Speaking Tour Day 4: Notes From the Road

We have completed the Western segment of the Distinguished Advisor Workshop (DAW) speaking tour and have met many talented advisors along the way.  As is the case with any session of this nature, the level of value increases when peer learning is part of the process, so your participation is appreciated!

I’ve been sharing thoughts around the topics of business transition and the next generation, as well as business continuity planning.  Some advisors who don’t work in these areas might be asking the question: why should I attend this type of session?  Here are some things to think about:

  • It’s likely that your clients are facing transition related issues, such as business transactions and succession planning.  These areas can require a lot of support to compensate for knowledge gaps, so checking in with clients on a regular basis and getting a sense of what they are up to is an important must for advisors.
  • Although you might not be the one to perform whatever transition related assistance is required, advisors should seek to have a range of skillsets within their professional network, to assist clients when needed.  Advisors that are well connected are in a position to add tremendous value to clients.
  • Those who are not up to date on client needs run the very real risk of being replaced by advisors who do a better job in this regard.  Clients expect more than just completion of the deliverable at hand, and successful advisors know how to ensure that they are providing incremental value.

Advisors can enhance their position by taking the time to understand the issues that their clients are facing, being a supportive, while objective sounding board, and making the right connections when needed.  Raise the likelihood that you are the first call that your clients make, in the comfort that, one way or another, you can help.

Join us at the remaining DAW sessions in Toronto and Ottawa to learn more; you can register here

Speaking Tour Day 3: Notes From the Road

We’ve been out on the Distinguished Advisor Workshop (DAW) speaking tour for a few days now, and have visited Vancouver and Edmonton.  It’s been great to talk to advisors about their own businesses, as well as some of the general situations that arise when working with clients.

I’ve been sharing thoughts around two topic areas: Next Generation Continuity Planning and Building Business Continuity Plans.  Given that so many companies are poised to change hands, now and in the not so distant future, these area critical areas for advisors to understand.  Here are a few thoughts to consider:

  • Transitioning a company from one set of owners to the next (and one set of leaders to the next) is a specialized area; something that most business leaders will encounter only once in their career.  Often times, they lack the knowledge of where to start when considering this important issue.
  • It’s often been said that it’s “lonely at the top”, and this is never more true than when dealing with transition.
  • In the absence of a well developed plan to raise the likelihood of business continuity over the long term, companies face the risk of ceasing to exist; an unfortunate end to what might be a lifetime of work.

Will you be the advisor to answer the call, when a client needs assistance in this area?  Are you ready to answer this important call?  Learn more about our DAW speaking tour here

EVENTS: Speaking Tour (Distinguished Advisor Workshops)

Coming to a city near you!  Join us for the Distinguished Advisor Workshops in Vancouver (May 29th), Edmonton (May 30th), Calgary (May 31st), Winnipeg (June 1st), Toronto (June 5th), and Ottawa (June 6th).

Looking forward to sharing thoughts in the following important areas:

NEXT GENERATION CONTINUITY PLANNING

In this session, you will learn how to prepare your clients who are transitioning their businesses to the next generation of leaders and/or preparing their business for sale. Tax and financial advisors can be of significant help by guiding clients in the direction of formal business continuity planning

Learn how to address key issues your clients should be considering, including:

The transaction “knowledge gap”;

The opportunity to apply innovation to business continuity planning;

How to approach strategic business planning, and the succession transaction itself; and

How to address financial partner considerations.

Things to consider in finalizing the transaction.

The continuity of these companies could depend on your help: and, it’s your opportunity to differentiate your services from others.

BUILDING BUSINESS CONTINUITY PLANS

Every business needs a formal plan throughout its lifecycle, for focused decision making, as well as in preparation for its exit and/or transition.  This session will discuss the sound guidelines that business owners should use to develop such a plan and other value building considerations, including:

Guidelines for developing a well written business continuity plan;

Identifying and articulating your market opportunity;

The relationship between the business model, strategy, and plan;

Key planning components, including products/services, marketing strategy, and operations, and Management;

Guidelines for preparing a financial forecast for three to five years; and

An introduction to the Executive Business Builder Designation Program

Details and registration are located here.

As the lead instructor and author of four certificate courses in the Knowledge Bureau’s Master Financial Advisor (MFA) Designation Program in succession and business planning, and certificate courses in the new Executive Business Builder Designation Program, I look forward to delivering these sessions.  See you on the road!

EVENT: Winnipeg Franchise Expo

Join me at the Winnipeg Franchise Expo on Saturday, March 25th for Don’t Forget the Numbers: What Non-Financial Leaders Need to Know

Many companies are led by people with strong technical or service backgrounds and limited finance knowledge; this can diminish the results that leaders work so hard to generate, such as financing, growth, and profitability.  There are many financial literacy resources available on a personal level; however, the focus on business is really just emerging.  Unlike traditional accounting education that is too complex or difficult to implement, this seminar brings a plain language approach to accounting and financial management.  Focusing on the key areas that leaders need to understand, topics include how accounting “works”, financial statements, improving results, budgeting, forecasting, cash flow, and accounting roles and qualifications.  Session participants will learn:

  • How the accounting function “works”, in simple terms, as well as practical approaches that can be used to improve financial performance
  • Tips for identifying the right team members, by understanding the various roles and qualifications in an accounting department
  • Tips for avoiding the costly mistakes that leaders make, when it comes to seeking financing and capital, due to a lack of financial knowledge.

Details and registration are located here

Getting Started: Preparing for the world of entrepreneurial adventure (Finale)

Published by CPA Canada in CareerVision

Over the course of this series, we’ve considered a number of skill areas that are helpful to companies in the startup stage of development.  Whether they realize it or not (and many will not), startup companies need much more than technical skills and enthusiasm to build a business that will grow and prosper over the long term.  Some of the skill areas that we’ve identified include opportunity-based thinking, risk management, and the ability to handle and overcome rejection.

For those who are keen to find a young venture and start contributing, it often takes much more than skills and enthusiasm (sound familiar?) in order to find the right fit.  Startup companies can flash and burn like a shooting star in the night sky, and it can be difficult to identify which way a situation is trending until you’re on the way down.  Perspective is critical, and in order to ensure that you’re investing your valuable skills into the right situation, it’s important to understand some of the cold realities about start up companies.

  • Most will fail: Bottom line, the vast majority of startup companies won’t survive, ranging from quick failure to becoming stagnant and fading away over time.  Don’t be fooled by those who achieve quick notoriety or attention, as many a startup who graced the pages of magazines or TV screens went on to subsequently fail.
  • They consume without apology: Like a young child that relies on adults to feed, clothe, and keep them out of harm’s way, startup companies are all about consumption.  They can require (or ineffectively use) an abundance of resources, including human, financial, and time.  If you’re not careful, a startup company can consume your time and energy around the clock.
  • They often don’t know what they need: Many entrepreneurs are new to both their venture and running a business and are typically not in a good position to understand what they need in order to move forward. This is why so many advisors are able to earn a living (for those who seek help) and also why so many startup companies fail (for those who don’t).  The category that the startup  you join falls into can impact your future in a big way.
  • The work isn’t glamorous: Building anything is a “hands on”, trial and error, messy business.  Whatever the roles in a particular startup company might be, far more is required in order to keep moving forward.  Recognize that joining a young company means performing lots of less than glamorous tasks, and if you’re not willing to get your hands dirty (literally), you will likely be happier doing something else.
  • Things can change really, really quickly: Young, emerging companies require agility, in order to chase opportunities, stay ahead of market trends, and make modifications in order to get closer to customers.  What the focus is one week can quickly change, requiring the team to quickly adjust, adapt, and move forward.  Surviving in this type of environment requires comfort with constant change, as well as the ability to work within it.
  • It happens in real time: For all the planning that needs to be done in order to develop and move a venture forward, managing the business is live, not a dress rehearsal.  Teams are often small and they rely on individuals to have the ability to determine what is required and take action; there are no layers of checks and balances here.  Although this might sound exhilarating to some, the reality is that startup companies face and endure risk every single day.

If this doesn’t sound like an environment for the faint of heart, that’s because it isn’t.   Having said that, the rewards are many for those who are up for the task.  Like the childhood fairy tale, you will likely have to kiss a lot of frogs until you find a prince (or princess!); that right startup opportunity.  If you recognize that this is what’s required in order to get started, the focus can be on the journey to find “the one”, as opposed to being on the setbacks that emerge along the way.

EVENT: The Canadian Golf Course Management Conference

Join me at The Canadian Golf Course Management Conference February 27th to March 3rd, 2017 in Victoria, BC, hosted by the Canadian Golf Superintendents Association.  I am one of the educational speakers and will be presenting Green is the New Black: Better Budgeting and Financial Outcomes

Many organizations have people with strong technical or service backgrounds, but limited finance knowledge.  This can present challenges, when finance related tasks that are part of managing any organization, such as budgeting, monitoring, and improving financial performance, are undertaken.  Leaders and their teams have an opportunity to increase their financial knowledge to make their work easier and improve results, for the benefit of all involved.

This session will provide a plain language understanding of how the budgeting, forecasting, and financial analysis processes “work”, which can then be utilized to improve performance.  Having this skillset can set individuals apart from their peer group, in terms of both ability and career advancement.

Details about the conference and how to register are located here  See you at The Canadian!

Blue Chip Tip: Open Your Mind

As a business advisor and speaker, I meet lots of people.  Many of these are leaders; of companies, organizations, and other groups.  One of the first things that I notice about people is their receptiveness to two things: learning opportunities and good advice.  I’ve found through experience that the most effective leaders are receptive to both of these things.  Why is this the case?

Simply put, smart leaders:

  • See opportunity everywhere.  There is a way to get success in every situation, you just have to find it.  Sometimes, the answer is relatively easy, while other scenarios require more thought and imagination.  Opening your mind to the ideas of others or new ways of doing things is essential for progress.
  • Are not afraid to say “I don’t know”.  Anyone who gives the impression of knowing everything lacks credibility and is easily detected from others.  Recognizing when knowledge is needed is the impetus to learning, and being able to say “I don’t know” is a part of moving forward, turning vulnerability into productive action.
  • Recognize that every situation is a learning one.  Leaders who cast off interactions as irrelevant or beneath them aren’t benefiting from the powerful mindset that has the ability to learn at any time.  This approach recognizes that lessons could be modified to apply to a particular situation or passed along to team members who could benefit.  An open mind looks for ways to make knowledge useful, not the opposite.
  • Are not threatened by successful people.  Talented individuals bring strategies and knowledge that can accelerate progress and benefit others.  Being in the presence of accomplished people is an opportunity, not a threat, and smart leaders would never pass up a chance to learn from this type of experience.
  • See what hasn’t yet been achieved.  Leaders who rest on their laurels or think they have every base covered don’t see what is left to be done.  Taking this approach can be dangerous for an organization, resulting in a blindspot to challenges that exist, falling into complacency, or being surpassed by those that are willing to put in the effort.  An open mind seeks out the strategies and tools to climb the mountain that is on the path ahead, as opposed to ignoring it.

If you’re in a leadership position, or aspiring to get there, how open is your mind?  Are you learning everything that you can or falling into the trap of not being open to opportunity?  Smart leaders know there is only one answer.  Do you?

No Plan for a Succession Plan? 5 Practical tools to get your business on the road to succession planning

thinkstockphotos-186131464

Published by Divestopedia

Every day, business leaders who have been at the helm of their company for many years have fleeting thoughts about what the future might hold.  How long do I want continue to work?  Should I sell my business?  Who could manage my business?  Is it time to make a move?   Perhaps the biggest question may be this: how do I even get started with addressing these questions?

It’s not uncommon for business leaders to meet with their advisors from time to time; to develop their personal post-sale financial plan, establish family trusts, or work through tax planning strategies.  Although all of these are necessary and important tasks, there is often one very important component missing: how to bridge the gap between a post-sale retirement plan and the current state of a company.  In other words, business leaders might be good at planning for life after selling their business, but are not so good at undertaking the succession planning process.   Why is this the case?

One reason could be so simple that it isn’t fully appreciated: many businesses don’t do a very good job of planning, period.  Annual budgets: we don’t need that.  Business planning: too much trouble.  Sales planning: all sales budgets are too inflated to be useful, right?  Technology planning: we just buy the new stuff every few years.  It’s no wonder the succession planning process never gets off the ground.

Here’s the problem with businesses that don’t plan: since planning is a process that is developed through practicing it, these companies don’t have the opportunity to generate competency in this important area.  A disciplined planning process, starting with shorter term and more straightforward plans, such as an annual budget, can help staff members develop the competency to approach more complex initiatives, such as business and succession planning.  What’s more, the corporate history and financial results that are compiled during the process represent an information base that is integral to succession planning.

So, in the spirit of walking before you can run, here are 5 ways to get the planning process started in your company today:

  • Get the right assistance—as with any new task, it can be much easier to design a process and overcome roadblocks by engaging the right advisory expertise. Business advisors that have helped companies work through the annual budgeting or business planning process can provide valuable insight into establishing an appropriate approach and avoiding common pitfalls.  This course of action typically brings far more value to a business than its actual cost, in terms of time savings and identifying best practices for use over the long term.
  • Develop standardized documents—as with any key process, taking the time to develop templates and documents that can be used repeatedly is a much better approach than starting from scratch every time. A standardized budget template, including information to be collected, supporting calculations, assumptions, and financial statements in the proper format can greatly expedite the process and help users become more productive when undertaking a new initiative.
  • Assign roles and responsibilities—the planning process should be the responsibility of all key management team members within a company and not just a task relegated to a particular department. Ensuring that roles are clearly defined and that a number of people are responsible for providing information to be included in the budget, for example, has benefits of at least threefold: better information, planning training across the organization, and enhanced “buy in” of the result.
  • Set (and adhere to) timelines—like any other initiative, the planning process requires formal deadlines that are not simply kicked down the road if they are not met. Planning can sometimes take a backseat to other activities that are considered to be more relevant or immediate, and maintaining this type of attitude will not enable a business to develop the competency that is required to support more complex initiatives, such as succession planning.
  • Keep planning relevant—one of the fundamental mistakes that companies make is failing to keep the planning process top-of-mind, resulting in budgets and other plans becoming quickly irrelevant as soon as they have been developed. It’s critical to ensure that actual results are compared to plan consistently throughout the year (monthly is ideal) and variances investigated and resolved.  It’s no wonder that companies that fail to do this find little value in the planning process.  Even more, striving to meet or beat the plan is the real challenge, so don’t miss out on this valuable opportunity to enhance corporate performance.

Although this might seem like a lot of work, think of it as an investment.  The key is to start today, take a gradual approach, and build planning into your regular business routine.  Doing so will get you one step closer to starting the succession planning process, as well as actually implementing your post-sale financial plan.

Getting Started: Preparing for the world of entrepreneurial adventure (Say Yes!)

Ice splashing in cup of water

Published by CPA Canada in CareerVision

It’s been said that some people see the glass as half empty, while others see it as half full.  Some people don’t even see the glass, much less believe that it actually exists!  Related to this idea are people in the business world who assume the role of naysayer; nothing is good enough, no idea will work, the road ahead is a minefield of challenges and despair.  This is perspective that the last thing that a startup business (or any company, for that matter) needs.

People who hold this “no glass” perspective are focused more on why things won’t work instead of why they will.  While it’s true that startup companies, rich with new ideas and ways of doing things, might face more challenges than the average business, it doesn’t mean that that success can’t happen.  It can, does, and there are startup companies out there who find success every single day.  The key is bringing the right perspective to “get to yes”, and in doing so, make the world your oyster.  Sounds a lot more interesting than doom and gloom, right?

Why it Matters

Since there is no shortage of people who can tell you why things won’t work, those who see otherwise are of real value.  What’s more, people who can find practical ways to advance an initiative or resolve a problem are extremely valuable.  Any seasoned executive, who’s been there and done that, recognizes just how true this “getting to yes” skill set is.

Think about the last time you were in a situation where good, or at least, interesting ideas were put on the table, only to be quickly shut down by others.  What could have been the outcome if even one of those ideas had been further investigated to find a workable solution?  Even more compelling is a situation where you see a competitor move forward with an idea that you had considered, but didn’t invest the time to make something of it.  Your competitor ended up with money in the bank, while all you were left with was a missed opportunity.

Get Started

Startup companies need people who can apply creativity, ingenuity, and a positive attitude to make things happen.  Seeing the glass as excitingly half full takes practice, something that can change your mindset over time.  Getting started is as easy as adding these approaches to your to do list:

  • Let every new idea have a life: Make it an unspoken rule that any idea that can be clearly articulated has a life; even 10 minutes of time will do.  Talk about it, consider who could utilize the outcome, what success would look like.  Keep track of the concept, so that you can rank it in priority in rational terms, as compared to other things that could be pursued.  If you can’t make this change in your current workplace, try doing so on a personal level.
  • Practice seeing the other side: Every good debater knows that there is more than one side to any situation, and solely focusing on the position of personal choice won’t advance the argument.  Have an opinion, but take the time to thoroughly understand alternative viewpoints, as this can be valuable to finding solutions to move forward.
  • Take on a project: In situations where others dump an idea, consider exploring it a bit further on your own.  You might be surprised what you find, resulting in the opportunity to take a more fully developed concept forward at a later date.  Don’t be surprised if others are impressed by what you’ve been able to achieve.
  • Learn how others get it done: Successful entrepreneurs and executives are skilled in finding ways to get things done, as they understand how valuable it is to be able to do so. Work closely with them to learn what they know; it will be some of the best experience you ever receive.

In a world that so many see as stacked against them, you can set yourself apart by shedding light where they see nothing but grey.  Even better, once you have some examples of initiatives that have been successfully advanced, despite the odds, others will begin to take notice.  “Yes” is the word, indeed.

Getting Started: Preparing for the world of entrepreneurial adventure (Opportunity-Based Thinking)

ThinkstockPhotos-82186105

Published by CPA Canada in CareerVision

One of the fundamental ways that a startup company can find success is by focusing on opportunities.  This could include new ways of doing things, a better solution, or markets where demand exceeds supply, to name a few.  Being successful in this regard requires a special perspective, one that understands customer needs and wants today, and also in the future.  It requires the ability to look beyond the company at hand and pay greater attention to the marketplace, outside your window.

Corporate jobs are often more about focusing on what’s in front of you, ranging from tasks that relate to the past (think audits and tax returns) or immediate future.  Although you might look forward from time to time, as in the case of budgeting, forecasting, or planning initiatives, sitting back and considering what the future might look like and the opportunities that could be created isn’t typically in the mix.  This is a much different range of view and represents a successful entrepreneur’s golden time.

Why it Matters

You might have been asked at some point in your life to “read between the lines” or observe “the negative space”.  Both of these concepts require a person to see what isn’t obvious at first blush, and some people find it quite difficult.  It requires looking past what’s in front of you and connecting the dots to arrive at what could be a very different answer or idea.  Apply this concept to a startup company (or any business looking to expand its horizons, for that matter), and you will begin to understand what opportunity-based thinking is all about.

Businesses need people who can bring this important perspective, in order to be successful over the long term, as many simply do not have this ability.  Missing opportunities in the marketplace has led to the failure of many companies, as well as career setbacks for a host of business leaders, entrepreneurs, and senior team members.  Prepare in advance by learning how to make the marketplace your new BFF, providing access to the powerful opportunities that await!

Get Started

In a world of glancing in the rear view mirror, you can begin to practice the key skill of looking forward in advance of when it’s actually needed; here’s how:

  • Take on forward looking projects: Bring a new approach to organizing your workload, by separating tasks or projects that require a past or present perspective, as compared to those that look forward.  You will likely find that you have far more work that involves looking backwards or at what’s in front of you, so seek out projects that look ahead to balance the scale.  Projects that involve budgeting, forecasting, and planning can be a good place to start.
  • Trend is your friend: Taking on tasks that involve research or an external focus will help you to understand what drives markets, key trends, and where the opportunities are.  Once you spend some time doing this type of work, it will become obvious just how different the perspective is.
  • Look outside of your own organization: Challenge yourself to spend a portion of every day thinking about what goes on outside of the four walls of your organization, such as with customers, competitors, and industry/market developments.  Start with 20% of your time and progress upwards from there to develop a meaningful external perspective (and, no, 50% is not too high!).
  • Check in on a regular basis: It might be relatively easy to make some changes in routine for a short period of time, but seeing opportunities that will propel a company forward only starts to happen after you’ve developed the necessary skills to do so. Whatever you call it; a mind shift, a fresh perspective, or creative visioning, it won’t happen unless you “check in” with yourself periodically to ensure that you haven’t fallen back into a focus characterized by short term, internal matters.  Change your perspective for good.

The ability to look forward in advance of when it’s needed spells opportunity, no matter how you slice it.  What’s more, it can lead to opportunities for you to play a key role in the startup companies that need this perspective more than either of you know.

Page 1 of 512345