Strategic thinking about your business and personal future

PROGRAM 1: THINK

How to Leave your Business Successfully: Strategic thinking about your business and personal future

Why is this important?

Because this is how you need to think, if you are going to leave your business SUCCESSFULLY!1Facts about Baby Boomer Business Owners: 2011-2013 Successful Transition Planning Institute. All Rights Reserved.2

Over the next five to ten years, it is estimated that retiring Baby Boomers will account for 65 75 percent of all smaller businesses that will go up for sale

9.0 million owners in the US are over age 50, and 8 million will leave their business over the next ten years

The equity in these businesses represents approximately $10 Trillion in personal wealth

Click here to tweet this message Script:

The fact is most Baby Boomer business owners have not yet begun any kind of Transition Planning but you should!2Facts about Baby Boomer Business Owners: 2011-2012 Successful Transition Planning Institute. All Rights Reserved.380 percent of owners wealth is tied up in their companies (an illiquid asset)

60 percent of business owners between the ages of 55-64 have not discussed their exit plans with their spouses or business partners

78 percent of baby boomer business owners do not have plans for how they will exit their companies

Click here to tweet this message 3Four key reasons Owners Fear leavingLoss of identityFear of an unknown futureLeaving feels like falling into a Black HoleLeaving feels like death

Copyright 2008-2013 by Successful Transition Planning Institute. All Rights Reserved.

4Our Stories

2011-2012 Successful Transition Planning Institute. All Rights Reserved.55Iron YearsMechanical Paradigm

The old model for exiting companies in the Industrial Age does not work for you today so when you leave your full time position, you are leaving the Mechanical Paradigm, whose model for living is focused on making money, achieving and success, which is referred to as the Iron Years since. we kept our noses to the grindstone and were reward for the output of being doing machines. Also our lives have been structured around the metal gears of clocks. When someone is thinking people will say they hear the gears turning or people say that they have cast iron stomachs.

The Iron Years Working away, nose to the grindstone. They fear an existence without focus and lacking opportunity. This sentiment is particularly true of small business owners, who have made their business --- their baby is it were --- their lifes work. They have worked hard to build it, and they are proud of what it has become. Extracting themselves from it completely does not appear an option, but neither does dying at the desk.The Golden YearsThe natural progression for people leaving the working Iron Years in the old retirement model was to leave work, sit on rocking chairs and playing golf every day, which often lead to regret, boredom and depression.

6 Retirement Golden YearsLeisure and Recreation

Golden Years golf courses filled with people since that is what they did every day, and houses with rocking chairs on porches. It was the section of the islander of retirement communities, the land of leisure and recreation.

You and I know that they are assumed to be years of decline, when we are expected to age, lose our abilities and will no longer make a productive contribution to the world.

Sixty-five became the magic number for retirement when the world was a different place. In the late 19th century, German Chancellor Otto von Bismarck set the age for retirement at 65, craftily calculating that the state would never have to pay pensions to the Prussian Empire's huge corps of soldiers given that life expectancy was then in the mid-30s.Golden Years golf courses filled with people since that is what they did every day, and houses with rocking chairs on porches. It was the section of the islander of retirement communities, the land of leisure and recreation. You and I know that they are assumed to be years of decline, when we are expected to age, lose our abilities and will no longer make a productive contribution to the world. One year of leisure retirement in the Golden Years is made up of 2000 hours to fill. Thirty years represents 60,000 hours of leisure, not counting evenings and weekends. Retirement can stretch between 20, 30 or more years. A third of life Sixty-five became the magic number for retirement when the world was a different place. In the late 19th century, German Chancellor Otto von Bismarck set the age for retirement at 65, craftily calculating that the state would never have to pay pensions to the Prussian Empire's huge corps of soldiers given that life expectancy was then in the mid-30s.

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The Iron Years since the imagery of the Mechanistic Paradigm that we have been living in our working years is the gears of a clock which is symbolic of how we have lived our working lives have been dictated by the clock. This is why we referred to our bodies in mechanical terns such as I have a cast iron stomach or you when some is thinking I can the gears turning and why so many people become doing machines. The underlying premise of the Traditional retirement is defined by n Websters Dictionary as: disappearing, going away and withdrawing is why so many owners would rather die at their desks than go into traditional retirement was is generally described as the end of usefulness. How well baby boomers transfer their business assets of will have a large impact on the wellness of the American economy for years since they own 70 percent of this countrys small business which employees 80 percent of this countrys employees.

8Successful and Unsuccessful Ways to Leave 2011-2013 Successful Transition Planning Institute. All Rights Reserved.9Script:

But the fact is, there are successful and unsuccessful ways to leave your business.

9A New Way of Living for a New Stage of Life

Click here to tweet this message 10A New Stage of lifeA century ago there was no period of life called adolescence since you went from being a child to an adult overnight. We now think of adolescence as an inherent stage of life. The old retirement model was based on a life expectancy of sixty-seven, now baby boomers can live into their eighties and nineties. The addition of a new phase of life, created by the gift of longevity, is what I call the Platinum Years. SM

There is a new stage of life for a new way of life I which enables Baby Boomers to enter into a new stage of active, meaningful life The Platinum Years SM which can continue for 10, 20, 30 years.The Platinum Years is a period to be truer to ones self, of hope, optimism, growth and new opportunity to redefine yourself. An analogy is a caterpillar leaving the cocoon and transforming into a butterfly. The cocoon symbolizes our childhood which many of us were conditioned into confining limited beliefs and negative images of ourselves and our working years during which we were constrained by time constraints of being successful in our professional careers and meeting family obligations. The Platinum Years is the time to be like the butterfly, to fly as high as you can, go where you always wanted, be the person that you always knew that you could be.It is a time of new energy, enthusiasm, learning, beginning a new second career, going into a new business that you have always dreamed about or making your passion part of your everyday experience.And, like the caterpillar, to be successful, you must go through this transition.Science has made Life longer --- Awareness makes it better AEM 2013

2013 Successful Transition Planning Institute. All Rights Reserved.Whats Next? WorkshopTM Session 1Iron YearsGolden Years Third Alternative The Platinum Years SM

The Platinum YearsSM This third alternative, the Platinum YearsSM is a new active stage of life that comes between the Iron Years and the Golden Years can continue for 10-20-30 years. A new paradigm, way of thinking and source of personal empowerment based on balance, which was so elusive for many during the working full time in the Iron Years, creates a new model for living the next chapter of life. This third way redefines what it means to retire by filling in the void of leaving with new meaning, opportunities and purpose. Rather than retreating from life, The Platinum Years SM is the time for new energy, enthusiasm, learning, beginning a new second career, going into a new business that you have always dreamed about or making your passion part of your everyday experience. The first cause that has created The Platinum Years is longevity which has been created by advances in medicine and public health. Longevity is changing the very concept of what it means to be old which is confirmed by the following facts: During most of the history of Social Security people lived to 68, an average of 3 years after the retirement age of 65; today baby boomers can now expect to live to 85 because life expectancy has increased 30 years over the last 9 decades. The number of Americans aged 65 and older will double more than 3 times between 2010 and 2030. In 1994, about one in eight Americans was age 65 or older. By 2030, one in five Americans will be 65 or older. In fact there will be more retirees in the United States than entire populations in some countries.On the average, not only are people living longer they are also living well since fully two-thirds of the population report being in good health at age 79.The second cause that has created The Platinum Years is accumulated wealth that produces a steady flow of income.There has been an increase in wealth over the years with people who are 50+ . For example though they make up just a third of the population, but they own 70 percent of all wealth in this country and hold 80% all money in savings and loans institutions and . 66 cents of every dollar in the equity market. Baby boomers between 50 to 60 have more than a one trillion dollars of spending power and their collective wallets.

11Exit Planning vs. Transition Planning Planning ahead for how to leave your business is often described as Exit Planning. But exit can have negative connotations. We exit in emergencies, and dont know where we will end up. Transition Planning is a positive approach. The process of Transition Planning prepares you for new beginnings and a fulfilling new life.

2011-2013 Successful Transition Planning Institute. All Rights Reserved.12Script:

Another reason owners dont want to think about leaving is that the process of leaving your company is often described as Exit Planning.

But exiting is almost dirty word and for good reason.

Instead think of planning ahead as Transition Planning.

12Transition Planning Leads to a Successful New Life 2011-2013 Successful Transition Planning Institute. All Rights Reserved.13Sales Script:

Transition Planning leads to a successful new life.

13What Does It Mean to Leave Your Business Successfully?Having a clear Plan now for what you want to do with your life after leaving your business.

Passing your business on to new owners so that:You come away with the money you wantThe business continues successfully after you have leftYou can successfully live the new life you have designed

2011-2013 Successful Transition Planning Institute. All Rights Reserved.14Sales Script:

Read slide aloud to owners.

14Leaving a Company Unsuccessfully 2011-2013 Successful Transition Planning Institute. All Rights Reserved.Leaving without planning, with confusion, fear or denial15Script:

Lets look at some ways in which owners leave their companies unsuccessfully.

15What Are Some Unsuccessful Ways to Leave Your Business?1.R&D Approach (Repression & Denial)

An owner doesnt even want to think about leaving.

2011-2013 Successful Transition Planning Institute. All Rights Reserved.16Sales Script:

An R&D approach which in this case means repression and denial refers to an owner who doesnt even want to think about leaving their company.

So they dont plan ahead they do nothing.

This is not a good way to prepare for your personal or business future.

Doing nothing makes the owner vulnerable when unexpected events occur and can lead to business decline, financial loss, or to personal and family upheaval.

16Unsuccessful Ways to Leave Your Business2.Making an Impulsive Decision

The owner wants instant results and doesn't take time to explore all their options. 2011-2013 Successful Transition Planning Institute. All Rights Reserved.17

Sales Script:

2: Making an impulsive decision this often happens when some negative event occurs for example, the business is doing badly, or the owner unexpectedly develops a medical condition and suddenly has to think about leaving.

But suddenly deciding to leave your business or quickly trying to pass it on to someone else doesnt give you time to explore all your options.

You cant make the best decisions and you wont get the most money for your company.

173.Sellers Remorse

The owner gets cold feet in the middle of the selling process and suddenly stops all negotiations. 2011-2013 Successful Transition Planning Institute. All Rights Reserved.18

Unsuccessful Ways to Leave Your BusinessScript:

Sellers remorse this is a very familiar scenario.

An owner decides they want to sell their company and goes to an investment banker or other professionals to help them find a potential buyer.

They may actually have begun negotiations and all of a sudden, the owner realizes that he wasnt emotionally ready to sell.He gets cold feet and he stops the deal.

Not only does the owner lose their retainer, firms are now charging penalties to owners who get sellers remorse and who back out in the middle of a deal.

184.Retirement Remorse

Youve left your company and now you dont know what to do in your new life. 2011-2013 Successful Transition Planning Institute. All Rights Reserved.19

Unsuccessful Ways to Leave Your BusinessSales Script:

4. Retirement remorse that can happen after an owner has left their company.

And now they dont know what to do with their new life.

195.Inadequate Value

Because you didnt plan adequately, you didnt get the maximum value that you could have received for your company. 2011-2013 Successful Transition Planning Institute. All Rights Reserved.20

Unsuccessful Ways to Leave Your BusinessSales Script:

And finally, Inadequate Value that can happen when an owner doesnt create a well thought-out plan for how to successfully transfer their company to new owners.

So they dont get the maximum value they could have received for their company.

20What Lessons Can We Learn From These Unsuccessful Ways of Leaving?Lesson #1 An owner who doesnt take the time to analyze and compare all their options, may not make the best decision about what to do with their company, and may not get the best value for it.

Lesson #2 If you dont have a well thought-out plan for what you want to do after leaving your company, your new life can become boring, unfulfilling and meaningless.



21Lesson #3 Getting cold feet during the transition process can harm your reputation later, and can discourage future potential buyers from negotiating with you.

Lesson #4 An owner's unrecognized emotions and Fears can sabotage their attempts to leave their business successfully.

2011-2013 Successful Transition Planning Institute. All Rights Reserved.22

What Lessons Can We Learn From These Unsuccessful Ways of Leaving?Script:


Ask owners: Does that make sense to you?

22Why Owners Fail to do Transition PlanningAfraid to think about leavingThink its too early to planFear that the transition process will be too complicatedAfraid of an unknown futureDo not know experienced Advisors who could help them plan and implement a successful transition process


Read slide aloud to owners

Ask owners: Do any of these reasons strike a chord with you?

23Be PreparedOwners who get ready for their next transition by doing Transition Planning are prepared to achieve their:

Financial goals Business goals Personal goals


Sales Script:

Read slide aloud to owners.24An Owner Who Engages in Business Transition Planning:Is aware of all their business optionsIs able to make the best decisions about what to do with their companyCan achieve desired financial outcomes during theprocess of transferring their company to new ownersFeels peace of mind about moving on to a new life


Sales Script:

Read slide aloud to owners.25 2011-2013 by Successful Transition Planning Institute. All Rights Reserved. Integrative Transition Planning Strategic thinking about Head, Heart, Business and Wallet issues of your Transition Process to create a successful new future for your company and for yourself.

The new paradigm of Integrative Transition Planning allows you to think strategically about the Head, Heart, Business and Wallet issues of your creating a successful new future for your company and for your self.

The focus in the old exit planning paradigm was on the transaction and wallet issues. There was no consideration that an owner is a person and that for many of them they were letting go of their babies. The new model that I have developed, Integrated Transition Planning, incorporates both the Head ( logic) and the Heart (emotional meaning) with the business and financial aspects that are involved in passing a business to new ownership.

26 2011-2012 Successful Transition Planning Institute. All Rights Reserved.27

2011-2013 by Successful Transition Planning Institute. All Rights Reserved. Sequential Steps for a Successful Transition

This chart outlines the sequential steps that you need to follow to insure the successful transition of your company to new ownership and you to a new life. First you have to create 28Preparedness Chart to Live Your Life in The Platinum Years29

Structural Preparation

2011-2013 by Successful Transition Planning Institute. All Rights Reserved.Since you have a new stage of your life, you need to take time plan what you are going to do in all ten aspects of your life. If not you will look out towards your future and see nothing but a void which the tendency of baby boomers to want to hold on to their full time positions. You add a new sense of purpose when you create a clear and comprehensive vision, and plan for a meaningful and fulfilling new life they cant wait to live. The 10 are

30 2013 Successful Transition Planning Institute. All Rights Reserved.Whats Next? WorkshopTM Session 1Risks of Not Planning Depression Addiction Velcro husbands MLS Gray Divorce 2011-2013 Successful Transition Planning Institute. All Rights Reserved.31

31The Importance of CommonOutlooks and ValuesAge 50+ divorce rate has doubled over past 20 years10 % of all divorces in 1990 were by people aged 50+25 % of all divorces in 2009 were by people aged 50+

Click here to tweet thisFacilitation:

Read slide aloud to participants.Comment about the need to consider changing identities. The retired CEO does not automatically become CEO of the new environment --- it may already have one !!!Go on to next slide.NOTE: In the unlikely event that no participants have a Spouse/Partner/Significant Other, cover this and the following slide to shed light on how friendships may be affected by a transformational role change.

32 2013 Successful Transition Planning Institute. All Rights Reserved.Whats Next? WorkshopTM Session 2Possible Motivations forLeaving Your BusinessYou might be feeling burnt outYou want to do something new and differentYoud rather do something else with your lifeYou have a potential buyer for your businessYou want to create the best possible future for yourself, your business and your familyOther reasons?

2011-2013 Successful Transition Planning Institute. All Rights Reserved.3333Are You Ready?to think seriously about the possibility of transferring your business to new owners? to think seriously about moving on to a new future?to take the time now to start engaging in Business Transition Planning?to start thinking about creating a new life for yourself after leaving your company?


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Learn how to Think about your business and personal future

Learn how to Live a dynamic and purposeful life, after the business

Learn how to strategically Decide your businesss future, so it allows you to achieve your personal and business goals35

Whats Next? Self AssessmentPresents in a Clear and Organized Way: Owners motivations for wanting to leave Their transition goals Their attitude and expectations How emotionally prepared they are for leaving If they have a plan for a meaningful and purposeful new life

36Decision-Making StylesBusiness people use 5 distinctDecision-Making Stylesin makinghigh-stakes decisions.

script:Read slide aloud to participants.The 5 Decision-Making styles have been identified as the result of nearly 20 years of work with business owners in transition.

37 2013 Successful Transition Planning Institute. All Rights Reserved.Whats Next? WorkshopTM Session 2Leaving a Business Successfully is like Building a Great New Home

Start with a Strong FoundationPersonal Transition Planning

Add floors, walls and roof Financial PlansSuccession PlansBusiness Contingency Plans

Fill up your Home (Life of Possibilities)Right ActivitiesRight OccupationRight Location

Your Open House (Start your New Life)HealthyBalancedPurposefulSignificantCopyright 2008-2013 by Successful Transition Planning Institute. All Rights Reserved.

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I will end our time together with a choice for you to make: you can either to choose to take the path on the right and die at your desk, or you can choose to take the road on your right that will lead you to a life of full time leisure in the traditional model of retirement or you can decide to go the middle road and live your lifes next big adventure a life filled with new meaning and purpose in this new stage of life called the Platinum Years.

Whichever path you choose, I truly wish you health and happiness.

Thank you ,

39ContactSuccessful Transition Planning InstituteOne Mifflin PlaceSuite 400Cambridge, MA 02138617.576.5728

Paul [email protected]

SuccessfulTransitionPlanning.com (Linkedin, Facebook)nexttransition (Twitter)

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