Pacific Life Insurance, the one with the whales in its TV commercials, asks the question “Are you prepared for your retirement years – twenty five or more of them?”
Of course, being a life insurance company the focus is on ‘Your financial future.”
Twenty five years of ‘retirement’ is a long time! And it’s a likely probability for a lot of baby boomers. And there’s more ahead than just the financial part. There’s your life - life after you, a business owner, sell your business!
Many, business owners have retained their financial and legal consultants to plan their financial future. That’s a good thing. It has been estimated that as much as 70 to 85 per cent of many business owner’s net worth is in her/his business. So it’s smart to have a plan to harvest that investment from the business and move it into a personal portfolio.
We all know of business owners who have no vision for life after retirement. So they just hold on to their business. They have no plans for the next phase of their life so they just keep doing what they know. They can’t move on! Instead of going out on top, they ‘stay when they should go,’ suffocating the business they built, that, in turn, sucks their personal savings back into the business to keep it alive.
It doesn’t have to be that way. In addition to having a financial plan, every business owner needs to plan for their personal future – their next phase – and for the future of the company without them.
The challenge is to think about their company and themselves as separate entities and to develop a transition plan, in advance, for each to go their own way. That’s more than just their financial future!
In future articles we’ll explore the non-financial elements of your future as a business owner contemplating retirement.
Showing posts with label executive coaching. exit strategy. Show all posts
Showing posts with label executive coaching. exit strategy. Show all posts
Monday, October 3, 2011
Friday, July 22, 2011
FIVE KEY QUESTIONS FOR EVERY BUSINESS OWNER
Sooner or later every business owner must address the question, “How will I successfully sell my business and move on with my life?”
Many of the owners I have talked to seem to be ‘marching in place’ acknowledging that they need to plan for their future but are in denial about the need to plan ahead. They seem to believe that the process is simple and the time to ‘make it happen’ will be short. Actually, that’s not the case for most of them.
Every Business Owner needs to develop a transition strategy with plenty of time to execute it 'on their time table' to withdraw their equity, assure the continued success of their business and, prepare, personally, for the 'next phase' of their life.
The transition strategy must address three key areas of concern:
Financial
Personal
Company
They often have addressed the financial aspect but not the other two.
Here are five key questions for the Business Owner to answer that become the building blocks of each Transition Strategy:
1) How will I harvest my investment?
2) Who will purchase my business?
Will I sell to an external buyer?
Will I sell internally - to my family, partners, key staff?
3) What is the legacy I want to leave?
4) What do I want to do in the next phase of my life?
5) What is my timetable?
Developing and implementing a Transition Strategy can be a long term process that begins with working out the answer to these questions, planning the strategy and identifying the action steps to 'make it all happen.'
All these questions are inter-related. For instance, the owner must decide who the prospective buyers might be. If it will be internal buyers, the seller must determine that the buyers are prepared well in advance. The buyers must have passion, the ability to manage the business and the money to buy the business on the owner’s terms.
Several owners I've worked with expected to sell to their partners or staff only to discover that there wasn't enough time or the potential buyers didn't have the resources.
I have also worked with several owners who think they are ready to sell the business but 'get cold feet' because they aren't prepared, emotionally, to move on with their lives. They haven't chosen a next phase of their lives after they make the transition. Making the decisions feels like a dead end or like falling off a cliff. So they hold on too long and their equity diminishes.
For the transition to be successful, the owner must addresses the five questions and develop a comprehensive Transition Strategy well in advance.
My work focuses on these five questions. I begin working with the business owner, helping her or him explore their aspirations and cataloguing the key issues they need to address to plan their transition, Working with the owner, and sometimes their key professional advisors, I help the owner identify he or/his desired results and develop a transition strategy to achieve those results.
In future articles, I’ll discuss various elements of the planning process.
Many of the owners I have talked to seem to be ‘marching in place’ acknowledging that they need to plan for their future but are in denial about the need to plan ahead. They seem to believe that the process is simple and the time to ‘make it happen’ will be short. Actually, that’s not the case for most of them.
Every Business Owner needs to develop a transition strategy with plenty of time to execute it 'on their time table' to withdraw their equity, assure the continued success of their business and, prepare, personally, for the 'next phase' of their life.
The transition strategy must address three key areas of concern:
Financial
Personal
Company
They often have addressed the financial aspect but not the other two.
Here are five key questions for the Business Owner to answer that become the building blocks of each Transition Strategy:
1) How will I harvest my investment?
2) Who will purchase my business?
Will I sell to an external buyer?
Will I sell internally - to my family, partners, key staff?
3) What is the legacy I want to leave?
4) What do I want to do in the next phase of my life?
5) What is my timetable?
Developing and implementing a Transition Strategy can be a long term process that begins with working out the answer to these questions, planning the strategy and identifying the action steps to 'make it all happen.'
All these questions are inter-related. For instance, the owner must decide who the prospective buyers might be. If it will be internal buyers, the seller must determine that the buyers are prepared well in advance. The buyers must have passion, the ability to manage the business and the money to buy the business on the owner’s terms.
Several owners I've worked with expected to sell to their partners or staff only to discover that there wasn't enough time or the potential buyers didn't have the resources.
I have also worked with several owners who think they are ready to sell the business but 'get cold feet' because they aren't prepared, emotionally, to move on with their lives. They haven't chosen a next phase of their lives after they make the transition. Making the decisions feels like a dead end or like falling off a cliff. So they hold on too long and their equity diminishes.
For the transition to be successful, the owner must addresses the five questions and develop a comprehensive Transition Strategy well in advance.
My work focuses on these five questions. I begin working with the business owner, helping her or him explore their aspirations and cataloguing the key issues they need to address to plan their transition, Working with the owner, and sometimes their key professional advisors, I help the owner identify he or/his desired results and develop a transition strategy to achieve those results.
In future articles, I’ll discuss various elements of the planning process.
Monday, May 2, 2011
SUCCESSFULLY EXITING YOUR BUSINESS
Seventy five per cent of all business owners regretted selling their business 12 months after the sale! (According to a recent survey by PriceWaterhouseCoopers)
That’s a significant number! Especially for business owners whose life and identity are wrapped up in their business.
The solution is not to hold on to the business. Owners who hold on are in danger of ‘staying when they need to move on,’ dragging the company down.
Staying too long, the business owner ‘loses steam’ and begins to drain the business of its vitality. Instead of being a revenue generator, the business ‘bleeds’ the owner’s investment.
If you are planning an internal sale to your staff, partners etc., staying also limits the opportunity for the next generation to set a new direction - to infuse the company with the creativity and energy it needs to survive and grow.
Seeing diminishing potential for personal opportunity, the best people may leave – joining your competition.
The solution is for every business owner to envision a ‘Next Phase’ of their life after work and create something to look forward to. This is a very personal challenge – one that takes time and contemplation.
“What will I do next?” You decide! The Owners goal is to explore what beyond their business has personal meaning – to discover their deeper ‘Life Purpose’ and choose that ‘next phase’ of life that builds on that life purpose.
Choosing your ‘Next Phase’ is a challenge! To learn how I can help you, visit my web site
www.Life-Work-Transitions.com
That’s a significant number! Especially for business owners whose life and identity are wrapped up in their business.
The solution is not to hold on to the business. Owners who hold on are in danger of ‘staying when they need to move on,’ dragging the company down.
Staying too long, the business owner ‘loses steam’ and begins to drain the business of its vitality. Instead of being a revenue generator, the business ‘bleeds’ the owner’s investment.
If you are planning an internal sale to your staff, partners etc., staying also limits the opportunity for the next generation to set a new direction - to infuse the company with the creativity and energy it needs to survive and grow.
Seeing diminishing potential for personal opportunity, the best people may leave – joining your competition.
The solution is for every business owner to envision a ‘Next Phase’ of their life after work and create something to look forward to. This is a very personal challenge – one that takes time and contemplation.
“What will I do next?” You decide! The Owners goal is to explore what beyond their business has personal meaning – to discover their deeper ‘Life Purpose’ and choose that ‘next phase’ of life that builds on that life purpose.
Choosing your ‘Next Phase’ is a challenge! To learn how I can help you, visit my web site
www.Life-Work-Transitions.com
Thursday, June 10, 2010
TRANSITION - The Next Phase of your Life
Business owners – and other executives – often have a difficult time retiring or making the transition out of their current role into the next phase of their life. They ‘keep on doing what they’re doing’ because they get great satisfaction from their work – and, unfortunately, because they have no idea what else they what they could do.
Often, their financial advisors have helped them prepare, financially, but they are not ready, emotionally, to take that next step into the next phase of their life.
Daniel Pink in his new book “Drive” introduces some fascinating ideas for managers who want to be better leaders and developers of their staff. Looking deeper, his ideas provide clues for business leaders who are contemplating their personal work-life transitions. Here, briefly, are Pink’s keys to motivation:
This approach, rather than the ‘carrot and stick’ method, is what brings out the best in people and produces better results, according to Pink.
I believe that these were what business owners searched for when they made the decision to own a business. They may not have been aware but, as some subconscious level, they were looking for a work situation that would give then independence to follow their passion, build on their strengths and have control over what they do – to have autonomy, mastery and purpose in their life. Income potential was important, too. They may have expected to make more money but many business owners made a decision that to ‘go out on their own,’ even if working somewhere else would pay more.
But there is a downside to their thinking. Business leaders stay when its time to move on. For the same reasons they decided to start, they can’t let go. They hold on for too long – when it’s time to step aside and let new people lead – younger people with more energy, a willing to take risks and use fresh approaches to match new challenges. The company they created begins to decline, eroding their investment when they need to be ‘harvesting’ it to build their retirement nest egg.
The trouble with retirement is that it is viewed as an end – when a person stops doing something that gave meaning to life, and sees doing ‘nothing’ for the next 20 or more years. That’s not something to look forward to so they ‘stand pat.’
I prefer a process I call ‘Transition.’ Transition involves planning ahead – discovering what about life (in work and elsewhere) gives great satisfaction and build those factors into a new lifestyle – one they can look forward with optimism and enthusiasm.
What’s the key to making a successful transition? Finding something new that offers you fulfillment and a feeling of satisfaction. Daniel Pink’s three motivational factors: Autonomy, Mastery and Purpose are a good starting point.
Transition begins with choosing your new life purpose – and building it into the next phase of your life. The key questions is: What will you do that merges your passions, your strengths and an opportunity to serve to live a life that is meaningful and satisfying to you?
Maybe it’s an unfulfilled dream or a hobby. Maybe it’s for money – maybe it’s not. Maybe its full time – maybe its something that you do at a slower pace that matches your energy level while giving you time for other pursuits; exercise, reading, gardening, family, travel, etc.
Purpose is not just a hollow kind of ‘doing nothing.’ Purpose is something that is distinctly ‘you.’ Choosing it will take time. It’s important to start planning long before you leave your current work. I have worked with clients who took several months to sort things out and make a personal, lasting decision that best suited them.
Autonomy and Mastery evolve out of a clear purpose. Your purpose guides your decisions about what you will do, how you will work, and who you will work with. Over time, you will build on your unique skills to develop the mastery you need to achieve your chosen purpose.
What is there about your current life that excites you, that you enjoy and can build on to create the next phase of your life? How will you create your future doing something that gives you satisfaction and enables you to build a special combination of personal Autonomy, Mastery and Purpose?
What is your personal transition plan? I help business owners develop their work/life transitions into the next phase of their lives. I can help you. Contact me to set up a complimentary session to explore your options.
pkwendel@aol.com – 716 434 8688
www.peterwendelgroup.com
Often, their financial advisors have helped them prepare, financially, but they are not ready, emotionally, to take that next step into the next phase of their life.
Daniel Pink in his new book “Drive” introduces some fascinating ideas for managers who want to be better leaders and developers of their staff. Looking deeper, his ideas provide clues for business leaders who are contemplating their personal work-life transitions. Here, briefly, are Pink’s keys to motivation:
- Autonomy – “Autonomy over task (what they do), time (when they do it), team (who they do it with), and technology (how they do it).
- Mastery – Becoming better at something that matters. “Challenges we face are uniquely matched to our abilities.”
- Purpose – Working on ‘a cause greater and more enduring than ourselves.’
This approach, rather than the ‘carrot and stick’ method, is what brings out the best in people and produces better results, according to Pink.
I believe that these were what business owners searched for when they made the decision to own a business. They may not have been aware but, as some subconscious level, they were looking for a work situation that would give then independence to follow their passion, build on their strengths and have control over what they do – to have autonomy, mastery and purpose in their life. Income potential was important, too. They may have expected to make more money but many business owners made a decision that to ‘go out on their own,’ even if working somewhere else would pay more.
But there is a downside to their thinking. Business leaders stay when its time to move on. For the same reasons they decided to start, they can’t let go. They hold on for too long – when it’s time to step aside and let new people lead – younger people with more energy, a willing to take risks and use fresh approaches to match new challenges. The company they created begins to decline, eroding their investment when they need to be ‘harvesting’ it to build their retirement nest egg.
The trouble with retirement is that it is viewed as an end – when a person stops doing something that gave meaning to life, and sees doing ‘nothing’ for the next 20 or more years. That’s not something to look forward to so they ‘stand pat.’
I prefer a process I call ‘Transition.’ Transition involves planning ahead – discovering what about life (in work and elsewhere) gives great satisfaction and build those factors into a new lifestyle – one they can look forward with optimism and enthusiasm.
What’s the key to making a successful transition? Finding something new that offers you fulfillment and a feeling of satisfaction. Daniel Pink’s three motivational factors: Autonomy, Mastery and Purpose are a good starting point.
Transition begins with choosing your new life purpose – and building it into the next phase of your life. The key questions is: What will you do that merges your passions, your strengths and an opportunity to serve to live a life that is meaningful and satisfying to you?
Maybe it’s an unfulfilled dream or a hobby. Maybe it’s for money – maybe it’s not. Maybe its full time – maybe its something that you do at a slower pace that matches your energy level while giving you time for other pursuits; exercise, reading, gardening, family, travel, etc.
Purpose is not just a hollow kind of ‘doing nothing.’ Purpose is something that is distinctly ‘you.’ Choosing it will take time. It’s important to start planning long before you leave your current work. I have worked with clients who took several months to sort things out and make a personal, lasting decision that best suited them.
Autonomy and Mastery evolve out of a clear purpose. Your purpose guides your decisions about what you will do, how you will work, and who you will work with. Over time, you will build on your unique skills to develop the mastery you need to achieve your chosen purpose.
What is there about your current life that excites you, that you enjoy and can build on to create the next phase of your life? How will you create your future doing something that gives you satisfaction and enables you to build a special combination of personal Autonomy, Mastery and Purpose?
What is your personal transition plan? I help business owners develop their work/life transitions into the next phase of their lives. I can help you. Contact me to set up a complimentary session to explore your options.
pkwendel@aol.com – 716 434 8688
www.peterwendelgroup.com
Thursday, March 18, 2010
Retirement Challenges Every Business Owner Must Face
Dilemma: A situation involving a choice between equally unsatisfactory alternatives.
Sooner or later, all business owners will face a time when they need to make decisions about their future – specifically their retirement. They love what they are doing but they recognize that ‘things are changing’ and they have to change, too. They want to stay but know they must step aside. They face two dilemmas.
One dilemma is the choice between staying with the business because they love what they are doing versus holding on for too long and stifling the company’s future, dragging it down, and burning up their personal net worth (retirement income) in the process.
Another dilemma is the choice between selling internally – to family, partners, staff – expecting to leave a legacy versus selling to an outside buyer, generating more retirement income but giving up hope for having an impact on the future of the company.
Resolving both dilemmas depends upon the selling owner making strategic decisions well in advance of the time when he or she must begin execution.
The issues are both personal and business related but the beginning point is personal. The seller’s personal decisions will provide the framework for the business decisions that will follow.
Both dilemmas are difficult to resolve unless the owner is willing to make and execute choices - to look forward, to create a new life that is as equally attractive and potentially satisfying as running the business. I call that “Building a boat to step onto before walking off the dock.”
Over the next several articles, we will look into these two dilemmas and explore strategies for business owners to resolve them – to make their “Grand Transition” into the “Third Phase” of their life.
Sooner or later, all business owners will face a time when they need to make decisions about their future – specifically their retirement. They love what they are doing but they recognize that ‘things are changing’ and they have to change, too. They want to stay but know they must step aside. They face two dilemmas.
One dilemma is the choice between staying with the business because they love what they are doing versus holding on for too long and stifling the company’s future, dragging it down, and burning up their personal net worth (retirement income) in the process.
Another dilemma is the choice between selling internally – to family, partners, staff – expecting to leave a legacy versus selling to an outside buyer, generating more retirement income but giving up hope for having an impact on the future of the company.
Resolving both dilemmas depends upon the selling owner making strategic decisions well in advance of the time when he or she must begin execution.
The issues are both personal and business related but the beginning point is personal. The seller’s personal decisions will provide the framework for the business decisions that will follow.
Both dilemmas are difficult to resolve unless the owner is willing to make and execute choices - to look forward, to create a new life that is as equally attractive and potentially satisfying as running the business. I call that “Building a boat to step onto before walking off the dock.”
Over the next several articles, we will look into these two dilemmas and explore strategies for business owners to resolve them – to make their “Grand Transition” into the “Third Phase” of their life.
Tuesday, February 23, 2010
RETIREMENT PLANNING FOR BUSINESS OWNERS
Next Tuesday March 2, Pete Wendel will be the featured speaker at the Niagara University Family Business monthly breakfast. His subject is "Business Owners - Are you prepared to retire?"
In this session he'll explore factors to consider in preparing yourself and your business for a successful transition into the 'Third Phase' of your life.
Successful transition is a long term process. Questions covered will include: Have you planned a meaningful life after work? Will your business continue? Will you be prepared financially?
.
There are a limited number of openings available for guests. To register go to www.niagara.edu/fbc. There is no charge.
In this session he'll explore factors to consider in preparing yourself and your business for a successful transition into the 'Third Phase' of your life.
Successful transition is a long term process. Questions covered will include: Have you planned a meaningful life after work? Will your business continue? Will you be prepared financially?
.
There are a limited number of openings available for guests. To register go to www.niagara.edu/fbc. There is no charge.
Subscribe to:
Posts (Atom)
Posts
