In 2004, Tom Hanks had a very busy year. Mostly because he lent his voice to six characters in the Oscar-nominated film, The Polar Express. The Polar Express was based on the 1985 children’s book of the same name, and features a cast of characters, mostly portrayed by Hanks, as they travel to the North Pole on the titular train.
While this movie has some truly frightening animation, along the kids' journey to the North Pole, they stumble upon several exit planning lessons.
Are You Playing Too Many Roles?
Credit, where credit is due, voicing six characters and completing the motion capture work to bring their mannerisms to life in animation, is no easy feat. Tom Hanks always does impress on the big screen, but you have to wonder… was it really necessary for one man to voice six characters? Was no one else available to help lighten the load and bring more depth and a variety of voices to the film?
Think of this in terms of a business. Business owners have been known to “wear many hats,” but most are unaware of the detrimental effects this can have on their business value. As the owner, are you so central to the operations, successes, and strategy of the business that it could not function properly without you? Ultimately, when a business is dependent on its owner and the owner makes themselves central to the business operations and processes, the value of the company is intrinsically linked to the owner, not the business itself.
This is because the owner's knowledge, skills, and experience are essential to the business's success. If the owner were to leave or become incapacitated, the business would likely fail. This is in contrast to a business that is well-run and has systems in place that can function without the owner's direct involvement. A business with a decentralized owner is more likely to be successful in the long run, especially once the owner exits the business.
Are You Ready for Anything?
The children in The Polar Express cannot believe their eyes when they are welcomed aboard the train. They are prepared for a scenic trip through the wilderness to meet Santa Claus at the North Pole. However, like any road trip, things quickly get out of hand and calamity and hijinks ensue. On this supposedly pleasant train ride, a young girl loses her ticket, another child climbs onto the roof of the train at some point, a herd of caribou blocks the tracks, and the train cars get disconnected and crash into Santa’s workshop. Truly anything can happen on The Polar Express.
Anything can happen in your business as well. Are you prepared for the worst? Did you know that 50% of businesses fail because of unintended consequences? These consequences can lead to bankruptcy, layoffs, and ultimately an unplanned exit as the business is forced to shut down or transfer at a price much less than what the owner wants, needs, or even deserves. Exit Planning Institute refers to these factors as the 5 Ds. Divorce, Disagreement, Disability, Distress, and Death.
To best mitigate the impact of the 5 Ds on a business and the owner's life, owners must first fully understand the negative consequences each can have on their organizations. Learn more about the 5 Ds in our latest content package!
