Why is this important?Because this is how you need to think, if you are going to leave your business SUCCESSFULLY!
Script:The fact is most Baby Boomer business owners have not yet begun any kind of Transition Planning – but you should!
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 life’s 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 Years”The 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.
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.
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 Webster’s 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 country’s small business which employees 80 percent of this country’s employees.
Script: But the fact is, there are successful and unsuccessful ways to leave your business.
The Platinum YearsSMThis 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.
Script:Another reason owners don’t 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”.
Sales Script: Transition Planning leads to a successful new life.
Sales Script:Read slide aloud to owners.
Script: Let’s look at some ways in which owners leave their companies unsuccessfully.
Sales Script:An R&D approach – which in this case means “repression and denial” – refers to an owner who doesn’t even want to think about leaving their company.So they don’t 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.
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 doesn’t give you time to explore all your options.You can’t make the best decisions and you won’t get the most money for your company.
Script:Seller’s 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 wasn’t 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 seller’s remorse and who back out in the middle of a deal.
Sales Script:4. Retirement remorse – that can happen after an owner has left their company.And now they don’t know what to do with their new life.
Sales Script:And finally, Inadequate Value – that can happen when an owner doesn’t create a well thought-out plan for how to successfully transfer their company to new owners.So they don’t get the maximum value they could have received for their company.
Script:Read slide aloud to owners.
Script:Read slide aloud to owners.Ask owners: Does that make sense to you?
Script:Read slide aloud to ownersAsk owners: Do any of these reasons strike a chord with you?
Sales Script:Read slide aloud to owners.
Sales Script:Read slide aloud to owners.
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.
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
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 can’t wait to live. The 10 are…
Facilitation: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.
Learn how to Think about your business and personal futureLearn how to Live a dynamic and purposeful life, after the businessLearn how to strategically Decide your business’s future, so it allows you to achieve your personal and business goals
Presents in a Clear and Organized Way: Owner’s 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
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.
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 life’s 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 ,
Strategic thinking about your business and personal future
How to Leave your Business Successfully:
Strategic thinking about your
business and personal future
A New Way of Living for a New Stage of Life
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LATE 20TH CENTURY
EARLY 21ST CENTURY
The Platinum Years
The Importance of Common
Outlooks and Values
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• Age 50+ divorce rate has doubled
over past 20 years
• 10 % of all divorces in 1990 were
by people aged 50+
• 25 % of all divorces in 2009 were
by people aged 50+