Linking the business’ incentive systems with value management objectives can align management and staff with an owner’s objectives.
Information reporting on key performance indicators can also be tailored to target meaningful value management objectives.
Step 6: Protect The Value That Has Been Created
Business owners can protect the value of their business by upgrading their enterprise risk management strategies. Legal, insurance, human resource, accounting/taxation and industry-specific advisors can assist in reviewing risks and providing risk management options.
Part of protecting a business’ value lies in protecting the business during transition or disruptive periods. Business contingency planning can help ensure operations run smoothly even if something were to happen to key members of the leadership team. Such plans outline corporate governance responsibilities and guidance on key issues management could face.
Step 7: Don’t Go It Alone
A team of trusted advisors can help business owners navigate the risks and plan for success. It is up to the individual owners to identify those who can work together to both plan and execute effective strategies. That said, having one key individual to assist ownership in the capacity of quarterback or personal CFO can help ensure that planning and execution stay on track.
A well-devised and executed seven-step plan can be the difference between whether business owners can realize their goals within their time frame, or miss their window of opportunity altogether.
Bob Gellman is a managing director in the San Diego Office of CBIZ MHM LLC. He has more than 30 years of experience proving tax and advisory services to high-net-worth individuals and privately held companies. He is the author of Seven Keys to Unlocking the Door to Your Dreams: Exit Strategies for Business Owners.