Much of a business’s profitability comes from the contributions of its employees. In fact, usually client relationships are with the individual employee rather than with the owner, the brand or the firm. As a consequence, it is important to remember that the business would not be worth the asking price if the staff were not part of the package.

 

But we all know that numbers aren't the whole story. I wanted to follow up with some perspective on the business owners that these facts and figures represent.

I don't know where the following originated. It's been posted many places without an attribution. But it hits home.

When you buy from a small business owner you support local families and local jobs.

When you buy from a small business, you aren't helping a CEO buy a third vacation home. You are helping a little girl get dance lessons, a boy play hockey, a mom put food on the table, a dad pay a mortgage, or a student pay for college. Our customers are our neighbours and our shareholders… they are the ones we strive to make happy.

 

As I've said here before, Canada’s small business owners take the risks and provide the imagination, the capital and the energy that drives the economy, jobs and wealth in Canada.

Last Valentine's, I thanked the spouses who stand alongside or behind us in our businesses.

This year, I'm taking a page from the American Small Business Administration (SBA) and their Top 10 Reasons SBA is Sweet on Small Business.

Here are my top seven statistical reasons to love Canada's small businesses. (Why seven, not 10? We don't collect as much data on them here.)

 

Some things shouldn't be rushed. Time with your children while they are still young… a good meal with friends… a good book.

And for those who are business owners, add "selling your business" to the list.

With all that we try to fit into every day, setting aside the time for the truly important and meaningful activities can be/is difficult. Planning and good intentions go by the wayside. Yet not preparing for the sale of our business could cost us the very lifestyle we have worked so hard to build. Isn't it time you start thinking about the life you want when you leave your business?

A CIBC World Markets' report says that some 310,000 of us plan to transfer control of our companies within the next five years, a staggering number that represents half of all small- and medium-sized businesses in Canada.

 

A business owner must be able to seek out and take advice and keep learning.

Most of us have access to many networking and training options, both in person and online.

But our biggest obstacle is usually us taking the time out to attend. Yet we’re doing ourselves a disservice if we don’t. Maybe we need to turn it round and think of it as putting time in… to the business. It is the business—as well as the individual—that benefits in the end.

The lesson here is to work on yourself and on the business, or, as entrepreneur and motivational speaker Jim Rohn says, “Work harder on yourself than on your business.”

Many small business owners love what they are doing. It’s the fuel that powers them through long days and adversity. It’s why three out of 10 in Canada opened up shop.

But it’s also the kicker that can make it so hard to leave—a milestone that some seven out of 10 of us will be approaching this decade.

When our personal and professional identities are fused together in our business, it can be hard to know what we want out of life once we leave. That’s what I’ve seen firsthand with some business sellers and what I want to highlight in this post.

 

Are you expecting to die with your boots on? Or do you intend to kick off your shoes and seek other surroundings, near or far?

Some eight per cent of us who own small businesses in Canada do not plan to retire at all.*

Others would like to keep a guiding hand in their businesses but clear more time for themselves, shedding the day-to-day weight of operational concerns.

Have you thought about your options? Proper exit planning or business succession planning will help you sort out the implications each has for family, funding and taxes.

The starting point will be your retirement goals and the provisions you need to get there.