Every year I go to the New Orleans Jazz & Heritage Festival, a 13-stage extravaganza of music, food and culture. I look forward to seeing all the up-and-coming talent and big names. This year I was excited to see Mick Jagger and The Rolling Stones.
That rocker is 80 years old. He could be my father! The only other time I saw them was also in New Orleans, back in 1981. The Stones were already “old” back then.
I find it intriguing that artists like Jagger don’t think about exit planning. Painters keep painting well into their final decade of life. Actors keep acting, and bands keep playing as long as people keep paying.
They love their craft and do it out of passion. They also do it for money, even if they don’t need it (ahem Mick).
Is yours a lifestyle business?
Some owners run their businesses just like Mick Jagger, as a lifestyle. These owners don’t plan to sell; they just want to keep doing their thing and then liquidate it all at the end.
The problem is many owners start off with that plan but then change their minds as they get older, in which case they must work fast to transform their business for exit.
We are working with a couple of entrepreneurs right now on that “sprint.” It’s not easy, but it’s doable.
Watch out for the truck
Rock ’n’ roll bands don’t develop succession plans, either. They only think about replacing a member after he or she has an untimely death. You, on the other hand, can’t be so reckless.
What will happen if you — or a key person — suddenly get hit by a beer truck? It’s incumbent upon you to go through that exercise and put the answers in writing.
Your leadership team wants to know the answers. Plus, it will help you uncover where your company is deficient.
The 10-year plan
A well-known book on exit planning — “Finish Big” — claims you need to plan ahead 10 years to do it right. Some entrepreneurs need that long to wrap their heads around the big changes that need to happen. It’s a nice luxury but not always needed.
I have worked with many entrepreneurs who come to us with 10-year BHAGs (Big Hairy Audacious Goals) that we are able to achieve in five to six years. We speed up progress using focus, smarts and out-of-the-box thinking.
If you want out in five to 10 years, aim for five and then decide from there what you want to do. Even if you are young and still on your growth curve, it helps to set up both an exit plan (making it salable) and a high-value plan (maximizing its value).
Just because God laughs at our plans doesn’t mean we should not make them. It means the opposite — start planning earlier. The Rolling Stones don’t need an exit plan, but you do.
A long-term plan doesn’t happen magically; it requires quarterly implementation starting today. Would you like to retire in place at some point in the future? Start working on that plan now.
Even in the busy time of the year, make sure your efforts are being invested in the right activities. Each and every quarter you should be working on “one thing” to build up the continuity and value of your business. It’s called the One Thing rule.
Whatever your thoughts and desires, the first step is a conversation about goals. Reach out and we can have that conversation.
