Help - I'm Stuck in My Business
Upcoming SlideShare
Loading in...5
×
 

Help - I'm Stuck in My Business

on

  • 1,120 views

 

Statistics

Views

Total Views
1,120
Views on SlideShare
1,120
Embed Views
0

Actions

Likes
0
Downloads
24
Comments
0

0 Embeds 0

No embeds

Accessibility

Upload Details

Uploaded via as Microsoft PowerPoint

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

Help - I'm Stuck in My Business Help - I'm Stuck in My Business Presentation Transcript

  • Help! I’m Stuck in my BusinessLessons in Business Growth & Exit Planning 1
  • Becoming Big Picture Advisors llc 2 www.bigpictureadvisors.com
  • If you don’t know where you’re goingYou could end up someplace else.Yogi BerraAmerican Philosopher and Hall of Fame baseball player Big Picture Advisors llc 3 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit PlanningStory of Pat – Business Owner• Started Business 20 years ago• No succession or exit plan in place• Net worth is over $2mm• Has less than $250K saved for retirement• Pat has lost the drive and is essentially coasting• Business is mature and beginning to decline• Pat is consumed with running the business.• J. would love to win the lottery. Today!• Pat is STUCK in the Business Big Picture Advisors llc 4 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit PlanningAgenda Topics• Why are you in Business?• What is an Exit Strategy? Why is it important?• What stage of your Business Life Cycle are you at?• What is a Value Gap?• Why it’s critical to build a strong Business Core.• Business Valuations – It’s not straightforward• Exit Options – Internal, External• Assemble the right team of advisors• Take Control - Now Big Picture Advisors llc 5 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit PlanningHow we get Stuck in our Business• No vision or plan for the business• Having too much of our wealth tied up in the business• Using the business as a personal ‘piggy bank’• Our personal identity is linked to our business• We have not developed other interests and hobbies. Big Picture Advisors llc 6 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit PlanningHow we get Stuck in our Business• Tiredness, lack of passion• Wearing too many hats• Paralyzed from too much stress• External market dynamics• “Firefighter” mentality – Always putting out fires• Lack of Vision• Lack of strategic planning• Being scared to make changes (getting too comfortable) Big Picture Advisors llc 7 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit PlanningGet Uncomfortable – Get Unstuck• Develop a Golden Circle – Start with Why• Create an exit or transition plan• Implement with a passion• ‘Break the Tape’ – Accelerate through your exit. Big Picture Advisors llc 8 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit Planning Start with WhyDo you still know why you are in Business?• Why are you in business?• Why did you start or buy the business?• What are your goals?• What makes your happy & satisfied?• Why do your customers do business with you?• Why would anyone want to buy your business? Big Picture Advisors llc 9 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit Planning Start with WhyDo you still know why you are in Business?• Lifestyle – Can’t work for “the man”?• Pursue a dream/passion?• No one will hire me?• Create wealth for Retirement?• Purely an investment? Big Picture Advisors llc 10 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit PlanningDon’t get Stuck in a maze without a growth and exit plan Big Picture Advisors llc 11 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit Planning Planning Your ExitDid you have a plan when you started your business or career? Do you have a plan to exit your business and protect your wealth ? Big Picture Advisors llc 12 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit Planning What is at stake ?Your hard-earned wealth can be diminished by: Changes to your business Changes to the global economy Lack of a Successor Income & Estate Taxes Deal Structuring & Advisory Fees Big Picture Advisors llc 13 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit PlanningThe average business owner spends80 hours preparing a business planand only 6 hours preparing for their exit. Big Picture Advisors llc 14 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit PlanningThe longer you wait to develop an exit, the greater the riskand possibility that you will not succeed in protecting andextracting the wealth you created. Big Picture Advisors llc 15 www.bigpictureadvisors.com
  • Help! I’m Stuck in my BusinessLessons in Business Growth & Exit Planning Big Picture Advisors llc 16 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit Planning2007 ROCG Survey of 502 business owners in U.S. and Canada Big Picture Advisors llc 17 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit Planning2007 ROCG Survey of 502 business owners in U.S. and Canada Big Picture Advisors llc 18 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit PlanningSales of businesses occur in cycles Provided by Rob Slee Big Picture Advisors llc 19 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit Planning • How many businesses exist in the United States today? 500 – 999 Em’ees 8,326 100 – 499 Em’ees 82,334 20 – 99 Em’ees 508,249 1 – 19 Em’ees 4,320,290 Non-Employee Firms: 17,646,062 Big Picture Advisors llc 20 www.bigpictureadvisors.com© 2010, Pinnacle Equity Solutions
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit Planning How are you going to Exit?• Sell the business to outside buyer• Sell the business to management• Gift the business to family member• Liquidate the assets• Take it with you to the grave• Win the lottery and just walk away from it all. Big Picture Advisors llc 21 www.bigpictureadvisors.com
  • Help! I’m Stuck in my BusinessLessons in Business Growth & Exit Planning Big Picture Advisors llc 22 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit Planning What is an Exit Strategy?The written goals for the succession of a business’ownership and control, derived from a well thoughtout and properly timed plan that considers allfactors, all interested parties, and the personalgoals of the owners in a manner and a time periodthat is accommodative to the business, itsshareholders, and potential buyers. Big Picture Advisors llc 23 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit Planning It Starts with Creating a Plan and a Process1. Set Exit Goals2. Financial Readiness Mental Readiness Business Readiness3. Identify Type of Exiting Owner You Most Resemble4. Learn & Choose Your Exit Option5. Understand the Value of the Option You Choose6. Execute Your Exit Strategy – Protect & Extract Your Wealth Big Picture Advisors llc 24 www.bigpictureadvisors.com© 2010, Pinnacle Equity Solutions www.pinnacleequitysolutions.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit Planning Step 1: Setting Exit Goals The “Why” questionsWhat do I want to achieve with my business exit ? Big Picture Advisors llc 25 www.bigpictureadvisors.com
  • Help! I’m Stuck in my BusinessLessons in Business Growth & Exit Planning Big Picture Advisors llc 26 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit Planning Step #2: Mental ReadinessWhen you begin to think about exitingyour business, you need to considerwhether you view your business as a job or as an investment Big Picture Advisors llc 27 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit Planning Step #2: Mental Readiness• Are you addicted to your business?• Is your business a job or an investment?• How involved are you with the day-to-day running of the business?• Do you know what you would do if you weren’t in business?• Are you ready to let go and let someone guide you through the transition? Big Picture Advisors llc 28 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit Planning Step #2: Financial Readiness• Can you afford the Exit Option that I most want ?• What % of your total net worth is tied up in your business? Big Picture Advisors llc 29 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit Planning“84% of business owners stated that theproceeds from the sale of their business wereimportant to their retirement plans.”2007 ROCG Survey of 502 business owners in U.S. and Canada Big Picture Advisors llc 30 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit Planning What is a Value Gap?The difference between what you need to fund yourpost exit/transition lifestyle and your current savings. Big Picture Advisors llc 31 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit Planning What is a Value Gap? Asset Base Required Value GapCurrent Level of Savings Big Picture Advisors llc 32 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit Planning What are your assets?Liquid• Retirement Savings (IRA’s, 401K’s, Simple, SEP)• Cash• Non Retirement Savings• InsuranceNon-Liquid• Real Estate (Primary & Investment R.E.)• BUSINESS VALUE Big Picture Advisors llc 33 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit Planning How will you achieve diversification ? Typical Owner Desired Financial Allocation Allocation Beach House / Boat Fixed Income Private Private CompanyCompany Equities 20% 90% Fixed Income Equities Big Picture Advisors llc 34 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit Planning How to Close the Value Gap?• Save More• Reduce Post Exit/Transition Life Style/Needs• Grow Company Valuation (business growth)• Buy Winning Lottery Ticket• Hope your Children Create the next Facebook or Google. Big Picture Advisors llc 35 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit Planning Step #2: Business Readiness• How prepared is your business for an exit?• How healthy is your business?• What part of the business life cycle are you at?• Do you know how to grow your business to increase its valuation?• Is your management/personnel motivated or incentivised to stay? Big Picture Advisors llc 36 www.bigpictureadvisors.com
  • Help! I’m Stuck in my BusinessLessons in Business Growth & Exit Planning Big Picture Advisors llc 37 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit PlanningStep #2: Business Readiness Big Picture Advisors llc 38 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit PlanningStep #2: Business Readiness Big Picture Advisors llc 39 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit PlanningStep #2: Identify if your business is ready Big Picture Advisors llc 40 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit Planning Why Business Growth is Critical to getting to a successful exit.• Creates a strong Business Core• Creates leverage for a stronger exit/transition• Creates renewed passion and focus for the business• Creates basis for long term earnings and cash flow growth• Creates positive momentum for company and brand Big Picture Advisors llc 41 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit Planning What is your Business CORE?A Business has 3 componentsA. Skeleton (Business Structure/Operations)B. Muscle (Products/Services/Processes)C. Skin (Brand Equity, Public Presence) Big Picture Advisors llc 42 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit Planning What is your Business CORE?CORE = Comprehensive Operational Efficiencies & Resources Big Picture Advisors llc 43 www.bigpictureadvisors.com
  • Help! I’m Stuck in my BusinessLessons in Business Growth & Exit Planning Big Picture Advisors llc 44 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit Planning Step #3: Identify What type of Owner you most resemble•The “Get me out right away for the most money” exiting owner,•The “Well-Off But Choose to Keep Working” exiting owner,•The “Stick Around and Grow the Business” exiting owner, and•The “Rich and Ready to Leave” exiting owner (can use any option). Big Picture Advisors llc 45 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit Planning Step #3: Identify What type of Owner you most resemble•The “Get me out right away for the most money” exiting owner,•The “Well-Off But Choose to Keep Working” exiting owner,•The “Stick Around and Grow the Business” exiting owner, and•The “Rich and Ready to Leave” exiting owner (can use any option). Big Picture Advisors llc 46 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit PlanningStep #3: Identify What type of Owner you most resemble Big Picture Advisors llc 47 www.bigpictureadvisors.com
  • Help! I’m Stuck in my BusinessLessons in Business Growth & Exit Planning Big Picture Advisors llc 48 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit Planning Step #4: Five Primary Exit Options1. Sale of the Business2. Private Equity Group Recapitalizations3. Employee Stock Ownership Plans (ESOPs)4. Management Buyouts5. Gifting Programs/Family Succession Big Picture Advisors llc 49 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit PlanningStep #4: Five Primary Exit OptionsExit Options and the Exit Quadrant Chart Big Picture Advisors llc 50 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit Planning Step #4: Five Primary Exit OptionsOwner Readiness and the Exit Quadrant Chart Big Picture Advisors llc 51 www.bigpictureadvisors.com
  • Help! I’m Stuck in my BusinessLessons in Business Growth & Exit Planning Big Picture Advisors llc 52 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit PlanningStep #5: Understand the Value of Your Exit Option Business Valuations• Range of Values depending on exit options• Different valuation methods can apply• Not all value can be realized at time of exit• Valuations can change quickly and dramatically based on market dynamics Big Picture Advisors llc 53 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit Planning Range of ValuesSale to an Outside Synergy Value Buyer Recapitalization Investment ValueManagement Buyout Investment Value (structured) Employee Stock Ownership Plans Fair Market Value Gifting Fair Market Value Liquidations Asset Value Big Picture Advisors llc www.bigpictureadvisors.com 54
  • Help! I’m Stuck in my BusinessLessons in Business Growth & Exit Planning Big Picture Advisors llc 55 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit PlanningStep #6: Execute/Implement Your Plan• Assembly an advisory team• Share your plan with all stakeholders• Continuously revisit your plan as business, financial and mental readiness conditions change• Don’t procastinate – Don’t let your plan collect dust on a shelf - Take Control Now. Big Picture Advisors llc 56 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit PlanningStep #6: Execute/Implement Your Plan 57 Big Picture Advisors llc
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit Planning A Typical Exit Advisory Team Business Owner M&A Legal Advisor Advisor Exit StrategiesDeal Structuring / M&A Legal Advisor Process Agreements, Estate Planning Insurance Growth Advisor Consultant C.P.A.Estate Planning, Wealth Business Growth Taxes, Financi Protection als Business CORE 58 Big Picture Advisors llc
  • Help! I’m Stuck in my BusinessLessons in Business Growth & Exit Planning Big Picture Advisors llc 59 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit Planning“It’s never too early to beginthis type of planning, but it maycertainly one day be too late.” Big Picture Advisors llc 60 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit Planning Summary Get Unstuck - Take Control Now• Understand your “Why” factors• Determine your mental, financial and business readiness• Create a strategic plan of action• “Grow” to Exit and beyond• Assemble the resources/team that will assist you in executing and reaching your objectives Big Picture Advisors llc 61 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit Planning Learn MoreDownload the White Paper www.bigpictureadvisors.com Big Picture Advisors llc 62 www.bigpictureadvisors.com
  • Help! I’m Stuck in my Business Lessons in Business Growth & Exit Planning Thank you . . .. . for attending. If you would like any further information about our Business Growth & Exit Strategies solutions for your personal or business needs, contact us for a free initial consultations. We will be happy to meet with you.Big Picture Advisors - (843) 216-2493www.BigPictureAdvisors.com Big Picture Advisors llc 63 www.bigpictureadvisors.com