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.
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
Wednesday, March 30, 2011
IDENTIFYING A STROKE - with a new key
A neurologist says that if he can get to a stroke victim within 3 hours he can totally reverse the effects of a stroke...totally. He said the trick was getting a stroke recognized, diagnosed, and then getting the patient
medically cared for within 3 hours, which is tough.
KEYS TO RECOGNIZING A STROKE
Thank God for the sense to remember the '3' steps, STR. Read and Learn!
Sometimes symptoms of a stroke are difficult to identify. Unfortunately,
the lack of awareness spells disaster. The stroke victim may suffer severe
brain damage when people nearby fail to recognize the symptoms of a
stroke.
Now doctors say a bystander can recognize a stroke by asking three simple
questions:
S *Ask the individual to SMILE.
T *Ask the person to TALK and SPEAK A SIMPLE SENTENCE (Coherently)
(i.e. It is sunny out today.)
R *Ask him or her to RAISE BOTH ARMS.
If he or she has trouble with ANY ONE of these tasks, call emergency
number immediately and describe the symptoms to the dispatcher.
New Sign of a Stroke ????????------- Stick out Your Tongue
NOTE: Another 'sign' of a stroke is this: Ask the person to 'stick' out
his tongue. If the tongue is 'crooked', if it goes to one side or the
other that is also an indication of a stroke.
Please make a copy for your self - and share this with otners.
Pete Wendel
medically cared for within 3 hours, which is tough.
KEYS TO RECOGNIZING A STROKE
Thank God for the sense to remember the '3' steps, STR. Read and Learn!
Sometimes symptoms of a stroke are difficult to identify. Unfortunately,
the lack of awareness spells disaster. The stroke victim may suffer severe
brain damage when people nearby fail to recognize the symptoms of a
stroke.
Now doctors say a bystander can recognize a stroke by asking three simple
questions:
S *Ask the individual to SMILE.
T *Ask the person to TALK and SPEAK A SIMPLE SENTENCE (Coherently)
(i.e. It is sunny out today.)
R *Ask him or her to RAISE BOTH ARMS.
If he or she has trouble with ANY ONE of these tasks, call emergency
number immediately and describe the symptoms to the dispatcher.
New Sign of a Stroke ????????------- Stick out Your Tongue
NOTE: Another 'sign' of a stroke is this: Ask the person to 'stick' out
his tongue. If the tongue is 'crooked', if it goes to one side or the
other that is also an indication of a stroke.
Please make a copy for your self - and share this with otners.
Pete Wendel
Monday, January 24, 2011
New Direction - New Name - New Web Site
Over the years I have felt the need to come up with a new name for my company that better expresses the work I do. “The Peter Wendel Group” just doesn't describe my work – it sounds too much like a musical group!
So my company has a new name
LIFE-WORK-TRANSTIONS
Coaching Business Owners at Key Transitions
Many business owners, members of the Baby Boomer generation, will be considering transition over the next few years - selling their business and moving into the 'next phase' of their lives - maybe a 'meaningful, productive' retirement, maybe starting a new business or a myriad of other choices.
To make a successful transition every business owner has to address - and successfully resolve - several questions:
• Will I sell my business to my associates (internal) or to an outside owner?
• If an internal sale, are my people prepared? Do they have the skills to run the business and the money to buy it?
• Have I started my transition in time to make it work on my timetable?
• What will I do in the next phase of my life that will give me satisfaction and fulfillment?
My focus is working with business owners - a distinct group with which I have had considerable experience, both as an owner and in my consulting practice over the last 21 years.
I’ve seen too many business owners ‘held on too long’ getting ‘trapped’ in a declining business that bled their life investment. And it was too late to get out ‘on top.’
Success depends upon making decisions early and developing a transition strategy with plenty of time ' to make it happen.' That's where I can help.
Making a successful transition involves three key actions:
- Choose your personal future
- Decide your company’s future
- Make a successful transition
For an in-depth understanding of my new direction I invite you to visit my revised web site at:
If all this piques your interest, I'll welcome a chance to explore how I can help you.
in their Careers and Lives.
Many business owners, members of the Baby Boomer generation, will be considering transition over the next few years - selling their business and moving into the 'next phase' of their lives - maybe a 'meaningful, productive' retirement, maybe starting a new business or a myriad of other choices.
To make a successful transition every business owner has to address - and successfully resolve - several questions:
• Will I sell my business to my associates (internal) or to an outside owner?
• If an internal sale, are my people prepared? Do they have the skills to run the business and the money to buy it?
• Have I started my transition in time to make it work on my timetable?
• What will I do in the next phase of my life that will give me satisfaction and fulfillment?
My focus is working with business owners - a distinct group with which I have had considerable experience, both as an owner and in my consulting practice over the last 21 years.
I’ve seen too many business owners ‘held on too long’ getting ‘trapped’ in a declining business that bled their life investment. And it was too late to get out ‘on top.’
Success depends upon making decisions early and developing a transition strategy with plenty of time ' to make it happen.' That's where I can help.
Making a successful transition involves three key actions:
- Choose your personal future
- Decide your company’s future
- Make a successful transition
For an in-depth understanding of my new direction I invite you to visit my revised web site at:
If all this piques your interest, I'll welcome a chance to explore how I can help you.
Saturday, August 14, 2010
FIVE WAYS YOUR BUSINESS OWNER'S WORLD IS CHANGING - Why you need to think about it
Do you feel the earth moving under your feet? Every business owner is experiencing change. But each of you responds in the different way. Some anticipate and adjust – experimenting with new approaches and new processes. Others ‘hunker down’ and keep doing what worked, hoping that it will work again.
But the change is often so significant that ‘fine tuning’ what you used to do may not be enough. If you are unable to ‘meet your market,’ your company’s future is in doubt. Here are five ways change is occurring – some external, some internal.
Your Customers’ Buying Patterns are Changing Some are outsourcing, often overseas, products they bought from you. Some are abandoning old products and old production methods and no longer want the items your company used to sell to them. Or their product mix has changed and they aren’t buying as much from you that they used to.
Technology is Changing Your customer wants you to provide a better or different product/service - or produce it faster or cheaper. If you don’t or can’t meet their needs, they’ll find someone who will and you’ll lose that income stream.
Communication Methods are Different Face to face contact is still important to stay in touch with your current customers to understand how their needs and buying patterns are changing. You also need to be ‘out there’ finding prospective new customers and understanding how your markets are changing. In addition, you need to get the word out via the internet and the new social media. In addition to our web site, other electronic media (face book, blogs, newsletters, etc.) are essential to help prospects learn about your company’s unique capabilities.
Your Employees’ Attitudes Are Changing They know what’s going on in the world and in your markets. If they don’t see the company changing with the times, they get scared and start protecting their interests – working slower to make each job last, being unwilling to try new ideas, Or they leave your company to find new opportunities – often with the best people going first!
You Are Changing, Too Maybe you’re ‘running out of steam;’ losing your passion for this work. Maybe your knowledge and experience don’t match the changing world. Maybe you are ‘playing not to lose,’ no longer willing to take risks; not wanting to invest money in new methods, new equipment and training for your people. Maybe you don’t want to ‘get out there’ to meet with your customers and prospects – which brings us back to the first point!
The bottom line is that you need to ‘think bold and act bold.’ What used to work may not be good enough for your company’s survival and future success.
For you, the owner, its essential that you step back from your day to day problem solving and take a long term, big picture look at the new environment your company is operating in. And you may have to set a new direction to succeed in these new times.
Or, maybe, its time to face the fact that you and your company no longer fit in this changed world. If that’s the case, its time to transition into a new phase of your life: one that fits you and matches this different world.
Making that transition, as daunting as it may seem, is better than going down with the sinking ship!
But the change is often so significant that ‘fine tuning’ what you used to do may not be enough. If you are unable to ‘meet your market,’ your company’s future is in doubt. Here are five ways change is occurring – some external, some internal.
Your Customers’ Buying Patterns are Changing Some are outsourcing, often overseas, products they bought from you. Some are abandoning old products and old production methods and no longer want the items your company used to sell to them. Or their product mix has changed and they aren’t buying as much from you that they used to.
Technology is Changing Your customer wants you to provide a better or different product/service - or produce it faster or cheaper. If you don’t or can’t meet their needs, they’ll find someone who will and you’ll lose that income stream.
Communication Methods are Different Face to face contact is still important to stay in touch with your current customers to understand how their needs and buying patterns are changing. You also need to be ‘out there’ finding prospective new customers and understanding how your markets are changing. In addition, you need to get the word out via the internet and the new social media. In addition to our web site, other electronic media (face book, blogs, newsletters, etc.) are essential to help prospects learn about your company’s unique capabilities.
Your Employees’ Attitudes Are Changing They know what’s going on in the world and in your markets. If they don’t see the company changing with the times, they get scared and start protecting their interests – working slower to make each job last, being unwilling to try new ideas, Or they leave your company to find new opportunities – often with the best people going first!
You Are Changing, Too Maybe you’re ‘running out of steam;’ losing your passion for this work. Maybe your knowledge and experience don’t match the changing world. Maybe you are ‘playing not to lose,’ no longer willing to take risks; not wanting to invest money in new methods, new equipment and training for your people. Maybe you don’t want to ‘get out there’ to meet with your customers and prospects – which brings us back to the first point!
The bottom line is that you need to ‘think bold and act bold.’ What used to work may not be good enough for your company’s survival and future success.
For you, the owner, its essential that you step back from your day to day problem solving and take a long term, big picture look at the new environment your company is operating in. And you may have to set a new direction to succeed in these new times.
Or, maybe, its time to face the fact that you and your company no longer fit in this changed world. If that’s the case, its time to transition into a new phase of your life: one that fits you and matches this different world.
Making that transition, as daunting as it may seem, is better than going down with the sinking ship!
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
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