Posts tagged with: reinvention
It’s devastating. Ninety-five percent of all businesses never achieve their goals for the business and beyond, not to mention the long-term financial expectations for their families. This 95% statistic is widely accepted as an unchangeable fact and “the risk of doing business.”
I can’t understand why it is still the accepted norm. Just like you confront and address every other risk you face in business, why not illuminate this gap, address it and fix it. I want to help you minimize the risk and overcome this statistical barrier to your success, to fulfill your dreams.
The core causes of this problem have been around since you launched your business. The solutions aren’t easy but they are so inexpensive that you can afford to implement every one and still stay within your budget. The key is, that we must reveals the flaws of businesses today and owners’ biggest self-imposed barriers.
The solution I present is a system that builds a strong foundation for your business, whether:
- You are just starting out, or you’ve been in business a while
- You have a team or no team
- You have revenues less than $100K or more than $10M
- You are on a fast-track to be acquired or want to cash out to pursue your reinvention
When you systematize your entire enterprise for long-term results, it will transform your business and your life. You will gain time, control, freedom and flexibility all while the business prospers, grows and breaks through to achieve new heights of success you didn’t dare dream of – until now. Everything you do to accelerate growth and maximize value makes the business more buyer ready and buyer attractive.
If you are in business delivering product, content or services, then you have a few options to grow your business exponentially. Simplistically, your choices are to:
- increase the number of clients
- increase the volume you sell/client
- increase prices
- decrease costs
- or a combination of these four
When you take action to build a sale-able business, you join the 5% who successfully complete the transaction and transition to their reinvention.
Virtual Partner – Exit Strategist
When you are ready to ask for exit planning help – how to get out, where do you turn for help? You need to know if they are dedicated exit strategists or is their primary business in a related field or expertise? Here are five questions to ask potential advisors to determine if they will focus on your best interests.
1. What is your specialty? What is your core business?
You want an exit strategist whose focus is exclusively on your optimal exit, who is not distracted by other disciplines.
2. How will you charge me for exit planning services pre and post transaction?
You want to know you are being charged for exit planning expertise and exit planning time, not attorney time to do exit planning. You need an exit strategist on board, engaged in your situation years before you need your attorneys, accountants, and wealth and insurance advisors.
3. How engaged will you be in my operational implementation and transition up to the transaction?
Leading up to the transaction, licensed advisors will be focused on the expertise they bring to the table. Their availability will be limited to help you with operational decisions and issues leading up to the transaction. After the transaction, you will need your exit strategist engaged to ensure your total integration into your reinvention lifestyle, but after the transaction, licensed expert advisors will move on to the next transaction. How much will they/can they be there for you?
You want an exit strategist who will be fully engaged in operational implementation, growth and optimization strategies, and your own transformation from operational president/owner to the strategic CEO of a stronger more profitable enterprise, not just the 6-month end game.
4. Will you help me assess exit options and timing/tax/liquidity impact of each?
You need an exit strategist to help facilitate discussions with all your exit advisors to integrate their recommendations and tradeoffs for each exit option you are considering. Any of your transaction experts who stay focused in their own silo of expertise cannot provide the wider perspective you need to make the best decisions.
5. What will you do to assist me in determining my reinvention plan and my goals and lifestyle beyond the business exit?
All the licensed transaction experts you engage for their expertise can ask you all the right questions, but they expect you to prepare and deliver the answers on your own. You need an exit strategist who will assist you in developing your reinvention plan and lifestyle beyond the exit, test it, refine it and lay out a blueprint to implement it from Day 1 of your reinvention.
Whether you engage the Exit This Way Out Group as your virtual partner or not, you need to use the materials, checklists, tables and guidelines provided here on the site and in our home-study course to make your business a wealth producing machine that will provide the financial independence you dream of to fund your reinvention.
Titles are important to understand the specialties, experience, and expertise advisors bring to your exit team. For exit planning, the attorneys, accountants, valuation experts, growth experts, wealth advisors on your team must be specialists in helping you cash out to achieve your goals, your dreams.
You can hire coaches to ask good questions and keep you accountable for the work to be done to plan and execute on your exit strategy.
You can hire consultants who can do many things for you: market research, competitive research, improve your sales results or reduce expenses to increase your profit margins.
It is essential to surround yourself with a team of experts who can collaborate (not compete with each other) to fulfill your goals and objectives on your terms, on your timeline.
That’s where I come in as a strategist. Sure, I bring coaching and consulting to the table, but my function extends much farther into your exit team, your organization and your reinvention.
I’m a specialist in engineering how you get the wealth out of your business. I’m an expert on preparing you, your company and your team for your exit to achieve your dreams. I’ve been hired by corporate leaders, fast-track entrepreneurs, royalty, family businesses, and multi-millionaires, among others.
You need your CFO, M&A attorney, tax attorney, insurance broker, wealth advisor, business broker/M&A/Investment Banker. You need all of them to get the deal that best serves all your goals for the team, your company and your future reinvention. They are transaction driven and work for closure. That’s their primary focus.
In contrast, my role as an exit strategist is to prepare you the owner, your business and your team for the transaction and transition in the years leading up to that milestone event, and developing your reinvention plan so it unfolds just as smoothly after the transaction event itself.
Titles aren’t everything. The licensed experts on your exit team don’t get paid to help you maximize the value of your business before the transaction. They don’t get into the business fundamentals, the growth strategies, cleaning up the financials, contingency planning, protecting IP, employee contracts to tie the team to the company beyond your departure, succession planning, protecting and preserving your wealth goals, minimizing both your tax concerns and the company’s tax impact.
They are your trusted advisors. They will advise you to do all of the above. And for a fee, they’ll work with you on these things outside their experience and expertise. But it’s not their bailiwick. The data proves that this approach is failing you, the CEO. Only a dismal 10% of all sellers (business owner/CEOs like you) EVER close the deal, and complete the transaction in this model.
It takes 2-5 years to prepare you, your team and your business to transition to what’s next, profitably. That’s why This Way Out Group exists. This is the support, integration, and facilitation that an exit strategist from This Way Out Group provides.
If you have any questions relating to exiting your business, please email me. I’d be happy to assist in whatever way I can.
Most entrepreneurs know they can make a good income running their business day-to-day, but SOME OWNERS INSTINCTIVELY know that their real payday will come only when they exit the business, most likely by selling the business.
That’s when they can access
multiple millions of dollars from their business.
- Is this something you have thought about?
- Do you want your business to produce a multi-million dollar windfall?
- Do you think it’s possible for your business to fund a multi-million dollar reinvention for you?
- Do you know how much your business is worth right now?
95% of all business owners do not have an exit plan – because most owners don’t know what their business is worth. As a result, most owners are walking away with only 50-70% of what their business is worth.
Sadly, most owners and entrepreneurs fail to achieve their dream and get out the way they want to just because of a lack of planning, and forethought. It’s totally preventable.
Those CEOs who invest the time, effort and expertise to plan their exit and make their business appealing to buyers are among the 5% who achieve their dream and the lifestyle it offers.
To discuss how you can be among the 5%, call or email me. Let’s explore strategies to identify what will work best for you.
If you cannot execute a plan now to achieve these objectives, you can’t afford to wait. Call today.
Think of the most successful business leaders you know. They are never idle. They don’t stand still. They are always moving forward. They don’t look for problems and opportunities just from one angle. They keep moving and view their business from all directions. They see the shadows and explore what’s hidden in those shadows. To accelerate growth and maximize value, they seek out and find new solutions and get meaningful, life-changing results that their competition never will. In every decision they make, they are always asking; “is this decision taking me closer or pulling me away from my long-term plan to sell/scale or find a successor.”
Obviously, there’s much more to learn and much more that can be achieved to make your business a wealth producing machine that allows you to transition to your reinvention, fulfill promises and walk away with the financial freedom to live the life of your dreams.
I can help you get there faster, sooner. I can make the job easier, and far more enriching for you if you’re interested in my personal assistance.
I am pleased and honored to contribute to the discussion going on in your head; ignite more confidence, competence and possibility thinking; inspire you to greater strategic planning and more leadership initiative; and enable any entrepreneur or CEO to exit their business by achieving every goal they set.
All of which I hope this blog is accomplishing.
If you’ve been reading this blog for any length of time, and if I’m doing my job, you’re not exactly the same business thinker you were a year ago.
You should see at least the beginnings of the expansive, non-linear, 360˚, 10,000-foot view I want you to embrace.
You should now be thinking not about what you can’t accomplish, but of what you CAN accomplish in your business and beyond and what is honestly and significantly possible to fulfill your dream on your terms, on your timeline.
I hope you have, at a minimum, the urgency of forcing yourself out of your everyday comfort zone that produces more of the same old ideas, old solutions, and tired results; and into more, extensive, three-dimensional thinking. I hope your thinking is more expansive, more creatively oriented, and you’re looking at your business, competition, and exit opportunities from a position that is brilliantly open minded, inspired, and all encompassing.
If I’ve succeeded at all introducing you to exit essentials, you’ve opened a window into a sense of much greater possibility to formulate a plan to get out on your terms, on your timeline to your reinvention.
Before you get to that transaction table with all your advisors, transaction experts, and the buyers; you must have a plan for how you will engage your mind and fill your time for at least the next 365 days.
This is NOT just a broad-brush idea of what you’ll do next, but rather a full-fledged plan with goals, milestones, and projects to consume you. This will take time to explore and prepare. This plan must be tested and validated in the years leading up to your exit. It is essential that you lay out this plan before you complete the transaction. Here are a few places to start. You can:
• Start a new venture — Reinvest part of your new liquid wealth in building a company around a new idea
• Take an adventure — Not just a three month tour of Europe, but sail around the world, go mountain climbing on every continent, move to Belize
• Pursue an avocation — Become a teacher, artist, designer, author, translator
• Give back—Engage actively in your philanthropic interests or invest in entrepreneurs you believe in
• Immerse yourself in a hobby — Whether it’s cooking, golf, hiking, languages, wines, investments, et cetera, it must hold your interest for more than three months. Be sure it will consume you and leave you fulfilled long term, maybe another 30-40 years.
Whatever your definition of reinvention is, you must have a plan. You must write it out. You must build out the plan to consume your time, energy and passion for at least the next 365 days. And you must test that plan for two to four weeks at a time at least once a year ( a.k.a vacation from the business you are preparing to exit).
Start with a self-assessment of your ambitions, skills, interests, commitments, joys. With the wealth you have acquired, make a plan for putting it to work for you, your family, your legacy, maybe a foundation, or other philanthropic endeavor.
Evaluate how much you need to live on and how much is available for you to pursue other interests or to risk in other ventures. What do you want to do differently in this reinvention—maybe more time off, more time with family, more education, more giving back.
Every hour you invest in your reinvention plan (like a business plan for your future), three to five years before your exit, will pay dividends in satisfaction, pleasure, fulfillment and security in the decades beyond your business.
When was the last time you thought about how to cash out of your business?
Is it a topic you avoid? Do you only think about it when you are at the end of your rope after a really bad day? Is it a black hole you know nothing about?
Or do you include the long-term impact/implications in every decision you make? And tie every short-term decision and strategy to where you want to end up so you can cashout?
HARVEST YOUR WEALTH gives you the foundation for all those decisions in bitesize pieces so you can start planning early, to get out on your terms and on your timeline.
It’s never too early or too late to plan your exit. But you must make a plan and start executing on it now if you intend to cash out of your business to cash in those plans for reinvention (what comes next).
Start here, http://harvest-your-wealth.com
HARVEST YOUR WEALTH is for business owners who need to start thinking about how to sell, scale or pass on a business to successors. It’s not for advisors, transaction experts or buyers and their agents. It’s for you, the business owner who has put their life, spirit and soul into the business.
It’s only when you cash out of your business, that you can begin to cash in on the future of your dreams. To pursue that reinvention, you must have a plan to get out with the maximum value you can achieve for your business.
Ideally, exit planning occurs before action in every area.
Too often business owners/CEOs assume that because they want to exit the business soon, that they just have to act to make it happen. In fact, they are often surprised by how extensive the planning is that they must work through before they can get out and transition to reinvention.
Exit planning must include each parameter on this list.
Exit Objectives – Before you proceed, you must identify your exit objectives for the business and for your life beyond the exit.
Value Drivers – You must identify your value drivers, the value drivers that will make the business buyer attractive and the value drivers that secure the future growth of the business and protect your employees.
Transfer Control/Ownership/Management – Control, ownership and management are not the same thing. So planning how to transfer these different skill sets to successors is essential. You need to break them into distinct skill sets before you decide who you will train to succeed you in each area.
Contingency Planning – When things are running smoothly, owners think contingency planning is irrelevant. But if illness or an accident incapacitates you, your valuation will plummet unless you have a contingency plan/continuity plan established, documented and ready to activate.
Wealth Management/Preservation – You have to decide how much of the illiquid wealth of your business you want to leave in the business, to maximize valuation and secure future company success vs. how much do you need to liquidate to achieve your exit criteria and the financial freedom to pursue your reinvention.
Successful Exit – Defining and planning what a successful exit means to you is important. There is no vanilla answer. It’s unique to you, your family, your goals, your business, the lifestyle of your dreams. If you can’t describe it, you will never know when the package on the table meets your needs.
Exit Options – The earlier you start exit planning, the more options you have, the wider range of exit vehicles, wealth vehicles and reinvention options you can have.
You can exit your business on your terms so you can transition to the lifestyle of your dreams with the wealth to pursue your reinvention (venture, adventure, avocation, hobby, retirement)
But what you can’t do is assume you can simply hire a team of experts and just walk away from your business in the next six months.
Start with your exit criteria to achieve your ultimate goals as you transition to your reinvention.
• Freedom — What does freedom look like to you when you exit your business, after the exit transaction is complete?
• Control — Who’s in control of decisions, strategy, budget, operations, and sales now? Who will be in control of each area of the business when you exit? Have you transitioned the decisions and control to one person, to a team of leaders or to no one leaving a vacuum in the business?
• Wealth — What is your wealth requirement for your reinvention and lifestyle after you exit? How do you define wealth? How much of the wealth you need for your reinvention must come from the business? Can you liquidate the business to produce that level of wealth to achieve your other exit criteria?
• Liquidity — How much liquidity do you need immediately when you exit? How long can you wait to receive final payment?
• Timeline — What is your ideal timeline for your exit? For your reinvention? For liquidity?
• Legacy — What’s your definition of the legacy you want to leave behind? What do you and your business stand for? What do you want to be remembered for? How can you achieve that?
• Dynasty — Do you want to build a family dynasty? What would that look like? What do you have to put in place to realize your dynasty?