Anyone with a small child in their life could probably recite the lyrics to Let It Go verbatim. This classic song from 2013’s Frozen is the winner of the Academy Award for Best Original Song at the 86th Academy Awards and is sung by the Tony Award Winning performer, Idina Menzel.
However, some know it for the catchy lyrics, powerful message, and for being their 4-year-old niece’s favorite song of all time. (Hi Zoe!)
But did you know that hidden within Let It Go, inside Elsa’s magical ice castle, are three exit planning tips? Well, now you do!
A Kingdom of Isolation
The snow glows white on the mountain tonight
Not a footprint to be seen
A kingdom of isolation
And it looks like I'm the queen
A business owner without a team of advisors helping them execute a well-thought-out exit plan is quite like Elsa. Alone, wandering through a new path, and feeling like the only one who understands the journey.
Business owners who surround themselves with a holistic team of advisors and professionals will be more successful in their transition. Whether that be a sale to a third party, private equity, a family transition, or any other exit option. According to our 2023 Minnesota State of Owner Readiness Report, 51% of owners did not have a formal advisory team in place.
Accountability is the backbone of any successful team. On an owner’s team, advisors must work collaboratively to manage the owner’s business, personal, and financial goals.
Meet the members of an exit planning team here.
Let It Go!
Let it go, let it go
Can't hold it back anymore
Let it go, let it go
Turn away and slam the door
I don't care what they're going to say
Let the storm rage on
The cold never bothered me anyway
In Frozen, Elsa has just been crowned the Queen of Arendelle when she decides to flee the kingdom and create her own ice palace while singing the iconic Let It Go. While she was determined, willing, and ready to exit her kingdom and her role as Queen at this moment, business owners are likely a bit more hesitant to leave their businesses.
Exit Planning Institute President, Scott Snider, says, “Business owners likely identify with the company, it’s a part of who they are. They get uneasy about the future and start to regret or question their decision to sell.”
Owners like to have their stamp on every aspect of their business, but most do not realize how detrimental this can be to the success of their company. A business will fail if it is dependent on any one person’s individual successes.
A business that is dependent on the owner will never reach full value potential because most of the value in the business is locked in the owner. Should the owner leave the business, they are likely taking customers and processes with them. Additionally, the brand and the owner have become synonymous, so if the owner exits, the value of the business decreases.
One of the easiest ways to build business value – and limit the amount of time you as an owner spend working outside of traditional work hours – is to decentralize yourself from the business.
Learn how to decentralize yourself from your business here!
It’s Time to See What I Can Do
It's funny how some distance makes everything seem small
And the fears that once controlled me can't get to me at all
It's time to see what I can do
To test the limits and break through
No right, no wrong, no rules for me
I'm free
After leaving the kingdom, Elsa sings about taking the time to see what she can do, test her limits, and experience freedom. She is eager to see what this new life has in store for her, and is putting distance between herself and her former life.
For a business owner, leaving their business can be a similar freeing experience, but often it brings stress for the future as the owner goes Into The Unknown, another classic Elsa power ballad from Frozen II.
A PricewaterhouseCoopers study reveals that many business owners in the US find themselves unhappy post-transition after selling their companies, with 75% of them experiencing profound regret just a year after the sale. However, in the 2023 Minnesota State of Owner Readiness Survey, nearly 94% of business owner respondents stated that they had at least thought through and had an idea of what their next phase of life would look like after selling and transitioning their companies. Additionally, 30% of respondents indicated that they had a formal, written plan for their life post-exit.
In order to have a meaningful life and retirement specifically, you’ll need to cultivate your strengths, talents, and capabilities and use them to benefit others. People who have a clearly defined purpose in life live years longer than those who have no sense of purpose. According to an article published in Forbes, “Spend your time now figuring out what you enjoy doing so that when you’re retired and have the additional time, you can spend that time doing what brings you happiness. Maximize your time during retirement by focusing the pre-retirement years on discovering what brings you joy and fulfillment.”
Before you retire, think about the things in your life outside of your business that give your life meaning and purpose. Perhaps it is spending time strengthening your family relationships, tending to a garden, or expanding your knowledge by reading about topics that interest you. Whatever gives your life purpose should have a place in your post-business life.
Improve your personal planning insights here.
