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  • What Kind Of Financial Planning Options Would You Follow Now

    What Kind Of Financial Planning Options Would You Follow Now

    It is common practice to consult with a professional when seeking advice on health or legal issues, but this is not necessarily the case when it comes to financial and life insurance questions.

    The professional adviser investigates the many choices for building a strategy that may assist the customer in meeting both short- and long-term financial objectives.

    Prepare for the worst

    You can be prepared for the unexpected, even if it seems a little crazy. A sound financial strategy, which includes life insurance, can provide you with the peace of mind that comes from knowing that you are prepared to deal with any situation.

    Put an end to procrastination

    Now is the best moment to start thinking about your financial future, no matter what your age or economic condition may be. The financial plan you put in place now will serve as the basis for your future financial security and the financial security of your loved ones in the future.

    Plan your route

    As the phrase goes, how can you know where you are going if you don’t know how to get there? Prepare for the unexpected. The first step in financial planning is to have a clear understanding of your present overall financial condition. For Financial planning you can have the perfect choices.

    Create a list and keep it up to date with the latest information

    Our ability to react quickly in an emergency scenario is often hindered owing to a scarcity of information and papers. It is preferable to do it ahead of time, when you have a clear mind and clear thoughts. For this reason, it is important to create a financial plan in the case of an emergency and to keep it up to date on a regular basis. This strategy should take into consideration the following factors:

    Three to six months’ worth of living costs is readily accessible from a separate bank account, which may be used for other purposes.

    A list including all of the relevant contact information and medical information for each member of the family, including blood type, allergies, medicines used, and the doctor’s contact information, is also included.

    A copy of your life insurance policy, as well as any other insurance plans you may have.

    The name, location, and phone number of the school or daycare where the kid is enrolled for each child. A list of any adults (along with their phone numbers) who have been allowed to pick up your kid on your behalf is also required.

    What good is it to know where you’re going if you don’t know where you’re coming from first?

  • CCDC41 Changes Explained: How Contractors Are Affected

    CCDC41 Changes Explained: How Contractors Are Affected

    In the construction industry, understanding and complying with insurance requirements is crucial.The Canadian Construction Documents Committee (CCDC) recently updated CCDC41, the document that outlines essential insurance obligations for contractors. Here’s what you need to know.

    What is CCDC41 and Why is it Important for Contractors?

    CCDC 41, titled ‘Insurance Requirements for Construction,’ is a standard form contract document developed by the Canadian Construction Documents Committee(CCDC). It outlines the mandatory insurance requirements that contractors must meet during construction projects. This document is crucial for contractors as it sets forth the insurance obligations and responsibilities of all parties involved in a project, thereby helping to mitigate risks and ensure adequate coverage.

    What Are the Recent Changes to CCDC41?

    CCDC41(2020) introduced significant updates to the insurance requirements for construction projects. These changes include revised insurance limits, updated definitions, and a clearer delineation of insurance responsibilities.

    The document came into effect in 2020, so contractors should ensure they are familiar with the updated requirements for projects initiated after this date.

    Common Insurance Limits inCCDC41(2020)

    The specific insurance requirement limits outlined in CCDC 41 (2020) can vary depending on the type and size of the construction project, as well as other factors such as contractual agreements and regional regulations.However,CCDC41(2020)generally specifies minimum insurance coverage limits for various types of insurance commonly required in construction projects.

    Commercial General Liability(CGL) Insurance

    $10,000,000 CGL insurance, covering bodily injury, property damage, and personal and advertisinginjuryclaims.UmbrellaorExcessLiabilitypoliciescanbeusedtoincreasethese limits if necessary.

    Automobile Liability Insurance

    $10,000,000 per accident,including bodily injury,death,and property damage,covering all owned or leased vehicles.

    Pollution Liability Insurance

    $5,000,000 pollution liability insurance must be in place to cover claims related to pollution incidents during construction activities.

    How Do the Changes in CCDC41 Impact the Insurance Requirements for Contractors?

    The changes in CCDC41(2020) impact contractors by specifying updated insurance limits and introducing new coverage requirements. Contractors need to adjust their insurance policies to meet the new standards outlined in the document to ensure compliance with project contracts and mitigate potential risks.

    The new version of CCDC41(2020) has updated insurance limits for various types of coverage, including commercial general liability (CGL) insurance, automobile liability insurance, professional liability insurance, and pollution liability insurance. CCDC 41 (2020) includes revised definitions of insurance terms to improve clarity and consistency in the interpretation of insurance requirements. The updated version of CCDC 41 (2020) introduces changes in coverage requirements, such as adding new types of insurance coverage or modifying existing coverage obligations.

    How Should Contractors Adjustv Their Practices to Comply with the Updated CCDC 41 Requirements?

    Contractors should review their insurance policies with their brokers to ensure compliance with the updated CCDC41(2020)v requirements. This might involve adjusting coverage limits,adding new types of insurance, or modifying policy terms. This may involve updating coverage limits,

    adding new types of insurance, or adjusting policy terms to align with the revised document. Contractorsshouldalsocommunicatewiththeirinsuranceproviderstoensuretheyunderstand and comply with the updated requirements.

    What Are the Potential Risks for Contractors if They Fail to Comply with CCDC 41 Changes?

    Contractors who fail to comply with the CCDC41(2020) changes risk breaching their contracts, facing inadequate insurance coverage, increased liability, legal disputes, and damage to their reputation..Non-compliancecouldleadtofinanciallossesandstrainedrelationshipswithclients and subcontractors.

    Contractors can ensure they are up-to-date with CCDC 41 (2020) changes by regularly checking for updates from the CCDC or in dustry associations, consulting legal or industry experts for guidance, reviewing contract documents and insurance requirements for each project, and maintaining open communication with clients, subcontractors, and insurance brokers.

    How Do the CCDC41 Changes Affect Subcontractors and Their Insurance Requirements?

    The changes in CCDC41(2020) significantly impact subcontractors and their insurance requirements in several ways:

    • Increased Insurance Obligations: Increased Insurance Obligations:Subcontractors now face heightened insurance obligations due to the updated CCDC 41 (2020)

    Alignment with Prime Contractor’s Requirements: Subcontractors must ensure that their insurance policies align with the insurance requirements specified by the prime contractor in accordance with CCDC 41 (2020).

    • Coordination with General Contractor or Project Manager: Subcontractors should communicate closely with the prime contractor to understand any changes in insurance requirements resulting from the updated CCDC 41 (2020).
    • Potential Cost Implications: The updated insurance requirements in CCDC 41 (2020) will result in increased insurance costs for subcontractors,particularly if higher coverage limits or additional types of insurance are mandated.

    Contractors can negotiate insurance requirements outlined in CCDC 41 (2020) with their clients to some extent, but negotiations will depend on the specifics of the project and the contractual agreement. Contractors should communicate openly with clients about insurance requirements and seek legal or insurance broker advice to balance the interests of both parties while ensuring adequate protection.

    As a contractor, your commitment to understanding and adhering to the updated CCDC 41 requirements is crucial for protecting your business and ensuring the success of your projects. Don’t leave your compliance to chance. Take the following steps now to safeguard your operations and maintain strong client relationships:

    1. Review and UpdateYourInsurance Policies: Schedule a meeting with your insurance broker to evaluate your current coverage and make necessary adjustments to meet the new CCDC 41 (2020) standards.
    2. Consult with Legal Experts: Reach out to a legal advisor specializing in construction law to ensure that your contracts reflect the updated insurance requirements and protect your interests.
    3. Communicate with Your Team and Subcontractors: Ensure that your entire team, including subcontractors,understands the new requirements and is prepared to comply. Clear communication can prevent costly misunderstandings and delays.
    4. Stay Informed and Proactive: Regularly check for updates from the CCDC and industry associations to stay ahead of any further changes. Continuous education and proactive adjustments will keep your business compliant and competitive.

    Don’t wait for issues to arise before taking action. By proactively aligning your practices with the updated CCDC 41 requirements, you not only protect your business but also build trust with your clients and partners. Start today—review your policies, consult with experts, and ensure your projects are fully compliant.

  • 5 Strategies for Effective Life Insurance Management You Need to Know

    5 Strategies for Effective Life Insurance Management You Need to Know

    Life insurance has to be a part of your financial planning, just like the 90 million American families who’ve already made it a part of theirs. It’s a critical safety net that offers your family much-needed financial safety in case of your untimely death. And since we live in unpredictable times, with the aftermath of the COVID-19 pandemic still hanging over our heads, you cannot deny the importance of life insurance planning.

    However, life insurance management is often an uphill battle for most people, especially without professional guidance. It is only natural to feel overwhelmed when selecting your policy, understanding its terms, or deciding the premium. Don’t worry. At the end of this post, you’ll have a clear idea of how to choose your life insurance policy and what goes into its proper management.

    Let’s get started!

    How to Select the Right Life Insurance Policy

    Term life, whole life, universal, with so many options to choose from, you might feel overwhelmed when deciding which policy fits your requirements and budget. But if you pay attention to a few critical things, your life insurance planning can feel like a breeze.

    Here’s what you’ve got to do:

    Evaluate Your Needs

    It’s not a pleasant topic to discuss, but your life insurance coverage needs to be enough to cover the financial loss your family has to bear after your death. On average, it should be 10 to 15 times your income. But this may vary depending on where you live, how big your family is, and your age. You can use an online calculator to understand how much insurance coverage you require.

    Understand Key Policy Features

    Policy documents are lengthy and full of legal jargon. It’s not everyone’s cup of tea to go comb through these documents word for word. But you should at least check the key features of your policy, like premiums, death benefits, and cash value growth, among other things.

    You might also want to consider a policy’s extra coverage for specific situations, such as accidental death or critical illness. This directly affects your life insurance management.

    Consider a Reputed Local Insurance Company

    When we say local, we mean an insurance agent or office within your driving distance. For example, if you live in the Sunshine State, a local agency offering life insurance services in Florida, particularly in your area, might be a great fit.

    Why? Because:

    • It’s easy to reach your local agent if you have doubts or need to revise your policy.
    • Local experts understand your insurance needs better than online tools.
    • They can help you understand your choices and educate you about life insurance planning.
    • Local consultants often provide other financial services, which simplifies your wealth building.

    Always Compare Policies

    There is no shortage of insurance companies or insurance products in the market. In Florida, for instance, you will come across term, whole, universal, and variable policies, with each option and company offering different benefits (and drawbacks).

    If not understood before signing the document, these terms can become a major headache later. So, always compare the shortlisted policies to ensure you get the best benefits for a reasonable premium.

    5 Proven Strategies for Effective Life Insurance Management

    Selecting the right policy and its effective management are two sides of the same coin. If your policy is not updated regularly or lacks specific riders or added benefits, your family will be hung out to dry.

    Here’s what you should do to avoid this:

    Review and Update Your Policy

    Our lives continue to evolve with time. Maybe you didn’t have kids when you took out your policy, but now you do, or you’ve got a new, high-paying job, and your lifestyle has improved. All these changes do affect your life insurance planning.

    Review your policy at least once a year to ensure it meets your changing requirements. You might need to adjust your coverage or add or remove a rider to meet your requirements. Think it over and make the necessary changes as soon as possible.

    Update Your Beneficiaries When Required

    Another critical factor in effective life insurance management is updating your beneficiaries. This is needed when you go through life-changing events like marriage, divorce, or welcoming a new tiny human into your life. Be sure the benefits go to the right people after you’ve kicked the bucket. This simple step protects your family from financial uncertainty.

    Manage Your Policy Debts

    Most life insurance policies have a cash value component, allowing you to borrow money against it. But know how this affects your policy payout before borrowing the money. If you fail to repay the debt on time, the policy coverage may reduce, or worse still, your policy may lapse, leaving your loved ones unprotected.

    Think About Riders and Additional Benefits

    Riders are optional add-ons that provide extra coverage. The most common riders include accidental death, waiver of premium, and critical illness coverage. However, your insurance provider may offer other unique riders and add more value to our policy. Understanding these riders is a part of your life insurance management. Talk to your insurance company about the riders, how much they cost, and how they can benefit you.

    Consult A Financial Advisor

    You should not take life insurance planning should not lightly since it affects the future of your loved ones. We recommend speaking with a financial advisor to understand your options and choose a policy that protects your legacy. These seasoned experts often provide other financial management solutions, helping you to balance your debts, investments, and insurance more effectively.

    Secure Your Family’s Financial Future Today

    It’s never too late to start planning your financial future, including life insurance coverage. Just make sure to understand the terms, premium costs, riders, and other factors involved in your policy. But more importantly, keep your policy updated to make sure your loved ones receive the financial security they deserve after you die. This should straighten your life insurance management.

  • What is SME IPO? Is investing in it good?

    What is SME IPO? Is investing in it good?

    SME IPO refers to small and medium-sized enterprises’ initial public offering. It was launched in 2012 by the Indian Stock Exchange and SEBI to help small and medium-sized businesses raise funds. The National Stock Exchange (NSE) SME platform is EMERGE, and the Bombay Stock Exchange (BSE) SME platform is BSE SME. You can invest in it using any of the online stock broking platforms. But the question raises what SME IPO is, whether it benefits you, how it’s different from general IPO, and whether it’s safe or not. In this blog, we have talked all about SME IPOs.

    What is an SME IPO?

    SME IPO is a process through which small and medium-sized companies go public to generate funds. A company with a minimum net worth and profit of 5 crores in 2 years out of 3 consecutive years or a minimum net worth and profit of 25 crores in 3 years out of any 5 years is eligible for SME IPO (Small and Medium-sized Enterprises Initial Public offering). Investors, traders and individuals can invest in SME IPO by purchasing equity like they do for a general IPO.

    Difference between SME IPO and Main Board IPO

    SME IPOs and Main Board IPOs allow companies to go public and investors to buy equity in them. Both help the companies in generating funds. However, both of them include specific differences.

    • SME IPO is for companies with a maximum capital of Rs. 25 crore, and the mainboard IPO is for companies with a minimum capital of 60 crore.
    • The companies that get listed for SME IPO can be not well-known. Whereas companies listed in IPOs used to be popular.
    • IPOs launched by large enterprises are more trustworthy than those projected by SMEs.
    • Growth in IPOs can reflect immediately.
    • Gaining profit in SMEs can be a long-term investment.
    • SME shares get traded in lots. Meanwhile, in an IPO, the shares get sold in numbers.

    Advantages of Investing in SME IPO

    1.    High Growth Potential

    Since SMEs are small enterprises, they hold an excellent opportunity to grow and cover the market. With SME IPO, companies get recognised, generate funds and become valuable. SME allows the company to grow. Now that the company grows, the value of your purchase stock grows. In 2023, 26 SME IPOs gave 100% returns after listing.

    2.    Diversification of Your Investment

    With the investment in SME IPOs you can diversify your investment with many companies. With the investment in an SME IPO,  you can  mitigate the stock market risk by diversifying your investment among different companies and industries.

    3.    Multiple Investment Opportunity

    You can find different companies of various industries listed in SME IPOs. It allows you to invest in multiple companies, industries, and potential brands. With an SME IPO, you will have more investment alternatives.

    4.    Support to Business

    With SME IPO, you can offer help to businesses. Investing your money in them can create a positive environment for the companies. However, invest in such SME IPOs where you find potential to grow.

    5.    Competitive rate

    The equity price for SMEs is low when compared to the mainline IPO. It means that you can create capital with lower investment in SME IPO. The companies set the minimum investment amount in the SME IPO. The maximum investment amount in the SME IPO is fixed to Rs. 5 Lakh.

    Disadvantages of Investing in SME IPO

    1.    High Risk

    The investment with SMEs comes with high earning potential. It holds equal risk. There can be chances that the IPO launched by an SME doesn’t work in the market and fails to raise funds, resulting in a loss of your investment. Moreover, SMEs are highly affected by market volatility, making it highly risky to invest.

    2.    Lot’s of research required before investing

    Small and medium enterprises are less known, making them less credible. You must research from scratch to learn about past performance and future business predictions. You must consider products/services, their upcoming trends, target audience and more before making the investment decision.

    3.    Limited disclosure

    Since the company is less known, there can be less information about it. The limited disclosure about SME IPO can impact your investment decision.

    4.    Lack of liquidity

    Liquidity refers to how smoothly you can sell and buy stocks without changing prices. SME IPOs include a lack of liquidity, which means sometimes it can be challenging to sell the stocks when you want to, and this may result in a loss to you.

    Should You Invest in an SME IPO?

    Now that you know the advantages and disadvantages of investing in an SME IPO, you might think about whether or not you should invest in it. It answers that it depends on several factors such as:

    1.    Your risk bearing appetite

    Investing in SME IPO is associated with high risk. You must consider your risk bearing capacity before investing in SME IPOs.

    2.    Potential of the Company

    You can look at which kind of company listed for the SME IPO. Does the company have a futuristic approach? Whether it solves any problem for its end user or not. Decide by collecting information from different sources, research papers, etc., to invest in SMEs’ stocks.

    3.    Finance Management Skills

    If you want to diversify the fund, SME IPO can be a better option. However, to do it effectively,  your finance management skills are crucial.

    Investment with SME IPO allows you to build capital by buying stocks in lots. It will help you grow exponentially if the company performs well in the upcoming future. Moreover, through it, you will positively impact the business environment. Your small investment can be a hope for a company to raise funds and grow.

    How to Invest in SME IPO

    If you’ve decided to invest in SME IPOs, you can follow the below-mentioned s

    1.    Find an Online Trading Platform

    There’re several online trading platforms. You can analyse different platforms and select an online trading platform for your investment based on brokerage charges, authorisation, and convenience.

    2.    Sign in/Sign Up

    Download your preferred stock trading app and sign in using your user Id and password/pin. However, if you’re new to the platform and investing in stocks for the first time, you must sign up.

    3.    Open Demat Account

    Once you sign up, proceed to open your demat account. You’ll need to fill out the Demat account opening form, do the KYC verification and submit certain documents. Some essential documents to open a demat account are:

    • Bank Account & Cancelled Cheque
    • Proof of Address
    • Proof of Identity
    • Pan Card
    • Photograph
    • E-sign
    • IT return or payslip (optional)

    4.    Wait for verification

    Once you create a demat account, you’ll need to wait to get it approved. Verifying the demat account can happen in a few hours to 48 hours.

    5.    Check for SME IPOs

    On the online trading platform, you can check different SME IPOs listed. You can look at the current and upcoming IPOs.

    6.    Research about the listed SME IPOs

    Once you check the SME IPOs. Study about the company, its current status, and future potential. You can also study the closed SME IPOs to identify their risk and profit factors.

    Best Industry for the Investment in SME IPO

    Technology-based Product Manufacturing Company

    If you’re considering investing with SME IPOs, a technology-based product manufacturing company can be the best option. It has been seen that small and medium-sized companies that manufacture technology products close at higher rates than their issue price. Examples are Australian Premium Solar (India) Limited- SME IPO, Akanksha Power and Infrastructure Limited – SME IPO, and Supreme Power Equipment Limited – SME IPO.

    Service-based company

    Another industry that is booming is service-based. They act as a bridge between producers and customers. These companies solve the problem of users, holding a great future. These kinds of company’s SME IPOs also succeed in the market. Examples are Maxposure Limited- SME IPO, Konstelec Engineers Limited – SME IPO, Kay Cee Energy & Infra Limited – SME IPO, Trident Techlabs Limited  – SME IPO etc.

    Ed-tech company

    The field of education is emerging with technology, creating a great opportunity. SMEs launched by ed-tech service companies are also booming, increasing high potential—for example, Addictive Learning Technology Limited (Lawsikho)- SME IPO.

    Healthcare industry

    Healthcare is such an industry that it is an integral part. Companies/organisations associated with this industry have great opportunities, allowing you to invest in SME IPO without worry—for example, Medi Assist Healthcare Services Limited.

    E-commerce Platform

    The way people are shifting to online instant delivery, e-commerce platforms create a huge opportunity. You can consider investing in it. Such an e-commerce platform involved in selling goods and services is Kaushalya Logistics Limited; its SME IPO closed at a higher rate than its issue price.

    Conclusion

    SME IPO is an opportunity for businesses to collect funds. At the same time, it’s an opportunity for investors and traders to diversify their investment in the stock market and expect higher returns with the company’s growth. Investing in an SME can be a good decision if you consider your financial condition and risk-bearing capacity, do proper market research, and select the right company to invest in.

     

     

  • Volunteer Management Software: Tips for Effective Task Management (2024)

    Volunteer Management Software: Tips for Effective Task Management (2024)

    As a non-profit managing multiple different things happening in your organization isn’t easy. Be it launching a new volunteering campaign for your volunteers or just assigning your volunteers their daily tasks. All of these things may seem very easy at first to do but they certainly aren’t. Imagine assigning tasks to thousands of volunteers manually. We understand it’s not just difficult but also very time-consuming. Not just that but what if you made some mistake?

    So, just to avoid such mistakes and to lessen your own workload, as a non-profit you must consider investing in good volunteer management software. With the help of these platforms, you can’t only streamline all your tasks but also improve the productivity of your organization. Not just that but with the help of these platforms you can also perform a volunteer background check on your new volunteers easily to ensure that you’re only letting genuine people in your organization. In this article, we’ll just discuss all the different benefits of using volunteer management software for your organization so that you can make an informed and wise decision to invest in good volunteer management software.

    Tips for Effective Task Management with Volunteer Management Software

    Communication and Coordination

    A volunteer management platform can help you enhance the communication and coordination of your organization among your many different volunteers. As a non-profit organization, it’s really important for you to maintain effective communication with your volunteers, so that they can complete their tasks without any confusion and on time. Not only that, but with the help of volunteer management software you can effectively coordinate multiple different tasks with your volunteers so that they can easily get to know about their roles and responsibilities in that particular task.

    Task Assignment and Scheduling

    Assigning tasks to your volunteers can be a difficult job to do if you do it manually. We understand the struggle to maintain the data of your volunteers manually but if you have to assign them tasks as well manually, then it’s even more of a struggle. But with the help of volunteer management software, you can easily assign tasks to your volunteers as per their skills and expertise. This way you aren’t just giving them some random tasks but giving them the tasks that they would love to do. Besides that, you can also schedule tasks for your volunteers easily so that they can complete them at their own convenience.

    Automated Reminders and Notifications

    One of the main struggles that comes after assigning tasks to your volunteers is reminding or notifying them about the completion of their tasks. If you do all these manually in your organization, then such a small thing as giving reminders to your volunteers can very easily become a big task. As you’d need to invest a lot of time in calling each volunteer one by one to remind them of their tasks. But again, with the help of a volunteer management software, you can easily send reminder notifications to your volunteers. Here, you don’t have to take any action manually but the software on its own would send the automated reminders to all the volunteers.

    Comprehensive Volunteer Profiles

    A volunteer management software can very easily maintain a comprehensive profile of all your volunteers. This isn’t only good for maintaining the data of all your volunteers for future use but also for assigning volunteering tasks to all your volunteers in a much more effective way. Besides all the basic details like the name, age, and gender of your volunteers this software also maintains all the details related to their past volunteering experiences and their skills and expertise as well. And using all such details the software on its own would assign the relevant tasks to your volunteers on the basis of their skills and expertise so that they can do tasks that align with their interests and skill sets.

    Real-Time Reporting and Analytics

    These volunteer platforms can also generate real-time reports for you to understand the success rate of your organization’s events and many other things to judge the productivity of your organization. These platforms can very easily generate real-time reports of all your volunteer campaigns so that you can measure their success rate and impact. Doing so will help you gain more insights into the quality of work your organization does. Apart from that, these platforms can also tell you about the number of hours a volunteer spends working for your organization so that you can reward their efforts accordingly to encourage and motivate them to work harder.

    Final Thoughts

    So, there you have it. The benefits of using volunteer management software for your organization. These software aren’t just good for increasing the productivity of your organization but also for letting you work more effectively and efficiently. Happy volunteering!

     

     

     

  • How to successfully exit your business

    How to successfully exit your business

    Imagine, you have built a successful business over the past 10 to 20 years but when the time comes to retire, you struggle to sell your business. Often business owners fail to plan their exit, which is why statistics show c80% of businesses that go to market fail to sell.

    There are several reasons for these failures including unrealistic expectation of pricing, lack of systems and information, inexperienced management teams and minimal investment in key resources.

    These issues can be resolved if the sellers planned their exit further in advance. It is good practice to start considering your exit plan at least 3-5 years before your desired exit date.

    So, how can you successfully plan your exit?

    Resources and Management

    Most buyers are not looking to ‘buy a job’ but want to invest in an ‘asset’ therefore if as the owner you are still heavily involved in your business and there is minimal cash left after you pay your dividends, then the business is a ‘lifestyle’ rather than an asset.

    If you are planning your exit, then owners should look to invest in a management team and resources that allows the owner to transition from ‘working in to working on the business’, this usually happens in 3 stages:-

    • Outsource activities that are not key to your business such as accounting, HR, IT etc.
    • Hire key management staff that support the owner in leading business strategies.
    • Hire board members or CEO that eventually replace the owner as the key decision maker.

    Forecasts and Planning

    For a successful exit, businesses need a robust financial and business plan. It is useful for these plans to be no shorter than 12 months, with atop level plan for 5 years. The purpose of the plan is to build the financials and cashflow required, measure risk and detail strategies required to grow.

    It is best practice to bring your management team and key employees into the planning process, this is typically known as bottom up budgeting as it will bring more accountability within the culture of the organisation.

    It is common for a business looking to exit, to complete their own acquisitions as it can fast track the exit plan, commonly known as a Buy, build and exit.

     Reporting and Information

    One of the biggest issues found within the due diligence process, is poor information from the sellers. This results in lack of faith from investors, as poor information leads to inaccurate and overstated valuations.

    There is basic information required within an acquisition process including management accounts, KPI’s, sales trends and other key information that supports the business journey but also the valuation of a business.

    Ideally a business will collate financial and non-financial information into a ‘Sellers pack’ which is updated every month. Acquirers have more ‘faith’ in business operations if a seller can produce a ‘professional pack’ with trusted information that can be backed up by systemised reports.

    One of the biggest issues in valuations is sellers relying only on their financial statements produced by their accountants at year end, buyers will want up to date, accurate and real time information, which is not possible if there is poor month on month financials, tidied up once a year for tax purposes.

    Process, systems, and controls

    For a business to run free of its owner, there needs to be good processes and controls. Processes are the steps and rules that employees follow to complete tasks, where controls are built in around those processes to reduce the risk of error or fraud.

    Example

    A business has a sales director who speaks to clients and sends quotes to new customers. The director has autonomy to reduce quotes by 10% but if they want to go above this, they need sign off from the CEO.  In this example the quoting tool is ‘the process’ and the sign off levels are the ‘controls’

    So how do you track that the process is followed? The business would need reporting in place to keep track of leads, quotes and converted sales which should be compared to the ‘budgeted’ sales to keep track of discounts.

    As the owner and founder of Wilkinson Accounting Solutions, I am on a mission to save the world from failed acquisitions and talk regularly about exit planning and acquisition strategies on my podcast The Build and Exit. More informationathttps://wilkinsonaccountingsolutions.co.uk/about-us/