. “As a solopreneur it’s daunting to think about succession planning when you’re just getting started. However, I truly believe this is the time to start thinking about your exit. I started my company with big vision and have my five and ten year plan already in motion. Building a salable business, creating partnerships, having a vision and planting the seeds for the future have already allowed me to see opportunities that I may not have seen if I did not have the big picture in mind.” PHOTO SUPPLIED BY: MONICA KRETSCHMER
“Day one! It’s important to start thinking about succession when the business is first started. Giving thought to the future of the business will impact decisions that are made throughout the course of it’s growth. Building a business for sale is different than building a business that will not be sold outside the organization or family. Succession is about having people in place to be able to lead the enterprise in order to achieve the company’s desired future. Bringing in people who have excellent skills, training, development and coaching are all ways to prepare. Identifying a number of individuals with the potential to lead the business ensures that ‘all eggs are not in one basket’. You want to start with the end in mind, however, a successful succession plan is more about the journey than a singular destination. Wilma Slenders, president and founder of Transcend Management Advisors Inc., transcendmgt.com
“The time is now. Get a clear, proven measure of your people’s ability to handle complexity today and within the next five years. With that you are armed to handle both the present and the unpredictable future. Succession planning is not a replacement strategy, it is a critical part of how you manage your capacity and capability to deliver results for now and the future. Your business already demands this of you today.” Len Nanjad, partner at COREinternational, coreinternational.com
“This is very close to home as I have just left my position to go on a year’s maternity leave. While it’s nice to think you’re indispensable, it’s rarely true, and leaving can give others a great opportunity to share the responsibilities you used to have. That’s what’s happened at Uppercut with a team of four now sharing my duties (client service and new business) on top of their existing roles. Dividing the tasks up is a great idea when it’s a small business like ours, and can bring the team even closer together.” Jill Dewes, managing director, madebyuppercut.com
“I’m never going to plan for succession. I’ll be 99 years old in my wheelchair wearing red high heels and still running my business!” Lynda Kavanagh, owner of WOW Communications, wowcommunications.ca
“We believe that succession planning begins with a great leader. The kind of leader that empowers their team to do things however they see fit so long as the job is done well. Teams that work with full autonomy can function with nearly any leader under the same style so succession is a smooth and hopefully seamless transition.”
Corey Allard, founder of Change Your Game, changeyourgame.com
These answers are in response to a question posed by Wellington Holbrook, executive vice-president of ATB Business. Here’s his take:
Support for new ideas can come from many different sources, from mentoring to investments and everything in between, which is why Peter Garrett, president of Innovate Calgary wants to hear from you: What support have you found for your innovative idea? You can answer the question in two ways: Open today’s Capital Ideas email if you’re a member or visit capitalideascalgary.com. We’ll publish the best answers, along with your business name and website address, on Sept. 24.
“You need to start planning now, maybe sooner. It’s a fact that too many entrepreneurs wait too long to put a plan in place and it is fair to say that it costs them a lot of money or lost opportunity. Sometimes the hardest part is knowing where to start. Talk to the professionals around you, like your accountant, your lawyer and yes, your banker. Two best pieces of advice I can offer is: 1) Document your processes. If someone buys your business, they will need to know how to operate it.; and 2) Get audited financial statements. Potential buyers will be leery if they can’t rely on the financial information and audited statements provide a lot of comfort and will help you maximize the value of your business.”
R O U N D U P : R E C E N T P O S T S F R O M C A P I TA L I D E A S M E M B E R S
Business owners helping business owners
JOIN US!
✔ Get expert advice on your biggest challenges
✔ Share insights with entrepreneurs like you
✔ Appear in the Calgary Herald
S I G N U P AT : capitalideascalgary.com
Find the full posts on these members’ LinkedIn profiles or at their websites. We’ll curate a selection every Friday in our LinkedIn group, Capital Ideas Alberta. To bring yours to our attention, email it to hello@capitalideascalgary.com or post to LinkedIn with the hashtag #capitalideas.
From “It is go time” by Laura Bechard, certified business coach at Bexco Business and Executive Coaching ( linkedin.com/in/ laurabechard):
“As a business owner, you understand the importance of cash flow to your business. That’s the added stress at this time of year - will the crop yield sufficient cash receipts to recover the input costs and provide a return on the investment? So, how do we mitigate our risks?”
From Basic Manners Training: Why Common Courtesy and Being Polite Matters by Megan Armstrong, owner of Dogma Training & Pet Services (dogmatraining.com):
“Do not answer the phone with just a hello. Even if it is your cell phone. Whichever number you give to clients to use is your business number, so always answer it like a business line.”
From LinkedIn Updates: Facebookstyle messaging, Google-esque news and Death to the Company Directory by Dave Byrnes, owner of Easier Networks (easiernetworks.com):
“Your company’s intranet is now in the cross-hairs of LinkedIn, which is looking to provide a more relevant and updated service to users looking for information on people within their organization.”
Join our LinkedIn group: Capital Ideas Alberta • Follow us on Twitter: @capitalideasyyc