Succession Planning for Family-Owned Hospitality Businesses: 5 Questions to Ask Yourself

Baby boomers privately-own more than 12 million businesses in the U.S., with many of the owners approaching their mid-70s, according to California Association of Business Brokers. A 2016 survey of small businesses in the U.S. indicates, 72 percent of small business owners DO NOT have an exit plan from their businesses and of those, 54 percent intend to leave the workforce in 10 years.

Business owners are focused on growing their companies and often forget to think about their exit strategy from their business. Do you know where your family-owned hospitality business is headed? Building a thriving hospitality business takes a lot of hard work and succession planning is vital to ensure the continued evolution, growth and promotion of leaders.

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Benchmarking: Electrical Industry

illuminated light bulb

It is estimated, over 211,000 electrical companies exist across the nation and over 92% of those have less than 10 employees. Although most are small in size, the combined revenue generated by these companies was over $164 billion dollars in 2017. With the low number of employees, along with the minimal property and equipment required to be successful, the industry has seen an increase of companies entering the market.

Good News: Revenue is expected to grow within the industry at roughly 3.5% annually over the next five years. However, with price-sensitive consumers awarding work, often, to the lowest bid, an electrical company’s growth opportunities continue to be tied to their ability to increase margin on jobs by controlling costs.

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Start-up Insights for New Breweries: Q&A session with Able Seedhouse and Brewery

brewery bartender pouring tap beer

Able Seedhouse and Brewery is located in Logan Park, Northeast Minneapolis. They brew a wide range of ales, with a highlight on the grains. They literally, and figuratively, started by planting one seed. That one seed turned into many. They are actively working to grow the seedhouse within their brewery, which includes working with local farmers to grow small grains and malting. 

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5 Common Succession Planning Problems

business planning paperwork

Succession is inevitable in a business. When the time comes to start thinking about retiring and/or transferring ownership, it is essential to understand common issues related to the process. When a closely-held business owner is asked about their succession plan, it is often a topic that receives little thought, due to the amount of time consumed with day-to-day operations. Every business owner has an emotional and financial investment in their company and often times, is reliant on the proceeds from their investment to fund retirement. The earlier an owner can design a succession plan in their career, the smoother it will make the transition and maximize the financial rewards.

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Succession Planning Requires Smart Strategies

Succession planning is important in any business, but it is sometimes overlooked in family-owned operations. This is a big mistake. There are numerous former family-run companies that no longer exist due to poor or no succession plan.

Some studies show that among family businesses, only about 30 percent succeed to the second generation and 10 percent into the third generation.

The plan needs to be well thought out and discussed with everyone affected. Do not just assume a son or daughter will want to carry on the family business. Even if your children say they will take over, they may not have the true desire required to continue a successful operation.

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Smith Schafer Named Top 300 Accounting Firm

Smith Schafer is proud to announce it has been named a Top Accounting Firm in the IPA 300, by INSIDE Public Accounting (IPA) for the third year in a row. We have been ranked no. 204 on the ranking list for 2018. 

IPA 300 firms are ranked by U.S. net revenues and are compiled by analyzing the more than 550 responses received this year for IPA’s Survey and Analysis of Firms. This survey and benchmarking report are well respected throughout the profession for being independent, accurate and confidential.

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Nonprofit Webinar: 2018 Accounting Standard Changes

 

Smith Schafer Audit Manager, Adam Kellerhals, hosted a live webinar where he discussed the liquidity requirement in the new accounting standard as it relates to nonprofit organizations. Click the video above to listen to the recording. 

Email [email protected] to be added to our webinar invite list!

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Valuations for Gift & Estates

Valuations for Gift & Estates title slide

Smith Schafer Principal, John Edson, presented a free educational seminar titled Valuations for Gifts & Estates at the Rochester Golf & Country Club.

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Q & A: Helping Transportation Companies Navigate an Employee Retirement Plan Audit

Audit calculator with reciepts

Does your transportation company’s retirement plan require an audit? An audit is required under federal law to ensure the plan functions, operations and processes are in compliance with established regulations. To help transportation companies streamline their employee retirement plan audit process, we have provided a Q&A summary below to help companies prepare for their employee retirement plan audit.

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10 Reasons for a Business Valuation

Business financials meeting flat lay

Most business owners are reactive when it comes to having their businesses valued. But there are many times it pays to be proactive. Some valuations are necessities, such as for determining the value of the business interest in an estate. Others are obtained for more elective reasons, but are helpful to business owners nevertheless and help business owners with planning strategies. 

It is a good idea to review these common valuation scenarios, so you can identify when it is time to obtain your own valuation. Below are 10 reasons to have your business or a business interest valued.

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