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Our CFFB roundtable & "Things Happy People Never Do" [ #CFFB ]

by Rick Baker
On Dec 22, 2014

Our CFFB roundtable group has a habit of doing self-discovery exercises at our monthly meetings. Recently, we discussed “6 THINGS HAPPY PEOPLE NEVER DO”.

We found the exercise through an internet search, which we summarized as:

“Happy people do a lot of things.  They spend time expressing gratitude, cultivating optimism, practicing kindness, nurturing loving relationships, committing to meaningful goals, savoring life’s little pleasures, and so on and so forth.

But they NEVER…

1:  Mind other people’s business

2:  Seek validation of Self-Worth from others

3:  Rely on other people and external events for happiness

4:  Hold onto resentment

5:  Spend prolonged periods of time in negative environments

6:  Resist the truth”

With that internet-inspired background, we asked ourselves:

What would you add to the list? 

What’s something you should NOT do if you want to be happy?

Then, when we met as a group, we shared and discussed our self-discovery answers.

Here are some of the things we think happy people never do:

  • Rely on indulgences to feel better
  • Try to change other people
  • Blame others
  • Show up to prove, instead they show up to improve
  • Consume negative media
  • Watch their partners billable hours at work
  • Spend too much time worrying about the future
  • Allow tragedy to become part of their identity
  • Live in the past
  • Base self-identity on their financial status
  • Try to do it all themselves
  • Say "Yes" when they want to say "No"
  • Stop learning
  • Relax when their talents and strengths are lying dormant
  • Fail to feel uncomfortable when they err and violate their personal values

***

It seems to me the people in our CFFB roundtable group are life-long learners. And, we recognize self-knowledge is the starting point…

Tags:

Family Business and CFFB | Thinking as in Think and Grow Rich

Stop focusing on people’s weaknesses!

by Rick Baker
On Nov 6, 2014

Our habit of 'focusing on weaknesses' may have started in our family homes when we were infants or toddlers.

Or, our habit of ‘focusing on weaknesses’ may have started when we met our first teachers.

Or, it may have started through the hands of neighbourhood bullies.

Or, it may have started when we joined the workforce and received our first performance appraisal.

The point is - it happened.

If fate was kind to us and we received a balance of positive/supportive feedback to offset the barrage of ‘focus on weaknesses’ then…we certainly were among the fortunate few!

Most people have received much more negative feedback than positive feedback.

Most people have become accustomed to focusing on weaknesses…their weaknesses, other people’s weaknesses, employees’ weaknesses, etc.

And, that’s the Problem.

You can choose to be part of the Solution!

Bosses can easily be lured into the Parent Trap.

by Rick Baker
On May 26, 2014

Bosses can easily be lured into the Parent Trap...I mean the trap where they treat the people who report to them like Children. 

I have heard bosses say they are like parents and the people who report to them are like children. Recently, while listening to a self-help audio book I heard Brian Tracy recommend bosses behave like parents and treat their people like children. 

I disagree.

Sure, I get the importance of being considerate, caring, compassionate...and having a level of sensitivity, sympathy and empathy. I just do not see those qualities as the defining qualities or Parents. First and foremost, at a very early age the vast majority of us learn our parents are authority figures...in fact, figures of absolute authority. 

Many people, likely the majority of people, carry negative memories of parental-authority with them throughout their lives.

I favour the wisdom of Transactional Analysis

In the workplace, people are adults.

If bosses don't want people to act like Children, bosses have to act like Adults.

Tags:

Business Contains Only 3 Things | Family Business and CFFB | Personalities @ Work

Some day you and your business will part company

by Rick Baker
On Nov 29, 2013

Some day you and your business will part company. Based on our Spirited Leaders’ experience, it appears about 2/3 of small-business owners do not realize some day they and their business will part company. While that sounds absurd, it is a reality in the small-business sector.

So, it is worth repeating: some day you and your business will part company.

Warning: harsh news to follow.

When you and your business part company you may not be aware of it…you may have succumbed to some illness and your business is no longer a priority in your mind. That happens from time to time…especially when the owner of the small business has avoided succession planning for 60 or more years.

That of course, does not have to happen. Some people experience an alternative exit…they decide why, when, and how they will exit and they create plans and perform actions that cause a smooth exit. This smooth exit involves a realization of the value embedded in their business. Money is transferred from the business bank to the owner`s personal bank…or to some other vehicle designed to minimize taxes, maximize usable money, and satisfy the needs of people.

The value embedded in the business is realized and money is transferred to the owner when the owner sells some or all of his or her ownership shares.

Beyond the money, there are many reasons why an owner may want to sell some or all of his or her ownership shares. And, there are many ways to accomplish the sale of ownership.

Two considerations to keep in mind as you grow the value in your business are WHY? and HOW?

WHY?

Why would an owner sell some or all of his or her ownership shares?

Here is a sampling of reasons why an owner might sell some or all ownership shares…


  

 

The key message is: there are good reasons to sell ownership and there are bad reasons. Here, good means higher selling price while bad means lower selling price. Higher selling price means higher return on time and effort invested; lower selling price means lower return on time and effort invested.

Of course, the amount of money received by the owner who sells shares is not the only consideration.

The other major considerations can be summed up in four words – the impact on people. This includes the impact the sale of shares will have on:

  • you, the seller…is the seller comfortable and will that comfort last?
  • your family…is your family comfortable and will that comfort last?
  • the buyer…is the buyer comfortable and will that comfort last?
  • your fellow shareholders…are they comfortable and will that comfort last?
  • your employees…are they comfortable and will that comfort last?
  • your clients…are they comfortable and will that comfort last?
  • your suppliers…are they comfortable and will that comfort last?
  • your community…are the people in the community comfortable and will that comfort last?

For many of these people, comfort will be tied to money considerations…not just direct money but indirect money. Comfort will be tied to a range of indirect-money considerations like, Will I keep my job?  Comfort will be tied to interpersonal relationship issues like, What will this place be like when the new owner injects his or her ideasNumerous other considerations will be in the minds of the stakeholders affected by the sale of ownership:

  • How will the new owner change the business?
  • When the new ownership is in place, will policies change?
  • Will payments to suppliers be affected?
  • Will product quality suffer?
  • Will the new owner close the place down and move production to the U.S.?
  • Why wasn`t I given the chance to buy those shares?

Most people tend to worry when change happens. Some of these worries are beyond the control of the person who is selling ownership shares. On the other hand, some of these worries can be alleviated if the person selling the shares wishes to do that. Succession planning and communication provide the opportunity to maximize people`s comfort levels.

Succession planning and communication: the processes that maximize both money for the person selling ownership shares and people`s comfort levels. That would be the Ideal Scenario.

The Ideal Scenario:

  • the person selling the ownership shares receives maximum money
  • the person selling the ownership shares is comfortable
  • the person buying the ownership shares feels the money spent is a good investment
  • the business continues delivering value to all stakeholders
  • all stakeholders are comfortable with the change and future prospects

As you create your succession plan, consider these things and assess how important each is to you. Consider your needs to be the highest priority: ensure your money needs are satisfied and ensure you are comfortable with the changes that will follow. Consider the needs of others.

Perhaps, you will rank other people`s needs in the following order:

  1. the needs of your family
  2. the needs of your fellow shareholders or partners
  3. the needs of the buyer
  4. the needs of your employees
  5. the needs of your clients and suppliers
  6. the needs of the people in your community

Perhaps, you will choose to plan ways to satisfy your needs and all of those other people`s needs. That would be the Ideal Scenario.

HOW?

How would you do that?

How would you satisfy all those needs? It will take time and much thought to figure out the best answers. The right approach is to start by considering your needs. One of those needs is maximizing the amount of money you receive when you sell ownership shares.

How do you do that?

In summary, you maximize the amount of money you receive by:

  1. Creating a plan to build value in your business
  2. Executing that plan, creating a track record of success….this means: having the right people in the right roles doing the right things and having top-notch processes to ensure scalability and transfer
  3. Creating a succession plan and working it so: people on your team know what success feels like, people on your team are groomed and able to take on increased responsibilities, and you are replaceable
  4. Nurturing buyers
  5. Knowing the value of your business
  6. Knowing the minimum price you will accept
  7. Being prepared and ready to sell when buyers want to buy

To whom might you sell your ownership shares?

Let`s assume you want to exit the business and sell all of your ownership shares. You might sell your ownership shares to:

  1. A financial buyer – a person who views your business as a good stand-alone investment
  2. A strategic buyer – a person who wants to gain advantage by meshing certain aspects of your business with other investments
  3. A family member who has been groomed to succeed you
  4. A family trust or holding company
  5. A fellow shareholder or business partner
  6. One or more of your employees
  7. A local competitor
  8. The public...i.e., go public by making a public offering
  9. Other creative options

Or, you might sell the assets in your business and shut the business down.

While it is natural to want to keep your options open, to maximize the money you receive when you exit you will need to reduce the above list to 2 or 3 possibilities. This is essential because – to maximize the proceeds from the sale you will want to strategize then take actions and the best strategies and best actions will differ depending on the target buyer. Some of the options will not apply – for example, if you do not have a family business then you can take the family-business options off the list. On the other hand, if you do have a family business then you must give the family-business options your best thoughts…before you decide to remove them from the list or decide to keep them on the list.

Tags:

Entrepreneur Thinking | Family Business and CFFB | Succession

Succession Planning - allying for success

by Rick Baker
On Nov 25, 2013

Regardless of what you are trying to build in your business, you will need the effort and results of other people.

If you mention that to business people, they will say – “That’s obvious!

If you put on your succession planning eyeglasses and watch those same business people, you will observe – What’s obvious is regularly forgotten.

If you study business people who have been in business for 30 or 40 or more years, you will confirm – If they build a succession planning team at all then they do it at the last possible minute. Most people put off working on succession planning. Even more people put off developing the team they need for succession planning until they are pressed into doing it. Often they are pressed by a personal health crisis or a surprise departure of a partner or key employee.

Failure to spend up-front time building a succession plan that incorporates other people ensures two problems:

1.    When the succession plan is built it will be built under stress, maybe even duress.

2.    The resulting value received from the business, if any, will be minimized.

Put another way…

If you want to keep the value of your business low and subject yourself or your successor to a whole bunch of stress then make sure you do no succession planning until the last possible minute. For example:

·         wait until you are in the ambulance, with people bending over you with IVs and heart monitors, or

·         wait until you are 70 or so years old and your heir-apparent – your 40-something son or daughter – says, “Dad, I have waited as long as I could. I have decided to take a job down the street.”, or

·         wait until your competitors bury your long-standing business by recruiting your top 5 people.

…and, it almost goes without saying…never, ever discuss succession planning or your money needs with:

·         your family members, or

·         your business partners, or

·         an accountant, or

·         a lawyer, or

·         a wealth advisor.

On the other hand…

If you want to maximize the value of your business and maximize the comfort and contribution of your key people then make a habit of treating succession as an ongoing investment in your business. Identify the people who could be vital within your business and who could help you accomplish you vision and goals. Understand their needs and aspirations and learn how those needs and aspirations can be satisfied as you accomplish your vision and goals. Work to obtain the buy-in of key people and inspire their long-term performance. Work continuously at delivering value to these key people in exchange for their expertise. Work to help them accomplish their dreams.

Nurture and develop a successor for your business. Mentor this person. Partner with this person. Make sure this person knows he or she is your most-trusted business ally. Make sure this person wants to be in that role. Do not assume…talk openly and regularly about succession…talk openly and regularly about needs and aspirations, both yours and theirs.

Also, identify unbiased 3rd-party experts who will support your business over the long-term. Build, over time, relationships with those experts. Work to understand their advice. And ensure your interactions with them satisfy their business needs and aspirations.

Ensure your business succession planning aligns with your personal family-needs. Ideally, you will have the full support of a significant other. While this is beyond the scope of this Thought Post, the fact is – very few people achieve material business success without the support of a significant other. Failure to meet the needs of a significant other can have major negative implications on your business. Of course, this can be particularly true if you are involved in a family business. However, the negative impact marital disputes can have on a business is not isolated to family businesses or family. For example, your business and your business partners can be named in legal battles that follow marital disputes.

Regardless of what you are trying to build in your business, you will need the effort and results of other people.

Remember that piece of obvious advice.

And, remember that applies on many fronts. While this is not intended to be a complete or comprehensive list, remember that piece of obvious advice applies:

·         to your significant other

·         to your family

·         to your business partners

·         to your chosen successor

·         to your key employees

·         to the rest of your employees

·         to your 3rd party advisors

·         to your clients and suppliers

Create plans that cover your needs and aspirations.

Create plans that cover the needs and aspirations of the people who will contribute to your business success.

View all of this work as an investment in your business and your personal success.

Tags:

Family Business and CFFB | Succession

Thought Tweet #812

by Rick Baker
On Aug 27, 2013

Thought Tweet #812 Money can separate people. Money can separate family members. And the damage can be deep and broad.

 

The Thinking Behind The Tweet

That's one of the differences between business and family business.  

Tags:

Family Business and CFFB | Thought Tweets

Copyright © 2012. W.F.C (Rick) Baker. All Rights Reserved.