You’ve been the operator of your business for 20 years now and it’s time to retire. Or you’re ready for a career change and you want to sell your company to kick-start something else. Whatever your reasons, selling a business is no easy task. There are a countless number of moving parts over which you need to maintain complete control, not to mention the fact that a clear plan must be in place to ensure that your successor is properly equipped to fill your shoes. Managing Relationships with Staff Members The last thing you want in the midst of a business sale is upheaval among your staff members, suppliers, vendors, key stakeholders or community relations. It is critical that you
It’s new, it’s exciting and you’ve been waiting for the right opportunity to present itself for some time now. You can’t believe that you’re finally about to start your very own business. Although this is certainly a time of great excitement and anticipation, it’s also a time that calls for calculated, careful and strategic planning. Do you know exactly what you’re getting into? Have you done your homework before putting yourself into a position to say “yes”? Are you aware of all the red flags and warning signs to look out for? Have you sought the advice of a legal advisor – ahead of time? There are no shortcuts to success. Be weary of letting yourself become too hasty in
Life and disability insurance – is this an exit strategy or an entry strategy? At first thought, it may appear to be the former since you’re planning for what happens in the event of a death or serious disability. But in fact, the decision to obtain life and/or disability insurance for your company is anentry strategy in the sense that this is something you need to do at the beginning, not when it’s too late. For best results, make this decision part of the drafting process for your shareholder agreement. No Insurance = No Order Isn’t this the way insurance companies want you to think about the situation? Long lives the debate of whether or not buying into insurance is
March 18, 2014
How to Navigate a Sellers’ Market
The truth is, it really doesn’t matter whether or not it’s a buyers’ or a sellers’ market. Why? Because purchasing a business is about you – it’s about knowing what you’re capable of. Think back to our Caveat Emptor article in January. The same applies here. As the business buyer, it is your responsibility to read between the lines, to understand the deal and to know exactly what lies ahead for you and your newly purchased company. Are You Asking Yourself All the Right Questions? Buying a business is exciting but be careful you don’t let the prospect of an affluent future cloud your vision. During the selection process, due diligence and closing procedures, it is critical that you keep
March 5, 2014
Buy a Franchise Or Start My Own Business?
“If I buy a franchise instead of starting my own business, it’ll be easier because I’m buying into a proven system.” Sound familiar? Is this a sentiment you share? It’s a common misconception among aspiring business owners and entrepreneurs. Although in theory the statement seems as though it shouldmake sense, experience suggests otherwise. What works now, may not be in your best interests in the future. Before you sign on the dotted line, take into careful consideration what the business arrangement entails both today and in the future. Plenty can change in 5, 10, 15 years and it is critical that your franchisee agreement reflect that. For example: Is the franchisor flexible? Are there unsustainable lifetime royalties in the deal?
February 27, 2014
I’m starting a business. Why should I incorporate?
Since it’s one we hear all the time, we decided to answer this follower’s question from last month. Whether you are a young entrepreneur fresh out of school, an engineer starting a consulting business or a physician about to open the doors to your own practice, this is likely one of many questions on your mind. As you navigate your way through the winding paths of business startup tasks, it is a worthwhile endeavour to understand the difference between a corporation and a sole proprietorship and the implications of each. Separate Entity vs. Same Entity Generally, you have two choices: a sole proprietorship or a corporation. As a sole proprietor, simply put, you are your business whereas a corporation is