By Doug Houser , CPA , MBA , CEPA principal & director of construction and real estate services doug . houser @ reacpa . com ( Dublin office )
Additionally , seeking out a banker who understands the challenges you face in your marketplace and within your industry is just as important . It ’ s also important for your advisors to be well-connected so they can refer you to others who can assist you in other aspects of your business . A banker ’ s job is to sell two ways . First , they have to sell externally , and make sure that they can provide the right products and services to you , their client . But a large part of their job is to build their own internal networks . In doing so , they are better able to navigate their clients through those organizational layers . This is the time to reconsider these basic fundamentals with regard to your banking relationship ( and all other advisory relationships ), because they matter now more than ever .
Succession Planning
COVID-19 has possibly exposed some inherent weaknesses in your business that may have existed prepandemic – effectively impacting your long- and short-term strategy . As a result you , like so many others , may have had to put your succession plans on hold in an effort to develop new strategies that will not only ensure that you will weather this storm , but that you can maintain the value of your organization , preserve your legacy , and retire on your terms .
How do you really become strategic and hone in on those weaknesses and what actions are necessary to preserve the long-term viability of the company ? Start by asking what you can do to maximize the value of your business and communicate these thoughts with your advisors , banker and legal teams . Let these informed discussions reveal opportunities rather than losses .
And for those who are not only surviving but thriving during this time , consider looking at this time as an opportunity for growth and expansion of your products or services , or your company as a whole through M & A activity . Or , maybe , if you are looking to gift your business to the next generation , current favorable tax rates could be the jumpstart you ’ ve been looking for to get the ball rolling . There has never been a better time to put “ succession planning ” at the top of your agenda .
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As everybody continues to navigate through these tough times , it ’ s also important to consider that things may never return to “ normal .” This pandemic has permanently reshaped the way we live , work and play and these changes will continue to impact your long-term financial goals . But , we don ’ t have to sit around and do nothing . Instead , we can take this time to utilize the wealth of resources that are available to make informed decisions .
Ensuring continuity with your supply chains , working toward stronger advisory relationships and recognizing opportunities for growth can have a positive impact on your business and will help you grow as a leader . Yes , COVID-19 has taken a bite out of our lives , businesses , relationships and future plans , but it ’ s also provided us with a chance to step back and reassess vital business considerations . If your advisors aren ’ t discussing these best practices with you , give us a call .
The Small Business Corner series is designed to address challenges and considerations regularly faced by owners of small- to mid-sized businesses . Check out past Small Business Corner articles at www . reacpa . com / small-business-corner .
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