Steve Haarstad, one of our top business growth consultants, recently completed his Certified Exit Planning Advisor (CEPA) certification at the Exit Planning Institute. He’s now prepared to skillfully incorporate succession planning to our strategy consulting services. Steve’s expanded knowledge can help business executives prepare plans that can mean continued success for them and their businesses after they leave their company.
According to the University of Minnesota Extension, 60% of small business owners are baby boomers and during the next 17 years a business owner will turn 65 every 57 seconds. As the Exit Planning Institute suggests, that should put succession planning at the top of their to-do lists. That’s not always the case.
The institute conducted a survey of Twin Cities business owners. Ninety-nine percent of them said having a transition strategy would be a good idea. Yet 79% of those same executives said they didn’t have a transition plan, and 68% said they haven’t done any planning. The institute reported that only 57 percent of the baby boom business owners believe they are ready to retire.
“Exiting a business can be difficult,” Steve said. “Many business owners aren’t thinking long-term about leaving. They wait until they think it’s the right time, and that could be too late for a smooth and profitable transition. They have a lot invested, and they’re working hard to protect that investment. Very few of them are thinking about the return on the investment when they sell or retire.”
“Many don’t even know how much personal wealth is wrapped up in the business or how much money they’ll need to be comfortable,” he said. “Many of those baby boomers are going to want to retire in the next five to 10 years. It’s never too early to start.”
“Having a good exit strategy is good business strategy and good for the business long-term,” says Steve. “I tell business owners that starting early could mean continued success for them and their business.”
Many of Enterprise Minnesota services are relevant in business succession. They include developing clear strategies, and finding the best ways to maintain and grow profits and develop leaders. Steve evaluates a company’s current value, and then works with the owners to maximize the value through the life of the plan. He also works with them on strategies to protect that value against future risk.
“Being purposeful and thoughtful can set you on the best path,” Steve said. “The process is going to require an investment, but it can maximize the return.”
Read more about Steve Haarstad.
To learn more about succession planning, contact us today.
November 10 – State of Manufacturing® survey release event
The State of Manufacturing 2021 will be an excellent opportunity to celebrate Minnesota’s manufacturing industry with hundreds of your fellow manufacturers and all who work in support of the industry. Learn more and register to attend.
November 18 – Creating a Culture of Continuous Improvement
Expert Ally Johnston will show you how small daily improvements can add significant value by compounding over time and how employee engagement is key to CI and overall employee retention. Online via Zoom Learn more and register
December 14 – Strategic Planning for Manufacturers
Strategy and Revenue Growth expert Steve Haarstad will demonstrate ways to approach strategic planning for the short and long term and why strategic planning shouldn’t be solely for the CEO. Online via Zoom Learn more and register
See more upcoming events
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Advanced Manufacturing Minneapolis garners vast industry support
Industry tradeshow November 3-4 is comprised of five co-located events. Advanced Manufacturing Minneapolis offers attendees access to product discovery with suppliers, resources and networking opportunities. October 28, PlasticsToday.com Read more
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MN leaders highlight abundance of opportunities in manufacturing
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