South Cariboo Chamber of Comm-erce (SCCC) members attended a lunch meeting on Jan. 19, hosted by the Business Development Bank of Canada (BDC).
BDC consulting manager Michael Eibl and senior account manager Sean Crouse talked about a variety of points on successful business management.
The bank offers business management consulting services as well as business loans, and put forward an opportunity for holding a Leader’s Round Table program for South Cariboo business owners.
If enough business proprietors sign up, BDC would begin to hold regular sessions spanning three months and cover much of the same material included in the presentation.
One of these topics was how to successfully transition a business when the owners wish to sell or transfer their firms, such as with those planning to retire.
Crouse explained that to retire effectively without negatively impacting the sale or future potential of the business is more challenging in the current economy.
“What the research shows is people who are either looking to retire or want to sell their businesses, or [buyers] who are looking to get a piece of that pie, you have got to be competitive.”
That means being better prepared than the competition, whether presenting a business for sale more attractively or when looking to buy, he said.
Eibl then talked about the critical success factors for managing a business, and explained these include future growth; managing material costs; the overall economy; developing new markets; reducing operating costs; improving labour productivity; and managing energy costs.
Those businesses that close their doors and walk away hurt both the economy and the employees, he noted.
“When you’re talking about business ownership transition and when you’re thinking
about making that leap of faith and selling your business in five years, there are a number of really critical aspects to think about.”
These include maintaining the employees, continuing good cash flow and selling the business for an optimum price, Eibl explained.
A competitive edge is the key because in five or 10 years there are going to be a whole host of businesses for sale by folks who want to retire, he added.
Access to capital, developing business skills and collaboration and networking are all key to small business success, Eibl said, and then gave a “hat’s off” acknowledgement to the SCCC.
“A lively chamber of commerce in the community means a lively, collaborative business community helping each other.”