Prompt Payment Legislation - Electrical Contractors Association of ...

jest, and went on to document the strongorganizational structure he and his partnershave created, and the mechanisms in place toprepare the organization for a transition ofownership (whenever it may become necessaryor a reality). But the idea stuck with usand led us into a rather interesting discussionon the apparent lack of urgency among entrepreneursin dealing with this particular topic.Indeed, it seems that many entrepreneursmust believe this (i.e. their immortality) tobe the case —otherwise, there’s no logicalexplanation for their unwillingness to broachthe subject of “what happens after I’m gone?”Over the years, many business owners havesaid to us (in some variation) that their intentionsare to work in the business their entirelives (“They’ll have to carry me out of here ina box,” one such client suggested). Our jobcertainly isn’t to force anyone into retirement,and if a business owner wants to work in thebusiness for the rest of their life, then that’stheir decision. Our experience suggests thatowners with this mentality will invariablyleave an unfortunate legacy behind.A responsible business owner, therefore,recognizes the need to prepare the businessfor the time when the new owner(s) will bein place (whether the business is sold by theowner, transfers to another generation or theownership changes hands after the owner’spassing).We are reminded every day that the populationis aging and that the baby boomers arebeginning to enter retirement age, a trendthat will continue for the next 20 years or so.As a result, it is anticipated that there will bea significant “spike” in the number of availablebusinesses, with, conversely, a decreasingnumber of available or interested buyers.The obvious net result is that we will see abuyer’s market in the coming years with thebusinesses that are best prepared positionedto be the most attractive and the most likelyto receive the highest level of return.Most business owners spend much timeworking to improve their businesses on adaily basis—trying new ideas, changingprocesses and rethinking their approachesin the hopes of giving themselves a leg up oreven the slightest advantage that may leadto continued success or future growth. Mostbusiness owners would jump at the chance tobe ahead of the curve in their industry andpositioned as the leader in any given area.This is your chance, but also your obligation,and there is no better time than today to startthinking and developing your exit plan.In the next few editions of this publication,we’ll share with you some stories, insights andstrategies that will help you start along thepath of developing your ultimate plan for thefuture. Just as no board can pass a resolutionensuring a business owner’s immortality, thereis no “cure-all,” one-stop, answer or solutionon how to best manage the transition process.As we well know, every business has a uniqueset of challenges and conditions within whichit operates. That doesn’t, however, mean thatthere are no plans that can be put in place tobest prepare your business, and you, for whatmay happen next.As we said earlier, business owners are constantlytasked with trying to know what thefuture will hold. While we’ll never really knowwhat the future will bring, as a responsiblebusiness owner, preparing for the multitudeof possibilities is a must, particularly in ourchallenging (and ever-changing) economy.John Geddes is a managing director of EKSITStrategies Inc. He has worked with over 200companies, primarily assisting in the areas ofstrategic and succession planning. John is theauthor of the recently published book Successionand the Family Business – A Road Fullof Potholes or Paved with Gold.In many cases, significant financial or taxissues arise from the result of the businesschanging hands in this manner, with the nextgeneration (often the founder’s children orspouse) left to clean up the mess rather thanfocus on the continued growth and developmentof the business. Beyond growth, thefamily unit’s savings are most often tied upin the business and put into peril if properplanning is not considered.Builders of Custom-Engineered Metal Enclosed Switchgearand Vista Switchgear, S&C Electric Canada can Supply AllYour Medium Voltage Project NeedsCall Richard Farquharson, P.Eng. at 905-409-2259Sadly, no board is capable of appointing an“immortal CEO”—despite the obvious continuityadvantages this would create. So unlessmodern science makes some significant leapsforward in the next few years, more and morebusiness owners are going to find themselvesin need of a plan to manage the transition ofownership or sale of the business.www.sandc.comOntario Electrical Contractor37