General Principles of Success
Many years ago, the famous Andrew Carnegie saw a need to share the secret of success with the world. Knowing how to recruit people to assist in achieving his dreams, he put the challenge to Napoleon Hill to invest more than 20 years interviewing more than 500 exceedingly wealthy individuals (most of whom started life with nothing) to identify and confirm the secret to success - in this case, the success in attracting money into your life on a consistent basis (although the concept can be used for however you choose to define success and/or happiness).
Hill set to the task and encompassed his findings in his book, "Think and Grow Rich", a now timeless classic.
The main premise of the book is that your mind is the most powerful tool that you have, and will ever have. When used properly, the mind can create any future and reality that one desires. However, for a variety of reasons, most people are unable to see past the limitations that are ingrained in their thinking. Once thoughts can be focused on an objective - and not derailed by limitations - the actions that derive from those thoughts will guide one towards the success that they desire.
Sounds simple enough. So, why isn't everyone able to simply 'think' themselves into business success and a fortune? Well, actually, everyone is able to do this, but most people are not aware of the steps involved with acting this way consistently and they are not sure how to overcome the obstacles that prevent such thinking.
A study of individuals who achieve great success and wealth will reveal a deep rooted belief in opportunity and abundance. These people often will also see temporary defeat as an opportunity to learn and grow, not as a failure and a reason to quit. And it is this 'inner voice' that guides their thoughts and actions. Whereas the opposite is true of most people. For a variety of reasons most people see limitations and a virtual impossibility towards reaching their goals.
The book goes through many concepts and offers a specific 'step-by-step' approach towards advancing to your goals. In fact, Page 28 gives instructions on exactly what to do to develop a 'money-consciousness' that will attract wealth into your life.
Hill discusses, Chapter by Chapter, the topics of:
1. Desire
2. Faith
3. Autosuggestion
4. Specialized Knowledge
(I must plug in here that exit strategy planning is currently regarded as 'specialized knowledge' in a world of advisory services that are becoming increasingly commoditized every day).
5. Imagination
6. Organized Planning
7. Decision
8. Persistence
then Chapter 9, Power of The Master Mind
The Mastermind Principle
First Hill describes 'power' as "organized and intelligently directed Knowledge . . . through the coordination of effort of two or more people who work toward a definite end, in a spirit of harmony."
Hill then makes the somewhat dramatic statement (p. 182) that "No individual can have great power without availing himself or herself of the Master Mind Principle." He challenges the reader to "analyze the record of anyone who has accumulated a great fortune . . . and you will find that they have either consciously or unconsciously employed the Master Mind Principle."
He describes thoughts as a 'stream of power' and states that "the positive emotions of thought form the side of the stream which carries one to fortune. The negative emotions form the side which carries one down to poverty."
So, the Master Mind Principle includes a group of people coming together to achieve a stated objective and working in harmony towards achieving that end.
Forming a Mastermind Group
Pinnacle Equity Solutions leads the exit planning industry in training and execution of exit plans. Beyond the training and executions, we also collaborate in groups towards advancing our individual businesses as well as the industry as a whole.
That is what occurred in Tampa last weekend as 10 Pinnacle 'Platinum Level' Members came together for our first of three Mastermind Meetings for 2010. These meetings are designed from Napoleon Hill's writings - recognizing that our thoughts for success need to be organized in writing and stated as our intention. As a mastermind group, we each presented our goals for the year and 'brainstormed' on ways in which exit planning could be successfully incorporated and profitably employed in our businesses. This is a very powerful exercise as the creative energy which comes from these meetings serves to focus on thoughts of success and the follow up coaching and subsequent meetings hold us accountable to our goals and keeps our mind set towards achieving what we set our minds to.
The Key to Success is Like-Minded and Right-Minded Participants
The key to making this type of group work well is getting the right-minded people together, setting a specific agenda, closing the door (physically) to close out all distractions, and allowing the creative energy to flow towards the objective that was stated.
Each of the ideas created in these weekend session is the collective product of the group thinking delivered from a focus on the needs of each individual Member in achieving their goals.
The Mastermind group is, in effect, a very well organized 'reminder' of what you have committed to and a system by which you receive insights for your goals and also by which you maintain your focus.
Master Mind groups that follow Hill's formula are remarkably effective. These types of groups are not very hard to assemble. However, there is a secret to forming these groups. It is this secret that forms the basis of Pinnacle's Platinum Level group. It is also the insight that can assist you in forming your own group to assist you with your goals. To learn more about forming one of these groups and how Pinnacle will launch its new Certification Program, be sure to register for Wednesday's call.
I am very excited about launching into this New Year and to join my fellow Master Mind Platinum Members in making quantum leaps in our businesses. As I stated in my State of the [Pinnacle] Union address last month, my Company had a quantum leap forward in 2009 and expects to continue that momentum in 2010. With the help of my Platinum group, I expect to lead our collective success into and through this New Year.
Specializing in Business Exit Strategies, John M. Leonetti, Esq., M.S. Finance, CM&AA founded Pinnacle Equity Solutions to provide advisors with the tools they need to incorporate Business Exit Planning into their advisory practices. To learn more about John's Exit Strategy Services and to receive a FREE copy of his special report, "How To Incorporate Exit Strategies Into Your Advisory Practice", visit Pinnacle Equity Solutions
Tuesday, February 23, 2010
Monday, February 22, 2010
Exit Planning Workshop Preview Call
Mark your calendar for Wednesday, February 24th for our 3rd Workshop Preview Call.
On this call, John Leonetti will further discuss the benefits of our 2-Day Workshop March 19th & 19th in Boston, MA.
John is also going to announce Pinnacle's Inaugural Certification Course
That's right . . . after three (3) years of building content, teaching a cutting-edge MBA course, writing a leading book on exit planning, and training and mentoring hundreds of advisors, Pinnacle is announcing it's latest offering
The Certified Business Exit Consultant Program™
But there is a catch . . .
We are only admitting ten (10) advisors to this intensive training.
'Why so few advisors' you may ask . . . the answer is simple,
Along with this exciting program we are going to guarantee your success . . .
or your money-back.
How can Pinnacle make such an offer?
Tune in to listen to Pinnacle founder, John Leonetti, walk you
through the details of this exciting program and how it relates to the teachings at our upcoming Workshop.
To register for this informative call, please click here.
Specializing in Business Exit Strategies, John M. Leonetti, Esq., M.S. Finance, CM&AA founded Pinnacle Equity Solutions to provide advisors with the tools they need to incorporate Business Exit Planning into their advisory practices. To learn more about John's Exit Strategy Services and to receive a FREE copy of his special report, "How To Incorporate Exit Strategies Into Your Advisory Practice", visit Pinnacle Equity Solutions
On this call, John Leonetti will further discuss the benefits of our 2-Day Workshop March 19th & 19th in Boston, MA.
John is also going to announce Pinnacle's Inaugural Certification Course
That's right . . . after three (3) years of building content, teaching a cutting-edge MBA course, writing a leading book on exit planning, and training and mentoring hundreds of advisors, Pinnacle is announcing it's latest offering
The Certified Business Exit Consultant Program™
But there is a catch . . .
We are only admitting ten (10) advisors to this intensive training.
'Why so few advisors' you may ask . . . the answer is simple,
Along with this exciting program we are going to guarantee your success . . .
or your money-back.
How can Pinnacle make such an offer?
Tune in to listen to Pinnacle founder, John Leonetti, walk you
through the details of this exciting program and how it relates to the teachings at our upcoming Workshop.
To register for this informative call, please click here.
Specializing in Business Exit Strategies, John M. Leonetti, Esq., M.S. Finance, CM&AA founded Pinnacle Equity Solutions to provide advisors with the tools they need to incorporate Business Exit Planning into their advisory practices. To learn more about John's Exit Strategy Services and to receive a FREE copy of his special report, "How To Incorporate Exit Strategies Into Your Advisory Practice", visit Pinnacle Equity Solutions
Tuesday, February 9, 2010
Pinnacle's State of the Union Address
This feature article highlights the call that John Leonetti did for his Pinnacle Members describing his assessment of today's marketplace of exiting owners as well as the growing 'exit planning' community and Pinnacle's plans for 2010 to continue its leadership role in this exciting and emerging profession.
2009 Pinnacle Overview:
The Small Business Owner Continues to Suffer
Overall, in 2009, the small business owner continued to suffer from restricted access to credit and a lack of vision towards future prospects and growth. Amidst this backdrop of challenges, a small percentage of forward-looking owners choose to invest in the longer-term planning exercise that is the foundation of a solid exit plan.
However, sewn within this general fabric of business owner lament were positive signs. Once we got through the summer of 2009, a noticable trend occurred . . . more owners took meetings on the exit planning topic and signed engagement agreements to get the process started. This trend could be observed quite clearly as it stood in stark contrast to the 'deafening silence' of the first six months of 2009. And, within the walls of Pinnacle's headquarters, it has had me and my team quickly assembling resources to support this growing trend of owner engagements.
Listed below are many of Pinnacle's initiatives to assist you in capturing the emerging opportunity and being prepared for this coming wave of owners who are opening up to the idea of setting a plan to address the largest financial transaction of their lives.
Highlights from Pinnacle's Existing Content and What Was Delivered in 2009
" . . . through our newsletters, training calls, workshops, spotlight calls and support we’ve presented to you experts, authors, articles, information and topics that were timely and were created to continually educate you on how you can improve your exit planning service for owners. We’ve listened to our Members who have been asking for even more advanced training and have created many focused initiatives for the coming year, improving on our already outstanding reputation for quality content and delivery."
Pinnacle's growing library of proprietary content available to our Members / licensees, now includes more than 100 hours of specialized training, including:
* 64 unique newsletters - each of which has a recorded training call.
* 28 expert interviews / Spotlight Guest calls covering a wide array of topics that
exit planners need to have access to in order to better understand
their exit planning conversations and services to owners.
* 24 unique white papers and specialized topics
* Prospecting tools, including letters and presentations to owners
* Instructional classes on packaging and presenting exit planning to owners
* Sample exit plans and fact finders to assist with your owner meetings
* Special coaching calls on general practice management
* Special guidance on how to market your exit planning services
* An online 'school' that addresses Pinnacle's exit planning system.
. . . and much, much more proprietary content to support you in learning in this field and delivering solutions to your owners.
Recognizing that an incredible foundation has been built, Pinnacle now is focusing on initiatives for 2010 that will empower you, that advisor to the owner, to be more pro-active with your training . . . empowering you to be even more profitable.
2010 Pinnacle Initiatives-
To continue the momentum that has been generated at Pinnacle, John laid out the aggressive agenda being implemented as Pinnacle continues to define excellence in the exit planning arena.
The first area to address in supporting our Membership is an . . .
Online Exit Planning Software Program
To add to Pinnacle's exit planning system, we are excited about the roll-out of our latest tool for advisors - a web-enabled software program empowering you, the consultant to business owners, to easily apply all of Pinnacle's traing to the buildout of exit plans right from your desktop computer. This online tool will empower members to organize client information and provide high quality deliverables. As more and more exit planning engagement agreements are signed, there is a pressing need to provide this tool to our growing base of advisors.
Pinnacle will soon announce the availability of this web-enabled, dynamic and proprietary software solution that will provide you with a deliverable that not only follows Pinnacle's process for exit planning but also is rich with colorful charts, updated tax and regulatory information, as well as being customizable to your needs with your owners. The Membership has spoken and we have listened and are ready to deliver a 'category killer' application that will make the presentation and assembly of your exit plans more powerful . . . and your practice more profitable.
Next, John discussed the 'foundation' of exit planning content and how it will now be organized into a . . . .
Certification Program
After three (3) years of building focused and organized exit planning content, Pinnacle is quickly organizing and adding to all of this excellent material to bring you a cutting edge, rigorous Exit Planning Certification Course. Pinnacle's Certification Committee has been working on this project for nearly 5 months to deliver to the marketplace a Certification and represents nothing short of excellence in the field of exit planning. We, as a Committee, feel strongly that the exit planning marketplace needs better definition. As the leader in this space, it is therefore Pinnacle's responsibility to provide this definition of excellence. It is against this backdrop that the Certification course is being built.
Pinnacle recognizes that most advisors and consultants who offer exit planning today do so as an 'add on' to their existing advisory service. This has created a challenge for advisors and consultants to focus on the training and delivery of exit planning services (particularly in light of the economy in 2009). The Certification course will focus your efforts and further define the expectation and direction that you can take your exit planning practice. Far beyond simply holding yourself out as an exit planner, this Certification will challenge you to differentiate yourself from the growing field of those professing to provide this service by empowering you with training and advanced tools to deliver solutions to owners at a whole new level.
Expect to see details of this launch in March of 2010.
Advanced Member Support
To accomodate our growing Membership, Pinnacle is currently interviewing a Membership coordinator. Our Membership has spoken on this point and we, again, have listened. It is important to Pinnacle that your questions be answered and, moreover, that our tools are understood and used on a regular basis. To this end, we have built a support position to address only these issues so that Pinnacle can more effectively provide phone support and the distribution of our proprietary online newsletters. In addition, we will be providing advanced support for the completion of your exit plans
Upgrade to Our Training Program
An interesting observation came from the Members in 2009 that required a bit of thinking . . . perhaps, at times, we were providing too much content, training and information. Some Members felt as though they were struggling to keep up with the pace of information that we distributed. To address this issue, we have expanded our training to include eight (8) Advanced Practice Management calls throughout the year. These advanced calls will put into better context the topics that we cover in our training and assist you in better applying the teachings in your businesses.
We are excited about this improvement to our programming and look forward to our first Advanced Practice Management call in mid-February.
Upgraded Online Newsletter Service
To our chagrin, we have discovered that many of our Members continued to struggle with the marketing and distribution of the exit planning content to their business owner clients and prospects. This means that much of the excellent training and content remains in the minds of advisors and not in the hands of [potential] exiting owners. To address this issue, Pinnacle is systemetizing our process for establishing online delivery of our newsletters in a customized format for your practice. Moreover, we are adding to our support team the ability to do this without your [manual] involvement. Members have heard about this already but should expect individual phone calls to discuss how we can help get you set up with this important marketing tool.
Direct to Owner Presentations
One of the most exciting projects that we have in a Beta phase is the mailing and telemarketing program for direct business owner contact. Although we recognize that 'cold prospecting' is one of the worst and most expensive forms of new client acquisition, we also know the topic of 'exit planning' is highly specialized in its messaging to owners. What does this mean?
Simply put, discussing an exit is a very private matter for most owners and, therefore, it is a lot of work for any one advisor or consultant to get this dialogue started with an owner. Our 'direct to owner' initiative will be the 'door opener' to get you in front of owners on a regular basis.
This 'direct to owner' program is currently in beta testing and will, hopefully, be offered in the 2nd quarter to the Membership as an additional service. Our success with these Beta tests will be defined by Pinnacle's ability to consistently put Members in front of business owners in a proven and strategic manner to have the exit planning conversation. We are very excited about our current Beta tests and will present more details of this program in the 2nd quarter of 2010. Keep an eye out for applications for this exciting program.
Platinum Program
Pinnacle's year-long, select group of Platinum Members continues with a powerful assembly of advisors in 2010. This group had four (4) seats open up after the 2009 group concluded and they were quickly filled with motivated advisors and consultants who were very good, non-competitive, highly experienced and suppportive Members of Pinnacle's program.
More than a few Members have asked about Platinum II - a 2nd Platinum Group which would be built for collaboration on owner exit plans, as well as to suppport each other in a non-competitive manner in building each other's individual businesses. Given all of Pinnacle's current initiatives, we are not opening a 2nd Platinum Group until, at least, the 2nd Quarter of 2010. For those with a continued interest, we encourage you to continue to let our office know that you would like to be a part of this new group and we will keep your application on file for [likely] the 2nd half of the year when this new group opens up.
Additional Live Chapter Meetings
Finally, we will continue a wonderful tradition that was started in the 2nd half of last year . . . Pinnacle's quarterly, Members only, Chapter meeting. Although our Chapter meetings are currently scheduled for Boston (next meeting on April 7th in Boston) all our nation-wide members are invited to join us for these full days of networking and advanced practice management. We have had tremendous feedback and success with this program so far and look forward to expanding the concept into other markets in 2010.
Closing Thoughts
It is an exciting time to be a part of Pinnacle's exit planning 'Union'. We see continued excitement around this unique offering and look forward to another year of delivering excellence to your consulting and advisory businesses.
Also, be sure to check out Pinnacle's 2-Day Workshop at Suffolk University's Law School in Boston, MA March 18th & 19th at Suffolk University.
Specializing in Business Exit Strategies, John M. Leonetti, Esq., M.S. Finance, CM&AA founded Pinnacle Equity Solutions to provide advisors with the tools they need to incorporate Business Exit Planning into their advisory practices. To learn more about John's Exit Strategy Services and to receive a FREE copy of his special report, "How To Incorporate Exit Strategies Into Your Advisory Practice", visit Pinnacle Equity Solutions
2009 Pinnacle Overview:
The Small Business Owner Continues to Suffer
Overall, in 2009, the small business owner continued to suffer from restricted access to credit and a lack of vision towards future prospects and growth. Amidst this backdrop of challenges, a small percentage of forward-looking owners choose to invest in the longer-term planning exercise that is the foundation of a solid exit plan.
However, sewn within this general fabric of business owner lament were positive signs. Once we got through the summer of 2009, a noticable trend occurred . . . more owners took meetings on the exit planning topic and signed engagement agreements to get the process started. This trend could be observed quite clearly as it stood in stark contrast to the 'deafening silence' of the first six months of 2009. And, within the walls of Pinnacle's headquarters, it has had me and my team quickly assembling resources to support this growing trend of owner engagements.
Listed below are many of Pinnacle's initiatives to assist you in capturing the emerging opportunity and being prepared for this coming wave of owners who are opening up to the idea of setting a plan to address the largest financial transaction of their lives.
Highlights from Pinnacle's Existing Content and What Was Delivered in 2009
" . . . through our newsletters, training calls, workshops, spotlight calls and support we’ve presented to you experts, authors, articles, information and topics that were timely and were created to continually educate you on how you can improve your exit planning service for owners. We’ve listened to our Members who have been asking for even more advanced training and have created many focused initiatives for the coming year, improving on our already outstanding reputation for quality content and delivery."
Pinnacle's growing library of proprietary content available to our Members / licensees, now includes more than 100 hours of specialized training, including:
* 64 unique newsletters - each of which has a recorded training call.
* 28 expert interviews / Spotlight Guest calls covering a wide array of topics that
exit planners need to have access to in order to better understand
their exit planning conversations and services to owners.
* 24 unique white papers and specialized topics
* Prospecting tools, including letters and presentations to owners
* Instructional classes on packaging and presenting exit planning to owners
* Sample exit plans and fact finders to assist with your owner meetings
* Special coaching calls on general practice management
* Special guidance on how to market your exit planning services
* An online 'school' that addresses Pinnacle's exit planning system.
. . . and much, much more proprietary content to support you in learning in this field and delivering solutions to your owners.
Recognizing that an incredible foundation has been built, Pinnacle now is focusing on initiatives for 2010 that will empower you, that advisor to the owner, to be more pro-active with your training . . . empowering you to be even more profitable.
2010 Pinnacle Initiatives-
To continue the momentum that has been generated at Pinnacle, John laid out the aggressive agenda being implemented as Pinnacle continues to define excellence in the exit planning arena.
The first area to address in supporting our Membership is an . . .
Online Exit Planning Software Program
To add to Pinnacle's exit planning system, we are excited about the roll-out of our latest tool for advisors - a web-enabled software program empowering you, the consultant to business owners, to easily apply all of Pinnacle's traing to the buildout of exit plans right from your desktop computer. This online tool will empower members to organize client information and provide high quality deliverables. As more and more exit planning engagement agreements are signed, there is a pressing need to provide this tool to our growing base of advisors.
Pinnacle will soon announce the availability of this web-enabled, dynamic and proprietary software solution that will provide you with a deliverable that not only follows Pinnacle's process for exit planning but also is rich with colorful charts, updated tax and regulatory information, as well as being customizable to your needs with your owners. The Membership has spoken and we have listened and are ready to deliver a 'category killer' application that will make the presentation and assembly of your exit plans more powerful . . . and your practice more profitable.
Next, John discussed the 'foundation' of exit planning content and how it will now be organized into a . . . .
Certification Program
After three (3) years of building focused and organized exit planning content, Pinnacle is quickly organizing and adding to all of this excellent material to bring you a cutting edge, rigorous Exit Planning Certification Course. Pinnacle's Certification Committee has been working on this project for nearly 5 months to deliver to the marketplace a Certification and represents nothing short of excellence in the field of exit planning. We, as a Committee, feel strongly that the exit planning marketplace needs better definition. As the leader in this space, it is therefore Pinnacle's responsibility to provide this definition of excellence. It is against this backdrop that the Certification course is being built.
Pinnacle recognizes that most advisors and consultants who offer exit planning today do so as an 'add on' to their existing advisory service. This has created a challenge for advisors and consultants to focus on the training and delivery of exit planning services (particularly in light of the economy in 2009). The Certification course will focus your efforts and further define the expectation and direction that you can take your exit planning practice. Far beyond simply holding yourself out as an exit planner, this Certification will challenge you to differentiate yourself from the growing field of those professing to provide this service by empowering you with training and advanced tools to deliver solutions to owners at a whole new level.
Expect to see details of this launch in March of 2010.
Advanced Member Support
To accomodate our growing Membership, Pinnacle is currently interviewing a Membership coordinator. Our Membership has spoken on this point and we, again, have listened. It is important to Pinnacle that your questions be answered and, moreover, that our tools are understood and used on a regular basis. To this end, we have built a support position to address only these issues so that Pinnacle can more effectively provide phone support and the distribution of our proprietary online newsletters. In addition, we will be providing advanced support for the completion of your exit plans
Upgrade to Our Training Program
An interesting observation came from the Members in 2009 that required a bit of thinking . . . perhaps, at times, we were providing too much content, training and information. Some Members felt as though they were struggling to keep up with the pace of information that we distributed. To address this issue, we have expanded our training to include eight (8) Advanced Practice Management calls throughout the year. These advanced calls will put into better context the topics that we cover in our training and assist you in better applying the teachings in your businesses.
We are excited about this improvement to our programming and look forward to our first Advanced Practice Management call in mid-February.
Upgraded Online Newsletter Service
To our chagrin, we have discovered that many of our Members continued to struggle with the marketing and distribution of the exit planning content to their business owner clients and prospects. This means that much of the excellent training and content remains in the minds of advisors and not in the hands of [potential] exiting owners. To address this issue, Pinnacle is systemetizing our process for establishing online delivery of our newsletters in a customized format for your practice. Moreover, we are adding to our support team the ability to do this without your [manual] involvement. Members have heard about this already but should expect individual phone calls to discuss how we can help get you set up with this important marketing tool.
Direct to Owner Presentations
One of the most exciting projects that we have in a Beta phase is the mailing and telemarketing program for direct business owner contact. Although we recognize that 'cold prospecting' is one of the worst and most expensive forms of new client acquisition, we also know the topic of 'exit planning' is highly specialized in its messaging to owners. What does this mean?
Simply put, discussing an exit is a very private matter for most owners and, therefore, it is a lot of work for any one advisor or consultant to get this dialogue started with an owner. Our 'direct to owner' initiative will be the 'door opener' to get you in front of owners on a regular basis.
This 'direct to owner' program is currently in beta testing and will, hopefully, be offered in the 2nd quarter to the Membership as an additional service. Our success with these Beta tests will be defined by Pinnacle's ability to consistently put Members in front of business owners in a proven and strategic manner to have the exit planning conversation. We are very excited about our current Beta tests and will present more details of this program in the 2nd quarter of 2010. Keep an eye out for applications for this exciting program.
Platinum Program
Pinnacle's year-long, select group of Platinum Members continues with a powerful assembly of advisors in 2010. This group had four (4) seats open up after the 2009 group concluded and they were quickly filled with motivated advisors and consultants who were very good, non-competitive, highly experienced and suppportive Members of Pinnacle's program.
More than a few Members have asked about Platinum II - a 2nd Platinum Group which would be built for collaboration on owner exit plans, as well as to suppport each other in a non-competitive manner in building each other's individual businesses. Given all of Pinnacle's current initiatives, we are not opening a 2nd Platinum Group until, at least, the 2nd Quarter of 2010. For those with a continued interest, we encourage you to continue to let our office know that you would like to be a part of this new group and we will keep your application on file for [likely] the 2nd half of the year when this new group opens up.
Additional Live Chapter Meetings
Finally, we will continue a wonderful tradition that was started in the 2nd half of last year . . . Pinnacle's quarterly, Members only, Chapter meeting. Although our Chapter meetings are currently scheduled for Boston (next meeting on April 7th in Boston) all our nation-wide members are invited to join us for these full days of networking and advanced practice management. We have had tremendous feedback and success with this program so far and look forward to expanding the concept into other markets in 2010.
Closing Thoughts
It is an exciting time to be a part of Pinnacle's exit planning 'Union'. We see continued excitement around this unique offering and look forward to another year of delivering excellence to your consulting and advisory businesses.
Also, be sure to check out Pinnacle's 2-Day Workshop at Suffolk University's Law School in Boston, MA March 18th & 19th at Suffolk University.
Specializing in Business Exit Strategies, John M. Leonetti, Esq., M.S. Finance, CM&AA founded Pinnacle Equity Solutions to provide advisors with the tools they need to incorporate Business Exit Planning into their advisory practices. To learn more about John's Exit Strategy Services and to receive a FREE copy of his special report, "How To Incorporate Exit Strategies Into Your Advisory Practice", visit Pinnacle Equity Solutions
Wednesday, January 20, 2010
Recession, Economy and the Future of Small Business
A few weeks ago we closed out Pinnacle's year of exit planning education with a special call with Rob Slee. Rob is the founder of Midas Nation (www.midasnation.com) which is a community that is dedicated to increasing the value of businesses. Rob is also the author of three books ‘Private Capital Markets: Valuation, Capitalization and Transfer of Private Business Interests’, ‘Midas Managers” and ‘Midas Marketing”. In addition, Rob is the Managing Director of Robertson & Foley, a middle market investment banking firm.
In short, Rob is a small business guru who is making dynamic changes to the way in which owners view their businesses and gain access and insights towards being more competitive. This, of course, ties into an owner's exit plans. After a stage of value-creation comes the logical next step of value-realization - i.e., an exit.
Pinnacle Members provided rave reviews of this call and how it will alter the message that they carry to business owners in 2010. Accordingly, we wanted to share the hightlights with you in order to encourage you to pay careful attention to how this new global economy will shape small business in the future, empowering you, the advisor / consultant, to deliver more valuable advice to your exiting owners.
The Title of our December Spotlight Call was:
Recession, Economy and the Future of Small Business
We offer below the salient questions and answers that were covered on this call:
1. What is the impact of globalization on the small business?
The majority of US small businesses are primarily focused on U.S, not foreign, distribution, so when the US market is in a recession there is no where else to focus the business. In order to be competitive, small business owners need to incorporate a global diversification plan. Understand that globalization is not a fad.
Comment: Rob likes to use a term for this behavior, he calls it the 'matrix of denial'. Similar to the movie, The Matrix, many owners are living in a world where they do not know that they are asleep (in this case, at the wheel). There has been a seismic shift in how business is conducted yet many owners are reluctant to engage in understanding these changes and the long-term impact they will have on their small business. Globalization is one of the largest of the 'denials' of small business owners and their failure to adopt their business models to address this demand leaves them more vulnerable to recessions and competitive forces.
2. How have the economy, and its meltdown, impacted small business?
In the fall of 07’ all sectors of asset classes were under-reserved and out of balance. This lead to the economic situation we’ve been working through the past few years. As a result, banks are still not lending and until they can get the toxic assets off the books and rebalanced they will not open their small business lending. For business owners who require revolving credit to operate, we’ve seen a lot simply shut down and walk away as a result of lack of funding.
Comment: Small businesses create the majority of jobs in this country. We are now talking about 'recovery' for the U.S. [and world] economies. One needs to ask the logical question, 'how will the sector of the economy that produces the majority of the jobs provide for new employment without access to capital'. Moreover, it is easy to observe that, although most owners are resilient, many are second guessing their expansion plans in the absence of stronger evidence of economic prosperity in the near future. It is simply too painful to be ahead of the demand curve and experience the discomfort of cash-flow constraints on the heels of this recession. Without the proper amounts of capital available for small businesses, this recession could be protracted.
3. How and when will the US jobless recovery resolve itself?
Rob believes it can take up to 3 or 4 years to work through the rebalancing of the asset classes. Add to that the fact that the companies that are prospering in the current economy are structured with minimal employees – they are not adding the mass number of jobs to the market.
Comment: There are two (2) relevant points here:
Point #1, amongst the major assets classes that are out of balance, there is a lot of work yet to be done. One only needs to listen to speculation on the near-term impact of commercial mortgage failures and credit card defaults to see that we are not quite out of the woods yet. That being said, the worst still appears to be behind us, although our next point illustrates what the future of small business will look like.
Point #2 is that today's businesses that 'add value' are the ones that leverage their intellectual property and make efficient use of resource partners. What does this mean? Simply stated, we are less in the 'own and control' economy and more in the Aggregation Age. This means that the businesses that will be successful are working smarter, not harder, at identifying the intellectual and other property that is in demand and finding cost-effective ways to leverage, or distribute, this content, service, or offering. Unlike the 'days of old', businesses that will do well in the future are not labor or capital intensive. Rather, they possess various 'assets' that can be licensed, distrubuted, franchised, repackaged, joint ventured, and / or merged with other 'channel partners' for maximum effective market penetration.
As Rob likes to say, the new business world is mostly about owning but not controlling your market / distribution channels. This is a market reality that many of the 'old line' business owners are not adopting to. Moreover, this model does not require many new employees.
4. How can these insights help business owners?
First, business owners need to think about what their business is worth today – they can’t get stuck thinking about what it was worth a few years ago. The compelling message for baby boomer business owners is to think about this recession and its impact on you, your family and your business. If they do not plan accordingly and plan for their exit now, they may hit a subsequent recession when they are in their 70’s.
Comment: There is a rather predictable trend that can illustrate 'windows' for an owner to exit their business. And, with the right advice and guidance, owners can be well-prepared on a personal and business level to meet the market during the optimal exit time periods. Despite this predictability, most owners will not be prepared for their exit. This is where we as advisors and consultants can be most helpful. We can raise the awareness of owners and help them see that without proper planning and preparation, they are leaving themselves exposed to the risk of another recession and further loss to the illiquid wealth that they need for their post-exit goals and lifestyle.
5. What is Midas Nation?
The idea behind Midas Nation is to improve the value that small businesses add to our nation – for our generation and for generations to come. Behavior modification is a two year program that takes trades people and trains them to be value architects where they provide value to the marketplace. Midas marketing is leveraging your intellectual capital – learn how to do this in your own business before you can talk to your clients about their business.
Comments: We as advisors should look at how we are adjusting our own businesses to the new market realities. Are we, too, stuck in the Matrix of Denial? Perhaps the idea of bringing more value to your relationships and developing a deeper understanding of business owners and how to deliver the solutions within an exit plan is what you should be focusing on for the development of your practice. That is what Pinnacle offers.
If you want to follow Rob, this small business guru, to see what he has to say about small business and its future, you should go to midasnation.com and read about his recent comments. These insights are very timely and valuable and can assist in bringing your advisory practice to a new level as you help owners see more of what the future holds in store for them and their businesses.
For now, make a note to keep abreast of these fast moving changes in 2010. Both you and your clients will prosper from this additional focus.
These insights can be 'mined for further gold' as you reflect upon them in your next conversations with owners.
Specializing in Business Exit Strategies, John M. Leonetti, Esq., M.S. Finance, CM&AA founded Pinnacle Equity Solutions to provide advisors with the tools they need to incorporate Business Exit Planning into their advisory practices. To learn more about John's Exit Strategy Services and to receive a FREE copy of his special report, "How To Incorporate Exit Strategies Into Your Advisory Practice", visit www.PinnacleEquitySolutions.com
In short, Rob is a small business guru who is making dynamic changes to the way in which owners view their businesses and gain access and insights towards being more competitive. This, of course, ties into an owner's exit plans. After a stage of value-creation comes the logical next step of value-realization - i.e., an exit.
Pinnacle Members provided rave reviews of this call and how it will alter the message that they carry to business owners in 2010. Accordingly, we wanted to share the hightlights with you in order to encourage you to pay careful attention to how this new global economy will shape small business in the future, empowering you, the advisor / consultant, to deliver more valuable advice to your exiting owners.
The Title of our December Spotlight Call was:
Recession, Economy and the Future of Small Business
We offer below the salient questions and answers that were covered on this call:
1. What is the impact of globalization on the small business?
The majority of US small businesses are primarily focused on U.S, not foreign, distribution, so when the US market is in a recession there is no where else to focus the business. In order to be competitive, small business owners need to incorporate a global diversification plan. Understand that globalization is not a fad.
Comment: Rob likes to use a term for this behavior, he calls it the 'matrix of denial'. Similar to the movie, The Matrix, many owners are living in a world where they do not know that they are asleep (in this case, at the wheel). There has been a seismic shift in how business is conducted yet many owners are reluctant to engage in understanding these changes and the long-term impact they will have on their small business. Globalization is one of the largest of the 'denials' of small business owners and their failure to adopt their business models to address this demand leaves them more vulnerable to recessions and competitive forces.
2. How have the economy, and its meltdown, impacted small business?
In the fall of 07’ all sectors of asset classes were under-reserved and out of balance. This lead to the economic situation we’ve been working through the past few years. As a result, banks are still not lending and until they can get the toxic assets off the books and rebalanced they will not open their small business lending. For business owners who require revolving credit to operate, we’ve seen a lot simply shut down and walk away as a result of lack of funding.
Comment: Small businesses create the majority of jobs in this country. We are now talking about 'recovery' for the U.S. [and world] economies. One needs to ask the logical question, 'how will the sector of the economy that produces the majority of the jobs provide for new employment without access to capital'. Moreover, it is easy to observe that, although most owners are resilient, many are second guessing their expansion plans in the absence of stronger evidence of economic prosperity in the near future. It is simply too painful to be ahead of the demand curve and experience the discomfort of cash-flow constraints on the heels of this recession. Without the proper amounts of capital available for small businesses, this recession could be protracted.
3. How and when will the US jobless recovery resolve itself?
Rob believes it can take up to 3 or 4 years to work through the rebalancing of the asset classes. Add to that the fact that the companies that are prospering in the current economy are structured with minimal employees – they are not adding the mass number of jobs to the market.
Comment: There are two (2) relevant points here:
Point #1, amongst the major assets classes that are out of balance, there is a lot of work yet to be done. One only needs to listen to speculation on the near-term impact of commercial mortgage failures and credit card defaults to see that we are not quite out of the woods yet. That being said, the worst still appears to be behind us, although our next point illustrates what the future of small business will look like.
Point #2 is that today's businesses that 'add value' are the ones that leverage their intellectual property and make efficient use of resource partners. What does this mean? Simply stated, we are less in the 'own and control' economy and more in the Aggregation Age. This means that the businesses that will be successful are working smarter, not harder, at identifying the intellectual and other property that is in demand and finding cost-effective ways to leverage, or distribute, this content, service, or offering. Unlike the 'days of old', businesses that will do well in the future are not labor or capital intensive. Rather, they possess various 'assets' that can be licensed, distrubuted, franchised, repackaged, joint ventured, and / or merged with other 'channel partners' for maximum effective market penetration.
As Rob likes to say, the new business world is mostly about owning but not controlling your market / distribution channels. This is a market reality that many of the 'old line' business owners are not adopting to. Moreover, this model does not require many new employees.
4. How can these insights help business owners?
First, business owners need to think about what their business is worth today – they can’t get stuck thinking about what it was worth a few years ago. The compelling message for baby boomer business owners is to think about this recession and its impact on you, your family and your business. If they do not plan accordingly and plan for their exit now, they may hit a subsequent recession when they are in their 70’s.
Comment: There is a rather predictable trend that can illustrate 'windows' for an owner to exit their business. And, with the right advice and guidance, owners can be well-prepared on a personal and business level to meet the market during the optimal exit time periods. Despite this predictability, most owners will not be prepared for their exit. This is where we as advisors and consultants can be most helpful. We can raise the awareness of owners and help them see that without proper planning and preparation, they are leaving themselves exposed to the risk of another recession and further loss to the illiquid wealth that they need for their post-exit goals and lifestyle.
5. What is Midas Nation?
The idea behind Midas Nation is to improve the value that small businesses add to our nation – for our generation and for generations to come. Behavior modification is a two year program that takes trades people and trains them to be value architects where they provide value to the marketplace. Midas marketing is leveraging your intellectual capital – learn how to do this in your own business before you can talk to your clients about their business.
Comments: We as advisors should look at how we are adjusting our own businesses to the new market realities. Are we, too, stuck in the Matrix of Denial? Perhaps the idea of bringing more value to your relationships and developing a deeper understanding of business owners and how to deliver the solutions within an exit plan is what you should be focusing on for the development of your practice. That is what Pinnacle offers.
If you want to follow Rob, this small business guru, to see what he has to say about small business and its future, you should go to midasnation.com and read about his recent comments. These insights are very timely and valuable and can assist in bringing your advisory practice to a new level as you help owners see more of what the future holds in store for them and their businesses.
For now, make a note to keep abreast of these fast moving changes in 2010. Both you and your clients will prosper from this additional focus.
These insights can be 'mined for further gold' as you reflect upon them in your next conversations with owners.
Specializing in Business Exit Strategies, John M. Leonetti, Esq., M.S. Finance, CM&AA founded Pinnacle Equity Solutions to provide advisors with the tools they need to incorporate Business Exit Planning into their advisory practices. To learn more about John's Exit Strategy Services and to receive a FREE copy of his special report, "How To Incorporate Exit Strategies Into Your Advisory Practice", visit www.PinnacleEquitySolutions.com
Tuesday, December 1, 2009
Highlights from Pinnacle's November Spotlight Guest
Our November Spotlight Guest was Jerry Mills CPA, and Founder & CEO of B2B CFO® as well as the author of two (2) books for business owners; The Danger Zone, Lost in the Growth Transition and Avoiding The Danger Zone, Business Illusions.
On our monthly Member training call, I interviewed Jerry about his book, Avoiding The Danger Zone, Business Illusions. Highlights of that call are listed below:
The central message of Jerry’s book for business owners is that at some point you will leave your business. So instead of leaving your business, and future, to chance – you need to plan for your eventual exit.
Some illusions that business owners operate their businesses under, which will impact their ability to successfully exit are:
For example: Most business owners believe that the value of the business is based on top line sales – when it is actually based free on cash flow. So, if an owner has increased sales they wrongly assume the value of their business has increased, when in actuality the value may have decreased. This can significantly affect a successful exit, and it is one of the most common illusions that business owners operate under - i.e. chasing after new business - higher volume - thinking that it will make their business more attractive to buyers. This simply is not the case and, in fact, a focus on top-line growth only puts owners in the Danger Zone because without careful attention this type of growth actually stretches their resources and can reduce profitability and, therefore, the value of the business.
In addition to illusions that owners face, they also must avoid the many distractions that will keep them stuck in their business and unable to exit:
POINT: When a business owner stops being a ‘finder’ and starts being a ‘minder’ and/or ‘grinder’, their mindset is changed and they can no longer focus on growing the business. This can impact their ability to successfully plan for their eventual exit. More importantly, it leaves them vunerable to potential buyers who are able to determine the business is not being run appropriately and will actually devalue the business.
These are only a few of the powerful insights that Jerry shared with our Pinnacle Members. Jerry's book is a powerful tool for business owners and for advisors, especially in addressing the business (not personal) needs of an exiting owner.
Jerry's organization and network of partners - B2B CFO® - provides vital services for business owners, including many aspects of an exit.
At the end of our call, both Jerry and I encouraged listeners to network with each other and to work as teams to bring solutions to the exiting owners. For more information about Jerry's book or his B2B CFO organization, you can visit their web site at www.b2bcfo.com.
=================================================================
NOTE: Our next workshops are scheduled for:
Tampa, Florida - Jan. 28th & 29th ( www.exitplanningtampa.com)
Boston, MA - March 18th & 19th. (location pending final confirmation)
Specializing in Business Exit Strategies, John M. Leonetti, Esq., M.S. Finance, CM&AA founded Pinnacle Equity Solutions to provide advisors with the tools they need to incorporate Business Exit Planning into their advisory practices. To learn more about John's Exit Strategy Services and to receive a FREE copy of his special report, "How To Incorporate Exit Strategies Into Your Advisory Practice", visit www.PinnacleEquitySolutions.com
On our monthly Member training call, I interviewed Jerry about his book, Avoiding The Danger Zone, Business Illusions. Highlights of that call are listed below:
The central message of Jerry’s book for business owners is that at some point you will leave your business. So instead of leaving your business, and future, to chance – you need to plan for your eventual exit.
Some illusions that business owners operate their businesses under, which will impact their ability to successfully exit are:
- They make decisions based on their ‘gut’ (regardless of business size).
- That an increase in business sales leads to increased cash flow.
- That the owner will always be there to run the business and make decisions.
For example: Most business owners believe that the value of the business is based on top line sales – when it is actually based free on cash flow. So, if an owner has increased sales they wrongly assume the value of their business has increased, when in actuality the value may have decreased. This can significantly affect a successful exit, and it is one of the most common illusions that business owners operate under - i.e. chasing after new business - higher volume - thinking that it will make their business more attractive to buyers. This simply is not the case and, in fact, a focus on top-line growth only puts owners in the Danger Zone because without careful attention this type of growth actually stretches their resources and can reduce profitability and, therefore, the value of the business.
In addition to illusions that owners face, they also must avoid the many distractions that will keep them stuck in their business and unable to exit:
- Initially the owner has a ‘finder’ status – the entrepreneur of the company - where their thinking is strategic. They are bringing in the business and growing the company.
- As the company grows, many owners stop becoming the ‘finder’ and they transform into the ‘minder’, where their thinking is now tactical – they have stopped growing the company and are now involved in the day to day operations of the business.
- In addition, if the proper systems and people are not in place to sustain the businesses continued growth, an owner may actually become a ‘grinder’ where they are forced to do the actual “work”.
POINT: When a business owner stops being a ‘finder’ and starts being a ‘minder’ and/or ‘grinder’, their mindset is changed and they can no longer focus on growing the business. This can impact their ability to successfully plan for their eventual exit. More importantly, it leaves them vunerable to potential buyers who are able to determine the business is not being run appropriately and will actually devalue the business.
These are only a few of the powerful insights that Jerry shared with our Pinnacle Members. Jerry's book is a powerful tool for business owners and for advisors, especially in addressing the business (not personal) needs of an exiting owner.
Jerry's organization and network of partners - B2B CFO® - provides vital services for business owners, including many aspects of an exit.
At the end of our call, both Jerry and I encouraged listeners to network with each other and to work as teams to bring solutions to the exiting owners. For more information about Jerry's book or his B2B CFO organization, you can visit their web site at www.b2bcfo.com.
=================================================================
NOTE: Our next workshops are scheduled for:
Tampa, Florida - Jan. 28th & 29th ( www.exitplanningtampa.com)
Boston, MA - March 18th & 19th. (location pending final confirmation)
Specializing in Business Exit Strategies, John M. Leonetti, Esq., M.S. Finance, CM&AA founded Pinnacle Equity Solutions to provide advisors with the tools they need to incorporate Business Exit Planning into their advisory practices. To learn more about John's Exit Strategy Services and to receive a FREE copy of his special report, "How To Incorporate Exit Strategies Into Your Advisory Practice", visit www.PinnacleEquitySolutions.com
Thursday, November 19, 2009
Select Lessons from My Workshop
Because Pinnacle only hosts our 2-day Workshops a few times per year, I wanted to share a few 'high level', non-technical points of working with owners that were taught over the 2 days. It is my hope that this guidance assists you in your work with owner exits.
Owners are looking for comprehensive solutions
One of the key points to remember in any exit planning conversation or engagement with an owner is that the owner is looking for a comprehensive solution to the problem facing their exit. The largest challenge is that they do not exactly know what the solution is. It is your job to define what you can do for them, the process that you follow, and the result that they should expect. I told my audience that the success of each of my exit planning engagements with owners is dependent entirely upon one thing - how effectively I advance their thinking towards their exit. The planning process, tools and conversations are all designed to move the owner's thought process closer and closer towards a successful exit.
Owners are looking for objective advice
Although my primary mandate is to positively impact my owner's thinking towards their exit, there are always going to be ancillary products and services that are required to fulfill each owner's goals and objectives. It is important, however, to remember that you should not begin to discuss your primary offering - be it insurance, investments, tax, legal or business sales - until the time is appropriate. For Pinnacle students, this occurs during our 6th and final step in our process. At this point in time, the owner has be lead through an objective process to assist them in defining their goals, examining their readiness and exit options, and understanding whether or not they will reach their goals. When you follow the steps in Pinnacle's system, and do not jump ahead with your primary service or product offering, you remain objective and win the trust of the owner. And remember that trust is more difficult to get given the severity of the recent recession - it your job to win that trust, not the owner's job to give it to you. This begins with objective advice.
Owners do not sign on for a plan, they sign on for an exit
An interesting dynamic that occurs once you develop that trust is that the owner wants you to stay with them for the execution of the exit plan. Now, 'execution' can - and does - mean many differet things. Depending upon what is discovered during the planning process, you may put certain priorities ahead of others. For example, an owner with no (or faulty) estate planning may want to resolve this immediately, prior to engaging in the succession or business transfer process. Other owners will need to focus on different areas. What you should remember is that if the planning is done properly, owners will want to take action.
Business owners want to know that they will be able to take action and that you will be there to guide them. It is a valuable insight to know that when an owner signs on for an exit plan, they are not interested in a plan as much as they are interested in solving their exit needs. Remember this as you speak to and engage owners in this process.
The Owner's commitment to taking action is evidenced by the check that they write for the engagement agreement
Because exiting a business is such a difficult endeavor, you can be most effective in an owner's life when you get them to commit to this process with a payment for the engagement. This is important to remember as many who read this newsletter are in the habit of giving away a certain amount of information and service in order to win a valuable account or client. Of course there is a 'courting phase' in any relationship where you each invest time in getting to know one another. However, when it comes time for the exit planning engagement, you need to know that your owner is committed to the process that you want to walk them through. The greatest evidence of this commitment is the writing of a check for your time and service.
The Planning 'Crystallizes' the Owner's Thinking
By getting a commitment and presenting a comprehesive approach to the exit, owners can make a fully-informed decision about how and when they want to exit. When the process is followed, it empowers owners to move confidently in the direction of their exit. Pinnacle has a proven process that moves owners in this direction. Again, the definition of success for any of my engagements is how effectively I advance the owner's thinking towards their exit. Further defined, this means, how much the owner is coming to understand their goals, their current readiness, their exit options, and what they need to do to have a successful exit. A fully-informed discussion of an exit 'crystallizes' an owner's thinking and gets them moving in the right direction.
Like Snowflakes, Every Exit is Different, Stay Flexible
Although we use the same 6-step system for developing plans with all of our owners, each owner is different and each business is different, therefore we find that the execution phase of each engagement is unique. Exits are analagous to snowflakes - each one is different - no matter how many of them you exerperience. This is both a challenge and an opportunity for your advisory or consulting practice. The more flexibile you can remain in your engagements, the better you will be able to serve your owners. This type of flexibility requires patience, a key ingredient to all successful exits.
It Takes a Team
Although Pinnacle's exit planning process works to get owners moving toward their exits, it is always the case that other advisors need to get involved in the exit plan. Sometimes the other advisors are involved in the planning stage. Other times these advisors are involved in the execution phase. Either way, it remains true that no one can be an expert in all of the different practice areas. Therefore, you need to assist the owner in assembling these teams and you get to serve the role of quarterback if you so choose.
Conclusion
There is a great opportunity to grow your advisory or consulting practice by adding exit planning. These tips should assist you in being more effective with your engagements with owners.
To all of the attendees at the workshop, thank you once again for contributing to the success of these events. Together we are making a large difference to the owners that we serve.
NOTE: Our next workshops are scheduled for:
Tampa, Florida - Jan. 28th & 29th (www.exitplanningtampa.com)
Boston, MA - March 18th & 19th. (location is pending confirmation)
Specializing in Business Exit Strategies, John M. Leonetti, Esq., M.S. Finance, CM&AA founded Pinnacle Equity Solutions to provide advisors with the tools they need to incorporate Business Exit Planning into their advisory practices. To learn more about John's Exit Strategy Services and to receive a FREE copy of his special report, "How To Incorporate Exit Strategies Into Your Advisory Practice", visit Pinnacle Equity Solutions.com
Owners are looking for comprehensive solutions
One of the key points to remember in any exit planning conversation or engagement with an owner is that the owner is looking for a comprehensive solution to the problem facing their exit. The largest challenge is that they do not exactly know what the solution is. It is your job to define what you can do for them, the process that you follow, and the result that they should expect. I told my audience that the success of each of my exit planning engagements with owners is dependent entirely upon one thing - how effectively I advance their thinking towards their exit. The planning process, tools and conversations are all designed to move the owner's thought process closer and closer towards a successful exit.
Owners are looking for objective advice
Although my primary mandate is to positively impact my owner's thinking towards their exit, there are always going to be ancillary products and services that are required to fulfill each owner's goals and objectives. It is important, however, to remember that you should not begin to discuss your primary offering - be it insurance, investments, tax, legal or business sales - until the time is appropriate. For Pinnacle students, this occurs during our 6th and final step in our process. At this point in time, the owner has be lead through an objective process to assist them in defining their goals, examining their readiness and exit options, and understanding whether or not they will reach their goals. When you follow the steps in Pinnacle's system, and do not jump ahead with your primary service or product offering, you remain objective and win the trust of the owner. And remember that trust is more difficult to get given the severity of the recent recession - it your job to win that trust, not the owner's job to give it to you. This begins with objective advice.
Owners do not sign on for a plan, they sign on for an exit
An interesting dynamic that occurs once you develop that trust is that the owner wants you to stay with them for the execution of the exit plan. Now, 'execution' can - and does - mean many differet things. Depending upon what is discovered during the planning process, you may put certain priorities ahead of others. For example, an owner with no (or faulty) estate planning may want to resolve this immediately, prior to engaging in the succession or business transfer process. Other owners will need to focus on different areas. What you should remember is that if the planning is done properly, owners will want to take action.
Business owners want to know that they will be able to take action and that you will be there to guide them. It is a valuable insight to know that when an owner signs on for an exit plan, they are not interested in a plan as much as they are interested in solving their exit needs. Remember this as you speak to and engage owners in this process.
The Owner's commitment to taking action is evidenced by the check that they write for the engagement agreement
Because exiting a business is such a difficult endeavor, you can be most effective in an owner's life when you get them to commit to this process with a payment for the engagement. This is important to remember as many who read this newsletter are in the habit of giving away a certain amount of information and service in order to win a valuable account or client. Of course there is a 'courting phase' in any relationship where you each invest time in getting to know one another. However, when it comes time for the exit planning engagement, you need to know that your owner is committed to the process that you want to walk them through. The greatest evidence of this commitment is the writing of a check for your time and service.
The Planning 'Crystallizes' the Owner's Thinking
By getting a commitment and presenting a comprehesive approach to the exit, owners can make a fully-informed decision about how and when they want to exit. When the process is followed, it empowers owners to move confidently in the direction of their exit. Pinnacle has a proven process that moves owners in this direction. Again, the definition of success for any of my engagements is how effectively I advance the owner's thinking towards their exit. Further defined, this means, how much the owner is coming to understand their goals, their current readiness, their exit options, and what they need to do to have a successful exit. A fully-informed discussion of an exit 'crystallizes' an owner's thinking and gets them moving in the right direction.
Like Snowflakes, Every Exit is Different, Stay Flexible
Although we use the same 6-step system for developing plans with all of our owners, each owner is different and each business is different, therefore we find that the execution phase of each engagement is unique. Exits are analagous to snowflakes - each one is different - no matter how many of them you exerperience. This is both a challenge and an opportunity for your advisory or consulting practice. The more flexibile you can remain in your engagements, the better you will be able to serve your owners. This type of flexibility requires patience, a key ingredient to all successful exits.
It Takes a Team
Although Pinnacle's exit planning process works to get owners moving toward their exits, it is always the case that other advisors need to get involved in the exit plan. Sometimes the other advisors are involved in the planning stage. Other times these advisors are involved in the execution phase. Either way, it remains true that no one can be an expert in all of the different practice areas. Therefore, you need to assist the owner in assembling these teams and you get to serve the role of quarterback if you so choose.
Conclusion
There is a great opportunity to grow your advisory or consulting practice by adding exit planning. These tips should assist you in being more effective with your engagements with owners.
To all of the attendees at the workshop, thank you once again for contributing to the success of these events. Together we are making a large difference to the owners that we serve.
NOTE: Our next workshops are scheduled for:
Tampa, Florida - Jan. 28th & 29th (www.exitplanningtampa.com)
Boston, MA - March 18th & 19th. (location is pending confirmation)
Specializing in Business Exit Strategies, John M. Leonetti, Esq., M.S. Finance, CM&AA founded Pinnacle Equity Solutions to provide advisors with the tools they need to incorporate Business Exit Planning into their advisory practices. To learn more about John's Exit Strategy Services and to receive a FREE copy of his special report, "How To Incorporate Exit Strategies Into Your Advisory Practice", visit Pinnacle Equity Solutions.com
Wednesday, September 30, 2009
Talking the Language of 'Exits'
In my last newsletter I introduced the No Owner Left Behind initiative that is inspiring Pinnacle's upcoming Certification Program. Those who are gathering behind this cause know that today's business owner is largely without a solid plan for the exit from their business, despite the fact that it is the most important financial (and lifestyle) transaction of their lives. As advisors, the delivery of this message begins with an 'exit conversation' with your business owner prospects and clients. This is where the 'rubber meets the road' - whether you are willing and able to begin this conversation and to follow through on delivering this solution to owners. Today's topic, therefore, is 'talking the language of 'exits''.
The Exit Conversation
From the outset, it would appear to be a simple enough question for you to ask an owner - simply 'have you thought about how you are going to exit your business?' In fact, my experience shows me that most advisors are reluctant to ask this question because they do not have a solid foundation to hold the conversation.
Well, that is what our training program and materials are built to do for you, but I wanted to give you some tips on how to make these exit conversations more effective for both you and your owners.
Convincing versus Compelling
When you begin to ask the exit questions, you need to ask yourself whether you are being "convincing" or "compelling" with the series of questions that follow the initial one. People ask me all of the time how I get certain results with owners. A large part of being effective is avoiding being 'convincing' - which means simply stating the facts and reasons why an owner should have an exit plan. Rather, you need to have a "compelling" way of presenting this material.
Like most decisions that are made, the decision to plan an exit is largely an emotional - not a logical - one. You need to understand this concept and prepare for these conversations in the right way. You need to be able to have enough information and deliver it in the right way to motivate your business owner to take action. For better or for worse, this is not usually accomplished through the simple delivery of facts and statistics. Your experience and stories of owners who did not plan for their exit are very helpful. Remember that your owner has worked their whole life to get to where they are. For a small fee and a bit of their time, you are in a position to move their thinking towards and exit - away from the simple running of their business alone. Delivered properly, the conversation should conclude with the business owner now having a compelling reason (or reasons) to take action.
Serious consideration and preparation should be given to this level of conversation to determine how to deliver it. With today's recession looming in each owner's mind, you need to be innovative and reconstruct your approach appropriately. Your primary objective is to assure your owners that you want to help them with their exit as well as protect their illiquid business wealth. Creating trust and assurance that you have the tools and knowledge to guide the business owner through their personal and business exit planning builds your clients' confidence in you and motivates them to take action through your compelling delivery.
Building Value Into Your Conversations
In order to be compelling you need to learn to build value into your conversations. The key is to ask the right questions at the right time. As an advisor/planner you need to look beyond any single issue that may be most important to you and ask what it is that the owner cares the most about. This basic idea of being 'client centric' is essential for this initial conversation.
Because of the lack of awareness and the owner's psychology in dealing with this issue, I often say that business owners 'do not know what they do not know'. Hence, the need for you to open the conversation and help them understand that with proper planning options are available to them to help with their exit. Communicating with your business owners about the problem that they are about to face and the benefits of agreeing to exit planning adds value. If you exude confidence and reveal that you are a well trained individual, your relationship with the business owners will grow quickly as they immediately sense that you are bringing value to their lives.
Owner Coming to Their Own Conclusions
One of the most intricate and challenging areas for delivering this exit conversation is your ability to be patient as your owner comes to their own conclusion about the steps that they need to take. If you have delivered merely a 'convincing' reason for them to move ahead, they will likely delay coming to a conclusion about moving ahead. However, if you have presented a "compelling" reason for your owner to advance, you have aided them in an important way in seeing more clearly the reasons for planning their business exit.
Business owners care about results, not rhetoric. It is the emotional connection that you create with them and the language you utilize that helps them to see the error in not planning for their exit. Owners have made their own decisions throughout their careers. They will decide to plan for their exit once you have presented the material in a way that allows them to conclude that an exit plan is both necessary as well as beneficial for them. You cannot force-feed this material to owners.
Making a Commitment to the Process
You will know that things are really happening with your exit conversations when owners begin to move ahead with you. In my work with owners, I require a retainer check in order to begin our work together. Interestingly, the retainer check represents much more than payment for a service - it represents the owner's commitment to take this process seriously. This, more than other part of the conversation, is critical to a successful exit. The owner needs to be invested in the process and ready to accept your guidance as they navigate this complex journey.
You will know that you are really "talking the language of exits" when you begin to generate results in the form of owner commitments to the process. You build on each conversation with every owner in order to strengthen you abilities to have these conversations. Your exit planning practice grows exponentially once you discover the right mix of facts and stories to help motivate your owners to take action.
In closing, the battle for exit planning is taking place at the initial conversation stage. "Talking the language of exits" is most important today in order to deliver this important message to owners. I look forward to sharing more on this topic with those attending our Nov. 5th & 6th Workshop in Boston.
Wishing you the best of success with your exit conversations.
Specializing in Business Exit Strategies, John M. Leonetti, Esq., M.S. Finance, CM&AA founded Pinnacle Equity Solutions to provide advisors with the tools they need to incorporate Business Exit Planning into their advisory practices. To learn more about John's Exit Strategy Services and to receive a FREE copy of his special report, "How To Incorporate Exit Strategies Into Your Advisory Practice", visit Pinnacle Equity Solutions
The Exit Conversation
From the outset, it would appear to be a simple enough question for you to ask an owner - simply 'have you thought about how you are going to exit your business?' In fact, my experience shows me that most advisors are reluctant to ask this question because they do not have a solid foundation to hold the conversation.
Well, that is what our training program and materials are built to do for you, but I wanted to give you some tips on how to make these exit conversations more effective for both you and your owners.
Convincing versus Compelling
When you begin to ask the exit questions, you need to ask yourself whether you are being "convincing" or "compelling" with the series of questions that follow the initial one. People ask me all of the time how I get certain results with owners. A large part of being effective is avoiding being 'convincing' - which means simply stating the facts and reasons why an owner should have an exit plan. Rather, you need to have a "compelling" way of presenting this material.
Like most decisions that are made, the decision to plan an exit is largely an emotional - not a logical - one. You need to understand this concept and prepare for these conversations in the right way. You need to be able to have enough information and deliver it in the right way to motivate your business owner to take action. For better or for worse, this is not usually accomplished through the simple delivery of facts and statistics. Your experience and stories of owners who did not plan for their exit are very helpful. Remember that your owner has worked their whole life to get to where they are. For a small fee and a bit of their time, you are in a position to move their thinking towards and exit - away from the simple running of their business alone. Delivered properly, the conversation should conclude with the business owner now having a compelling reason (or reasons) to take action.
Serious consideration and preparation should be given to this level of conversation to determine how to deliver it. With today's recession looming in each owner's mind, you need to be innovative and reconstruct your approach appropriately. Your primary objective is to assure your owners that you want to help them with their exit as well as protect their illiquid business wealth. Creating trust and assurance that you have the tools and knowledge to guide the business owner through their personal and business exit planning builds your clients' confidence in you and motivates them to take action through your compelling delivery.
Building Value Into Your Conversations
In order to be compelling you need to learn to build value into your conversations. The key is to ask the right questions at the right time. As an advisor/planner you need to look beyond any single issue that may be most important to you and ask what it is that the owner cares the most about. This basic idea of being 'client centric' is essential for this initial conversation.
Because of the lack of awareness and the owner's psychology in dealing with this issue, I often say that business owners 'do not know what they do not know'. Hence, the need for you to open the conversation and help them understand that with proper planning options are available to them to help with their exit. Communicating with your business owners about the problem that they are about to face and the benefits of agreeing to exit planning adds value. If you exude confidence and reveal that you are a well trained individual, your relationship with the business owners will grow quickly as they immediately sense that you are bringing value to their lives.
Owner Coming to Their Own Conclusions
One of the most intricate and challenging areas for delivering this exit conversation is your ability to be patient as your owner comes to their own conclusion about the steps that they need to take. If you have delivered merely a 'convincing' reason for them to move ahead, they will likely delay coming to a conclusion about moving ahead. However, if you have presented a "compelling" reason for your owner to advance, you have aided them in an important way in seeing more clearly the reasons for planning their business exit.
Business owners care about results, not rhetoric. It is the emotional connection that you create with them and the language you utilize that helps them to see the error in not planning for their exit. Owners have made their own decisions throughout their careers. They will decide to plan for their exit once you have presented the material in a way that allows them to conclude that an exit plan is both necessary as well as beneficial for them. You cannot force-feed this material to owners.
Making a Commitment to the Process
You will know that things are really happening with your exit conversations when owners begin to move ahead with you. In my work with owners, I require a retainer check in order to begin our work together. Interestingly, the retainer check represents much more than payment for a service - it represents the owner's commitment to take this process seriously. This, more than other part of the conversation, is critical to a successful exit. The owner needs to be invested in the process and ready to accept your guidance as they navigate this complex journey.
You will know that you are really "talking the language of exits" when you begin to generate results in the form of owner commitments to the process. You build on each conversation with every owner in order to strengthen you abilities to have these conversations. Your exit planning practice grows exponentially once you discover the right mix of facts and stories to help motivate your owners to take action.
In closing, the battle for exit planning is taking place at the initial conversation stage. "Talking the language of exits" is most important today in order to deliver this important message to owners. I look forward to sharing more on this topic with those attending our Nov. 5th & 6th Workshop in Boston.
Wishing you the best of success with your exit conversations.
Specializing in Business Exit Strategies, John M. Leonetti, Esq., M.S. Finance, CM&AA founded Pinnacle Equity Solutions to provide advisors with the tools they need to incorporate Business Exit Planning into their advisory practices. To learn more about John's Exit Strategy Services and to receive a FREE copy of his special report, "How To Incorporate Exit Strategies Into Your Advisory Practice", visit Pinnacle Equity Solutions
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