How to harvest the value in your business AND leave a thriving business for future generations.

Create a business model that turns your company into a valuable asset.

The definition of an asset: property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies.

Research shows that the number of employer businesses with 1-99 employees accounts for 97% of businesses in Canada (source: GOC: Key Small Business Statistics 2021).

And 67.6% of all employees work for small businesses.

As employers and businesses that often bring innovation and social impact through their products and services, what would it look like if more of these companies survived into the next generation? What if many could sustain and continue to bring their innovation, social impact, and dependable products and services to future generations?

Fine, but my business is too small for that…

This is possible for a business that has 1-4+ employees.

It’s possible if your revenues are under $1M.

You can do this in a family owned and run business.

You can do this if you are service based or product based business.

Creating a company that becomes a valuable asset reminds me of gardening.

As you plant your spring garden you know that only certain seeds will survive and fewer will actually thrive. However, if we use the right fertilizer, and the right mix of watering and sunlight for each plant, they have a better chance of thriving to produce fruits, vegetables and beautiful flowers.

Providing the conditions for each unique business to thrive, while keeping the idea of value in mind is key.

There are foundational elements needed for any business to thrive. But the right mix of attention and focus where it’s needed in the business are the added components if you want that same business to thrive into the next generation.

The answer?

Create a business structure that is focussed on value-based growth:

Value based growth is centered around the ideas of sustainability (consistent and/or recurring revenue), reduced reliance on any primary or main customer/consumer, strong internal processes that allows for added capacity and not dependent on any one particular individual (ie. if someone left, you could replace and train relatively easily) and differentiated products/services. There are other factors but this gives you a sense.

Building a business with value in mind isn’t rocket-science, it’s just smart.

IN doing so, you create a business asset that accumulates in value. And, you give yourself the flexibility and freedom to decide if you want to continue to run your company as an asset, create a succession plan or sell off a part or all of your business down the road.

In the meantime, you get to harvest the rewards of running a company that efficiently delivers a differentiated product/service to a loyal customer base while having a supportive and competent team (small or large) that’s able to handle the day-to-day. And, the best part….you get to take vacations.

Until you’re ready to deal with the future and decide the fate of your business, this is what it means to harvest the value now.

When it comes time to pass your business down or sell all or part of it, the path will be clearer and you’ll get to harvest the monetary value you’ve wisely built up. That’s where harvesting the future value comes in.

Yet, for the new owner, the business is a well-oiled machine that can continues to serve it’s clients/consumers, provides employment and represents future growth possibilities.

If you’re wondering how this would be possible for your business, let’s have a conversation.

NOW is YOUR time,

Ariana