Business Owners: The importance of teamwork & planning

Today, I would like to share with you, an excellent article from my friend Milan Topolovec, President & CEO of the TKGroup:

What can business owners learn from the Ottawa Senators?

Business owners – no matter the size of the company - face a difficult dilemma: by constantly responding to client needs and the daily issues associated with running a business, they have very little time to actually build their own organizations, putting themselves and their family at risk.

Like the shoemaker's children of yore who often went barefoot while "father" tended to the needs of the villagers, the modern-day business owner's family often does not get the full benefit of his or hers' hard work. Fortunately, there is now a way to have your cake and eat it too. And really isn't that why you work so hard to get ahead? To give your family and yourself the finer things in life?

There are several common mistakes that business owners make that we would never allow our clients to make. These mistakes are costing us time, money and often times, our health. Fortunately, they are easy to fix once you recognize them.

For the next few minutes you are going to appoint yourself to look at your business with the same objectivity you would a new client's. Look at your business as a spectator might watch an Ottawa Senators game, only I want you to look past the players on the ice and instead observe the business machine that makes the Senators' franchise hum.

A successful hockey franchise like the Ottawa Senators relies on more than just the natural talent of its players to make it financially sound. It also depends on an intricate balance involving coaches, contracts and office healthy living to keep the team focused on their quest for the Stanley Cup. I am going to show you how to do the same thing for your business for a fraction of the cost. Ready?...

Coaches and Contracts

Start by asking yourself this simple question - "is my business properly structured to win? Is it ready to take full advantage of the planning opportunities available to capitalize growth and minimize risk?" Well, winning begins with planning and thorough planning really begins when you create a personal team of advisors. You need to draft the following players for your all star line-up: accountant, lawyer, real estate professional, banker, doctor and insurance specialist. I'll tell you what positions each play in a minute, but first let's deal with a myth many business owners have.

Many business owners incorrectly believe that to get experienced and proven specialists is expensive. Forget the fact that it's the best investment you will make in your business, experience need not be costly. How do you find people that can help you? By asking for referrals from successful people you already know and trust and by doing a little research on your own.
Using the hockey analogy, the accountant, lawyer, and real estate professional are forwards helping you establish your dominance on the ice and score goals. On defense is your banker and doctor who keep you physically and fiscally healthy.

Your insurance broker is the goalie – the one player who's on the ice all the time, watching the subtleties of the game guarding your net to keep your assets safe. You need your goalie the most when the game is tied; you're down two players and the puck is in your end. That's when the pressure is on and every move counts. It is up to them to hold the line and keep the bad guys from scoring.

It's the same for your insurance broker. It takes years of practice and skill to ensure your company has the right structure and the correct protection. For example, I am sure you have a shareholder agreement for your company but where did you get it and are you covered if a key player becomes injured and cannot return to work?

A few of the key clauses you need to include are shareholder buyout provision on death, disability and/or retirement. Only a trained professional can tell if your shareholder insurance will cover a shareholder buyout in the case of death, disability or critical illness. Is this risk covered in your company? Also, do you have: Errors in Omissions Insurance, Directors and Officers Liability Insurance, Critical Illness Insurance and Disability Protection and life Insurance?

You need a specialist who is knowledgeable not only about the product, but also who knows how to make the most of the legal, as well as the accounting structures which are best for your situation. You should also look for an individual who represents a number of companies and ask him or her which ones are best suited to your needs.

We have had occasion to assist our clients in the multi-million dollar sale of their company, without penalty, due to proper advanced planning. You should be in a position to reap all the possible benefits available to you while growing your company ... it is also imperative to have an exit strategy in place.

Integrated financial planning takes into account your corporate structure and requires the completion of an insurance audit. It also brings your accountant and your lawyer into the process together.

When was the last time you sat down with your family members to let them know what you are doing in the business? If you're like most people - never. Your family needs to be on familiar terms with your business plans. What would happen to your ideas if you died or became ill? Who would know how to keep the ship sailing through sometimes rough seas? They must be written down.

When was the last time you had all your advisors in one board room taking care of your needs? Again, chances are - never. How can you expect to get the best results when they work in isolation? They need to work as a team.

Our approach is always to work with a client's existing legal and accounting advisors. When needed, we will introduce them to specialists who provide only the services needed to meet their stated objectives.

You should always look to engage specialists, those who are experts in their field. Fortunately, Ottawa has some of the best specialists in Canada, people who are recognized nationally and internationally and if you want the best advice these are the people you engage to work with you. The billable hourly cost will actually decrease as there are not as many conversations, emails or meetings taking place when everyone is on the same page.
Where can you find these exceptional resources? There are many places. TiE Ottawa, Innovations Alliance, Mind Trust and Café are just a few. Identify a group where you will be motivated to attend the regular scheduled meetings.

Your Health

What are your personal needs? Have you ever asked yourself that question?
As business owners we are accustomed to taking care of someone else's needs and often overlook our own. How many times have we said, "This year I will work out on a regular basis?" Well, I must have the most expensive golf membership in the world because I don't take time to go on a regular basis. Yes I admit it. This year I am committed to once a week.

As I mature - or as my kids remind me - get old, I am finding that when I do take time for myself, I am in a better mental state. The question begs to be asked, why do I not take more time for myself? Of course the easy answer is guilt.
As business owners, I think we tend to believe the ideas ingrained in our own psyche – longer hours at work equates to greater success. As successful men and women – fathers and mothers - we owe it to ourselves, our clients, our families and our corporations to take care of our needs for relaxation too.

As business owners we are expected to be all knowing, strong, flexible, caring etc. Who have you got to be there for you when you do not know which way to turn? Having friends who are objective and supportive is essential to sometimes just knowing that you aren't losing your mind.
You may have a mentor who is helping you on your journey. You may want to get an "active" Board of Directors to be the guiding light for you and your company. Maybe you could also tee off next to an Ottawa Senator. After all, by golfing in the summer they keep themselves in great shape and get mentally prepared for the next season. Whatever it takes, do it. You will feel great.