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SuccessionMatching Community Project (SMCP) Application Outline

Overview

On average, a business transition in Canada takes between two and seven years. Since its inception, SuccessionMatching has worked with business owners on their succession plan to meet the needs of transitioning the business internally or to a third party. Education is key to a proper succession plan. Two of the largest hurdles are where to start and how long it will take. Many business owners do not leave enough time and are forced to divest the assets for pennies on the dollar or close the business completely. This will have a huge effect on our Main Streets and should be top of mind for all Economic Development Organizations, Associations, and Chambers.
SuccessionMatching.com has identified the pain points through the business transition process for the three types of succession plans; family, employee share ownership programs and third party sales. Education is key. Over 50% of Canadian businesses do not have a formal or informal business plan. In our experience, this is because business owners do not where to start.

SuccessionMatching Community Project (SMCP) Application Outline

Description

Lack of business succession planning is a leading contributor to poor business retention within community economic development initiatives. Our objective is to assist communities in retaining these valuable community assets and helping to ensure local businesses continue versus shutting down. SuccessionMatching provides a powerful platform that seeks to meet this objective by directly targeting business communities with a three year succession planning program.

Objectives

- Assist business communities with their business transition plans
- Provide the required resources to business owners so they can execute proper family, employee share ownership programs, or third party sales
- Encourage entrepreneurship as an option to youth and engage them to buy businesses in their communities
- Promote mentorship of the next generation business owners
- Reduce the number of businesses that close down because they do not transition

Market audience

- Business owners that are interested in retiring
- Business owners that are not cash flow positive and have decided to sell their business and pay back their creditors
- Business owners looking for work/life balance and are interested in bringing on a partner

Deadlines and Financial Contributions 

Pilot Communities have been selected for 2017. Please check back next year for application dates or email smcp@successionmatching.com to be added to our list of communities that would like to be notified of the next application dates and deadlines. 

Cornerstone Community

Towns, Cities, Regions or whole provinces are encouraged to come together and join the SMCP. These groups can apply at any time of the year and are required to purchase at least one of the following:

1) Workshop - Business Transition and Succession Planning
2) One Speaking Event from SXNM
3) Block of Coupon Codes
4) Sponsored Webinar Series Package

Eligibility Requirements

1) Municipality must be listed on Townfolio.co (Basic Profiles are eligible and free of charge)
2) One or more organizations participating must have at least one staff member that have taken the SEDA Workshop - Business Transition and Succession Planning

Program Guidelines

The SMCP will bring together stakeholders in the community from the private and public, and not for profit sectors. Once the business community is selected, the stakeholders will be brought together to develop an action plan and implementation strategy to actively engage and assist business owners looking to transition their business. Over the course of the next three years, the SMCP will provide a “boots on the ground approach” with seminars, informational resources, one on one assistance and other programming in these communities.

Community Stakeholders

Private: Every business looking to transition should receive advice from a team of succession planning professionals including accountants, financial planners and lawyers. Are there private companies that are interested in getting involved? Potentially presenting at a workshop or offering a luncheon.

Not for profit: Community Futures Saskatchewan, Manitoba, and Northwest Ontario have purchased coupons to give business owners free access to SuccessionMatching.com. These coupons can be utilized in the pilot project for business owners that are interested in finding a third party buyer.
Local Chambers or Associations also have an interest in getting involved. If a large number of their members shut down, it will be difficult to keep the lights on. Does your local Chamber or Association have a room they can donate for seminars? Mailout list or social media they can promote events on?

Public: Many local, provincial, or federal governments have identified succession planning as a major economic issue. Do they have resources on succession planning, staff or funding they can put towards a succession planning project?

Other Stakeholders

SuccessionMatching.com: We will work with the other community stakeholders on formulating a strategy for each community which will include internal resources in the form of staff, informational resources and draw on our Preferred Partnerships to customize the pilot project in each of the four communities. Data will be collected and reported to the participating stakeholders.

Contacts
Please contact dana@successionmatching.com for more details or application form.

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