Intentional Growth

Do you want to be armed with the best negotiation practices and strategies before bringing your company to market? Today we’re going to be talking to Chris Voss, FBI veteran, CEO of the Black Swan Group, and author of Never Split the Difference, which was named one of the seven best books on negotiation. You’re going to learn how to get the best deal for yourself from one of the best negotiators on the planet. We’re going to talk about practical tactics you can use to level-up the playing field and put yourself in control throughout the exit process. You will learn about: Some of the details of Chris’s background and how he got into negotiating. Information on tactical empathy as described as Chris’s book, and why it helps with negotiation. The brain science behind how people react in times of stress and when negotiating or communicating with others. Some of the primary things people can do before they go into a negotiation situation. The “black swan theory” and how it can help you in your negotiating. How a business owner can figure out why a buyer is interested in the first place, which will help with negotiations. Specific tips on calibrating questions and the only way you should ever pose a “why” question. When, why and how to say, “How am I supposed to do that?” as well as an example of how it worked for someone Chris knows. Chris’s perspective on the words “no” and “yes.” Tips for how you can get someone else to represent your interests well. How to separate negative emotion from the process of negotiating. Today we’re talking about emotional intelligence as it pertains to word choice at the negotiation table. Seems simple, right? Well, if you think you have it mastered, you’re dead wrong. Without even meaning to, we can incite emotions by our poor word choice (after all, what was your first reaction when I told you that you were flat-out wrong? I’m guessing you didn’t smile and agree with me). Knowing that, what can we do about it? Enter Chris Voss, ex-FBI kidnapping and hostage negotiator who now uses his skills in the business field. He gives the rundown on some crucial preparations you can make before entering the ring with your potential buyer (or seller!) so you can avoid these costly mistakes. Calibrate Your Words We calibrate everything. We set our thermostats, GPS and music levels ‘just so’. So why are we less careful with our words? To top it off, we are told our whole lives that what we say matters — perhaps you’ve been told that your words hurt after a particularly strong-worded argument. Despite this excellent advice, we still try to dominate negotiations as if having the biggest vocabulary or the best numbers are enough to secure the deal. Chris Voss says no. In fact, you run the risk of doing the opposite if you’re not careful. Let’s say you’ve got a buyer sitting across from you who says that they can’t do something because of X, Y or Z reason and you say the innocuous words, “I understand” in an attempt to bring the conversation around and work through this barrier. You’ve just shot yourself in the foot, effectively, because now your adversary is on alert because you’ve just reinforced their negative feelings rather than simply acknowledged them and let them pass. This leads us to the next point… Negative Emotions Impact Us Greater than Positive Ones Not fair, right? But we all know the feeling. That last bad quarter sits with us far longer than that one amazing one last year. You remember that one… barely. But you can remember when, ten years ago, you had a financial crisis. To be specific: negative emotions impact us three times more than positive emotions. Our negative thoughts drive us better than our positive ones do. Let that sink in for a second. The same goes for negotiations. Both sides will have fears, nerves, anxiety, you name it. Instead of simply saying “I understand” and trying to brush by it to a different point of attack, it is important that you recognize these feelings in order to diffuse them. Chris draws on his extensive hostage negotiating background as well as clinical research on the impact of addressing negative emotions in order to create a more positive outcome. While you could focus your efforts on the positive side (good numbers, good this, good that), you are wasting your time and effort. You could get the job done three times faster and more effectively if you simply learn how to negotiate through the negative thoughts. Two Millimeter Shift We all know and love Tony Robbins. If you don’t, you may want to familiarize yourself with him sometime. He has this concept of the two millimetre shift to deal with negatives. He urges you to identify the negative and not deny or ignore its existence. In so doing, you can diffuse that feeling before it becomes a deal-killing explosion. To perform a two millimeter shift, you simply need to address the issue head on. We aren’t conditioned to do this, really. Now is not the time to utter “I understand, but” phrases. Now is the time to say “you may feel that I am doing x” or “you may feel that x is happening” so you can address the elephant in the room before it hinders your action plan. There is significant science behind this showing that by going from a denial to an observation (“I don’t want you to feel like I’m pushing you around” to “I’m sure it seems like I’m pushing you around”), you dial back the negative emotions significantly in the amygdala. Every. Time. Ask Why How often do you ask why someone does something? I mean, we ask our kids all the time: “Why would you think that’s a good idea?” But what about the buyer for your business? Chris suggests asking your buyer point-blank why he or she is interested in your company. We’re not here to do it in an accusatory way as we may with our very guilty children. Rather, we’re aiming to be deferential and innocent in our approach. Chris puts it best. Simply say something like, “Why would you ever want to buy my business? I mean, I just don’t see the fit for you guys.” And everyone is going to jump to the moment to answer your question and impart some wisdom. You can always count on people to want to give you their opinions and advice. In this case, they’ll want to defend their buying choice — your buyer wants to make sure you know he or she isn’t stupid and has very valid reasons for wanting your company. You’ll get the most honest answer out of them at this point because you’re making them feel like they’re the ones in control and who are in the position to educate you. That’s a win. The power has shifted in your direction. This cuts down on the number of surprises you’ll experience at time of sale or even after the sale. Your buyer is more likely to out their hidden agenda in this moment than if you tried to ply it out during the negotiation process in another way. Don’t Forget What and How Chris calls asking why in the above example getting proof of life. After that, the why question is off the table — you’ll simply make your buyer defensive if you keep it up. So how can you get that information out of him or her? Simply ask what and how, again keeping your tone and questions deferential and innocent-seeming. In this case, Chris is referring to getting any potentially deal-killing terms off the table. The person you’re sitting with, unless it’s the company’s lawyer, is likely not the deal-killer. Most deals have items or terms inserted into them after the initial negotiation is complete by those that weren’t sitting at the table. This comes back to our ego or need to feel in control: you left the lawyers out of it and they want to prove their worth and, more so, that this was a bad call. So they will find any number of reasons to point out the weaknesses of the deal or convince the buyer (or seller) that this is a bad deal. The best way to nip this in the bud is to include them during the process in your deferential and innocent way. Ask your buyer who else this deal will impact and if those people will be comfortable with the deal. Ask the same question in every meeting so that the buyer is forced to go back and consult with their lawyer about it — this gives the lawyer something to show off on and plays right into your hand. The lawyer has now had his or her say on the process and you’ve addressed their emotional needs. You’re less likely to see them try to blow up the deal since they’ve already had their hands in the making of it. This is now something they’ve helped shape and their ego is satisfied. Our FBI agent-turned-deal maker’s best advice is to have tactical emotional intelligence. Use it well and it will help you win greater success at the negotiating table! Takeaways: The “black swan” theory: When you’re selling a company, there are a lot of unknowns, or black swans. It’s important to understand why the buyer wants to buy your company. Ask, “how am I supposed to do that?” This is a great way to avoid saying no or arguing. Label negative emotions. Calling feelings out into the open and addressing them will let you process the issue and work toward a solution. Links and Resources: Solidity Financial Black Swan Group The Edge Never Split The Difference Getting to Yes The Upward Spiral Text FBIEmpathy to 22828 to subscribe to The Edge Newsletter About Chris Voss: Chris Voss is CEO of the Black Swan Group and author of the national best-seller “Never Split The Difference: Negotiating As If Your Life Depended On It,” which was named one of the seven best books on negotiation. A 24-year veteran of the FBI, Chris retired as the lead international kidnapping negotiator. Drawing on his experience in high-stakes negotiations, his company specializes in solving business communication problems using hostage negotiation solutions. Their negotiation methodology focuses on discovering the “Black Swans,” small pieces of information that have a huge effect on an outcome. Chris and his team have helped companies secure and close better deals, save money, and solve internal communication problems. Chris has been featured in TIME, Business Insider, Entrepreneur, Inc., Fast Company, Fortune, The Washington Post, SUCCESS Magazine, Squawk Box, CNN, ABC News and more.

An Entrepreneur’s Journey to a Sale Have you ever wondered what the entrepreneurship journey looks like? There are a lot of components! Today we’re going to be talking to Kelly Caldwell. Kelly is a successful entrepreneur who started with a wildlife science degree and working in a zoo and ended up growing her business to $25 million in revenue and then sold it to a public company. She’s got a great story, and you won’t want to miss it! In this episode, you’ll learn: The first decision that Kelly made in order to jump into entrepreneurship with both feet. Information about Kelly’s early career experience that led to her starting her own business. Some of the challenges and milestones that Kelly met shortly after starting her business, including how she handled the cash cycle. The direction that Kelly wanted to go in as the business grew, as well as how she shifted from growth mode to big-business mode. Some of the considerations that Kelly had to keep in mind as she looked forward to selling, as well as what she thought the probable outcome would be once she sold. How Kelly kept her employees in mind as she considered interested buyers. What Kelly wanted in terms of both price and terms from a sale and how it turned out. The emotions that Kelly went through when she went through the sale and integrating with the new company. One thing that Kelly might have done differently on her entrepreneurial journey. What Kelly is doing now in her life after business. The entrepreneurial process is different for each of us, this is true. However, there are some core similarities all entrepreneurs share: we start with a passion to do or fix something, discover a niche for it and then exploit that opportunity in the best way possible. Meet Kelly Caldwell, co-founder of AK Environmental, who saw the opportunity to delve into the niche market of environmental assessments (predominantly for the energy industry), and who managed to have a successful exit from her company 12 years later. So how did she do it? Develop the Right Relationships As with all great entrepreneurs, Kelly recognized her limitations. She entered into a partnership with her friend Amy who had strengths in the areas Kelly did not — Amy did sales and client retention, all the business-building stuff, and Kelly tackled the financial side. Each was incredibly happy with this setup since it played to their natural talents and interests and kept them working together. To top that off, they had excellent communication. Throughout their entire business relationship, they kept the communication lines open for everything from run-of-the-mill business issues to more complex conversations about future development and exit planning. Amy, for example, was ready for retirement after the ten year mark; Kelly was ready to exit the company, but unsure if she would continue working after or not. The two of them had open and honest conversations about the situation and came to the mutual decision of selling their company — provided they could find the right buyer. The one thing that Kelly has said she regrets from her experience as a business owner is not bringing in the support system she needed earlier on. As entrepreneurs, we’re used to doing everything ourselves. We love the control, and some of us thrive off the stress. But over time, this becomes a bad business strategy since you’re limiting yourself in two ways: 1) You’re stopping yourself from growing and exploring other options, personally and professionally, since all of your own resources are tied up into this one thing; and 2) You are limiting your business by not encouraging growth past your own skillset which also makes it a less desirable target to potential acquirers. However, Kelly made a smart move and brought in an investment banker to give her some advice on how to progress the business with a sale in mind. She also worked with a M&A advisor and M&A accountant who were able to give her the technical advice she needed to protect herself and her business at time of sale. Her biggest piece of advice for business owners is to build up a team that can support you and help you grow professionally, who are experienced in areas you are not and who can provide you with the information and advice you need to be a more successful business owner on all fronts. Dry Run Secondly, she suggests going through a dry run of the sales process. Now, truly, not all of us are going to be approached by the 20 companies she and Amy were when they let it be known they were ready to sell AK Environmental. However, when it does come time for you to put your business on the table, if you get a surprise early offer (or an unsolicited one like Kelly received) you should go through the process of selling just so you know what it looks like. Kelly and Amy received a surprise offer that gave them the opportunity to explore the sale process. They saw what a competitor saw their face value was (or at least saw what this early indication of interest looked like) and were able to then tailor the process to their needs afterwards. No, they didn’t sell to this company; but they did go through everything from due diligence to negotiations just to feel it out and learn their lessons early before it became mission critical to do so. This experience cost them money. Of course it did! You get what you pay for, however, and they were able to utilize what they learned when it came time to truly sell. And they then got to overview 20 offers, sit down with 15 contenders, and finally decide between three companies. Their final choice was the best fit for their timeline, personal financial goals and business continuity goals. Kelly approached the situation in an intelligent manner with her advisors behind her and her vision of her exit before her. Listen to Your Advisors Now, she does suggest a few things in terms of the sales process which she learned (from her advisors) and completely agrees with. One of those things is: Selling your business is Need-to-Know Only! While you may feel guilt over this, the reality is that your staff will be in a better position if they don’t know the company is for sale — provided you have followed the above steps and kept your business’ continuity in mind during the process. Why? Because nervous people jump ship. Nervous people worry that when the company is sold, their job is sold as well. However, if you are mindful during negotiations and secure your personnel’s jobs, your staff will be able to maintain their positions afterwards. The other thing she suggests is be as clear as possible about your exit goals. Life after business doesn’t have to be a complete unknown. You can keep on as an advisor for the company, or even in an augmented version of your original role, if you so choose. The best thing to do here is listen to your advisors when they tell you what’s realistic from the exit and to yourself and your family in terms of what’s best for you. We’ll leave you with one more thought: As an exiting business owner, as an entrepreneur giving up your baby, you’ll need to come to terms with the impending loss of control. It’s remarkable how personally attached you get to your business; however, it is going to grow without you. Chances are, you’ve taken it as far as you can and it is now ready to develop on its own. This is the most successful outcome for any business, and you should congratulate yourself for getting your company there! Plus, if you really feel like you’re not done, you can always start another one. Takeaways: It’s so important to have a mental shift: You need to look at your business differently in order to get it ready to sell. Look at how buyers value your company. Even if you don’t want to sell, doing this will give you a valuable calibration. Employees are vitally important, both now and when the time comes to sell. Links and Resources: Solidity Financial Kelly on LinkedIn About Kelly Caldwell: Kelly Caldwell is a successful entrepreneur who has held jobs ranging from Senior Vice President at a publicly traded company to Elephant Rider at a zoo show. She is a proud mother to two wonderful daughters, a happy wife to her husband and a semi-retired mentor and speaker. She is proud to have built a business that employed nearly 200 people and received national recognition but she would much rather tell RV stories or help others follow in her entrepreneurial footsteps. In 2002, while working at a large engineering firm, Kelly and a Senior Project Manager, Amy Gonzales, decided to form their own company. AK Environmental was founded out of the frustration of working through the bureaucracy of a large company to service the clients Amy and Kelly had relationships with. Clients noticed. Soon this two person operation grew to over 175 employees. Organizations like INC Magazine, Ernst and Young, Zweig White, and Women Presidents’ Organization recognized AK for their growth. Ultimately, in 2014, publicly traded company NV5 purchased AK. Kelly is now semi-retired and working in real estate investment. She is proud that she started a business at 25 years old and sold it before reaching 40. That has provided her a platform to help others fuel their passion to be entrepreneurs by mentoring with several organizations, angel investment, and public speaking. Kelly is always looking for the next opportunity but it may include an RV trip.

Have you ever heard about the statistics surrounding transferring a family business? There’s the daunting 30-13-3 rule, which means that 30 percent of companies successfully pass to the second generation of a family, 10 percent to the third, and 3 percent to the fourth. Today we’re going to talk about how family businesses have better longevity than other types of businesses Our guests today are Carrie Hall, who leads the Ernst & Young Family Business Center, and James Bly, who had a family business consulting firm (Family Enterprise Business Services) that he sold to Ernst & Young. They have some insight to share on how you can raise your chances of success as you transfer your family business to the next generation In this episode, you’ll learn: The backgrounds of both Carrie and Jim and how they led them to Ernst & Young. Some of the facts surrounding the transfer of family businesses to the second and third generations. Some of the milestones that successful family businesses reach before and during transitions The importance of transferring business vision and how families manage it through the generations with governance models. How to address the financial reporting as the business grows and changes through the decades How to analyze and identify the gaps between the different skill sets represented by subsequent generations, as well as tips on working around these gaps. Some thoughts on structuring the actual transfers Considerations for splitting the estate and the wages when skill sets are disparate and responsibilities are intertwined. One of the key differences in terms of governance between businesses with successful generational transfers and those that do not succeed with transfers. Why a framework for decision-making is vital. Your business was hand-crafted and designed by you. You put your heart and soul (maybe even your blood, sweat and tears!) into building your empire — and now you’re starting to think about passing your business onto the next generation. Or are you? Well, according to our two podcast guests today — Carrie Hall and James Bly — who are well-versed in the area of family business and succession planning, you need to be doing this as early as possible if you want your business to survive the transition and become a multi-generational business. What’s the Reality of a Successful Business Transition? The ‘survival rate’ of a business transition is roughly 30% from the first generation to the second, 13% from the second to the third, and 3% from the third to the fourth. While this might seem dismal, and you’ve probably had it explained to you in a negative way, this is actually pretty striking. Multigenerational businesses are strong and have a higher survival rate than non-family businesses. Who knew? To put this into perspective, the average lifespan of a company today is 15 years compared with 50 years in 1920. So if you have a family business that has transitioned from your parents to yourself, you have already blown this statistic out of the water. If you want to challenge the Japanese (who have 20,000 businesses that are more than 100 years old!), you need to get started on your succession planning. In the US, the biggest piece of the upper middle-market corporate pie (80% of it, actually) is going to multigenerational businesses. So why don’t more businesses engage in succession planning? Successful Succession Planning Let’s say you’ve decided you want to transition your business. Have you thought about how you want your business to continue on? Do you want your children to run it, or an advisory board if your children have little interest or maybe you’d prefer to sell the whole kit-and-caboodle to someone else who can really drive your vision forward? Your first step is to decide what your transition will look like, who it will go to, and why. Once you’ve nailed down the more emotional side of your business, you can really focus in on the numbers. To that end, James and Carrie have found that there are really 11 main points you need to cover which will help you identify the areas in which you are weak or strong before you step out of your business. They’ve termed it the “Generational Transition Risk Assessment Survey” and it covers the following points: Generational Transition Risk Assessment Survey Understanding the company’s core market Business and economic model Company value proposition (who are your customers) Analyze who additional customers may be Understanding the competitive landscape (who are your competitors, how are they funded?) Understanding the organizational capabilities of your company (map your resources, etc.) Operational capabilities Personnel and talent Financial management and control systems Technology or domain expertise Risk management (including your efficiencies) Start by analyzing these 11 categories and get a deeper perspective of your business before you start the transition. If you’re going to be leaving the business to one of your children, get them involved in the process! It’s Never too Early to Involve Your Kids in the Business EY has developed a one-week program called the “EY Next Gen Program” which takes young members of business-owning families from all over the world and teaches them about business specifics. The children are divided into three groups based on age and experience levels and are taught by academics, EY professionals, and business leaders who have experience in family businesses. Even if you aren’t starting your kids out at a kindergarten age, you are still going to be ahead of the game if they start to come to work with you (or for you!) and learn the various levels of the business, the family’s role in the business and the type of roles available for them. Maybe your son wants to be more of a shareholder and invest in the community (increasing your public image and goodwill). Perhaps your daughter is a tycoon-in-the-making and will make an excellent CEO. No matter what role your children choose to take, making them intimately familiar with the business will increase everyone’s chance of a successful transition. Business Governance vs. Owner Governance Business governance has to do with caring for your shareholders, trustees, beneficiaries, etc. who have a vested interest in the financial success and solvency of your company. Business governance is responsible for operational competence, which means that someone who knows what they are doing is running the show so that the money keeps flowing in and you have a predictable cash flow. Owner governance, however, has more to do with, as James says, building human capital and spurring emotional development among the owners of today and the future, as well as those who influence or impact them within the business. This prepares the business for good stewardship cooperation. Using this dual-pronged approach to manage your business will ensure you’re covering all your business bases. You have owners who are invested in the future of the business and a business that is ensuring competent owners. This is a win-win in any kind of transition since, again, it is building value. If you think of nothing else after listening to this podcast, think of this: succession planning and involving your kids in the business as soon as is practical will help you build value and teach your kids how to see the business as a business, not as a font of money or an excuse for a vacation; it will also generate real conversations about the numbers — the data that makes or breaks a company’s baseline. Takeaways You can’t start too young when it comes to getting your teens and young adult children involved with your family business. Process eliminates emotions. It’s important to look at your family members as team members when a family business is at stake. Design the organization of tomorrow. You have to consider the evolution of the company as it goes from generation to generation. Links and Resources: Solidity Financial Ernst & Young carrie.hall@ey.com Email James: james.bly@ey.com About Carrie Hall: As the EY Americas Family Business Leader, Carrie leads the EY network of professionals that provide holistic services to family business, family offices and their shareholders throughout North, Central and South America. An assurance partner of Ernst & Young LLP, with over 30 years of experience, she has been published in national and global publications including The Wall Street Journal, New York Times, Harvard Business Review, Fortune and Financial Times. She led EY’s efforts to conduct and publish a first-of-its-kind global survey of the world’s largest family businesses in collaboration with Kennesaw State University. About James Bly: As a leader of EY’s national Family Enterprise Business Services practice, Jim has 35 years of experience working with enterprising families to grow larger, more valuable businesses; secure growth capital for their business while maintaining control; successfully transition businesses from older to younger generations; and obtain liquidity, when needed, for shareholders. Jim has also been instrumental in developing EY’s proprietary tools and methodologies used to help enterprising families grow, finance, transition and monetize their private operating businesses.

Have you ever wondered how you can avoid paying taxes when you sell your business? Today we are going to be talking to Brian Forcier, whose years of experience at Titanium Partners and also as a real estate investor have taught him how to defer taxes and make selling your business possible. He does a great job explaining the 1031 exchange. Will it fit into your exit plan? Find out by listening! In this episode, you’ll learn: Some information on Brian’s background and how he got into the real estate market after first studying to be a doctor. What the 1031 is, what it applies to, and why it’s important What a qualified intermediary is and what they do, as well as some of the rules you’ll encounter as you go through the process of selling. Different ways to invest in real estate and some of the benefits of each. Where depreciation fits into the decision to use the 1031. An example of a frugal business-owner who built up his estate plan from the ground up. Where a 1031 exchange wouldn’t work well; you shouldn’t use it just to avoid taxes, because some circumstances make it less than beneficial. Brian also talks about some alternatives. Steps to take before using the 1031 exchange and considerations to keep in mind when negotiating. The importance of seeking out the right help for your transaction. A story that illustrates what’s possible when you use the 1031 exchange and why Brian does what he does. You know you’re going to pay some taxes when you leave your business. But do you realize how much you might be on the line for? Brian Forcier discusses tax strategy on how to avoid paying taxes that could keep you from achieving your post-sale financial goals. Depreciation and Deferment You buy a thing, it depreciates over time. We know. But now that you’ve depreciated out, you’re going to pay tax on the full amount—unless you know how to defer your taxes. Financial advisors will likely suggest you massage your EBITDA or perform another fantastically clever workaround. But sometimes the philosophy of KISS (keep it simple, stupid) is best. Let’s avoid those capital gains and consider another form of deferment: purchasing a like-kind property which you can operate as a business, if you wish, or which runs itself. 1031 Exchange What is a 1031 exchange? As defined under Section 1031 of the United States Internal Revenue Code (26 U.S.C. § 1031), a taxpayer may defer recognition of capital gains and related Federal income tax liability on the exchange of certain types of property. While your financial advisor might not like the idea of you settling into another piece of property when you sell your business, it might be the perfect revenue and tax deferment solution for you. Doing a 1031 exchange is an underrated tax solution for your exit—whether you’re heading into retirement, or you want something ‘for now’ to offset the taxes you would otherwise pay. As Brian says, a 1031 exchange is kind of like playing Monopoly where you trade four houses for the hotel, but the beauty is you don’t have to give two of your houses back to the IRS when you buy the hotel. What Brian suggests doing (based on his number of years as a real estate agent) is investing in a property which caters to industries that are similar to yours. However, this is not to say that you’re going to start your second career. Brian believes that it’s possible to have your cake and eat it, too… if you plan the right way. Plan Ahead Here’s the kicker, though: you need to own the property you’re going to invest in for at least a year and a day before you make the exchange. The tax guys don’t want to make this too easy for you, after all. So you need to make what you’re doing with your money after you sell a big part of your exit planning. Following this, you need to go dollar-for-dollar into your next property. So if you sold your business, as Brian elaborates, for one million, you need to invest one million. You can do it in one property or you can also choose to invest in three for a value of 100%. The other option you have is investing 200% of the money you received at sale into an arbitrary number of properties of your choosing. However, you also need an intermediary to purchase the property for you since you can’t actually accept the funds of the sale without paying the taxes. Enter the QI: the qualified intermediary. This person’s role is to prepare all your documentation and to handle the funds so you’re not charged taxes. And you have to close on the properties you will use for your exchange within six months of identifying them. No big deal, though, right? You’ve got this… all by yourself. Well, if you’re looking to move into investment properties as your next career, maybe you’re right. But if you wanted to retire or live off a passive income, then you may want to consider building a team to ensure this process goes smoothly. Make Sure it’s a Fit Let’s say you take Brian’s advice and decide to invest in a property. You need to ensure the business you’re buying is something you’re familiar with. Unlike the first foray into single family home investment properties, when you look at multifamily, commercial, or industrial properties, you need to pick something that you already know about. It makes it much simpler for you to choose a property and be informed about what goes on there. If you’ve already committed to planning for what comes after you exit, good for you. Take a look at the salary you draw now and what you want to draw when you’re done with your business. Rather than investing it like your financial advisor would like, you now are on track to finding the perfect property fit for your financial needs. Your job becomes finding the property that will allow you to withdraw the income you need to live the life you want at the level of involvement you want. Now you need to find your team. Even Brian, our seasoned veteran property investor, uses a team. You know you need a QI, but there are other roles you should look to for greater success and satisfaction.  Perhaps you’ll want someone to help you find the right property, or someone to manage the properties you’re purchasing so you can be a hands-off owner? Brian’s firm can help you through this whole process, of course, so take some notes from this podcast and start your risk analysis to see if a 1031 is the right next step after your exit. You may decide investing in new property is too much of a risk for you. Or maybe you’ll be too cramped for time and you can’t execute the 1031 exchange. Whatever the reason, you need to make sure this is the right move for you and the properties you’re choosing are the right ones for you. Give a 1031 exchange a look. The worst thing that will happen if you decide not to do it is that you will pay the taxes you would have paid anyway without this option. Takeaways You need to understand your income requirements before and after you sell. Where can you generate that income if you sell? Take the time to find the right property: What do you want, where do you feel comfortable, and what kind of asset are you looking for? Having the right team is crucial. Links and Resources: Brian on LinkedIn Call Brian at (218) 590-8205 Email Brian at bforcier@titaniumpartnersllc.com Titanium Partners The Benefits of Real Estate vs Stocks and Bonds Nevada Trust Delaware Statutory Trust More About Brian: Brian is from Minnetonka, MN. He obtained a BA in Finance and Management from The College of St. Scholastica in Duluth, MN and has worked in the real estate investment industry since 1997. Prior to Titanium Partners, Brian was the President of AtWater Group and the Executive Vice President of Oneida Real Estate Company. Throughout his career, he has been instrumental in putting real estate investments and deals in motion. Community service has been an important aspect of Brian’s professional career in Duluth, MN. He has served as a volunteer Board Director for the Duluth Area Chamber of Commerce, Greater Downtown Council, Udac and Damiano Center. He is also an active member of the Building Owners & Managers Association (BOMA), Certified Commercial Investment Member (CCIM) and Minnesota Commercial Association of Real Estate/Realtors (MNCAR). Brian enjoys traveling, golfing and spending time on the shores of Lake Superior with his family and friends.

Have you ever wondered if you’d regret selling your company once the deal is done? Bobby Martin, who sold his company for 26 million dollars, shares with us his exit journey and what he wishes he’d have done differently. Today, he’s an angel investor at eight companies, a business owner, and an author. If you want a peek at what it’s like to be on the other side of an acquisition and merger, you won’t want to miss today’s episode. In this episode, you’ll learn: When Bobby decided to become an entrepreneur and how he jumped in with two feet. How he grew his company, First Research, and some of the major milestones that he hit during its growth. How Bobby created business value by figuring out his business model, going to market, and pricing his services. The triggering event and inner dialogue that made Bobby want to sell his company. How Bobby came up with the price that he wanted for the business and how he actually agreed to sell. Information about Bobby’s experience about closing and what happened afterward and why he now wishes he’d read Bo Burlingham’s book, Finish Big. What Bobby wishes he would have done differently and why it was harder than he thought it would be to sell his business. How Bobby recalibrated himself and reset his mindset so he could move onto the next step in his business journey. How knowing what you want out of your business is important. Being an entrepreneur is a highly emotional process. Not only does it require an emotional investment when you first come up with your business concept, but you also need to maintain your passion to drive the value of the business. So what happens when you eventually sell? This podcast with Bobby Martin covers the question of ‘what happens next’ and what you can do to build a valuable business (to someone other than yourself). First Find Your Market Bobby worked as a calling officer for a bank and discovered very quickly just how inefficient their processes were. He recognized that if marketers and sales people, particularly, had access to better quality (and more targeted) information, they could do their jobs more effectively. However, this discovery and his offer to do the market research to provide this information were rejected by the bank. While that wasn’t ideal, it also pushed him to start his own business. Entrepreneurs often start their businesses due to an unfulfilled need—if they can’t get it from the market, they build a business from which they can. So Bobby started a company called First Research which followed his passion for knowledge and satisfied the market niche he had uncovered. Finding markets can mean creating your own. Bobby now had a business with which he could do research on other companies and industries and sell to those who needed that information. Sound familiar? Gathering data to improve marketing and sales techniques is a strategy that all serious companies know how to do. Grow Your Company Bobby figured out a fairly novel revenue model for his business. In the late 90s, there weren’t many SaaS (software as a service) companies out there. Bobby took his information service and decided to charge an annual fee which was dependent on the number of people employees at your company. CPA firms, rather than banks, ended up being his preferred customer. Identifying market needs first in the broad spectrum of the service and then in the implementation of that service (including cost of service) gives you the opportunity to create a competitive edge out of resources you already have. Increasing profitability in this manner is an undervalued skill, but impacts your bottom line in a major way and also provides greater value to your company at time of sale. The trouble with growing your company becomes how to fund your business so that your ideas, products and services can reach their target market and generate a profit for you. Cutting costs and finding more efficient ways of operating will only take you so far—you need to be closing your sales or else getting an investor. Angel investors are interested in lots of small start-ups which have potential and generally have knowledge in the industry they buy into so they are informed on your business already, therefore they can contribute to meetings, etc. Bobby is happy in his present role as angel investor and has invested in eight companies and has his own company which he developed after selling First Research. Vertical IQ provides the same services as First Research, essentially, but allowed Bobby to rediscover his passion for the industry while maintaining what mattered to him in his business. The companies Bobby invests in are young and within his purview and scope of interests; therefore, he gets to enjoy the whole process and be part of the team. What Happens Next? As we know, all entrepreneurs will one day exit their business. Whether it’s to sell it or pass it on, the exit will happen. If you’re going to sell your business, Bobby has some words of wisdom for you. The process is far more emotional than you give it credit. You’ve built your baby and now it’s time to move on. Maybe someone else will be able to grow it better or faster, maybe your companies match each other and can share costs by merging or maybe you simply are ready for the next thing. Either way, you are parting with an integral part of your life and need to respect this process. Bobby suggests seeing a counsellor who can help you personally and professionally with the exit. Bobby saw a therapist after selling his business because he helped Bobby process everything from the sales process itself to the emotional aspect of no longer running a business. One thing Bobby found particularly challenging was realizing that when you sell your business, it can have one of three things happen to it. For the first, the business could continue operating in a similar fashion as it is presently; for the second, your company could become a division of another company (say it uses your accounting department, for example); and for the third, your company could become a product and no longer have sales and marketing. He was not prepared for this at all and he found therapy helped him through processing these changes. His advice is: If you are going to sell in the future, try to sell over a 3-5-year period to the perfect partner and really understand who you are selling to, what their intentions for your business are in terms of integration and culture change. It is absolutely doable… You want to put yourself in a position to have whatever you want in terms of a culture by having a business model that is profitable. Following that, never get into 50/50 partnerships—maintain majority ownership so you can influence the culture and maintain a business that reflects what you stand for. While money matters, if you want to maintain your vision for the companies you are involved with, you shouldn’t always go for the highest bidder. Having a lot of money and selling out is overrated; having your own company with your own culture and running it the way you want to run it—it treats its employees well, has great margins, has good customer relations—is underrated. Never forget why you became an entrepreneur in the first place. You should be enjoying what you do more than striving for material goals. Many entrepreneurs become angel investors because they recognize the value of a capital infusion and want to try something new. What comes next for you may not be starting your own business, but rather investing in someone else’s and learning all about that. So you need to decide what you want your life to look like once you’ve exited your company—this is where a therapist could come in handy to help you sort through your thoughts, feelings and needs in the situation. Takeaways Knowing why you became an entrepreneur is vital to your happiness. Knowing what’s important to you in an exit (other than the numbers) is also important. Knowing what to expect will help you make good decisions and see other perspectives. Links and Resources: The Hockey Stick Principles Vertical IQ Finish Big Small Giants BobbyMartin.me More About Bobby: Bobby Martin believes that too many startup founders pivot too early, quit too early, and expect rapid takeoff. Through his experience of starting and selling First Research (a leader in sales intelligence) for $26 Million to Fortune 500 firm, Dun & Bradstreet, he’s learned first-hand the challenges and solutions at each stage of entrepreneurial growth. Bobby is the author of The Hockey Stick Principles: The Four Key Stages to Entrepreneurial Success,  which was named an 800CEORead Bestseller. Bobby’s current adventure is as chairman and co-founder of Vertical IQ, a leading provider of sales research insight for banks. Bobby is an angel investor and serves as an active board member with several innovative start-ups, including Local Eye Site, Boardroom Insiders, MyLifeSite, Sageworks, and etailinsights. While he is a national speaker, he is still a hometown guy and focuses most of his investments in North Carolina where he has lived and worked. Before founding First Research with Ingo Winzer in 1998, Bobby spent more than six years with Bank of America as a commercial banker in Wilmington, North Carolina. He graduated with a degree in economics and banking from Appalachian State University. Bobby is married, has two children, and is an avid tennis player.

Have you ever wondered what goes on in the world of venture capital? Today we’re going to be talking to Jeff Grabow, the US Venture Capital Leader for EY. He’s going to share the ins and outs of the venture capital world, how it’s different from other types of investments, where the money comes from, and so much more. Jeff has 25 years of experience, so you won’t want to miss his insight as we dive into this topic. In this episode, you’ll learn: How Jeff got involved in the venture capital world and what his journey has been like. What venture capital is versus other type of investment types. Where the capital sources come from in this type of investment. Jeff’s thoughts on maintaining a certain percentage of ownership as a venture capitalist. What the process looks like from the entrepreneur’s perspective when it comes to establishing a partnership. Jeff’s thoughts on situations where things went very well and when they didn’t go so well when it came to venture capital. Jeff also talks about questions that people should be asking as they evaluate their successes or failures. Why expectations and honest evaluation is so important for entrepreneurs. Thoughts on the new trend of corporations who are getting into venture capital thanks to the current market landscape. Ways that people can go out and do the introductions and comingling between entrepreneurs and potential partners. The latest big ideas and movement as it pertains to venture capital and Jeff’s best advice about balancing your optimism with a cushion. “Just throw money at it” isn’t something we actually say in our lives, with intention. You never look at a problem or opportunity and put your money into it without looking at your options. Well, neither do venture capitalists… even though their name derives from the saying, “nothing ventured, nothing gained.” In this podcast with Jeff Grabow, we explore the ins and outs of the venture capital world including when and why to ‘throw money’ at a business as well as the typical concerns you should be aware of before you do. Why Venture Capital? Sometimes, as Jeff points out, you just need cash. You don’t need an idea guy, you’re not interested in a marketing guru and you certainly don’t want to step away from your business — but you need funding. Your baby is hitting its growth spurt (or you’ve turned it around from near-disaster) and now someone needs to feed it. This is where VC firms (and to some extent angel investors) come into play. You could turn to private equity, sure, but your idea important to you and you want to find someone who matches your goals and who is a fit for your company. So, you look to someone who understands the risks and rewards available to an early investor: a venture capitalist. These guys know what they’re doing in terms of investments; it’s all they do! But you have to win them over before they’ll float you some capital. What Appeals to a Venture Capitalist? Know your product, service, idea, whatever. You need to know everything about it, including where it fits in the marketplace, what the potential risks are for the business, your present financials and projected growth. No VC firm wants to take on a losing target it can’t turnaround to increase profits for all. Transparency is key here. If you know you have competition from x or y industry, you need to address that. When you’re considering venture capital, know that your competition likely is as well. So if you want to stand out and win the venture capitalist over to you, you need to demonstrate why you’re different and better than your competition. Be unique and be transparent — show them the money, as it were. What are your current revenue streams, where are you marketing and to whom, what are your expenses, where do you want to take the business and why… all these questions and more need to be addressed when talking to your new potential VC partner. Fit On the subject of preparing your sales pitch for the VC, you need to consider why you’re doing it. Do you two fit? Are your goals aligned? Doe the venture capitalist or VC firm have a vested interest in your product? Have they invested in similar products or services before? Do they have knowledge of your industry? And, frankly, do you get along and trust each other? This is why transparency matters. No one likes nasty surprises. You want to ensure the person you’re getting into bed with has a clean record and is upfront about desires and expectations. And they’ll want the same from you! If you’re hiding a weakness in the business, you’re going to poison your funding well. You’d be surprised how many VCs are both capable and willing to help you overcome barriers you’ve already identified. Once an issue (or potential issue) is identified, it’s much easier to plan to overcome or avoid it — particularly now that you have funding! 10-Year Horizon You’ve got your funding, you’ve chosen your partner and now you have a 10-year commitment to each other. Are you ready? This is a partnership as close as any other, and closer than some. While you’re providing the business service or product and the VC is providing the funds, you both are now owners of this enterprise and need to see it through to fruition. While you may have needed the VC’s resources (aka money) and they needed yours (aka product or service), you both have one finite and non-renewable resource in common: time. Each of you has only 168 hours in a week with which to achieve your goals… and this time needs to be shared with things like sleeping and eating. Both of you have decided that this company is worth this valuable resource’s investment, however, which is perhaps the greatest investment of all. So over the next 10 years, make every minute count. You can’t waste each other’s time, which is why you carefully vetted each other for fit and why everything you do is done with transparency and the overall goal of growing the company. More Money, More… The biggest thing Jeff wants you to realize is that most projects, companies, services, designs, etc. require a heck of a lot more funding than originally thought. And this goes across the board to every industry, even tech-based ones or ones where operational costs are being offset by new technologies. If you want to grow, it’ll cost you. And it’ll usually cost you more than you planned. Jeff has over 25 years of industry experience and he can tell you first hand that this is by far and wide the most important lesson you can learn: expect to need more money, and more money than you expected. Keep in mind that most start-ups don’t have their original owner or CEO, and that this is not a bad thing. Most have gone on to start other projects and explore other ideas; some have chosen to stay on in their original capacity as the idea or creative person. Of the 18,000 start-ups out there today, most the people who started them will not continue to run them forever.  Do what’s best for you and your baby, even if that means bringing in a partner and perhaps a different management system to improve the value of your business as a whole and the reach of its products and services — after all, you started this company for a reason! Why stop sharing what you created simply because you lack the reach? Takeaways Partnering up with a VC is a type of exit, so you need to know who you’re partnering up with is very important. Be very aware of all of the motivations on the team and where the money is coming from. The ability to communicate transparently is paramount. Links and Resources: Solidity Financial Platform Revolution More About Jeff: As the US Venture Capital Leader for EY, Jeff Grabow works directly with rapidly growing, venture-backed companies and venture capitalists in Silicon Valley. He has been part of the venture finance environment on the West Coast for over 30 years and has experienced first-hand Silicon Valley’s explosive growth. Jeff is passionate about identifying opportunities for early stage companies to exploit global markets and promote sustainable growth.

Have you ever wondered what the perfect strategic sale looks like? On today’s show, we’re going to be talking to Josh Elizetxe, who was extremely successful at managing his company at a very young age. Within six months of deciding to sell, Josh successfully created a market and sold his company to one of his strategic partners. He’s going to share some of the best wisdom and insight that we’ve had on this show. Tune in to learn what Josh learned, what he’d have done differently, and what he’s up to now. In this episode, you’ll learn: When Josh decided to become an entrepreneur and how he decided to take the lead in his venture. Some of the goals Josh made and milestones he met as he snowballed his company from startup to success. Some of the benchmarks that Josh had been tracking mentally so he knew he had gotten to the point where it made sense to sell. The trigger when Josh knew that he was not doing what he should have been doing. How Josh managed all of the factors that go into the decision to sell, the tactical strategies he used, and his tips on making the transition. Thoughts on valuing a company and setting a price, as well as convincing a potential buyer that the company is worth that price. How Josh picked the partner he picked and how he removed emotion from the decision. How do you value the power of your own two hands? Josh Elizetxe learned just how valuable building something from nothing can be, particularly in the digital world. Today’s podcast explores how to properly build a successful and profitable business out of nothing and capitalize on its specifics for a strategic sell for the highest dollar. What do you need to do to be a successful entrepreneur? Simply put: work for it. Josh poured all he had into his work. Starting at the age of fifteen, Josh immersed himself in his hobby of computers (learning about them, playing on them, and eventually building websites on them) until he was a master of his craft. It took time, energy and prioritization. What Makes You Unique? Josh was surprised to hear from advertisers after he started his blog. He had built something for himself which was a labor of love — his first blog was about the new iPhone coming out (which he coveted) and was the tech review that has become standard today. He was before the curve. This is vital in being successful, we all know, so how can you take the product you have (or hobby or service) and capitalize on it? This is your time to shine. Find what makes you unique in the market and customize what you’re offering to further help yourself stand out. Josh did this by accident. But he capitalized on it with intention. Say Yes After he built his first blog site for himself, he started hearing from advertisers. This was at a time when the Internet was still an enigma and there was no trust in transactions conducted on it. Typical of most teenagers, Josh ignored the advice of his father and agreed to take the money offered by this Internet-unknown. As a teenager, Josh had no concept of recurring revenue — he thought he would be receiving a one-time payment. When the money came through once, then twice, Josh realized he could make some significant cash off his site. He could buy his iPhone, perhaps a car… and if one website was making him this kind of money, why not two? Josh recognized opportunity. He started curating and advertising on multiple websites. To do this, he had to learn new things each time. But he said yes to every opportunity that came his way, and figured out the ‘how’ after. Follow Through So you said yes. Now you need to back it up. Josh grasped onto each opportunity not only for its monetary infusion, but also as a chance to learn and do more. When Josh built his first website, he went to the library at his school and read everything he could find on how to build a website. When he was offered money for advertising on this site, he learned how to build a banner ad. When he was asked to build a website for another person, he expanded his base website knowledge and learned how much to charge for this service. You’ve got the idea. Say yes, then follow through. Learn everything you need to know to successfully deliver on your promise. If you don’t have the time or skills yourself, build a network. Find those who have these skills or expertise and recruit them or get them to mentor and teach you. Utilize freelancers or hire into your business. These skills are invaluable and the more you can learn about all the areas that impact your business, the more valuable your business becomes. Be wary, however, of giving away your agency to the wrong people. Josh made the mistake of letting someone else manage his money and it negatively impacted him. What he learned from it was that he needed to stay informed and be in control of what he was doing with the heart of his business. When you choose to outsource, vet your choices and don’t be caught completely ignorant of the situation. In Josh’s own words: A fool and his gold are invited everywhere.  Choose people whose self-interest matches your own and you will see greater success and build trust. If you’re offering a complete product or service, you are far more appealing as an acquisition. Not to mention the edge you have in any conversation — you are flexible, knowledgeable and dependable, and your target clients will recognize this. Competitive Edge After you have all the elements you need to offer the best value possible, you have to price your product or service. Josh underscores the concept that working for less than your competitor and providing top-quality service creates another type of value: word of mouth. Intangible assets and goodwill go a long way in building a successful business. If you want to build something, be prepared to give a little more than you get — especially in the beginning. You need a foundation before you can build a sky scraper. Put Your Money Where Your Mouth Is And then, once you’ve built up your base business, you need to be reinvesting in it and pushing it to grow. As Josh says, you need to throw your money at it to keep it growing. If you want to see progress in your bottom line and concurrently in your ceiling, you need to put more capital down to add services, products or people that will help you achieve this. This circles back to the first concepts of finding what makes you unique, saying yes and following through. You need to keep reinventing yourself to ensure you’re staying competitive and current; you need to recognize your opportunities and not be afraid to go after them (whether this is expansion or re-tooling); and you need to keep up the quality by ensuring everyone knows what they need to know and has the skill set to support the business. Learn How to Anchor Don’t be afraid to throw out the first price point. Show them the numbers — show your impact. How much could you hurt the competitor with your product or service? How much could you earn each month? Tell them what you can do, and then follow through. Anchor it (plant the seed), test it (prove the worth) and sell them on the dream as it applies to them (make it realistic). Take these components to build your path to a successful exit that you can strategically present to the right buyer so you get the most money possible for your hard work. Never be afraid of an exit — chances are you can build another business or stay on in this one if you really want. An exit is another opportunity, so say yes and figure it out. Takeaways Really knowing and understanding the value of your business gives you an amazing amount of control. Find people who align their motives with yours: When you don’t realize exactly what’s driving behavior, you don’t have control and ownership of the situation. Understand yourself and what makes you happy. Figure out what is most important to you and make time for those things. Links and Resources: Josh on LinkedIn Josh on Quora Principles More About Josh: Josh Elizetxe is an Internet advertising veteran and successful serial entrepreneur. Last year, over 100,000,000 people interacted with websites and brands owned by Josh’s company. He serves on the board of the Phoenix Coding Academy and the Fleischer Scholars Program. Josh is a sought-after company advisor and Angel Investor in the software (SaaS), ecommerce, and advertising technology industries.

Today we’re going to be talking to Kieran Folliard. He moved to the USA from Ireland at an early age and has successfully sold some of the most popular bars and restaurants in Minnesota and launched 2 GINGERS Whiskey. We’ll talk about how he built his business by following his passion as well as how he has exited. You won’t want to miss today’s show! In this episode, you’ll learn: How Kiernan decided to become an entrepreneur and about his experience moving from Ireland to the United States. How Kiernan’s passions fit into the equations and why exploration was key. He also talks about how his parents were supportive. How starting an Irish pub solved a problem that Kiernan encountered in Minnesota. How Kiernan overcame some of the challenges that accompany opening a restaurant, which is known to be a difficult type of business to open. How Kiernan went about hiring a team and making sure that everyone’s skills were complementary. He also talks about how he established a vision with his team. The emotions that surrounded backing away from one venture while starting another. Considerations Kiernan kept in mind as he developed and grew 2 GINGERS. How Kiernan structured his business transitions. What Kiernan is applying to his business model to ensure longevity. Where Kiernan gets his ideas from, what he’s trying to accomplish, and what the future may hold. Passion. It’s what got you into this business, and it’s what will drive you through it. But what value does passion have in terms of our future successes and can it be turned into equity? Today’s podcast with Kieran Folliard explores the idea that following our passions can lead to greater business success and a strong legacy. So what’s the value of passion? Passion as Drive Kieran’s passion drives him from enterprise to enterprise. He learned at a young age that anything is possible if you have the determination and work ethic to achieve it, so he has spent his adult life making his dreams a reality.  His great love for his culture—including its beer and whiskey!—spurred him to pursue his dream of creating the perfect Irish pub in Minnesota, of all places. Kieran’s passion for exploring took him to Saudi Arabia to operate a dairy farm—yes, a dairy farm in the desert. His passion for Ireland led him to open his own Irish-themed bar and even make his own whiskey, called 2 Gingers. From there, Kieran has branched into the food industry and is working on high-quality and award-winning products which focus on nutrition and flavor. Passion has driven him to multiple successful enterprises and keeps him actively looking for the next big thing. Combining the things we love with the things we do doesn’t always work out. You need to have the discipline to see the venture through to the end. In business, you also need to be able to create something that is sustainable and valuable to someone other than yourself—so how do you value passion? The Equity of Passion The thing with passion is: You can’t measure it. You can’t tell how successful an idea will be simply from the desire to make it a reality. However, there are aspects to passion which lend themselves to valuation. As with most assets that are difficult to measure outright, passion is an intangible. You can’t weigh it, measure it or put it on a spreadsheet. To figure out how passion can become equity for your business, you need to know which other intangibles it impacts most. For Kieran, this meant finding the key aspects that made the most successful bars in Ireland and repeating them in the States. From atmosphere to whiskey, he covered it all. His staff was hired with the intention of being treated like family—so much so that he chose his management staff as his exit option. He took care in designing the bar to be a place where anyone could come to relax and have some fun, in Irish fashion (games, sports, poetry, etc.). And as far as the beer and whiskey goes… well, he was so successful that he actually sold his company after only 15 months of operations and took his whiskey on the road. Demand was high. Many of today’s most recognizable brands are made up of no more than these key concepts. Specific images, products and even tastes and smells are associated with companies like McDonald’s, Starbucks or Apple. You come to expect a certain type of experience when you enter one of these locations, and the power of their brand is what drives their competitiveness in the marketplace. Imagine trying to edge out one of these companies? Well, it’s hard, but it’s not impossible. We see giants crumbling more and more often with today’s technological and adaptive market. How does this happen? These moguls become disenfranchised from their customers. Be Passionate About Your Customers People have strong, subjective opinions about where they spend their money—and on what. You need something that is in demand (or which you can convince people they want), and you need to present it in a way that makes it even more desirable. Markets change regularly, so you need to keep abreast of the trends and be adaptive. As such, having customer input is vital to long-term success. Kieran found a very niche market in the Irish pub and focused in on the culture and ambience you would find in Ireland to create a successful enterprise. Customers would often comment on the genuineness of the pub and how nice and friendly the staff were—just like on their last trip to Ireland! People were looking for a high-quality, authentic Irish whiskey—he delivered. And as the trend toward less-processed, more nutritious foods continue, Kieran is now riding on the forefront of that wave as he helps build and progress the food brand of Red Table Meats and Bakersfield flour. You need to reinvent yourself and your products to stay current in the competitive marketplace. Work With Passionate People The other aspect Kieran touched on that can’t be undervalued is the quality of help you have when establishing your business. Not only is it important to hire good staff on the local level, you also need to have the right structure in place to support your operations. Whether this means hiring an accountant or a salesperson, be honest about your strengths and weaknesses and hire people who share your passion and your vision to grow your business. Kieran worked with the same people for years. He established strong bonds of trust with people he knew he could count on and capitalized on that equity. You don’t always need to hunt for the best deals or the flashiest people to drive revenue or create value. You need a skilled team of people who understand your needs and wants and can help work with you toward your end goal. Keep Passionate About the Horizon Following that, it’s important to keep in mind that you will inevitably exit your business. So who do you want to sell your business to? Are you passionate enough about your business to want its legacy to survive your exit? Kieran was. So he used his management team as his successors since they already had so much sweat equity in the place and would keep his vision alive. And when you do finally exit your business, whether it is to start your next venture—like Kieran—or to retire and enjoy life after business, you need to be passionate about that, too. Why? Because many business owners find the disappearing perks of ownership too much of a shock, or they haven’t figured out what to enjoy in life after their time owning and operating a business has concluded. So consider your passion. What aspects of it are valuable? How can you essentially brand your passion? And when work is no longer your main focus in life, what else are you passionate about? Takeaways: You can grow a business that is who you are and that reflects your deeply ingrained personality. People are the key to success: You need to align your vision with your team. Always think about the customer. How do they feel when they enter your business? What do they want and need? Have your eyes and ears open to customer needs and different trends. Links and Resources: Solidity Financial 2 GINGERS kieran@2gingerswhiskey.com More About Kieran: Born in 1955 in Ballyhaunis, County Mayo in the West of Ireland, Kieran started out in the hospitality industry carrying the bags for the passengers in his father’s Hackney (taxi cab) business. After 17 years spent in corporate marketing including time in Ireland, Saudi Arabia and the U.S, he realized that he loved being in pubs. So, like any good self-respecting Irish guy, he decided to open one. 18 years later, the pub business had grown to include The Local, The Liffey, Cooper, and Kieran’s Irish Pub, all in Minnesota’s Twin Cities area. 2 GINGERS® Whiskey was launched as a test in those pubs in March of 2011, and quickly earned a loyal following. So, in order to focus on a new project in pursuing wider distribution of 2 GINGERS, Kieran sold all his shares of the pub business in July of 2011. He heeded warnings about the door hitting him on the way out, and went on his merry way. Today, 100% of ownership of those pubs belongs to the management team that had worked with Kieran over the years to make them successful. 2 GINGERS is now Kieran’s full-time passion. He’s lived in Minnesota for 25 years, but has seen more of the state since launching 2 GINGERS than ever before, as he hits the road to sample his new product and meet the people who support the new brand. Just nine months after the statewide launch of 2 GINGERS in its home state of Minnesota, the whiskey can be found in over 800 liquor stores and over 1000 bars and restaurants. When he decided to start 2 GINGERS, it was with confidence in the product and an undeniable urge to make a go of a good idea. Kieran’s entrepreneurial drive is contagious to those who know him. For more on Kieran’s inspiration, his “2 GINGERS” (Mother Mary and Aunt Delia,) read the Legend of the two women whose young faces grace every bottle of 2 GINGERS.

Today we’re talking to Brad Yasar, who has had multiple exits already. He is trying to change the way our world works as an investor and a thought-leader in blockchain technology. He’s learned a lot from selling his businesses, and we’re going to talk about his exits, tax planning, and blockchain technology, which will revolutionize how we do business. In This Episode You’ll Learn: Some of Brad’s background, how he became an entrepreneur and where he started as a young child. What ideas and experiences Brad had that triggered him to sell his companies as well as some of the takeaways he had. Why tax planning is so important and how Brad went about establishing his preferred tax structure. Some of Brad’s insights on balancing passion with planning for the end. Thoughts on going from a service business to a technology company. Information about what blockchain technology is, how it works, and how it’s relevant to business today. The differences between an authoritative system and a decentralized system and how commerce is affected. The types of businesses that are likely to be affected positively and negatively in the future thanks to blockchain technology. Takeaways: The correlation between passion and your exit strategy: Remember that the money is not what it’s all about. The technology of blockchain can totally change the world we live in, so it’s imperative that you understand where your business fits. Entrepreneurs who want to revolutionize their industry should know that there are ways out there to build platforms and systems that will allow you to effect change. Links and Resources: Solidity Financials Growth and Exit Planning The Innovators brad@krowdmentor.com Brad on Twitter About Brad Yasar: Brad is an entrepreneur, investor, mentor, and advisor who has started and bootstrapped several companies from inception to maturity over the past 20 years. Brad is currently the co-founder and Managing Partner of Krowd Mentor, a strategic crowdfunding advisory firm focusing on ICOs, cryptocurrencies, blockchain, and token powered organizations. As the co-founder for Blockchain Investors Consortium (BIC) with over $2 Billion dollars allocated to blockchain and cryptocurrency projects and has access to extensive dealflow and experience analyzing disruptive technologies. Brad has participated in dozens successful crowd sales, which have raised over $500 million from 10,000s of investors in 12 months. Brad also served as managing director of Yasar Corporation where he mentored, advised and invested in more than 50 companies. Passionate about where the worlds of technology and marketing collide, Brad is frequently invited to speak at events related to entrepreneurship, angel investing and business strategy. Most recently, he presented at GCC, Digital Hollywood, and ITU Gate Accelerator Program. A big believer in coaching younger generations of entrepreneurs, Brad serves as a mentor for the Pepperdine Alumni Association. Brad holds a Bachelor of Arts degree in Economics and a Bachelor of Science degree in International Business Management (1999) from Pepperdine University (Malibu, California) and a Bachelor of Science degree in Applied Sciences Math (1996) from Académie de Grenoble (France). His charitable efforts focus on Goodwill Industries, the LA County Museum of Art, the LA Philharmonic and St. Jude Children’s Research Hospital, to name a few. Born in Turkey in 1976, Brad lived and traveled throughout Europe; England, France, and Greece to name a few and migrated to the United States in 1996. Brad is fluent in English, French, Turkish and has basic knowledge of German, and Spanish. Brad currently lives in Los Angeles with his wife, Nadine, and son, Max.

Today we’ll be talking to Dr. Sherry Walling. A clinical psychologist, Sherry has a ridiculous amount of education and is incredibly smart. She has some great insights into us as entrepreneurs and how we operate and balance our businesses and families. Today we’re going to talk about her education and her work with entrepreneurs and startups. She’ll share some insights on what makes us tick and how we can look at ourselves differently. We’ll also talk about questions to ask yourself before a transition and how we can balance the way we interact with our businesses and how we interact with our kids. In This Episode You’ll Learn: Information about Sherry’s education and how she translates this into working with entrepreneurs, which is a world with few guidelines. Some of the problems that Sherry sees with entrepreneurs and entrepreneurism and how she addresses these issues. The four main values that entrepreneurs use to decide how to spend their time and what to focus on, as well as some of the liabilities of those values. How entrepreneurs really feel about their businesses. Tips on how to diversify your passions and not focus too much on your business to the detriment of other things in your life. Ways to keep in touch with yourself through deep breathing, journaling, and self-assessment. Thoughts on planning for bad things that might happen. How opening a second or subsequent business changes an entrepreneur’s mindset. Some of the topics that Sherry and her husband talk about on their podcast. Takeaways: You just have to sit down and figure out what’s important to you and what you’re getting out of the business in terms of passion, purpose, and satisfaction. It takes real work; diversifying isn’t always fun at first, but it’s necessary. You might need to have a “funeral” for your business and mourn for it if you want to be at peace with what you want to do next in life. It’s vital to take time to take a deep breath, meditate, go to the gym, or whatever it takes to self-reflect and take yourself outside of the day-to-day “doing.” Links and Resources: The Value Vantage ZenFounder Podcast The Entrepreneur’s Guide to Keeping Your S**t Together Wait But Why – The Tail End About Sherry Walling: Dr. Sherry Walling is a licensed clinical psychologist and the co-host of the ZenFounder podcast. Her life’s work is to help high-performing professionals meet their potential and also enjoy personal well-being, life satisfaction, and a sense of meaning. She consults regularly with entrepreneurs, freelancers, and executives and helps with burnout, anxiety, existential angst, conflicts, major transitions, and personal balance. Sherry is a graduate of the University of California, Davis and Fuller School of Psychology. She has a PhD in clinical psychology and two master’s degrees. In addition, she completed year-long residential research fellowships at Yale University School of Medicine and the National Center for Posttraumatic Stress Disorder affiliated with Boston University School of Medicine. She has held faculty appointments in the Department of Psychiatry at the University of California, San Francisco, at the California School of Professional Psychology, and Fresno Pacific University. Married to a serial tech entrepreneur, Sherry has a unique combination of psychological expertise and 17 years of experience in the trenches of the startup world. She loves bringing these two worlds together on the podcast, in her consulting work, and as a conference speaker. When she’s not in the consulting room or hopping conferences, Sherry can be found on her paddleboard, in the yoga studio, or ushering her kids through an art museum in some fabulous city. She can also be found at ZenFounder.com, SherryWalling.com, or on Twitter as @ZenFounder.