Owner To Owner Podcast

In this episode of the Small Business Banter podcast I'm joined by Louise Broekman, CEO and founder of Advisory Board Center. We cover the importance of strategic decision-making in business, but specifically the role of advisory boards in exit planning.  Key messages for #businessowners #founders #familybusinesses from Louise include the importance for shifting from on-the-run decision-making to a more thoughtful and how Advisory Boards;provide a space for businesses to think and problem-solve over a 90-day periodhelp business owners  make confident decisions that focus on long-term investment and growthprovide benefits including external perspectivesupport strategic decision-makinghelp  navigate the complexities of exit planning"To grow means that the business needs to be different, which means that the way that we make decisions on day-to-day things needs to be different" - Louise BroekmanLouise has a compelling  20+  year journey as a business owner, entrepreneur and advisor. Timestamped summary of this episode:00:01:18 - Background of the Advisory Board Center, Louise explains that the Advisory Board Center is a professional body for the advisory board sector, focused on best practices and ethics. They offer membership and certification for advisory board professionals, and operate in over 25 countries.00:03:35 - What is an advisory board, Louise distinguishes advisory boards from governance boards, explaining that advisory boards are focused on problem solving and thinking, rather than decision making. They provide business owners with a second set of ears and different perspectives to help them make confident decisions.00:08:41 - Types of businesses using advisory boards, Louise discusses the wide range of businesses that use advisory boards, including startups, mid-sized businesses, family businesses, partnerships, and those looking to exit or scale. She emphasizes that the market is growing and that businesses are starting to adopt advisory boards at an earlier stage.00:15:07 - The Importance of Making Decisions, Making decisions on the run can be addictive and fulfilling, but to grow a business, different decisions need to be made. An advisory board can provide the space and time to think through decisions and explore different options, transforming it from a working capital discussion to an investment conversation.00:16:45 - The Addictive Nature of Busyness, The busyness of running a business can feel satisfying, but it's important to focus on the top strategic issues that will truly change the way the business operates and performs. The key is to concentrate on the decisions that will have a significant impact and prioritize them over other tasks.00:18:14 - The Need for Guidance and Confidence, After experiencing a challenging business situation, the guest realized the importance of having good people around her and gaining confidence in her decision-making process. By creating an advisory board, she sought outside perspective and support to make more informed and strategic decisions.00:23:17 - Using Advisory Boards for Exit Planning, Advisory boards can play a crucial role in exit planning, whether it's evaluating the decision to sell, preparing the business for sale, or maximizing the asset value of the business. They can provide external perspective and guidance to help owners make the right choices and achieve successful outcomes.00:26:57 - Exploring Alternative Exit Strategies, Exit planning shouldn't be limited to a binary decision of selling the business. There are various options to consider, such as staged exits.00:30:42 - The Importance of Having a Clear Plan, It is crucial for business owners to have a clear plan and some ideas about what they would do after selling their business. Without a plan, an identity crisis can occur after leaving the business.00:31:24 - Shortcomings of Exit Planning, Exit planning often focuses on financial aspects, but fails to address the question of what the owner wants to do afterwards. It is important for owners to seek advice from others who have been through the experience and explore different options.00:32:10 - Alternatives to Selling, Some business owners may fall back in love with their business after preparing it for sale, leading them to reconsider selling. Other owners may choose to maintain a smaller business or scale back to focus on income rather than revenue.00:33:46 - The Value of Advisory Boards, Advisory boards can bring many advantages, such as a network of contacts, industry experience, and unemotional detachment. They can provide objective frameworks, accountability, and help owners see their business from a buyer's perspective.00:37:21 - The Importance of Outside Counsel, Owners should consider seeking outside counsel to help them navigate the challenges of running a business. It is important to have someone who can hold them accountable, provide objective advice, and help them focus on what really matters. The resources mentioned in this episode are: @Advisory Board Centre  - there you can learn more about their services, how they can help your business and explore the membership model offered by the Advisory Board Centre to become a credentialed advisory board professional and join a global community of like-minded individualsConnect with me here:@michaelkerr @smallbusinessbanter  Thanks for listening.  Visit the Owner To Owner Podcast website to subscribe, listen back, or check out any resources or information mentioned on the show.Search @ownertoownerpodcast on your favourite podcast player to subscribe and listen to the episodes.Reach out to Michael Kerr via the website if you need personal assistance or advice for your small business.michael.kerr@kerrcapital.com.auwww.ownertoownerpodcast.com.au 

@Ed Scott is the founder of @Resolve which is a small medium enterprise marketplace. In other words it's a website where people can search for and browse businesses to buy. The goal of Resolve is to create a single place for supply and demand, and democratizing access to hidden gems that are often overlooked due to lack of available knowledge or resources.Resolve caters for;Businesses with an Enterprise Value of between $1M AUD to $40M AUD, and Urgent business sale campaigns such as recapitalizations and external administrations. Some key takeaways from our discussion;According to MGI Institute, 60-70% of business owners are open to selling if approached properlyWhy business owners should research the selling process by speaking with their accountant,  lawyer or friends & colleagues who have also owned businesses.Ideal timeframes for planning an exit The key steps to prepare a businessThe availability of various financing options to enable small businesses to purchase a businessEd also shares how he manages to personally 'maintain the rage' as the founder of fast growing startup by;drawing inspiration from his business partner, and focussing hard everyday on doing what he knows he'll regret not doing@Michael Kerr @smallbusinessbanter Thanks for listening.  Visit the Owner To Owner Podcast website to subscribe, listen back, or check out any resources or information mentioned on the show.Search @ownertoownerpodcast on your favourite podcast player to subscribe and listen to the episodes.Reach out to Michael Kerr via the website if you need personal assistance or advice for your small business.michael.kerr@kerrcapital.com.auwww.ownertoownerpodcast.com.au 

@bronwynreid  is a Business Owner, Author and Mentor who specialises in helping small businesses connect with bigger players. The benefits for owners are enormous and opportunities plentiful in the current post-covid environment.Her book is titled @SmallCompanyBigBusiness and it focuses on how small businesses can find, win, and retain big customers.In our discussion we talk about the why and how small businesses should engage with larger businesses and government entities.  Bronwyn  covers;why big businesses are increasingly interested in engaging with smaller businesseshow the COVID-19 pandemic brought about changes in the business landscape, including;disruptions in supply chains, and a reevaluation of business practiceshow this has created new opportunities for small businesses to engage with larger entitiestapping into government procurement opportunities and why Governments are showing more interest in working with local and small businessescollaborations and joint ventures , and partnering with complementary businesses or experts in specific areas to access better opportunities and to increase success rates in winning contractsexploring opportunities within their local council as many local governments have websites where they list tender opportunitiesthe databases and resources available for finding government procurement opportunities (refer to @bronwynreid, her website)looking to cooperative and mutual ownership models as a way to support local communities and ensure businesses remain locally operated and ownedthe value of continuous learning, networking, and seeking guidance from mentors and experts to navigate the ever-evolving business landscape@kerrcapital @michaelkerr  Thanks for listening.  Visit the Owner To Owner Podcast website to subscribe, listen back, or check out any resources or information mentioned on the show.Search @ownertoownerpodcast on your favourite podcast player to subscribe and listen to the episodes.Reach out to Michael Kerr via the website if you need personal assistance or advice for your small business.michael.kerr@kerrcapital.com.auwww.ownertoownerpodcast.com.au 

@amybett is a businessowner and entrepreneur. In this episode we discuss the importance of understanding financial health in business and managing cash flow effectively.Amy shares her personal journey as a founder and owner;how  (and the very personal why) she transitioned from working for a corporate events business to starting her own venturethe up's and down's that led to a focus on cashflow Amy introduces the concept of @ProfitFirst - a cash flow method that involves breaking down finances into different categories to gain clarity on expenses, profits, taxes, and more. We cover;how business owners can make informed decisions about their finances and allocate funds more strategicallywhy understanding financial reports is crucial to gain insights into the health of a businesssome of the 'mechanics' of the Profit First approachthe importance of seeking advice and guidance from advisors, coaches, and mentorsher new #startup @melo a non-alcoholic drink made from kava extract@kerrcapital @michaelkerr  Thanks for listening.  Visit the Owner To Owner Podcast website to subscribe, listen back, or check out any resources or information mentioned on the show.Search @ownertoownerpodcast on your favourite podcast player to subscribe and listen to the episodes.Reach out to Michael Kerr via the website if you need personal assistance or advice for your small business.michael.kerr@kerrcapital.com.auwww.ownertoownerpodcast.com.au 

In this episode @SimoneDouglas, multi-business owner based in Adelaide, shares her experience, motivations and 'secret-sauce' for starting and successfully running 5 diverse businesses. Being #seriouslysocial is the connector, as she explains in our discussion.  Simone owns;@digitalmarketingaok@bninorthadelaide@dukeofbrunswick hotel #adelaide @portadmiral hotel #portadelaideOur discussion covers;why #goodteams are really 'the secret'being all in on your #firstbusiness replacing yourself as a business ownerbringing your #onepercent of genius the importance of being human in a digital landscapebuilding human connections and relationships while AI and automation can enhance efficiency, the power of building emotional connections with customers remains essentialthe benefits of #networking with other business owners as a support system and as a way to exchange experiences, challenges, and ideasher sources of inspiration;@patricklencioni     (The Five Dysfunctions of a Team)@chrishelder embracing #seriouslysocial leveraging both digital tools and personal connections for success@kerrcapital Thanks for listening.  Visit the Owner To Owner Podcast website to subscribe, listen back, or check out any resources or information mentioned on the show.Search @ownertoownerpodcast on your favourite podcast player to subscribe and listen to the episodes.Reach out to Michael Kerr via the website if you need personal assistance or advice for your small business.michael.kerr@kerrcapital.com.auwww.ownertoownerpodcast.com.au 

@LachieMcColl  is a #smallbusiness #valuation expert. He fell into the world of business valuations 18 years ago after working but not enjoying time as a qualified accountant.He now works from his hometown of #geelong.A core part of his business  is market research to find relevant data and help better understand what drives business values. Some of the interesting data includes;currently there is around $1.2B (billion) worth of small businesses for sale about half of those had an asking price of less than $200K\of 1.3M (million) businesses in Australia, about 60% have revenue or sales less than $200K paWe also covered;#microbusinesses are going to be valued at some multiple of the earnings or the wage the owner pulls out of ithow small businesses (worth from a few hundred thousand to maybe $5M (million) are val;uedhow to deal with the disconnect between what the #taxreturn shows the business is making vs what the 'real' return by cleansing your numbers seeing what your numbers might look like through the eyes of a potential buyer#multiples - pre-tax and pre-interest multiples normally we find around the one times to five timesWhy it's important to understand value of your business today so because then you've got the opportunity to shape the valuation in that range from one times to five times.The two main drivers for needing a valuation;Reactive - something has happened in your business or your life that's causing you to be either forced to get a valuation or told to get a valuation. And that'll be things like;you're going through a dispute with a business partneryou're getting divorcedyou're losing interest in your business, so disinterest If you like, the three Ds Proactive - thinking about your future. I'm thinking about;maybe exitingmaybe handing my business over to my childrenwanting to offer some equity to staffwhat  my business is worth now? how do I maximize it in two or three or four years time?The rationale for an annual valuation, in the same way as you pay for #financialplanning (at say 1% of the value of your portfolio). www.smevaluations.com.au  Thanks for listening.  Visit the Owner To Owner Podcast website to subscribe, listen back, or check out any resources or information mentioned on the show.Search @ownertoownerpodcast on your favourite podcast player to subscribe and listen to the episodes.Reach out to Michael Kerr via the website if you need personal assistance or advice for your small business.michael.kerr@kerrcapital.com.auwww.ownertoownerpodcast.com.au 

@ZhannaGee is a multi-award winning entrepreneur, business advisor and #founder of one of Australia’s leading health and well-being companies @slimbynature. Zhanna was born in Latvia and pretty much had her future mapped out by the family. Things changed and she and family came to Australia back in 1996. At that time she didn't speak a word of English. In this episode we dig deep into her pathway to successful business owner, calling Australia home and starting a family. We talk about;her deeply personal reason for starting @slimbynaturethe rocky road from #startup to todaypersonal researchdragging suitcases to endless #roadshows in a pre Facebook or Instagram erarealising you can't know everythingtapping into mentors and trusted advisersthe ongoing desire to improve women's lives as  her motivationthe health and wellness industryworking in a heavily regulated industryreflections on how she could have done a million different things that would have been easierher passion to help any woman who needs to have that help with weightwhat she's learned about women along the wayshipping product across the world to a very strong community of women of nearly 8,000 women in a private Facebook communityoutsourcing and building a teamstarting a second business using what you have learnt with the first one - @deliciousdreams #visionboards.@kerrcapital Thanks for listening.  Visit the Owner To Owner Podcast website to subscribe, listen back, or check out any resources or information mentioned on the show.Search @ownertoownerpodcast on your favourite podcast player to subscribe and listen to the episodes.Reach out to Michael Kerr via the website if you need personal assistance or advice for your small business.michael.kerr@kerrcapital.com.auwww.ownertoownerpodcast.com.au 

@Michael Kerr  from @kerrcapital is an experienced adviser to founders and owners of for-profit businesses and Social Enterprises. Continued growth in the burgeoning #socialenterprise sector has and will continue to forge successful new businesses that will be attractive to business buyers. For the #founders  there will be many questions;Can I 'cash in' and sell?Can I sell and pass the business on so that it reaches its full potential?Should I sell?Because I'm a #socialenterprise or #forpurpose business is an exit and #exitplanning any different?In this episode Michael covers; the basics of #exitplanningwhy it's a positive for both #founders and the #nfsector more broadlythe 10 questions founders need to ask themselves for a better outcome  Thanks for listening.  Visit the Owner To Owner Podcast website to subscribe, listen back, or check out any resources or information mentioned on the show.Search @ownertoownerpodcast on your favourite podcast player to subscribe and listen to the episodes.Reach out to Michael Kerr via the website if you need personal assistance or advice for your small business.michael.kerr@kerrcapital.com.auwww.ownertoownerpodcast.com.au 

@DarrenBourke is a #businesscoach and #mentor to #smebusiness #owners.He's worked as a chartered accountant with @Deloitte and @pitcherpartners, had a #HR startup and authored @thefourthmoon.  In this episode we talk about #employeeincentiveschemes, we cover;different kinds of incentive schemes the quantitative and the qualitative aspects of looking to engage, empower, motivate, and most importantly, retain our existing labor, but also to attract new talentsome of the common forms of  pushback and objections, both from employers and employeeswhy your focus needs to be on your brightest, your best and most loyal ongoing team members. the 3 tier hierarchy;#bonuses ( then target bonuses, then kicker bonuses)#profitshareequity or share of the business when and how to introduce them how a bonus scheme is an entree to moving forward with these incentive schemes. employee incentives leading into a #businesssalethe role and importance of non-financial benefits www.darrenkbourke.com/ Thanks for listening.  Visit the Owner To Owner Podcast website to subscribe, listen back, or check out any resources or information mentioned on the show.Search @ownertoownerpodcast on your favourite podcast player to subscribe and listen to the episodes.Reach out to Michael Kerr via the website if you need personal assistance or advice for your small business.michael.kerr@kerrcapital.com.auwww.ownertoownerpodcast.com.au 

@Sri Govindaraju and her husband are co-owners of @Zealandia Honey in New Zealand. Sri recently published an update on #linkedin, a very honest, open and honest and personal post,  about being in #smallbusiness with her husband.It's a ripping and wide ranging conversation about; #familybusinessleaving the security of a #paypacket to into businessmoving to New Zealand from India in 2007 her educational background in #foodscience and #technology upskilling in business communicationher first business (Flavours Authentic Indian Food) - started while she still had her job and her children were still youngfinding strengths she didn't know she had the start of Zealandia Honeythe why for starting - to export #manukahoney to India because India was at that time (and she still thinks) is the diabetic capital of the worldwanting to make difference to people's lives by introducing honey  the #pressurecooker of starting a business entertaining the idea of going back to work last year, because last year (Covid19) was a pretty low pointlistening to the universe's way of saying stick it out #teamwork - understanding that not everyone who's a visionary can do the operation side, and not everyone who's in the operations can be a visionaryhow the ebbs and flow of business impact my children deciding why it's best to never getting into another business with my husband (REMAINING A FAMILY)her lifetime ambition is to be of service to people and create #impact #inspiration from her #dad a warehouse manager at Indian Railways who saw a lot of both misery and happiness coming through that warehouse (caused by financial pressure) that he overcame by creating an innovative financial system  - he touched so many hundreds of people's lives through thatempowerment of women in my community#businessmentorsher lessons for other business founders  Thanks for listening.  Visit the Owner To Owner Podcast website to subscribe, listen back, or check out any resources or information mentioned on the show.Search @ownertoownerpodcast on your favourite podcast player to subscribe and listen to the episodes.Reach out to Michael Kerr via the website if you need personal assistance or advice for your small business.michael.kerr@kerrcapital.com.auwww.ownertoownerpodcast.com.au