Episode 16: Are You Prepared?

That's kind of a vague topic, right? Yes, but its a question that many of us need to consider. My audience is largely Founders, Entrepreneurs, and Business Owners and here's a stat for you:

50% of all exits are forced due to unexpected events like death, disability, distress, disagreement, and divorce (the “5Ds”)

Special shout out to Heath Henderson who part of the Iron City group for putting this on my radar. We'll break it down more below.

But, thank you for being here. We reached around 3,500 readers last quarter. Thankful for each of you and hope you find encouragement, information, and support.

If you're new here, this is my weekly newsletter where I reflect on the lessons, events, and inside scoop of being a husband, dad, and business builder...

In Today's Newsletter:

• Wins/Lessons/Thoughts from the week
• Are You Prepared?
• Weekly Take-Away: 👉 How We are Bridging Old & New👈

Weekly Wins/Lessons/Thoughts from the week:

• It's full on summer mode in the south (schools out, kids activities are ramping up, and life seems to move at a different pace).
• Legacy Founders: Young guns (aka younger generations) work HARD. Dang hard! Their entrepreneurial too. But, they like to use the new tools and are efficient (means they can do more in the same amount of time).
• Young guns: The OG legacy founders have lots that we can learn from them... They've been through the lessons, scars, and battlefield.

I see a major opportunity for us to 🌉bridge 🌉 "old" and "new". In my weekly take-away I share what I'm focused on in case it helps you...

Are You Prepared

I spent some time this week talking about business exits. This report 👇

The National State of Owner Readiness Report

came on my radar this week. Super interesting take-aways.

• In the event you want to read it, you can download the 2023 edition here.
• If reading 41 pages is not in the cards for you today, then I've summarized it below.

Here are five interesting take-aways for founders, business owners, and entrepreneurs from the report:

Exit Planning is Essential:

• An effective exit strategy is a business tool that can create more income today, empower management teams or the next generation, and potentially increase the owner’s wealth by 400-500%. Exit planning should be integrated into daily business operations to protect and enhance the business's value over time.

Understanding Company Value:

• Knowing the current value of your company is the first step to an effective exit strategy. Management systems should provide feedback on the value of intangible assets (human, structural, customer, and social capital) regularly. These intangibles can account for up to 80% of a company's value, driving positive outcomes like increased sales and profits.

Integration with Personal and Financial Planning:

• Business planning should be aligned with personal and financial planning to ensure a meaningful and fulfilling exit. Identifying personal purpose, vision, and goals is crucial for success post-exit, especially since 70% of owners regret selling their company.

Proactive Wealth Management:

• Owners must holistically manage their wealth, including their business, before, during, and after the exit event. This includes understanding and addressing their wealth gap by envisioning their desired next act and collaborating with a professional financial advisor.

Contingency Planning:

• Recognize that 50% of all exits are forced due to unexpected events like death, disability, distress, disagreement, and divorce (the “5Ds”). It's crucial to have a contingency plan in place to handle such situations and ensure a smooth transition.

My final take-away is that the earlier we plan, the better our chances of getting the most for our business with the greatest peace of mind. I have royally screwed this up in exits and I've had some go really well...

You Got This

Weekly Take-Away: 👉 How We are Bridging Old & New👈

Here are some things I'm working on to enable a culture and business that is primed for the future.

1. I've partnered with a local (to me) university's Entrepreneurship & Innovation Center to grab young talent (and ideas) to make real change inside legacy businesses (think media, energy, manufacturing).
2. I've partnered with a LATAM based Tech company to bring talent and innovation to the USA
3. I've partnered with a diverse talent pool to bring efficiency and speed to our businesses.

The through-line in all of of this is using

Tech, Talent, and Creativity to INNOVATE.

Need help doing this inside your business, let me know.

Thank you for being here this week.

I'm off to NYC next week for some big developments and looking forward to an exciting trip...

If you're looking to learn more about anything we're doing in our ecosystem, check out the information below 👇

• Venture Building Firm: I founded BlackSmith Ventures in 2020. We're focused on helping lower market "legacy" firms break out and early stage tech founders launch.
• Founder Community: If you're looking to build alongside like-minded founders and learn from some of the most innovative "do-ers" out there, then learn more here and click here to join directly. Included in the community is:

• Media, Branding, & Staffing Agency: If you're looking to take your brand, online presence, or business presence to the next level, then we have a full DONE FOR YOU and DONE WITH YOU offering. We were able to get some of the best in the business together who know exactly what it takes to ⚡️grow⚡️. You can book a time to talk on my calendar by clicking here.
• Partnerships: We take on select clients (3-5 max) and help them launch, build, grow, and/or exit. If your running a legacy business (energy, manufacturing, media, etc) or a Tech Founder and you're looking to accelerate your growth, book a time on my calendar (link above).

If you are just looking for more stories, lessons, tips, and inspiration then I invite you to follow me on all social media at AndySmithLife.

This is going to be a great week so let's get after it friends.

Until next time, - Andy