SWOT Analysis for Effective Transition
- Small Business is the backbone of the Canadian economy.
- The Federal government data shows that small businesses are responsible for 42% of Canada’s private sector gross domestic product and employ more than five million people, 50% of Canada’s private sector labor force.
- By the end of this decade, close to 350,000 business owners will be over the age of 55.
- Fewer than half of small and medium-sized enterprises currently have a transition plan in place.
- The 2008-2009 recession had an impact on transition planning, and almost a quarter of those surveyed suggested they delayed the timing of their exit plan by 1-4 years.
- Often the success of the business is directly related to the person who owns it. Take the entrepreneur out of the business and there may not be value to the firm itself.
- 50% of sales of businesses are triggered by unexpected events like health or economic down turn.
- Being proactive instead of reactive by developing your business bench strength now before it’s too late.
- Start investing in your future by getting the right people in place to continue your business legacy of tomorrow, today.
- Reliance on the human capital of the owner in almost every aspect of the business – is also becoming its primary weakness.
- Adequate transition planning requires time and can often be measured in years, not days or months. Still close to 60% of business owners aged 55 to 64 have yet to start discussing their exit plans with their family or business partners.
- CIBC - Inadequate Business Succession Planning - A Growing Macroeconomic Risk
- HR Reporter – Succession planning – more important than ever
- CFIB – It’s Time To Think About Succession Planning
- BDC – Family Successions: Managing The Emotions
- BDC – The Entrepreneurs Guide