Plain and Simple: Bright Business Insights January 2016 | Page 4

Once I retire, am I out for good? What if I want to check in to see
how things are going?
Ultimately, once you leave, the new owner has complete control. If it’s a
family member, consider family dynamics. Do you have a strong enough
relationship that the son or daughter feels comfortable with you checking
in? If so, state your expectations ahead of time, so he or she knows your
interest in remaining involved.

most important to you. Is it making the biggest profit you can from the
sale? Is it making sure your employees are cared for? Whatever your
answer, look for a buyer who has the same values. You don’t have to
sell your business to the first interested buyer. Make sure the buyer you
choose is the right person for you, for your employees and for your business.

What steps must I take to ensure a smooth transition externally?
Stay on for three months to a year after the sale, which is negotiated in the
What steps should I take now to make my business more valuable purchase agreement. Some buyers may want you to stay involved when
you’re gone, and others won’t, so it’s important to establish those ground
once I’m ready to sell?
If you know you want to sell your business upon retirement, start plan- rules before finalizing the sale.
ning early for ways to make it more attractive to buyers – this includes
increasing cash flow and decreasing risk. You can improve cash flow Contingency Plans
through proper expense management and growth of sales. Diversification An important part of your succession plan not to be overlooked is a conof product lines, establishing a solid management team, and reducing de- tingency plan. What happens if you must leave the business for an expendence on a single, large customer are ways to reduce risk for buyers. tended period for issues such as hospitalization? Or, what happens in
the instance of a sudden death? While these things are not enjoyable to
Are there ways I can ensure my vision is carried on after I am gone? consider, you must prepare for the day when you can no longer run your
It is difficult to ensure that it will happen, that’s why it’s so important to business. Your CPA knows the ins and outs of your business and can
carefully consider the selling process. Decide from the beginning what’s provide counsel as you begin to transition into retirement.

External Transitions

HOW TO CREATE A STRATEGIC PLAN
That Propels Your Business Forward

A great plan is only, well, great, if it’s backed by a great strategy – the more you plan and forecast for the
future, especially when it comes to business endeavors, the more likely you are to succeed. Success doesn’t
happen without some blood, sweat and tears, and neither does a solid strategic plan. It takes a great deal
of research, discovery and part icipation to bring such a plan to fruition … but it’s well worth the effort.
Rea just went through the strategic planning process, and it was so eye-opening that we wanted to share
the wealth. But, before we tell you about our key takeaways, you really need to understand how important
this type of plan is to your business’s future.

WHY?

As any business owner knows, it’s easy to get caught up in your day-to-day
operations and lose sight of the long-term goal. And if you aren’t focusing
on your long-term goals, how can you expect the rest of your team to have a
clear vision of your company’s future? That’s where a strategic plan comes in
– it provides you and your employees with a sense of direction, which helps
you when you make decisions and prioritize work.

by: Mark Fearon

CPA, CGMA, Principal
(New Philadelphia Office)
122 Fourth St. NW, PO Box 1020
New Philadelphia, Ohio 44663
[phone]

your strategic plan. Do your research – Harvard Business Review has helpful
tools. There are also countless books about strategic planning. We took a lot
of inspiration from Good to Great by Jim Collins. The Rainmaker’s Toolkit
by Harry Mills is another great resource.

Start the strategic planning process with a SWOT (strengths, weaknesses,
opportunities, threats) analysis. Think about where you are, where you’d like
to go and how you believe you can get there. What are you good at? Where
Your strategic plan may seem like a moving target (and, in fact, should be), do your passions lie? Do some research on industry standards to start; then,
but having specific, constant goals in mind while running the operations of consider trends, the overall market environment and the growth strategies
your business will add purpose to your daily grind. In other words: either you you may be able to implement to build your business.
can run your day or you can let your day run you. Don’t choose the latter.
Vocalizing your strategic plan will help you maintain control over your com- Identify a peer or competitor in your industry – someone you admire – and
investigate their secrets to success. In short, identify what you want to do
pany and will align everyone under shared objectives.
better, and set a plan in place to achieve it.

HOW?

Remember, the plan doesn’t have to be complicated to be impactful. Be
1. Hire a consultant
sure you include measurable markers for success, and assign timeframes to
Before rolling up your sleeves and getting to work, consider hiring a seaachieve them … you need to be able to constantly evaluate progress.
soned consultant to guide you through the process. It’s so important to have
the voice of experience (along with an objective mind) to help manage the
4. Communicate, implement and measure success
process and keep you on track.
Once you’ve built a plan that you’re satisfied with, share it with all of your
employees – after all, that’s one of the main purposes of creating it in the first
2. Assemble a committee
place. Everyone needs to be on the same page, headed in the same direction,
The great adage that two minds are better than one rings true in this scenario.
for you to achieve the goals you’ve set forth. Share benchmarks with all
And three, four, five or six minds are even better. When you’re considering
employees, and provide regular progress reports.
future goals for your company, seek diverse viewpoints and opinions from
your employees, as well as thought leaders in your industry. When selecting
One of the most important things to remember is that a strategic plan should
your committee members, be sure to choose strong leaders. Your committee
never become stagnant … you need to constantly evaluate it, measure progwill be the cheerleaders of the plan when it’s time to share it with the rest of
ress, reassess goals or timeframes if necessary, and continually keep the plan
your company.
in line with the company’s objectives. Refer to it regularly, and update it
often to keep your company moving confidently forward. And don’t forget
3. Develop the plan
to have some fun with it – this is an exciting time for your business. Enjoy
There are many resources available to guide you as you build and implement
the journey…