In 1957, Dr. Suess released the classic book How the Grinch Stole Christmas. This book was written in Dr. Suess’s classic rhyming style and featured the town of Whoville who loved Christmas, and the Grinch, who hated the holiday. His hatred of Christmas made him formulate a plan to steal every Christmas-related decoration and present from the Whos.
Since its creation in 1957, The Grinch has been featured in three films and is one of the most popular Christmas characters. While The Grinch may be a classic holiday tale, we found some exit planning lessons hidden in the rhyming lines of Dr. Suess.
Is Your Heart Two Sizes Too Small?
The Grinch hated Christmas! The whole Christmas season!
Now, please don't ask why. No one quite knows the reason.
It could be his head wasn't screwed on just right.
It could be, perhaps, that his shoes were too tight.
But I think that the most likely reason of all,
May have been that his heart was two sizes too small.
During How the Grinch Stole Christmas, the readers get a glimpse of just how much The Grinch hates Christmas. He spends the day plotting and scheming to ruin Christmas for the Whos down in Whoville because his heart is two sizes too small. Although by the end of the story his heart grows three sizes, even that cannot be healthy for The Grinch. In the movie versions of this tale, The Grinch does not live the healthiest lifestyle and takes risks with his health and safety in almost every scene.
What would happen to your business if you were to die today? Would your family be financially secure? Are your estate plans and life insurance up to date with the correct beneficiaries listed? Do you have a documented plan for all those impacted by your death? What obligations does your business have to your estate for the value of your shares?
The death of an owner, key employee, or business partner can substantially impact the value of the business if a succession plan is not properly defined and in place. For a succession plan to be successful, you have to ensure the business's future success is independent of the key person or owner.
Stop Christmas From Coming!
It was quarter past dawn... All the Whos, still a-bed,
All the Whos, still asnooze When he packed up his sled,
Packed it up with their presents! The ribbons! The wrappings!
The tags! And the tinsel! The trimmings! The trappings!
Three thousand feet up! Up the side of Mt. Crumpit,
He rode with his load to the tiptop to dump it!
It is right there in the name, How The Grinch Stole Christmas. Through an elaborate ruse, fake Santa Claus disguise, and an adorable dog dressed up like a reindeer, The Grinch stole every material aspect of Christmas from the Whos. Through no fault of the Whos, they had Christmas taken away from them by The Grinch.
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.
Without preparing a business should it be impacted by one of these stressors, owners are risking their livelihoods. 80% of an owner’s wealth is locked in their business, and by failing to create detailed contingency plans and legal safeguards for their business, they stand to lose the majority of their wealth in an unplanned exit. 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 whitepaper.
