"Begin with the end in mind"
 

"Begin with the end in mind"

on

  • 249 views

Steve Covey's second habit is a very important rule for business exit and succession planning by Craig West CEO & Founder Succession Plus www.successionplus.com.au

Steve Covey's second habit is a very important rule for business exit and succession planning by Craig West CEO & Founder Succession Plus www.successionplus.com.au

Statistics

Views

Total Views
249
Views on SlideShare
249
Embed Views
0

Actions

Likes
0
Downloads
3
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

"Begin with the end in mind" "Begin with the end in mind" Document Transcript

  • Step 2 – “Begin with the end in mind “ Craig West – Business Exit & Strategic Succession planning.Steve Coveys’ would get in relation to how best to structuresecond habit is to “begin with the end in your business would be completely differentmind” – this is simple but not often followed if you told me that you wanted to pass yourby business owners who are so entrenched business onto the kids and retire comparedrunning their business day to day – they don’t to wanting to list your business on the ASX.allocate the time and energy to planning The structure cannot be the same for boththat might see them better focus on habit exit options and therefore how can wenumber 2. provide the correct advice if we don’t know which exit option we are aiming for?This rule simply means that every decision wemake in our business can then be mapped Business owners who have mapped out theirback to our exit plan – why are we building exit plan can then make decisions that willthis business in the first place – businesses get them closer to that plan. If I am going tohave two components the owner should be list my business it would be great to engageconcerned about – income and equity. “The people who have worked for and ledproper man understands equity, the small successful listed companies – this givesman profits.” Whilst all businesses and their potential investorsowners need more comfort andincome / profits the you are thereforereal value – the big “The proper man understands equity the more likely tomoney - is in the small man profits.” Confucius successfully achieveequity build. your exit through the listing.Business ownersthat are able to Once we have an exit option we can matchfocus on building the equity by having an every aspect of our business to that exit planexit strategy mapped out are able to – for example how big does our businessmaximise the value of their business and need to be to exit successfully – ensuring ourimportantly extract that value when they business goals match our personal wealthcome to exit. In terms of our decision making and retirement planning needs. Manywe can then match every decision we make businesses grow for growths sake not toback to our exit strategy – why is this deliver a specific target upon exit – I haveimportant – well for example the advice you worked with two clients in the last few Your Wealth Magazine Pty Ltd | ywm.com.au | March 2011 | 1
  • months who have simply outgrown the the business and also unlocking some capitalbuyers capability to pay for their business and introducing new equity holders ). Andand they therefore have large vendor finally, the ultimate exit for the foundingfinance arrangements in place – a risky way shareholders might be a strategic sale to ato secure your retirement wealth! small listed company (much more detail on that particular strategy next month). The keyExit options issue is simply to identify what strategy is most suited to your personal financial situationBeginning with the end in mind means and what strategy suits your business.reviewing the various exit options andchoosing the most appropriate option for No matter what option suits - the key is toyour business: “begin with the end in mind” and ensure this strategy is closely matched to every decision you make in the business – constantly ask yourselves is this decisions getting me closer to my exit or not ? Importantly, an exit strategy needs an action plan – in the words of Napoelon “take time to deliberate … but when the time for action has arrived, stop thinking and go in “– a detailed implementation plan that ensures each and every step of the exit plan is managed and we are not left high and dry as we turn 65 without anything in place.Importantly not all options are suitable for allbusinesses – and even more importantlyseveral of these options can be utilised & “Take time to deliberate, but when the time forcombined as part of an overall exit strategy action has arrived, stop thinking and go in”– many businesses successfully raise capital Napoleonto expand or make an acquisition ,then asthe next stage they lock key employees inwith an employee share plan ( both de-risking the business by linking the financialperformance to key people engaged within Your Wealth Magazine Pty Ltd | ywm.com.au | March 2011 | 2