The Ripcord Moment

On this episode of The Ripcord Moment, host Joe Seetoo welcomes Julia Schieffer, founder of DerivSource. DerivSource is an independent information source on derivatives, post-trade, fintech, risk management and technology that she sold to Markets Media in 2021. Julia encourages owners and leaders to listen to their gut. If you feel passionate about an idea, be persistent with your vision even if other people shoot it down. If it does not work out, know that trial and error are integral to finding success and creating uniqueness. Julia reframes failures as “experiments” and knows that they are for her ultimate good. She also urges owners to detach themselves from their business when it’s time to let go. Although the business might feel like it is a part of your identity, many owners ultimately suffocate their company because they do not allow themselves to trust another entity or owner to give it new life.  Finally, Julia urges owners to know their worth and what they truly want. Write down a couple of your own goals (not what you think people want from you), and never waver from these core aspirations. She also encourages owners to build a strong transition team and surround themselves with a reliable team of lawyers, advisors, and other professionals. 

On this episode of The Ripcord Moment, Joe Seetoo welcomes Joel Sherwin, an experienced attorney and fintech leader. He is now Head of Legal at Galileo Financial Technologies and recently published The Path: A 30-Day Guide to Building a Meditation Habit That Will Change Your Life, a book on how he has become more present and peaceful in his daily life. Joel emphasizes the importance of mental fortitude for entrepreneurs and business owners. He discusses the need to have self-trust and confidence as you develop your career and pitch ideas to peers; it’s natural to feel afraid sometimes, but Joel encourages listeners to trust that they can ultimately persevere even if they don’t have all the answers right now. Furthermore, Joel shares his experience with meditation and journaling. These practices helped him manage his anxiety during the pandemic, leading to an incredible transformation in his mental health and perspective.  He also highlights the importance of having a solid support system and keeping people in your life who can provide valuable feedback and support (both professionally and personally). Finally, Joel advises business owners to define their core values as these shape not only their company’s direction but who the company grows with. He also reminds owners to evaluate what their market wants; sometimes, even a great idea that is executed perfectly does not get picked up because the audience or market does not want it. Make sure you do a proper analysis of the products your audience wants and the problems they most desperately need solved. 

On today’s episode of The Ripcord Moment, host Joe Seetoo welcomes Tim Gaspar, CEO and Founder of Gaspar Insurance Services. Tim spent 15 years building his company and began feeling uncertain how to continue growing within the insurance industry. In 2021, he decided to sell his business as various assets such as Bitcoin and real estate were experiencing high valuations. He considered the possibility that if he didn't sell his business at that time, he might regret it in the future when valuations could potentially decrease. Tim acknowledges that selling his business had a considerable impact on his personal life, as he saw the business as a part of his identity. He emphasizes the importance of being mindful of how the transition can change your sense of self ahead of time and finding support from family and friends during the transition. Tim also finds fulfillment in getting involved with his local community and giving back. He says community work can improve one’s sense of ownership, accountability, and responsibility- and therefore their leadership skills. Tim encourages listeners to take a leap of faith when they feel called, even if they do not feel “smart” or “ready” enough to. Many people try to put goals or tasks off due to the amount of time or energy it would take, but Tim says that time passes anyway and it’s better to start now and stop making excuses. He also suggests business owners to find wise people to learn from with a humble spirit.  

On this week’s episode of The Ripcord Moment, Joe Seetoo invites best friends and co-founders of Meli’s Cookies, Melissa Blue, and Melissa Mehall, to discuss how they started their gluten-free cookie company that now sells products in over 9,000 stores across the country.Melissa and Melissa have been friends for 30 years. They say prioritizing their friendship over the company, finding mentors to seek advice from when experiencing tension, and realizing what areas are appropriate to compromise on have been critical for being able to maintain the closeness of their relationship while being business partners. Melissa and Melissa explain that the pandemic had both positive and negative effects on their company. When the pandemic ensued, people began baking more at home, so sales went up. However, in-person meetings with buyers transitioned into Zoom sessions, and many buyer meetings have stayed remote, making it harder to sell their product since buyers cannot taste it.  A strategy that has helped Meli’s Cookies create more connections and find buyers is attending food shows and conventions. They also recommend business owners who may be minority-owned or women-owned to become certified, as this can potentially help them compete for federal contracts and gain recognition from stores who are looking to support minority and women-owned brands.Melissa and Melissa also suggest listeners to consider raising funds earlier and working with people who have experience in their niche or industry. When starting a business from the ground up, you may not have time to train people to learn about the field. They say they have benefited the most from working with experts, mentors, and employees who are familiar with the food industry. Check out Meli's Cookies here: https://melismonstercookies.com/Subscribe to our YouTube channel: https://www.youtube.com/channel/UClxz_9Jl9lW8lDwJ6qsOMHwSign up to receive Ripcord Moment episodes directly in your inbox: https://mailchi.mp/mortonwealth.com/the-ripcord-moment-subscribeConnect with Joe personally on LinkedIn: https://www.linkedin.com/in/jseetoo/Visit our website: https://www.mortonwealth.com

On this episode of The Ripcord Moment, host Joe Seetoo welcomes Aaron Bergh, founder of Calwise Spirits Co. Calwise is headquartered in Paso Robles and is home to labels like Big Sur Gin and Axe Hole Whiskey.Aaron’s passion for spirits began in college when he learned how to make his own alcohol. Eventually, what was once a fun hobby turned into a calling. He attended Cal Poly, San Luis Obispo, which offered an entrepreneurship concentration that helped him develop a business plan and connect with investors. After graduating, Aaron worked in a distillery, got his product started there, and lived out of his car for two years. Now, Calwise has been established for seven years and is available in Albertsons, Vons, Total Wine, and many restaurants/bars. Aaron recommends other business owners to be open-minded enough to make changes to their product or brand based on what is or is not resonating with people, learn from mistakes, and stay resilient in difficult times.Check out Calwise here: https://www.calwisespirits.com/

African Family Firms, and host of The Connected Generation podcast. Nikè Anani has first-hand experience with being a second-generation family business owner and knows how confusing and isolating a transition can feel. According to a study done by The Williams Group, only 30% of business transitions are successfully passed onto the third generation. 65% of the reasons why most transitions do not work out are due to lack of effective communication and trust and 25% was due to a lack of engagement in the next generation. Therefore, Lifetime to Legacy focuses on more qualitative and relational advice for how families can better connect, collaborate, and co-create the businesses of the future. She also recommends NextGen business owners to have more empathy for their elders and to understand what their deepest anxieties and aspirations are. It is normal for younger owners to have their own ideas and potentially become frustrated with traditions and how things were done by older owners. However, Nikè says bringing your new ideas to the table with empathy and a reverence for the experience older people have can help the transition go more smoothly. Nikè suggests family business owners to plan a family meeting and have collective conversations on the purpose and vision of the company and to join a community or networking group of other business owners who can act as a sounding board or a support system. She says transitions can potentially be a very stressful and lonely time for owners and it is important to have community. Visit Nike’s website here to connect with her: https://nikeanani.com/

On today’s episode of The Ripcord Moment, Joe welcomes sister-duo Lizzie Means Duplantis and Sarah Means, founders of Miron Crosby, a custom cowboy boot brand headquartered in Dallas, TX. Sarah and Lizzie were raised on a ranch in Texas and were gifted cowboy boots on every important occasion: birthdays, graduations, and weddings. Their cousins also owned a cowboy boot factory and helped them make custom boots for their personal use. When they began wearing these boots around New York City later in life, strangers would stop and ask where they could get a pair. That’s when Sarah and Lizzie knew they had something special to introduce to the luxury fashion market.Miron Crosby made over one million dollars in revenue during their first year. Sarah and Lizzie say they accomplished this by elevating the shopping experience through their brick-and-mortar store in Highland Park, TX, highlighting the uniqueness of their products and working with a PR firm to help get their boots featured in publications like Vogue and Elle. They have tied sentimental value with luxury by also offering the option to embroider handwritten words onto their boots. There is no one else in the fashion world who is offering such niche products. As they grow even more this year, the sisters are putting more energy toward hiring new executives who will push their brand forward. They agree there are certain values and skills you cannot teach someone, like work ethic and kindness. Lizzie and Sarah are intentional about the tribe they keep at Miron Crosby to ensure their brand is propelled by the right people.Lastly, they shared their two action items for business owners:1. Work with people who are experienced and whose values align with yours.2. Get comfortable with being uncomfortable. Be the first one to ask questions, don’t be afraid to seem “dumb,” and be open to feedback. 

On this episode of The Ripcord Moment, host Joe Seetoo invites President of Stainless Process Systems and Alliance Finishing & Manufacturing, Mark Hyman, along with his son, Chief Operating Officer of Stainless Process Systems, Brandon Hyman. They discuss generation gaps, the dynamic between parents and children when working together, and what Brandon had to consider when switching from a job at Google to a family business.  Mark and Brandon say they have different communication and work styles due to their generational gap; for example, while it would be natural for Mark to call a customer or vendor, Brandon would rather email them. Furthermore, due to the fact that Brandon used to work at the multi-billion-dollar entity that is Google, financial resources have never been a constraint for his prior working experience. Therefore, he would rather pay more money to save time, while Mark would rather spend more time on a process to save money. When it comes to bridging their gaps, Mark says compromise and trust are key. If you are considering joining or starting a family business, Brandon and Mark agree it is crucial to consider how other people like extended family members may be affected (spouses, children, grandchildren, etc.). Before Brandon transferred to SPS, he created a document for his wife outlining how the transition from Google to SPS would work and how to mitigate the risk of joining a smaller family business. Ultimately, Brandon and Mark have been able to maintain their close father-son relationship and have learned to trust and respect each other’s skills and contributions. They say keeping lines of communication open, holding each other accountable, prioritizing the right goals together and discussing one another’s visions for their lives within and beyond the company is pivotal to successfully running a business with family. Disclosure: Information presented herein is for discussion and illustrative purposes only.  The views and opinions expressed by the speakers are as of the date of the recording and are subject to change or do not necessarily represent the views and opinions of Morton Wealth. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice. You should consult with your financial, legal, and tax professionals before implementing any transactions and/or strategies concerning your finances.

On this episode of The Ripcord Moment, host Joe Seetoo invites Regional Executive Vice President at American Business Bank, Jeff Munson, to discuss the recent bank crises and what business owners can do to protect themselves.Jeff says Silicon Valley Bank collapsed due to their investments in longer bonds, so when depositors started to leave the bank, SVB did not have much liquidity because they could not sell those long-term bonds. This is a learning lesson for anyone who has money in a bank- it is imperative to ensure your bank prioritizes risk management. Jeff says while your banker should understand your balance sheet, you should also be asking questions about theirs. You should have conversations with your banker about their loan portfolio, bond strategy, and senior management. Jeff also notes that American Business Bank evaluates their clients’ character, management, strategy during the pandemic, etc. Therefore, the clients they take on are generally quality companies who make money and preserve their assets. Your bank should be asking questions about how your business is run and how your organization has weathered storms in the past, as this may mean they are a bank that understands risk. Jeff recommends business owners to analyze the cash flow and debt structure they need to transform their lifestyle business into an organization that is not entirely dependent on them. Your bank should be helping you understand how to get there. Furthermore, business owners should understand how FDIC Insurance works in order to understand what risk they are taking.  Jeff is confident that while some banks have failed recently, reinforcing the importance of being with a bank that mitigates risk, the banking system is here to stay through good and bad times.  Disclosure: Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and are subject to change or do not necessarily represent the views and opinions of Morton Wealth. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice. You should consult with your financial, legal, and tax professionals before implementing any transactions and/or strategies concerning your finances.

Welcome to Season 3 of The Ripcord Moment! On the first episode of this season, host Joe Seetoo invites CEO of Watermark Life Insurance Services Nicole Rex to discuss being a woman in the insurance industry, the challenges of owning her own business, and insuring one’s business. Nicole says although obtaining initial opportunities in the insurance industry has been easy for her, as a woman, proving herself to clients and peers has been difficult since the field is extremely male-dominated and people may doubt her intelligence because of stereotypical beliefs around women. Therefore, she works hard to educate herself on insurance so she can provide valuable knowledge and show how reliable she and her team can be. Nicole asserts that there are good days and bad days as a business owner, but if you carry a persevering attitude, you have much better chances of succeeding.Nicole also talks about how many insurance companies do not clearly explain the reasoning behind their policies to clients. She wants to make insurance easy to understand for the average person so their clients know exactly why they have their policies. She also encourages business owners to go over their insurance regularly to ensure it fits their individual situation as circumstances change.Finally, Nicole admits it’s easy to get caught up in everyday tasks as a business owner but reminds listeners to create goals that will take their company to the next level and actually block the time to complete them. It may even be beneficial to leave the office for one day to meditate on what would be best for the company’s long-term strategy and return to work with a refreshed mind and appropriate goals that will optimize the business. Check out Watermark Life Insurance here: www.watermarklife.comDisclosure: Information presented herein is for discussion and illustrative purposes only.  The views and opinions expressed by the speakers are as of the date of the recording and are subject to change or do not necessarily represent the views and opinions of Morton Wealth. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice. You should consult with your financial, legal, and tax professionals before implementing any transactions and/or strategies concerning your finances.

“When we talk about emotional intelligence, what we’re really talking about is recognizing that we’re emotional beings and that we react to life’s events emotionally. First […] when leaders are not developed in emotional intelligence, they’re not able to listen to people.” – Robert Grossman, CEO of Black Diamond Leadership On today’s episode of The Ripcord Moment, Joe welcomes Robert Grossman, founder and CEO of Black Diamond Leadership, to discuss psychological safety, team building, and the importance of emotional intelligence in workplace relationships. Robert helps clients respond to triggers or stressful events maturely instead of reacting with emotion. When leaders and team members can observe their own emotions and then take a step back to consider how they should respond, they feel better, earn more respect from those around them, and build a psychologically safe environment at work. Robert says the main reason why people leave a company is not because of money but because of leadership and managers who fail to make employees feel like their contributions matter or who even instill fear in the workplace. Therefore, it’s extremely important for leaders to receive training in emotional intelligence and learn to listen to their team with humility.  Lastly, Robert leaves us with two action items for owners: 1.      When someone is looking to buy a company, they want a strong team. Teach leaders to build high-performing teams with members who trust each other and feel psychologically safe with one another. 2.      Successions can be a time of great stress. Create an environment of radical candor, where team members feel comfortable approaching the leaders of a company with any concerns they may have so these issues can be addressed before it’s too late.Disclosure: Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and are subject to change. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax, or legal advice. You should consult with your attorney, finance professional, or accountant before implementing any transactions and/or strategies concerning your finances. 

“What’s being expected from the younger generation is you’re sitting down with your manager and learning about the culture and values. What does the company stand for?” – Daan Renssen, Owner of PrideStaff.In today’s episode of The Ripcord Moment, Daan and Joe discuss hiring trends, what job satisfaction means to the younger generation, and what the pandemic has taught companies about flexibility. Gone are the days when work is just a way to make money – now, companies are expected to improve the world around them, take stances on global issues, and foster their employees’ growth. This process starts right at onboarding; when they join a company, people expect to engage in deeper conversations with leaders because they want to feel aligned with their workplace’s goals and values.Daan also reminds owners to polish their business’s online presence since job candidates will often research companies on Glassdoor, LinkedIn, etc. Additionally, he encourages them to ensure that their hiring process is simple and speedy as it is common for talent to be interviewing with multiple companies.Lastly, Daan shares two action items for owners:1. Before selling a business, owners should hire an HR agency to conduct a complete audit to ensure that their business is in good standing. The agency can also examine the workplace culture and may help improve it.2. Before an owner leaves their company, they must ensure that any unsettled feelings and dynamics amongst their team are resolved. To minimize disruption, leaders must leave their team knowing the members work well together and are confident in the firm’s future. Disclosure: Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and are subject to change. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax, or legal advice. You should consult with your attorney, finance professional, or accountant before implementing any transactions and/or strategies concerning your finances.

“Before you go to market, the seller should do a due diligence review. Hire an ERISA lawyer, get the paperwork together, and see what’s going on.” – Meredith Sesser, Owner of Sesser LawIn today’s episode of The Ripcord Moment, Meredith offers her expertise on the nuances of retirement plans, ERISA (Employee Retirement Income Security Act), and ensuring your business is in good legal and fiduciary standing before selling.While owners may feel overwhelmed by the concept of conducting an audit or due diligence review, it is easier than you may think. Meredith usually asks clients to send her documents related to retirement, like pension plans, 401(k) plans, and profit-sharing plans, through Dropbox. Buyers will see the same documents, so it is wise to ensure there are no liabilities or mistakes that need to be fixed before the buyer assesses them. Because there are so many employee-related elements in a sales agreement to consider beyond a 401(k), like non-qualified retirement plans, deferred compensation, health benefits, etc., an M&A lawyer should request an ERISA lawyer to review these parts thoroughly. Proactively communicating with your third-party administrator about important decisions, like adding a new partner to the firm, is crucial so steps can be taken to update certain documents and avoid problems that can potentially become legal burdens.Lastly, she shares two action items for owners:1.     Prevention can save owners significant amounts of stress and money. Engage an ERISA lawyer to conduct a due diligence review to ensure there are no liabilities or fiduciary breaches. 2.     If there is a problem, fix it before you go to market. A few thousand dollars to fix a mistake is always better than having the IRS get involved later. It also lessens buyers’ hesitation/risk when considering your business.

“Progress is in relationship with struggle.” — Chris M. King, CEO of Status Flow. In this episode, Chris explains what “flow” is and how to create momentum on your team and in your personal life with flow triggers. He also shares how embracing change and discomfort is pivotal to growth.Chris discusses the law of accelerating returns, which signifies the exponential progress of technology and culture. In order to keep up with our ever-changing world, business owners must be open to pivoting their plans and products and constantly innovating.  Being immersed in a state of “flow” is necessary for creativity and momentum. Think about a time when you were effortlessly absorbed by the task at hand because your mind was in a state of inspiration. Certain triggers, like risk and novelty, contribute to the flow state.When organizations learn to remove flow blockages and create an environment, routines, and culture that include flow triggers, innovation and motivation will come to employees naturally.Lastly, he shares two action items for owners:1. Figure out what to do when you reach your goal. Continue innovating and thinking about ways to spin your products and business, or what the next project should be. The dark side of flow is that when you obtain success, there now exists a large gap that must be filled with the next journey.2. The brain and body require rest in order to bounce back to their most creative, inventive state. When you rest, let yourself completely relax and step away from work. Disclosure: Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and are subject to change. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice. You should consult with your attorney, finance professional or accountant before implementing any transactions and/or strategies concerning your finances.

“They have to build some value.” — Scott Snider, President and Co-owner of the Exit Planning Institute (EPI) and the Operating Partner of Snider Premier Growth. In this episode, Scott offers his expertise on how to best prepare for your ripcord moment from the perspective of a lifelong entrepreneur who has worked with his father to create a formal training program called the CEPA (Certified Exit Planning Advisor) within the Exit Planning Institute. At a recent national summit for the Exit Planning Institute, Scott spoke about the impact of finding his personal purpose and the impact that this has had on his business and succession planning. He believes that finding your personal purpose as a business owner is crucial to aligning your business, personal, and financial goals. The Exit Planning Institute recently released their purpose as a company, which mentions working with business owners to create companies of significance rather than just success. When considering the purpose of the company, Scott thought about what the company meant internally to employees and externally to its members and the surrounding communities. He says he considered how many business owners have seemingly successful businesses, but when selling their business, they don’t end up getting what they want for their company or the sale takes much longer than expected. He believes this issue boils down to a focus on success and growth instead of a focus on building value and significance. Scott discusses who he turned to for coaching and mentorship when constructing his personal purpose and the purpose of his company. He says he went through transformational leadership training with InitiativeOne Leadership Institute, a program designed to bring teams together to create a better communication system and make better decisions across a company. He talks about the importance of knowing your personal purpose before selling your business, because an exit can leave business owners wondering, “Who am I?” This is critical for not allowing your business to define your entire being and being able to separate yourself from the business. Scott tells us that 78% of owners don't have a board of advisors and 63% of owners have not sought out any advice about exit or transition planning for their business. He stresses the need for business owners to surround themselves with a strong external advisory team to create accountability and allow the owner to be more of the strategic visionary.Lastly, he shares two action items for owners:1. Find your purpose, write it down, and begin to live by it immediately. It'll change all aspects of your life—business, personal, and financial.2. Understand and know the value of your business by conducting an annual discovery event, which is like a diagnostic of your entire company. It will change the way you operate and will create a more successful company today and a more significant one when the time comes to exit.Disclosure: Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and are subject to change. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice. You should consult with your attorney, finance professional or accountant before implementing any transactions and/or strategies concerning your finances.

“These business owners, they just have a lot of grit.” – Joe Gerber, CEO at Intelligent Optical Systems, Inc., who has over two decades of C-suite experience and over a decade of buy- and sell-side M&A investment banking and private equity group experience. In this episode, Joe offers his expertise in bringing high-level strategy and operational experience to building, restructuring, and scaling businesses, providing them with strategies and initiatives that drive company growth with proven results.Joe discusses the path that led him to his current role as a sort of “CEO for hire.” He details some of the lessons he’s learned from working with business owners, including the grit and willpower that it often takes to move the needle and get things done. He says that he quickly discovered issues constantly arise in a business and he needed to step back and create a process that could continually assess and improve the business. Joe dives into an overview of his process, mainly focusing on the first one hundred days. He likes to start by organizing issues into bucket lists, and then force ranking each bucket for what needs to happen, who needs to work on it, and what the timing is on a solution. He then follows this up with weekly meetings where he can assess each department and keep them on track. Joe goes deeper into the importance of creating an action plan for those first one hundred days. He likes to interview the board, senior management, etc., upon his arrival to truly find out what is and is not working and follow that up with a solid plan. He says that if a reset of the management team is necessary, it will happen within the first one hundred days. Joe discusses how he builds trust with a business owner from the start when coming in to a new company. He knows that handing over the reins of a company can be a huge step for an owner, so he likes to include them in his first one hundred days process as much as possible[BY1] . Joe likes to remind owners that change is a constant. He is coming into a business because something wasn’t working or the owner wanted certain things to change from the start. Joe shares what he looks for when hiring a CEO. Beyond experience, Joe likes to look at personality, cultural fit, adaptability, how goal-oriented the person is, and the balance between the industry knowledge and the financial knowledge. He stresses the importance of considering what you as the owner want to accomplish by hiring a CEO and deciding which of the above characteristics will help you achieve those goals. Lastly, he shares two action items for owners:1. Using a process like this allows an owner to be objective about what's working and what's not with the company and to figure that out well in advance of the five-year last growth period before selling a business.2. Augment the management team and get the floor laid out properly, really getting the company buffed and polished well in advance of a sale or exit.Disclosure: Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and are subject to change. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice. You should consult with your attorney, finance professional or accountant before implementing any transactions and/or strategies concerning your finances.

“The three rules of ESOPs are cash flow, cash flow, cash flow.” – Sheryl Bayani-Alzona, attorney with the Employee Benefits Law Group, a Southern California-based practice that focuses on employee stock ownership plans. In this episode, Sheryl offers her expertise on the world of ESOPs and if this is the right exit strategy for you. Sheryl starts off by explaining to us what an ESOP is. At a high level, an ESOP is an employee stock ownership plan. It is a retirement plan similar to your 401(k) profit sharing plan. However, it is the only retirement plan that is allowed to enter into a loan to purchase employer's stock from selling shareholders.She dives into the main benefits of an ESOP to a selling shareholder, including the ability to defer payment of capital gains. She also discusses what types of companies usually use ESOPs as an exit strategy, with manufacturing, construction, and professional industries leading this list. Sheryl also addresses common pitfalls that owners should be aware of when it comes to ESOPs, the biggest one being whether they can afford it. Companies need cash flow to function, and since the ESOP is funded by the company, it is important that the company's cash flow is healthy. She also discusses the concept of a partial ESOP coupled with a later exit. She says this is an option because the ESOP is a ready buyer, and perhaps the only buyer who is willing to take a minority interest in a company. Lastly, she shares two action items for owners:1. Go through the ESOP suitability review process to make sure you know what you are getting yourself into before you establish an ESOP.2. Call Sheryl. She works for the Employee Benefits Law Group, the largest ESOP consulting and legal practice in Southern California. Her direct line is 310-571-8896. Disclosure: Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and are subject to change. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice. You should consult with your attorney, finance professional or accountant before implementing any transactions and/or strategies concerning your finances.

“Be a lifelong learner.” — Ken Keller, CEO of Strategic Advisory Boards, a Southern California-based leadership advisory firm. In this episode, Ken offers his expertise on how to best prepare for your ripcord moment from the perspective of a consultant and coach who works regularly with business owners and CEOs on the challenges of growth, leadership, employee engagement, and increasing profitability.Ken discusses how he coaches his business owner clients who are looking to sell their business in the near future. This includes always working on and refining the business model, ensuring you have the right management team in place, and staying focused on growth, as a buyer will want to see a continuous track record of growth. He talks about the importance of creating alignment throughout your organization so that employees can truly buy into your vision for the company. He also stresses the importance of keeping employees in the loop by sharing goals and strategies so that everyone can contribute. He feels that this is especially important today given that only 34% of the workforce is currently actively engaged in their organization. Ken dives into the significance of owners creating incentives for departments and roles outside of sales. Though few companies currently do this, he feels that implementing this revenue-sharing structure into your business will create an atmosphere where all employees will be more motivated to actively contribute to the results of the company.He walks us through a typical strategic advisory board meeting, describing it as a monthly four-hour retreat where you get to take yourself away from your desk, work ON your business not IN it, share ideas, learn new ideas, and open up to a group of peers.Ken discusses a challenge that many business owners face as they are transitioning their business, and it is the concept of letting go. He believes that there is a way for a business owner to retain some involvement and level of control over contracts, purchases, etc., without having to be involved in the day-to-day operations of the business.Lastly, he shares two action items for owners:1. Be committed to being a lifelong learner to better prepare yourself for your future and to set an example for your employees that work is about more than just coming in and punching a clock.2. Making an exit and selling your business requires a lot of teamwork and a good amount of time for preparation. Start with evaluating your current team, addressing underperformers and unengaged employees, and getting everyone on the same page before even thinking about an exit. Disclosure: Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and are subject to change. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice. You should consult with your attorney, finance professional or accountant before implementing any transactions and/or strategies concerning your finances.

“Make sure you have a presence EVERYWHERE.” – Jonathan Boring, founder and president of Social Spice Media in Camarillo, California. In this episode, Jonathan offers his expertise on how to prepare your business for a transition or sale from a digital marketing standpoint. Jonathan discusses how to best prepare your website for an upcoming exit, including staying up on regular maintenance and updates for the most seamless user experience. Simple things could be out-of-date, such as phone numbers, or entire submission forms could be broken on the back end. Either way, you don’t want to wait to hear about these issues from a client or a potential buyer. He talks about the website auditing process that his company takes new clients through. First, they evaluate the good, the bad, and the ugly. Essentially, what is your company doing well, what could be done better, and what needs to be changed NOW. Then, an extensive report is run to paint a full picture of what is happening on the client’s website, including everything from Google ranking to key word gap analysis. Jonathan dives deep into what it means to be ADA compliant for websites and why an owner should care. He shares simple changes you can make to your website to ensure you don’t face legal repercussions, including making sure you have a screen reader and all of your videos have an option for closed captioning. He gives tips on how to optimize your email marketing campaigns, including the power of A/B testing and making sure you send out emails at the best possible times (Tuesday and Thursday mornings). Lastly, he shares two action items for owners:1.      Audit your website regularly and ensure you are ADA compliant to avoid any unnecessary legal action or fines.2.      Make sure you have a presence across multiple channels. Omni-channel marketing is huge right now, so be sure your website is up-to-date, you have regular blog postings, and you are active across multiple social media platforms.Disclosure: Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and are subject to change. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice. You should consult with your attorney, finance professional or accountant before implementing any transactions and/or strategies concerning your finances.

“Minimize taxes, maximize profits.” – Scott Gilmore, a Tax Principal at KROST. In this episode, Scott offers his expertise on important tax matters to consider when it comes to succession and exit planning for businesses.Scott discusses M&A transactions, including what types of businesses meet the qualifications (HINT: You have to be a C-corp), and the tax implications that come with these transactions. He talks about purchase price allocation on a sale and how the buyer and seller must come together to agree on a purchase price. He dives into what the goals of the seller should be during this process, including allocating more consideration to capital gain items.Scott goes over some tax-deferral techniques that can be used during the exit planning process, including the use of the installment sale treatment and rollover equity.He talks about ways to handle the transfer of real estate and leases during a succession plan. If you already own the property, leasing to the new buyer might provide you with a steady income for the foreseeable future. On the other hand, if you are currently leasing the property, make sure that these leases and contracts will carry over to your buyer before going through with the sale.Lastly, he shares two action items for business owners:1.      Prepare ahead of time to save yourself money. Get professionals on your team early. A year or more would be great, but at least 3 to 6 months will give your team enough time to optimize your outcome. 2.      A change of ownership might be difficult for some of your employees, so before you go through with a sale, talk to your employees to help you pick the right buyer. Find out what the most important things are to them about the business and their work within it. For your business to continue to be successful after a sale, those key employees will need to stick around and be happy under new ownership. Disclosure: Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and are subject to change. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice. You should consult with your attorney, finance professional or accountant before implementing any transactions and/or strategies concerning your finances.