THE CRITICAL QUESTION FOR BUSINESS OWNERS: DEFINING SUCCESS – WHY ARE YOU ON THIS ROAD? By recent article in Forbes magazine by John Jennings described this as the “money and happiness” paradox. In his article, Jennings discussed an important psychological study from 2003, which determined that although having more money is associated with happiness, seeking more money dampens life satisfaction and impairs happiness: [T]he study found that “the greater your goal for financial success, the lower your satisfaction with family life, regardless of household income.” This paradox teaches that money boosts happiness when it is a result, not when it is a primary goal, or as Ed Diener noted in his book his TED Talk that has more than 55 million views. Sinek’s website describes the book this way: Sinek presents a simple yet powerful idea: the most successful and influential companies and leaders start with the “why” of their business, rather than focusing solely on the “what” and “how.” By starting with purpose and beliefs, companies can create a clear and compelling message that resonates with their customers and employees. This is the first question for the business owner to answer: Why am I doing this? Having a clear purpose means that the owner will not shy away from challenges arising in the business. The owner’s purpose is the lodestar that keeps both the owner and the company on track and able to surmount these challenges. A business owner who knows the why has purpose that drives the business, and fulfilling the owner’s purpose will help define success. What Is the Quality of My Relationships? This question about relationships may be less obvious than deciding on one’s purpose, but it is no less important. We are human beings. We exist in relation to other humans, which is especially true in the business world. People do not succeed or experience success in business in a vacuum. There are two types of relationships for the business owner to consider: those within the company and those that the owner has with family and friends outside the business. Both of these are important and help the business owner to define and experience success. Inside the business, successful business owners stress the importance of building solid, meaningful relationships. Sam Kaufman, an entrepreneur and a member of the Forbesbusiness council, expressed this powerfully in a interview in 2021, he said: “Younger employees consistently rank corporate responsibility at or near the top of their criteria for working at a particular company. This means community actions are key, but not just from a talent perspective.” When asked why companies should compare about community impact, he stated: “It’s the connection between community and long-run company performance. That shows up in everything from what kind of brand do I build over time, to the knock-on effects of that brand, to the way my employees feel about the company, with respect to how I am engaging in community.” — Dave Young, a senior partner with Boston Consulting Group The point is not to suggest that business owners have to become “corporate do-gooders” to find success. But, if owners choose to disregard the impacts their companies are having on the communities in which they do business, they may find success to be an elusive goal. Conclusion Defining success is an individual process for business owners, who will reach different conclusions, but the process is a vital exercise to undertake. Owners who eschew the need to consider their path to success may find themselves lost or overwhelmed on an uncharted road. By undertaking the deliberative process required to define success, business owners will develop a clear sense of purpose, appreciate the important relationships in their lives and fully grasp how their company impacts the community in which it operates.
Life Coaching
“What will I do after selling my business?” he asked. I hear that a lot both in my M&A practice, True North Advisors Group and my coaching business, The Platinum Years. “I fear I will fall into a void, if I sell”, is another common refrain. As we get into our 50’s, 60’s and 70’s, many of us who have achieved financial and business success, start to wonder about this. As my fellow business advisor Josh Patrick, wrote recently, we want to stay “relevant”. But what does that mean, and how to achieve it? For some it is selling and traveling, for others it is hiring a career coach and starting anew. Sadly, other freeze up and do nothing. Of course, that is a bit like letting choosing to let others plan your future – they will clean up your mess after you are gone. If you are a late-career business owner, there is a small step to think more deeply about your future. It is called the What’s Next Self-Assessment (online assessment, book and workbook). Beats wondering how to stay relevant… Learn More:
And the Beginning! Change is the external event, situation, or relationship that morphs into something new/different/better/worse. After a 30-year successful run, the founder/business owner sells his or her business. That’s the change. Here’s how my client, Jim, described it to me this week: One day I’m in my office and the next day I am at home with no emails in my inbox, no meetings to attend, no need to ever think about sales and marketing, and no team members to celebrate births, marriages, and graduations with. The final six months of executing the deal were so intense that I didn’t even have time to think about life after the sale. It’s been three months now and I have no idea what to do with myself. I don’t know if I need coaching or therapy. I feel lost and invisible. Transition is what happens internally as we move from where we were to a different (hopefully better) place. All major transitions have a phase, that’s called the messy middle. Rosabeth Moss-Canter is quoted as saying, “Everything in the middle feels like failure.” I think Jim would agree. Then comes the new reality. While we all know change is inevitable, it’s easy to get lost in the flood of emotions, and/or the need for action, that change ushers in, even if that change is the successful sale of a business. Whether we’ve planned for it or not, the messy middle is an uncomfortable, scary time filled with loss and sadness about what is gone, and uncertainty and confusion about next steps. The entrepreneur’s strong impulse is to muscle through this phase to get past the discomfort and uncertainty as quickly as possible. Here’s the good news. This is where a skilled coach can provide guidance and support, and most of all – permission for the client to be in the moment, in the process, and let go of fear or anxiety as the new normal unfolds. “Unlearning” is much harder than learning, and clients need support as they let go of old routines, identities, and successful habits, enabling them to emerge empowered to chart a course for their desired future. If you are a service provider who works in any capacity with business owners to help them sell their businesses for the maximum buyout, I am sure you have high-fived them and popped the champagne at the closing. It’s likely that many of you have also checked in with them a month or so later to find the initial elation gone, replaced by fear and uncertainty, and often dread over how the next ten years will unfold. The bad news… there is no magic bullet. Every situation is different. However, there are some proven action steps you can take that significantly increase the chances of a positive outcome, and a client who is invested and involved in the future he or she is creating. Here are some ways you can help them prepare psychologically. PREPARE At least a year before the sale, begin to ask questions about what they are doing to prepare themselves psychologically for the transition. ENCOURAGE Suggest they talk to an experienced coach, counselor, or peer who has been through a business sale. Learning about the necessary steps of major transitions and asking for guidance or support well before the event from a trusted advisor can be the game changer. SUPPORT When clients express doubts and uncertainties about their future after the sale, listen, ask “Tell me more” questions, and empathize with their feelings. “I get it,” and “That really makes sense to me,” are far more helpful than, “Don’t worry, I’m sure everything will be fine.” Let them know you are willing to listen and help them find resources to navigate the transition. COMMIT Check in with clients after the sale at least once a quarter for the first year to see how they are doing. If they are floundering, suggest they reach out to a qualified transition professional for support. Any major transition, especially in the last third of life, can be the beginning of a devastating downward spiral or the catalyst for personal transformation and growth. As we know, studies show that the vast majority of business owners regret the sale. I believe that in large part, it is because they are not prepared or equipped to create a life and a future that they love. It would be a privilege to share more about my successes with this process and all it can do for your clients who may be struggling with how to make their next chapter their best chapter. Here’s the best news! I’m here for you. Please do drop me an email at the address below and we will schedule a 30-minute discovery call. Contact: info@themindconnector.com Webpage:
How to shift from doom to possibility so you can serve your clients well during this uncertain time. I say it all the time, but I want to gently remind you. Your mind’s activity works in a way that sometimes is NOT helpful. Especially in these days, living in the catastrophe’s and pandemic life right now, our minds are on overdrive protecting us. How in the world do we stop worrying and fretting right now? Remember that Circumstances trigger not only thoughts but stories. I.e. the stock market dips and our mind says we are going to lose everything. Our mind is a frickin’ drama king/queen. And it steals our joy and our ability to be focused on the people and the activities we love. It robs us of our flow/productivity at work. What’s a person to do? Interrupt the story, get curious about the story, give yourself some grace while you peek in and look at what your mind is doing there. The action of interruption is powerful. What does interrupting, getting curious look like? 🗣In conversation: “Wow, with all that is going on today, I am making some really crappy conclusions.” SPEAKING THE THOUGHTS OUT LOUD helps you to look at them instead of think them, believe them. ✍🏽In journaling: Listing everything that you’re thinking and reading it over, can create a powerful awareness instead of BEING IN those thoughts. WE DO NOT HAVE TO THINK DIFFERENTLY. Just watching and observing our thoughts creates a powerful agency over ugly thoughts. 🧠In your mind: Ask better questions. Ask open ended questions and keep them coming until you feel a shift to a less dire state. OPEN ENDED QUESTIONS disrupt powerfully, pointing the brain in another direction. What is possible here? What shift could I make? What’s another way to think about it? Could I give myself some grace here? Lean into 🧠✍🏽🗣 and see what works for you here. Diana Mindset/Life Coach for Expert Advisors and Owners in Exit ps I discuss all of these issues on my podcast. Here is one of my favorite recent episodes on building momentum. pss my website is full of resources: dianamurphycoaching.com
Date: March 4, 2022 Start Time: 12 p.m. Eastern Standard Time End Time: 1 p.m. Eastern Standard Time Platform: Zoom Questions: Chat
“So, tell me about yourself.” “What’s happening on the big project?” “How are our quarterly numbers?” If you want to sound confident, your response to any question should be clear and engaging. “Ummm, that’s a good question…” or “Well, that depends…” does not communicate confidence. At The Confident Communicator, we coach aspiring leaders to start an answer by showing they’ve heard the question and want to engage in a positive way. “Tell me about yourself.” “I’d be happy to….” Author Judith Humphrey calls this a “grabber.” It grabs the listener by the lapel and says: hey, come with me! “How is the project coming?” “It’s on track…” Grabbers respond to the question but do not provide a full answer. They provide a bridge from the question to the answer. The second component of a confident response is a succinct message. Your message should capture the main point you want to make in a phrase or single sentence. If the other person remembers nothing else from what you said, it’s this one thing. “Tell me about yourself” “I’d be happy to. I thrive on creative projects.” Boom! Grabber + Succinct Answer = Confident. “How are our quarterly numbers looking?” “Excellent. “We increased new applicants by 40%.” Even when answering a factual question, your message can transcend the facts. Pro Tip: in advance, think of a succinct answer to tough questions you may be asked. Be ready! Sign up for your daily leadership communications tip at
Date: January 19, 2022 Time: 12 p.m. to 1 p.m. EST Platform: Zoom Questions: Chat
People have been selling businesses and retiring forever, so why is this important? Well, after nearly 30 years in healthcare, I’ve seen a startling trend that must be addressed. Let’s walk through two scenarios, and you pick the one that reflects your future desires. Retirement Scenario 1 – The Cliff It is not uncommon for people, especially very successful men, to become defined by their work. It is their source of fulfillment, accolades, confidence, social engagement, power, notoriety, and significance. The years or months leading to retirement are filled with final goals, succession planning, financial projections, and a whirlwind of activity related to the retirement itself. Then Monday arrives. He has no agenda for the day, no one waiting in line with questions, no ringing phones, no fires to put out, and no expectations for his time. This might even be fun and relaxing for a short time. He might have some trips to take and some family time to enjoy. But then what? If he has no longer-term plan or defined purpose, retirement can feel like falling off a cliff. I have seen this happen in so many men, even those with well-developed hobbies or even nonprofit roles. When there is no plan, health can decline rapidly. All of the stress, disappointment, anxiety, loss of self, loss of purpose can lead to decline in physical health. Depression, increased blood pressure, increased weight, increased blood sugar, disrupted sleep, and more can quickly put him at risk of stroke, heart attack, or other future-limiting event. Then, add the impact on relationships that is a key part of the Learn more here. Schedule a
This has been a challenging year for business owners. I’ve seen it all, your own powerful pivots whilst guiding clients through revenue loss, and their market changes. Navigating your own business in the middle of a LOT of uncertainty, handling an entirely new lifestyle of work and home life. Just wow! Can we just give ourselves a big pat on the back? Staying in the energy of response for too long can burn you out. In fact for most of us, we are already there. We’ve been on high alert since March 13th, 2020, handling every twist and turn and I believe it has taken a toll. I have been thinking about this a lot and have decided I wanted to do something to support my owner colleagues as coach. I’ve created a powerful course designed for business owners with 3 modules that stand alone but also build on one another. THIS IS THE INFO FOR THE COURSE: (November 5, 12, 19-Recordings available) This podcast will give you the first step. (This is the 1st module of the Course). Episode 40: From Stress to Clarity & Inspiration We have such a great opportunity for growth in 2022 if we recharge our mental batteries now. Just email me diana@dianamurphycoaching.com and my team and I will answer any of your questions. Diana
Date: September 28, 2021 Time: 12 p.m. to 1 p.m. Eastern Daylight Savings Time Questions: Chat Free Ticket Click Here: Scott O’Neil (Sign up even if you can’t make and we will send you a link to listen later)
Popular
What's Trending
What is your goal for your business? As fractional CFOs, when we first meet with our clients, this is among the first questions we ask. Your goals will inform much of our work supporting your company – whether we focus on preparing you for a near-future exit or growing and building the value of your business over time. This is what makes our fractional CFOs – many of whom are also CEPAs – a vital (and often missing) piece of the exit planning puzzle. Many business owners enlist exit planning experts as they approach the exit process, bringing in an army of resources to make the most out of what has already been built. A fractional CFO, however, becomes embedded in your business over time and, in the process, comes to serve as a value growth advisor – a financial expert who can help you
There is a common misconception that what an employee does outside the workplace, particularly on social media, is not the employer’s responsibility.
ROBS – or use funds from their existing personal 401(k) or other retirement accounts as capital for buying a business. In addition to creating cash flow and minimizing the use of debt, ROBS are an attractive source of funds unlocking value from an individual’s retirement savings to fund a business, what are the tax advantages that make considering a ROBS strategy worthwhile? First, there is the aspect of tax deferral. Financing through ROBS avoids the early withdrawal penalty normally incurred when funds are withdrawn from retirement savings prior to retirement. When you use the capital from your 401(k) to fund a new income taxes or penalties, more money is available to go into the business, thus maximizing your available capital. In addition to increasing capital efficiency, you avoid loan obligations because ROBS is not a debt product. It’s simply accessing the equity you already have built up in your retirement plan, so there’s no monthly repayments or interest like you would incur with a loan. Accessing Business Capital Through ROBS Here are some points to remember about how the flow of money works when using a ROBS strategy: The new business entity to be funded must specifically be established as a C-Corp. After a new 401(k) or profit-sharing plan is the business advisory space and how to implement a ROBS strategy. For a consultation on your business plans and objectives, please contact us at 770.740.0797 or email info2@SJGorowitz.com.
As a small business owner, your instinct might tell you to seize every opportunity that knocks on your door. Let’s face it: saying yes can be a thrilling ride into new ventures. Sometimes, you need to remind yourself of your organizational Sweet Spot. Does your team have the bandwidth, the people power, and the infrastructure to take it on? Sometimes, saying no is not just the better option; it’s a powerhouse move that aligns your business with your growth goal. Here’s the lowdown on when, how, and why flexing your “no” muscle is your smartest play. The Unmanageable Yes When you’re overcommitted and under-resourced, every additional yes is like adding more weight to an already overstretched team. If saying yes means sacrificing the quality of your work, spreading your resources thin, or burning out your team, then it’s time for a firm, resolute “no.” Remember, quality over quantity isn’t just a great saying – it’s the golden rule for sustainable growth. The Misaligned Opportunity Some opportunities seem golden on the surface, but they won’t help you achieve your business mission, vision, or values. Listen up: Your business is your compass; every decision should steer you to your true north. If it doesn’t fit, say no. It’s not just about avoiding the wrong turn; it’s about staying true to your course and your team’s potential. The Power of Prioritization Here’s a reality check—you can’t do it all. When you say no to less important things, you say yes to more focus, energy, and time for what truly matters. Embrace the art of prioritization because knowing what to decline is as vital as knowing what to pursue. Make your yes count! Cultivating Respect Saying no isn’t just about protecting your time and energy; it’s about setting boundaries. Assertiveness isn’t rude; it’s a sign of respect – for yourself, your team, and your business’s vision. When you respect your limits, others will follow suit. It signals to the world that your time, team, and resources are valuable. Conclusion Saying no is a tough decision. It’s not a negative judgment; it’s a selective choice. Think of the word no as a complete sentence and a powerful tool to guide your business to where it truly belongs. So, the next time you’re faced with a request that doesn’t feel right, plant your feet, take a deep breath, and remember that saying no is not just okay—it’s essential for your business’s health and ongoing success. Do you need to get in your Owner Sweet Spot?
GAAP traps often occur when a business owner sells a company to a third party. The transaction is commonly memorialized by a Purchase Agreement. That agreement contains certain representations (or “reps”) and warranties. Some of these are common sense and should pose no problem to someone who has operated a good business. The Accounts Receivable represent money that is actually owed to the company. Taxes have been filed on a timely basis. The seller doesn’t know of any pending litigation. The owner has the right and authority to enter into a sale agreement. There is one, however, that is frequently required by attorneys who don’t understand privately held business, and agreed to by owners and their attorneys who don’t understand what they are guaranteeing. They are Generally Accepted Accounting Principles, or GAAP. What is GAAP? To start, the term “Generally Accepted” is misleading. It could easily be interpreted as “what everyone typically does.” Nothing could be further from the truth. GAAP is determined by two organizations, the Financial Accounting Standards Board (FASB) and the Securities and Exchange Commission (SEC). Per I
Previous
Next
Explore the Knowledge Exchange
Make XPX Part of Your Business Plans
Explore
Learn
Account
Connect
Help & Support
© 2024 XPX Global LLC. Privacy Policy Norms & Principles Site Map Terms of Use
© 2024 XPX Global LLC. All Rights Reserved.