BusinessMentoring-Facts

Home

Business Mentoring

_{The Facts}

Some Questions to Owners of Family or Private Businesses:

Is accumulating Personal wealth from your Business a priority?

Having succeeded in getting to where you are today, how do you plan to achieve further growth?

Do you have Budgets and Cashflow Projections in place?

What is your strategy for continuing success?

Are your Policies, Procedures, Quality Assurance and OH&S Standards appropriate to the size of your Business?

Do you have a Business and Strategic Plan in place?

Do you hold Disciplined monthly Meetings with an Agenda, dot point Minutes kept and an ‘Action’ column to ensure the Minutes are an effective Management Tool?

How often do you review cash flows against forecasts, and trading results?

How much is your business worth today?

Are you planning your business exit by sale, MBO or transfer to the next generation?

Statistics from the 2006 RMIT University Family and Private Business Survey* show:

	14% of Owners are over 65 with 60% over 50
	83% do not have a Management Succession Plan
	75% do not have a Future Ownership Plan
	53% will sell – 19% NOW
	66% require Sale of their Business to retire
	54% of CEOs will retire next 5 years – 84% 10 years
	65% have not identified next CEO
	57% say the Next Generation are not interested in the Family Business
	54% of Owners rely on the Business to fund their Retirement
	53% do not have a Business or Strategic Plan
	52% do not have a written Management Structure or Job Descriptions for Key People
	79% do not appraise Family Members performance
	52% do not carry out Performance Appraisals
	83% do not have Training and Education Programs for the Next Generation
	69% do not have similar Programs for Key People
	44% do not have Key Person Insurance for the Owner
	88% do not have Cross Insurance for Business Partners
	60% do not have Insurance for Key Family Members
	89% do not have Insurance for Key Non Family Members
	30% will survive Generation change

*The findings are reproduced with the permission of Professor Kos Smyrnios, author of the survey with his research team.

For Family and Private Business Owners, the stakes are high! Planning for growth and planning for retirement (whether by way of Succession or Sale) requires sound planning NOW.

Failing to plan is - planning to fail!