CEPA Exam Study Guide All Correct - Test-Ready Solutions Pack

CEPA Exam Study Guide All Correct - Test-Ready Solutions Pack 2 types of business owners and which one makes the most income - answer - 1) Lifestyle Business Owners and value creators (value creators make the most b/c they are considered best in class Common characteristics of value creators - answer - 1) They do holistic planning 2) Harmonize personal, financial, and biz 3) Personal aspirations and life beyond biz 4) Mitigate risk 5) execute relentlessly well ___ % of value of business tied to ___ assets - answer - 80%/ intangible What is a deliverable? - answer - An outcome produced by an action. Ex) could be a report, meeting, workshop, event 3 Gates of the Value Acceleration Methodology - answer - 1) Discover 2) Prepare 3) Decide 2 Major Deliverables of Gate 1/Discover Gate - answer - 1) Triggering Event 2) Prioritized Action Plan What is the Triggering Event? - answer - An independent personal, financial, and business assessment correlated to the business range of value Why is the Triggering Event a supercharged valuation? - answer - Bc it tells you what business is worth today AND what it's potential BIC value may be Triggering event triggers action ___ % of the time - answer - 70 2 Parts of the Triggering Event deliverable in Gate 1 - answer - 1) Business attractiveness and personal, financial, and business assessment 2) Determination of the present value and potential BIC value of biz What is the profit gap? - answer - Difference between your potential best in class earnings and your current earnings. Measure of how much money you leave on the table each year What is the prioritized action plan? - answer - Reflects the prioritization of personal, business, and finacial value factors to drive improved earnings and business value How is the action plan broken down? - answer - 3-10 year vision of chosen destination, broken down into 1 year goals and 90 day sprints What is done in the prepare gate? - answer - It's all about executing Action Plan relentlessly In prepare gate, ____ is the tool used to execute relentlessly - answer - 90 Day Sprints Definition of 90 Day Sprint - answer - Continual loop of prioritizing, measuring, reconnecting, and recalibrating every 90 days Prepare gate is passed on ___ concurrent paths - answer - 2- personal and personal financial planning Questions to ask every 90 days in the decide gate - answer - 1) Grow or Exit? 2) Am I Ready? 3) Is my business ready? 4) Which exit or hybrid options should I be considering? What are the 4 C's? - answer - 1) Human Capital 2) Customer Capital 3) Structural Capital 4) Social Capital. *Make up the sum of your intangible capital* Percentage of biz that actually sell once made to market - answer - 20-30% Business owners have ___ percent of their assets tied up in biz - answer - 80% __ % of BO indicate they would like to transition in next 10 years - answer - 63% ___ % of BO indicate they would like to transition in next 5 years - answer - 41% Family biz have __ % success rate going to next gen and __ % to 3rd - answer - 30% to 2nd and 12% to 3rd __ % of BO indicate they have done no planning at all - answer - 49% __% of BO indicate they have no written transition plan - answer - 83% ___ % of BO indicate they have no life after business plan - answer - 93% Why don't BO do exit planning? - answer - They think they don't know how and don't have the time ____ combines the plan, concept, effort, and process into a clear, simple strategy to build a business that is transferrable through the 4 C's. Future is addressed by creating value today. - answer - Exit planning 5 Stages of Value Maturity Index - answer - 1)Identify 2)Protect 3)Build 4)Harvest 5)Manage Describe Identify Step - answer - Done in Gate 1, find where your biz benchmarks, have biz valued annually personally and financially Describe Protect Step - answer - Create and implement prioritzed de-risking Action Plans What are the 5 Ds? - answer - 1)Death 2)Disability 3)Divorce