Life is one big transition, isn’t it?
You transition into this world from the womb. Then you go through multiple transitions throughout your life as you enter or exit youth, adolescence, schools, jobs, military service, relationships, marriage, and family life. The ultimate transition occurs when you exit this world.
Most successful people that I have met handle transitions exceptionally well. They accept them, they anticipate them, and they plan for them. And they almost always pass through each transition in great shape.
How well you handle life’s transitions can be a key to your success both as a person and as a business owner.
Dr. Allie Taylor, co-founder of the advisory firm Orange Kiwi, underscores the importance of transitions: “Early on in our work, we kept running into clients that had a common issue: At points of significant transition, the business was struggling because the leader was struggling.”
Big transitions affecting my generation
I routinely talk about transitions with my clients. At the same time, I’ve gone through my fair share of them. For example, within the past few years, I have:
- Attended the funerals of my mother and five of my friends.
- Received calls from peers who are preparing to sell their businesses but have no idea what they need to do, either on a professional or personal level.
- Signed up for Medicare (an eye-opening experience to be sure).
When I was younger, I wondered why business owners got so risk-averse as they got older. They had so much cash, so much security. Why wouldn’t they roll the dice on new innovations and ideas?
Because as you age, instead of thinking you are invincible, you realize you feel vulnerable. Fortune may have smiled on you in the past when you rolled the dice, but over time, luck and even skill will only take you so far. Especially when those skills begin to decline.
As you prepare to transition out of owning your business,take stock of the days you have left, and make the most of them. Here are the questions you need to ask.
What do your numbers tell you?
I always talk about the importance of your numbers. The numbers never lie, and they really show what you can and can’t do.
Understand how your numbers will impact the transitions you want to make in the coming years. Can your savings take you as far as you want to go, in the lifestyle you want? Make sure you have a spreadsheet that proves they do.
Is your business ready for you to depart?
It’s funny how we work so hard to build a business, hoping that someday it will be big enough to allow us to retire. And then, we just can’t seem to leave it behind.
Your business is your baby. It’s a part of your identity. And with so many people relying on the success of your business, it’s also part of your self-esteem.
But you’re going to have to walk away at some point. Life won’t let you work forever, and so you can either leave the business in a state where it can function on its own, or you can take it down with you.
If you want to leave your business as a functioning enterprise, make sure you have a transition team in place and a succession plan established. Your numbers will show you the way.
Are you strategically approaching the rest of your life?
I’m always amazed at how much strategic thinking owners do for their business, but how little they do for their own lives.
I don’t think this is due to a lack of ability. Business owners are proven leaders. You know how to execute a mission and follow a vision. It’s just that you’ve never really taken the time to apply a vision to your own life.It can be hard to think about yourself outside of your business.
Thinking about what comes next is about more than your financials. It’s about thinking about what you can do to give back to your community, your family, and your spouse. What will your next steps be to fulfill yourself spiritually? What will you do to help others achieve their dreams?
And what about you? You have sacrificed a lot throughout your life for many people. Have you given yourself a chance at the life you’re truly wanted? Do you want to learn to dance? Paint watercolors on the beach? Skydive? Climb a mountain?
Like you built a business, you can build a retirement. You just need a vision, a mission and a strategy.
Do you have advisors for the next stage of life?
An entrepreneur is a proud, independent person. But the successful entrepreneur is one who has relied on advisors to build a business.
Retirement will be no different. You’ll need planners and coaches to help you transition, adapt and thrive as you move on.
The day I became successful at my career was the day I acknowledged I couldn’t do it on my own. And guess what? As you age, you will become more dependent on others for health, nutrition and transportation. You will need advisors, coaches and caregivers.
Don’t shy away from them. Find the best, and make sure they are aware of your wishes and dreams.
How can you keep a sense of purpose in your life?
When your business has been such a big part of your personal identity for years, how can you make sure the next phase of life is just as rewarding?
Once again, Dr. Allie Taylor: “What the research really identified is the psychological need for significance that’s derived from the business is as powerful an issue as identity…It’s really a deep need to have purpose and meaning in the world.”
So how do you find significance for yourself as you go through your next transition?
I’d advise you to take the same approach you took while building your business.
Roll up those sleeves and make your retirement every bit as successful as the business that’s made it possible. Manage the plan, the team, and the people who are going to make these years golden. Don’t just hope for significance. Build the system to achieve it.
As you embark on that goal, the successful people in life are the ones who have embraced life’s transitions. It’s worked for you in the past. Don’t stop now.
SOURCE: “Why Successful Exits Start with the Owner’s Psychology” Interview of Dr. Allie Talyor by Meghan Daniels on Axial.net
Do you have questions about how you can make a successful exit from your business? Let’s talk. (561) 543-2323