Whether it’s a well-loved breakfast diner that feels like the hub of the community or a factory that manufactures safety shoes and work gloves, creating and growing a small business is incredibly rewarding and requires a lot of hard work. After toiling long hours to become successful, most owners want the business to continue thriving long after they step away.

A carefully crafted succession plan is important to any successful small business. It can help you clearly identify your company’s goals, protect the business's legacy, plan for the unexpected, and prepare for the financial security of your family and employees. The planning process can feel overwhelming at first, but carefully considering all aspects of your business is time well spent.

GETTING STARTED

There’s no time like the present. Succession planning can clarify how you visualize your future success, even if you just opened the doors to your business. Planning helps you narrow down your goals and objectives, identify the right person to take over one day and prepare for financial setbacks.

Bob Labrecque, a succession planning consultant with Manulife Securities, says business owners often wait too long to begin the planning process, starting when they’re only three or four years away from retirement. “A good succession plan is a five-to-10-year strategy of building the business, and then transferring ownership while it’s in a growth phase – not in a maturity or a declining phase,” he says. “And you want a team of experts in place to help make this happen. An advisor is a key member of this planning team.”

The first step in developing a business succession plan is to self-reflect and ask yourself some critical questions. Consider the following:

1. When would you like to retire or step back from running the business?
2. What kind of future would you like to see for your business?
3. Do you have a successor in mind with a mentoring plan in place?
4. Are there any weaknesses in your current business operations that must be addressed?
5. What is your plan for handling unexpected events, such as illness, financial difficulties, or the retention of top employees?
6. Do you have a team of financial and legal experts to help you with the planning process?

ESTATE PLANNING AND TAXES

Even though running a successful business can occupy your full attention, looking at the bigger picture and how a business succession plan dovetails into your personal plans is essential. An advisor can help determine a company's financial value and opportunities for growth and also help with retirement and estate planning.

A business owner hoping to step down must plan for adequate retirement income to maintain his or her desired lifestyle, put a savings plan in place to cover future expenses such as a child’s education, and set up life and disability insurance plans so loved ones are well cared for in the event of severe illness or death – all while maximizing tax-planning opportunities.

MANAGING EMOTIONS

As you are getting your succession plans down on paper, don’t discount the emotional impact that this major life event might have on you and the entire organization. Labrecque says leaving can be very difficult and emotional for many business owners.

 “Quite often, for a first-generation business owner, this is their baby, and there can be strong protective feelings that nobody else can do what they do.” 

Owners have some crucial decisions to consider:

• Take an honest look at who can lead the business and compile a short list of candidates
• Create a succession team to help navigate the financial, legal, and human resource aspects of the transition
• Explore new opportunities for the organization to ensure continued strength and growth
• Establish a co-lead to allow the current owner to begin stepping back into a lesser role

If the intent is to transition the business within the family, a specialist called a family facilitator might also be helpful. 

“Family transfers are the most complicated because they involve not only the business but the family dynamics,” says Labrecque. “Families also need to have honest discussions about whether children even want to take over the family business. They may want the money and the lifestyle but do they find the work interesting?”

WINDING DOWN

As a business owner prepares for retirement, there might still be an opportunity to stay involved and active but at a slower pace. A step-down approach is possible, where the ownership is transferred, but the owner stays on in a limited capacity for a set duration to help with the transition. After a lifetime of work, the boss can gradually ease into retirement rather than giving up everything all at once.

Succession planning can be a rewarding process that sets the tone for your business's overall success. For more information about getting started on a succession plan, please contact Wiegers Financial & Benefits to speak with one of our experienced advisors. 

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Neglecting Maintenance:

Failure to perform regular boiler maintenance is a leading cause of boiler problems. Debris, scale, and dirt can accumulate over time, reducing efficiency and potentially causing breakdowns. Make sure you schedule annual maintenance checks to clean and inspect your boiler thoroughly.

Pressure Problems:

Low or high boiler pressure can lead to issues. Low pressure results in insufficient heat production, while high pressure can be dangerous and trigger system shutdown. Check the pressure gauge and keep it within the recommended range, typically around 1 to 1.5 bar, to ensure proper boiler operation.

Thermostat Troubles:

Sometimes, the issue lies with the thermostat rather than the boiler itself. Incorrect thermostat settings can lead to inadequate heating. Make sure your thermostat is programmed to your desired temperature, and consider replacing it if it’s malfunctioning.

Frozen Condensate Pipe:

In freezing weather, the condensate pipe that carries wastewater from the boiler to the drain can freeze and cause a blockage. When this occurs, the boiler may shut down to prevent damage. To fix this, thaw a frozen condensate pipe by pouring warm (not boiling) water over it and insulating it to prevent future freezes.

Faulty Components:

Boilers contain numerous small parts, and a failure in any of them can lead to system malfunctions. Parts like a malfunctioning pump, gas valve, or pressure relief valve can result in a loss of heat or even pose a safety risk.

Regular maintenance, proper pressure monitoring, thermostat adjustments, and insulation, as well as addressing faulty components, are essential for maintaining efficient boiler operation. If you’re uncertain about any of these signs or these issues continue, it’s a good idea to contact a certified technician fin Saskatoon who can assess and repair your boiler, making sure your home stays warm and comfortable during the winter months. Remember that addressing boiler issues promptly not only ensures your comfort but also extends the lifespan of your heating system.

At JOB, we handle the installation, repair, and maintenance of both new and existing commercial and residential boiler systems in Saskatoon, Warman, Martensville and area. The knowledgeable and Trusted Saskatoon team at JOB offer service or replacement of all boilers from Camus and Lochinvar® and are factory trained on Viessmann systems as well.

We show up on time, deliver on budget and we leave the work area cleaner than when we arrived! At JOB we take pride in our plumbing services in this city and surrounding area, so nothing means more to us than testimonials from our clients as their preferred plumber in Saskatoon.

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