Self-employment
Small business owners need to plan their entrepreneurial exitNew way outIt's true that the small- and medium-sized business (SME) landscape is changing -- and at an unprecedented pace. |
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 [ 2007-04-24 ] |
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Over the next decade about 66% of SME owners expect to leave their jobs, about a third within the next four or five years. Problem is, surveys have shown that at least half of them have no plan on how to get out of business.
To that end, the Canadian Institute of Chartered Accountants (CICA) has come out with a fantastic book -- Succession Planning Toolkit for Business Owners -- that is a must-read for the thousands of business owners who are looking for a way out.
Luanna Mc-Gowan, co-author of the book, says it is also a good reference read for any stakeholders in small businesses: advisers and staff who need to know what the enterprise's owner is going through.
"The book takes a holistic approach to succession, taking into account the gamut of issues and stakeholders that need to be addressed," she said.
McGowan, who is a national partner with PricewaterhouseCoopers LLP's Centre for Entrepreneurs and Family Business, says the timing of the book coincides with the leading-edge of retiring boomers, a demographic that's only going to increase over the next 10 years.
"I think what we need to understand, more than anything, is that retiring and passing a business on or winding it up, is a process, not an event. And the more time you put into planning, the more options you have at your disposal," she said.
The book addresses such things as:
- The "soft issues" (often the most challenging issues for family-owned businesses)
- The technical issues (an overview of the legal, tax, valuation and estate-planning issues)
- A process for developing a formal succession plan to protect the family's assets and ensure a smooth transition.
In addition, the book includes real-life stories based on interviews with Canadian business owners to guide readers throughout the process and reinforce the key messages.
The book can be ordered online at www.knotia.ca/store/businessowners or by phone at 1-866-256-6842. For more information on CICA, go to www.cica.ca.
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