On Feb. 15, Community Futures Development Corporation held an in-depth workshop on one of the most important issues that face small business owners today, Succession Planning.
Seven out of 10 small business owners in rural B.C. are aged 55 and up and are facing the problem of how to sell their businesses. Simply passing one's business on to a relative is not an option for most. Only 10 per cent of rural business owners who are planning on retirement can identify a successor who is, in fact, a family member. Given the day-to-day challenges of running a small business, 63 per cent of owners lack a basic business strategy beyond the current year, let alone a viable exit plan.
In the past few months on the Sunshine Coast, several businesses that were for sale simply closed their doors. A suitable buyer -or successor -was not found. There is concern that this trend will continue as business owners' face this issue without a strategy. On the other side of the equation, there is concern that potential business buyers will have neither the expertise nor the access to capital to make a successful purchase.
The intensive six-hour workshop was presented by Leigha Horsfield, business services co-ordinator for Community Futures North Okanagan. Horsfield is an engaging and passionate speaker who has been a succession-planning trainer since 2008.
The workshop covered pertinent issues that need to be addressed by business owners that are nearing retirement age and need to develop a plan in order to maximize the hard work and investment that their businesses represent. The workshop was attended by local business people -some interested in selling in the not to distant future. Some of the topics they learned about were: when to exit their business; who they should select to succeed them; how to value their businesses; which experts can assist in the transition; and what the best practices are and what pitfalls need to be avoided.
The Sunshine Coast Credit Union generously supported the Succession Planning Workshop and local speakers included attorney Lois Potter of Lois Potter Law Corporation and C.A. Robert Flux of The Coast Group.
-Submitted
