Okanagan Panorama

Okanagan Entrepreneurs at Risk

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Risks AheadInteresting article for Okanagan business owners this week courtesy of Stacy Penner at KelownaNowKelownaNow.

She quotes Steve Harvey, of Business Finders Canada, a Kelowna company that helps people buy or sell business and commercial properties as saying that 80 percent of business owners are failing when they go to sell their company.

The article goes on to say … “This is an alarming statistic,” says Steve Harvey, CEO of Business Finders Canada. “I have met far too many people who think they can wake up one morning, decide to sell their business, and go out and do it.”

“Unrealistic valuation and owner's expectations can throttle a potential sale and owners are forced to close their doors,” says Harvey. “It's hardly the exit plan any owner would desire and the impact on the local economy can be substantial.”

I won’t quote the article word for word but it goes on to pose an ominous prediction that in the next ten years, many business owners are in the position of transferring company control. It goes on to say that this will have repercussions to our economy with reduced productivity, job losses, premature sales and increased bankruptcy rates.

This paints a different picture of the rosy one that we get from local politicians on how wonderful Kelowna is doing, see Kelowna: Spin City?

It leaves me wondering as to how this scenario has come to exist. Is this a current phenomena i.e. a sign of the times or has it always been this way but people are starting to notice it now? Are business owners so caught up working in their business that they neglect working on their business, with selling for a profit as being the end goal?

I have seen the odd workshop posted locally on succession planning yet I wonder how many business owners are of the frame of mind to even consider the concept of selling their business. It seems that our current reality for the Okanagan is that many of our small businesses are actually owner-operated jobs. Instead of working for an employer, they are the employer of themselves. They are the business. What is there to sell when the time comes to exit the business? Unless they have mastered the science of cloning themselves, the business ends with their exit.

If a business shuts it doors due to an inability to sell the business, does anyone else lose besides the Owner? Do we the customers lose because we no longer have access to the business’ goods and services? The other side of the coin … and there all seems to be one, does this create a business opportunity for another business to take over the market share of the defunct one? Isn’t that a good thing?

I think that if there is anything that comes out of media articles on how wonderful our local economy is doing or how it isn’t, we need to challenge the assertions that are made. It is far too easy to cherry-pick facts that support an argument and have it come across as gospel. We see the same thing happening in other markets such as the food industry, pharmaceutical/neutraceutical industry and the fad diet one. Some call it pseudo science. Perhaps we need a local task force to take an unbiased look at the state of our local economy. The big challenge would be in getting the key stake-holders to play together nicely in the sandbox.

I hear there is a local Target store for sale. I wonder if Mr & Mrs. Target are disappointed that they were unable to pass their business along to the little Targets. Any guesses as to who will take over their vacancy locally?

Something to think about.

Onwards & Upwards!

Top photo credit via Flick CC One Way Stock.comOne Way Stock.com

Rae Stonehouse

Author Bio:

Rae A. Stonehouse is a Canadian born author & speaker. His professional career as a Registered Nurse working predominantly in psychiatry/mental health, has spanned four decades.

Rae has embraced the principal of CANI (Constant and Never-ending Improvement) as promoted by thought leaders such as Tony Robbins and brings that philosophy to each of his publications and presentations.

Rae has dedicated the latter segment of his journey through life to overcoming his personal inhibitions. As a 20+ year member of Toastmasters International he has systematically built his self-confidence and communicating ability. He is passionate about sharing his lessons with his readers and listeners. His publications thus far are of the self-help, self-improvement genre and systematically offer valuable sage advice on a specific topic.

His writing style can be described as being conversational. As an author Rae strives to have a one-to-one conversation with each of his readers, very much like having your own personal self-development coach. Rae is known for having a wry sense of humour that features in his publications.

 

Author of Self-Help Downloadable E-Books:

Power Networking for Shy PeoplePower Networking for Shy People: Tips & Techniques for Moving from Shy to Sly!

PROtect Yourself!PROtect Yourself! Empowering Tips & Techniques for Personal Safety: A Practical Violence Prevention Manual for Healthcare Workers.

E=Emcee SquaredE=Emcee SquaredTips & Techniques to Becoming a Dynamic Master of Ceremonies.

Power of PromotionPower of Promotion: On-line Marketing for Toastmasters Club Growth

 

Phone Rae 250-451-6564 or info@raestonehouse.com

Rae’s social … are you?

Twitter: http://twitter.com/RaeStonehousehttp://twitter.com/RaeStonehouse

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Copyright 2015 Rae Stonehouse. The above document may be freely copied and distributed as long as the author’s name and contact info remain attached.

 

To learn more about Rae A. Stonehouse, visit the Wonderful World of Rae Stonehouse at http://raestonehouse.com.