Business
https://youtu.be/_X2_dLgqJ0E Bob Ward is the President of Wardden LLC, Bob began his business career at a franchised car dealership, overcoming obstacles to learn and earn the required skills to become Controller, General Manager and then, a minority owner of Tacoma Dodge in Washington. A native of Seattle, Bob serves as a financial advisor and consultant to small business owners throughout the United States. He believes that your business should always be ready for expansion or sale, you should get paid for what you built and, when you decide to leave it, your company should continue to prosper. He believes in a Perpetual Business where there is Value, Continuity and Legacy. Look for Bob’s Previous Episode (https://www.wardden.com/#/home). Steve LaFleur, owner of Prescott Import Car Service in Prescott, AZ. Steve has made an agreement with two internal candidates to pass on ownership. Dave Mendez, co-buyer of Prescott Import Car Service and a 10-year employee. Key Talking Points: 85% of all small businesses do not survive the departure of the current owner. They will sell as liquidation or sold to an inside or outside buyer. Only two choices You plan on selling your business on the day you open We are going to leave this planet and we are going to stop working someday. You need to have assets to sustain yourself when you retire.You must plan for it Steve has been in business for 35 yearsHe has included his people in business decisions for a long time That helped prepare them to understand the business better Open your mind to listen to your peers on succession planning. Ask and learn Consider having serious discussions with internal candidates to find their tolerance for becoming a business owner. With every interview, you must put succession or ownership on the table to find out the potential employee’s leaning. Give people the possibility of more than just a weekly paycheck. Steve took a class from Bob in July 2017 on building a ‘Perpetual Business’. The place to start:The realization that you are leavingTragedy may strike A call to action in the event of a tragedyPasswords, Signing Checks You can do all of this to prepare for succession. Discover if there is a great chance to sell to a cash buyer outside the company You must plan Consider allowing an opportunity to the people who have helped make your business great.They must have passion and commitment. You can solve for all other needs, but passion, commitment, and dedication are required. Give your internal team all the tools, mentoring, coaching, learning Decide to get a signed, sealed agreement by a certain date. Your internal candidate can be nervous about becoming an owner and that can be humbling and challenging. In this case, the wives were on board with the transaction. One in four succession plans include two candidates according to Bob’s practice The transaction must feel right or it will fail.The relationship must be strong and there needs to be a strong bond. Internal candidates: Think of them as partners and if you can imagine that, they may be consideredYou will look at your employees differently. Who has the aptitude and passion for being an owner? Essential conversation for every staff member“I am always planning for the continuity of my business. What is most important to your career. Where do you see your future, ultimately?” Owners earn the people they have, and their success. Outside candidates may not necessarily treat your customer the same as you than an internal candidate has understood. Start planning now Find a new employee for a needed position. No matter the position. Put this statement in your ad.‘The possibility of ownership.’ You may attract a candidate who has this goal. Break the ice with your people. Ask. You must discuss with wife, family, and what does life look like after a sale. It takes time to build a transaction. The people are the business. They make money. They are