Goodbye 2020, Hello 2021! - Wendy Dickinson

Wendy Dickinson - "Catalytic Conversation$"

Introduction
What’s in store for you and your business in the coming years?  2020 was quite the ride!  Jay Cowan of Business Owners Exit Strategies and I take a look at what you can do to prepare for what’s next.

Now you and your company need to get ready for 2021. Scenario planning, contingency budgets, exit strategies, and business continuity planning are tools that allow you, the business owner, to get ahead of whatever might happen next year.  

Where to start?  Desired outcomes.

How does this sound? You will leverage your business to fund your retirements, leave your family financially secure, and create a legacy within the organization committed to serving clients and employees as part of a vibrant community. I think it sounds great. And, doable.

Owners know that the sale of their business, or buying a business, changing up the business model or some other pivot, can be a great way to jumpstart growth, eliminate competition, gain market share, obtain intellectual property or proprietary systems, and feed their SWAN fund. (Sleep well at night fund-thank you, Ebony!)

This type of transformation can create a legacy that will last for generations. In families and business, a successful transition can play a major role in how long each lasts. Plans provide the foundation to transform that vision of the future, to become reality.

Show Objectives - Why Strategy Matters

• Free yourself from the paralysis that can come from fear of the unknown.
• Prepares key players for change.  
• Allows the business to generate revenue in the midst of change.

Key Issues - The Problems That (O)X

1. It’s easier to do the same things in the same way - even when it doesn’t work anymore.
2. Owners don’t always know of tools that oculd save money, time and efficiency.
3. Owners get mired in the trenches of day to day operations, never making time to work on the business, not just in it.
4. Owners get so busy they forget about executing the plan.

What the (O) needs to Know - Pay Attention to Alignment

• Need complete set of data to make informed decisions
• Need to know how much the company is worth.
• Need to know the financials (reporting and projections) - cash on hand, emergency funds, etc.  
• The owner’s own dashboard needs to supply that owner with the information needed to course correct.
• Have a timeline for your exit, the advancement of key people and the cycle of the business. 
• Exiting your business is a process, not a 1 day event.

What the (O) Needs To Do - Aspire, Align, Accomplish

1. Build your relationship with the appropriate advisors: financial planner, accountant, attorney, Board.
2. Determine your desired outcomes for all 5 scenarios: climate events, pandemic, war, economic downturns, sudden exit of key people.  
3. Create a contingency budget for each scenario.
4. Review all of your paperwork: insurance, will, buy sell agreement, partnership agreement, etc.  Make sure it is up to date, reflects the current valuation of the company and covers the necessary scenarios.

Resources:

1. Jay Cowan, Business Owners Exit Strategies, jay@boesva.com.
2. “Disaster Preparation and Recovery For Any Size Business”, by Wendy Dickinson, Ascend Coaching Solutions, 2020.
3. “To Recognize Risks Earlier, Invest in Analytics”, by Cassie Kozyrkov, November-December 2020, HBR.
4. “Future-Proofing your Strategy with Scenario Planning” Audio interview with Peter Scoblic, Episode 751, July 28, 2020.

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