Financial Planning For Canadian Business Owners

In this episode host, Jason Pereira talks with David Prowse of Velorum Business Advisory. Today Jason and David are going to talk about “How to make the most of your business valuation.”

Episode Highlights:

• 1.15: David says that his business is centered around an exit planning business that does a little bit of valuation and corporate financing.
• 1.34: David is a Canadian CPA, most of his early career days revolved around general CA works. Later in 2015, he got involved with corporate finance and valuation works.
• 04.00: David shares examples of Personal, Business, and Financial Readiness.
• 5.15: In-order to plan an exit for a business, it is important to figure out the valuation, says David. Most people overestimate the value of their business so figuring out the potential valuation is extremely important. 
• 06.18: David talks about the tools and diagnostic techniques they use to determine the value of a business. 
• 07.05: Jason talks about personal readiness and the importance of planning about it.
• 08.00: Jason is curious to know from David that “How does he convince or prepare his clients for personal readiness?”
• 08.54: David talks about the approach that he takes for exit planning and implementation. 
• 12.09: Business valuation and readiness is all tied-in, says David
• 13.07: David stresses the importance of holistic exit planning. He says it is crucial to have a proper plan for Personal Readiness, Business Readiness, and Financial Readiness. 
• 15.59: David shares how a value driven assessment can help business owners know the actual value of their businesses. The evaluation also allows business owners to understand what they can do to improve their business performance. 
• 17.17: Once the business assessment is done, it is essential to prioritize and figure out ways to improve the business performance. 
• 17.36: As per David, prioritization of business improvement depends on the owner’s preferences.
• 19.52: When it comes to business readiness, one key factor that one should evaluate is - “Is the owner actively involved in the business?”; the second aspect to that is – “Is there documentation of those processes?”
• 20.32: From an organization perspective, it is essential to figure out “To what degree does the top-down communication and bottom-up communication works?”
• 22.58: “If you really want to grow your business, getting a strong understanding of the metrics is very important”, says David

 3 Key Points:

1. David talks about the importance of introducing holistic business plans for business owners. 
2. David and Jason talk about the importance of Financial Readiness and what is its significance?
3. Jason and David talk about the qualitative and quantitative aspects of what people need to do in order to sell a business.

Tweetable Quotes:

• “Most people overestimate the value of their business so figuring out the potential valuation is extremely important.” - David Prowse
• “If you don’t have a financial planner, go find one; if you do have a planner, then discuss and have a retirement plan in place.” - David Prowse
• “Prioritization of business improvement depends on the owner’s preferences.” - David Prowse
• “If you are not measuring your business matrices, then you are really not accomplishing too much of anything.” - David Prowse

Resources Mentioned

• Facebook – Jason Pereira’s Facebook
• LinkedIn – Jason Pereira’s LinkedIn
• Woodgate.com – Sponsor
• LinkedIn – Jason Pereira’s LinkedIn
• Podcast Editing
• David Prowse: LinkedIn | Website

Transcript