Archive

Archive for January, 2018

Shrimp Tank: Guest Mike Anderson

January 16, 2018 Leave a comment

Our latest guest on the Shrimp Tank was Mike Anderson, CEO of PayNorthwest. His company is a leader in payroll services and management for small and medium sized companies. Hear his story and gain his insights on being an entrepreneur.

Listen to the entire podcast, right here on our website!

© 2018 Toro Consulting, Inc. All Rights Reserved

Extra Points: Can You Handle the Truth?

January 15, 2018 1 comment

Dan Weedin Unleashed-40I’ve been closely watching the Seattle Seahawks search for a new offensive coordinator. It looks like that as I write this, they may have found one. One of the areas of focus is on finding a coach that will “challenge” and hold accountable the quarterback, Russell Wilson.

I read an article espousing that the very best quarterbacks like Joe Montana and Tom Brady, craved being pushed and challenged. The article quoted a coach that opined that mediocre quarterbacks want to be left alone; above average quarterbacks want to be told how to improve; and great quarterbacks want to be told the truth.

Isn’t that the truth about all of us in any position or career? Regardless of employee or CEO, everyone needs coaching. How coachable are your best “players?’ How coachable are you?

I’ve experienced people that have said they want help, but really want to be literally left alone because all they want is validation of their ideas. I’ve met people that say they want to be better, but don’t like to hear the truth because in forces them to change. The truth is what sets the great ones apart.

One final thought: I’m not suggesting that the great performers always accept blindly what a coach might say, but they at least consider and respect it. A coach is there to mentor, guide, and grow people based on their expertise and knowledge. The best “players” are able to take the truth and make adjustments. Your organizational and individual success will depend on how many great “players,” including you, are on the team.

Can you handle the truth?

Quote of the Week:

“Faith is taking the first step even when you don’t see the whole staircase.”

~ Martin Luther King, Jr.

© 2018 Toro Consulting, Inc. All Rights Reserved

I can help you get and your company grow and protect profitability. Contact me at dan@danweedin.com or (360) 271-1592.

Extra Points: Plan B…C…and D

January 8, 2018 Leave a comment

Dan Weedin Unleashed-40As we begin a new calendar year, businesses and organizations are fervently putting together and starting to implement plans for success. Metrics and mileposts have been set, and hopes are high for a better year in 2018, regardless of how 2017 turned out. The problem is, the majority of businesses and organizations (especially non-profit) fail to take into account one thing…how to respond when the bad thing happens. And then what to do when Plan B doesn’t work. Let’s discuss…

Most every business has plans for growth over the next 12 months. The savvy ones have strong metrics to keep track of the growth based on sales, marketing, and performance objectives. The most sophisticated companies also take time to figure out what obstacles stand in the way. To that end, they figure out a Plan B if Plan A doesn’t work. And then they figure out a Plan C and often a Plan D. Redundancy in strategic crisis planning is crucial to resilience and business continuity.

What are common obstacles your business might face to hamper your biggest dreams for this year?

A physical loss (e.g. fire) that forces your from your building. A cyber attack that compromises your data and reputation. The loss of a key employee or owner. Loss of business knowledge through lack of pre-planning and documentation. A new competitor emerges in you territory. A weather-related calamity that causes you to stop operations for an extended period of time.

While insurance may reimburse you for some of these, it’s negligent not to have a plan to immediately stay open for business to reduce the financial and emotional impact. Too much damage can result that is not protected by insurance. It’s incumbent on you to make sure your plan to mitigate the damage and reduce financial risk to protect your property, people, and profit. The consequences of not doing so will result in loss of profit, damage to people, and going out of business.

Bottom line, I believe you’re resilient. That’s part of the makeup of an entrepreneur and business leader. The problem is that if you’re a “brawler,” you might win the game but come out battered, bruised, and bloodied (bleeding profits). If you fight like a boxer – with a planned strategy that includes obstacles to success – then you’ll come out of the next calamity (and they will happen) moving full speed ahead toward higher profits and business wealth.

P.S. This concept applies to your personal life, too. What are the obstacles that can derail your personal goals, dreams, and lifestyle? You need to create contingencies for your family to assure that your personal hopes and dreams all come true both now and in the future.

© 2018 Toro Consulting, Inc. All Rights Reserved

Death, Taxes, and Business Succession

January 3, 2018 Leave a comment

20 Under 40 20_3As a business owner, you have two problems that need to be solved. First, debt does not end with death. Second, what are you going to do for money when you retire?

The answers to both are the bases of business succession planning. It’s a topic that often gets pushed to the back burner until it starts boiling over and it’s too late. As many of you baby boomer business owners are creeping towards your “retirement,” it starts becoming a more important issue. For my fellow Gen X’ers right behind in the generational chronology, you’d better pay attention because you’re time to start is now.

Let’s tackle each problem one at a time.

Problem 1: What do I mean by “debt does not end with death?” If you die, you don’t get to take your debt with you. It’s what you bequeath to someone else, namely your business partners, whomever they may be. That debt may have paid for a new building, an expansion, new product development or acquisition. Regardless of what it is, it needs to be paid and your demise will make that more difficult for someone else.

The reasons? First, you must be replaced. Someone must fill whatever role you played internally or externally. Either way, it doesn’t happen without financial or time investment and cost. Second, if your spouse is not your business partner, he or she may not want to take over your role. That means your business partner must buy them out. Finally, if there is no business partner, what’s the plan if you are no longer there? Does the burden fall on your spouse that wasn’t working in your business? To a key employee? Regardless of whom that might be, financial help to cover the debt is necessary.

Bottom line: Your untimely death exacerbates any debt left for the responsible party holding on to the bag. Leaving them without a plan and money to deal with it is negligent.

Problem 2: At some point, you’re going to sell your business to “retire,” right? Now I’m not suggesting you be put out to pasture. Retiring can mean travel, new business ventures, writing a book, or taking up a new life hobby. Retiring is just a word used to get to that next adventure, but in order to do that you better be able to pull out money to fund whatever is next.

The first problem had you dying. Good news, this one you live! The problem is how to transition out of your business and get compensated for years of hard work sleepless nights, and great success.

In the “old days,” it was more common for children to buy the family business and turn it multi-generational. That has become less common as children have found other means of making money and eschewing the thought of taking over Mom and Pop’s business. I’ve seen more cases in the past few years of business owners reaching their 60’s and desiring to transition out, but have no idea as to how or to whom to sell the business to. It becomes a new anxiety as they keep working at the job they desperately want to transition out of to start that next adventure.

Here’s the process solution to both problems:

1. Go to your business attorney and draw up a Buy-Sell Agreement. This agreement clearly stipulates what to do about money in the event of a death, disability or exit of a partner. It creates a game plan to buy out spouses and families, and deal with the financial responsibility of continuing debt for the remaining owners.

2. Fund your Buy-Sell Agreement with life and disability insurances. The agreement is nearly useless without a vehicle to fund it. Cash flow and reserves are not the answer. By leveraging the power of life insurance, a company can much more easily deal with the debt and future expenses of losing a partner or main business owner. It also allows the family to receive their just compensation for their share of the pie.

3. Buy life insurance that creates cash value. If you’re familiar with permanent life insurance products like whole and universal life, this might sound familiar. The business buys and owns the life insurance policy being used to fund the Buy-Sell agreement. When the owner decides to transition out (even if it’s the sole owner), the life insurance policy can then be cashed out and all the premiums paid over the years returned to use as part of the “retirement.” Note that this concept is more complicated in nature and you should talk with both your team of attorneys, accountants, and life insurance brokers for options and details.

Your two problems are real and they have financial ramifications for those that don’t plan ahead. It doesn’t matter your age or how long you want to own your business. Take responsibility for your debt, your retirement, and the well-being of those left behind holding the bag.

Business succession should not be left to last minute; otherwise, it becomes a crisis. Succession planning is a key part of risk management for any business. Why not start the new year off creating or improving it?

© 2018 Toro Consulting, Inc. All Rights Reserved

Extra Points: New Year’s Edition

January 1, 2018 Leave a comment

Dan Weedin Unleashed-40Since my birthday is on New Year’s Eve, it’s been easy for me to take stock of each new year for my life as it matches the change of the calendar. As I grow older and hopefully a little wiser, my perspective has continually changed. Here are my thoughts for this year for your consideration…

Enjoy your life because it’s the only one you get; no mulligans. Be grateful for the people in your life and commit to investing time in those relationships. Be kind. Laugh often. Never compare yourselves to others. Be thankful for both success and adversity. Honor the struggle. Rejoice in the wins. Keep looking forward, not backwards. Be unleashed.

I wish for all of you a very Happy New Year. Enjoy the next “yard” called 2018.

Quote of the Week:

“Hope smiles from the threshold of the year to come, whispering, ‘It will be happier.”

~ Alfred Lloyd Tennyson

© 2017 Toro Consulting, Inc. All Rights Reserved

I can help you get and your company sprint to the finish line, call me. I have ideas on how you can finish strong and start fast! Contact me at dan@danweedin.com or (360) 271-1592.

Categories: Extra Points