The Ripcord Moment Joe Seetoo

“When we talk about emotional intelligence, what we’re really talking about is recognizing that we’re emotional beings and that we react to life’s events emotionally. First […] when leaders are not developed in emotional intelligence, they’re not able to listen to people.” – Robert Grossman, CEO of Black Diamond Leadership
 
On today’s episode of The Ripcord Moment, Joe welcomes Robert Grossman, founder and CEO of Black Diamond Leadership, to discuss psychological safety, team building, and the importance of emotional intelligence in workplace relationships.
 
Robert helps clients respond to triggers or stressful events maturely instead of reacting with emotion. When leaders and team members can observe their own emotions and then take a step back to consider how they should respond, they feel better, earn more respect from those around them, and build a psychologically safe environment at work.
 
Robert says the main reason why people leave a company is not because of money but because of leadership and managers who fail to make employees feel like their contributions matter or who even instill fear in the workplace. Therefore, it’s extremely important for leaders to receive training in emotional intelligence and learn to listen to their team with humility. 
 
Lastly, Robert leaves us with two action items for owners:
 1.      When someone is looking to buy a company, they want a strong team. Teach leaders to build high-performing teams with members who trust each other and feel psychologically safe with one another. 
2.      Successions can be a time of great stress. Create an environment of radical candor, where team members feel comfortable approaching the leaders of a company with any concerns they may have so these issues can be addressed before it’s too late.


Disclosure: Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and are subject to change. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax, or legal advice. You should consult with your attorney, finance professional, or accountant before implementing any transactions and/or strategies concerning your finances. 

“What’s being expected from the younger generation is you’re sitting down with your manager and learning about the culture and values. What does the company stand for?” – Daan Renssen, Owner of PrideStaff.
In today’s episode of The Ripcord Moment, Daan and Joe discuss hiring trends, what job satisfaction means to the younger generation, and what the pandemic has taught companies about flexibility. 
Gone are the days when work is just a way to make money – now, companies are expected to improve the world around them, take stances on global issues, and foster their employees’ growth. This process starts right at onboarding; when they join a company, people expect to engage in deeper conversations with leaders because they want to feel aligned with their workplace’s goals and values.
Daan also reminds owners to polish their business’s online presence since job candidates will often research companies on Glassdoor, LinkedIn, etc. Additionally, he encourages them to ensure that their hiring process is simple and speedy as it is common for talent to be interviewing with multiple companies.
Lastly, Daan shares two action items for owners:
1. Before selling a business, owners should hire an HR agency to conduct a complete audit to ensure that their business is in good standing. The agency can also examine the workplace culture and may help improve it.
2. Before an owner leaves their company, they must ensure that any unsettled feelings and dynamics amongst their team are resolved. To minimize disruption, leaders must leave their team knowing the members work well together and are confident in the firm’s future. 
Disclosure: Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and are subject to change. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax, or legal advice. You should consult with your attorney, finance professional, or accountant before implementing any transactions and/or strategies concerning your finances.

“Before you go to market, the seller should do a due diligence review. Hire an ERISA lawyer, get the paperwork together, and see what’s going on.” – Meredith Sesser, Owner of Sesser Law
In today’s episode of The Ripcord Moment, Meredith offers her expertise on the nuances of retirement plans, ERISA (Employee Retirement Income Security Act), and ensuring your business is in good legal and fiduciary standing before selling.
While owners may feel overwhelmed by the concept of conducting an audit or due diligence review, it is easier than you may think. Meredith usually asks clients to send her documents related to retirement, like pension plans, 401(k) plans, and profit-sharing plans, through Dropbox. Buyers will see the same documents, so it is wise to ensure there are no liabilities or mistakes that need to be fixed before the buyer assesses them. 
Because there are so many employee-related elements in a sales agreement to consider beyond a 401(k), like non-qualified retirement plans, deferred compensation, health benefits, etc., an M&A lawyer should request an ERISA lawyer to review these parts thoroughly. Proactively communicating with your third-party administrator about important decisions, like adding a new partner to the firm, is crucial so steps can be taken to update certain documents and avoid problems that can potentially become legal burdens.
Lastly, she shares two action items for owners:
1.     Prevention can save owners significant amounts of stress and money. Engage an ERISA lawyer to conduct a due diligence review to ensure there are no liabilities or fiduciary breaches. 
2.     If there is a problem, fix it before you go to market. A few thousand dollars to fix a mistake is always better than having the IRS get involved later. It also lessens buyers’ hesitation/risk when considering your business.

“Progress is in relationship with struggle.” — Chris M. King, CEO of Status Flow. In this episode, Chris explains what “flow” is and how to create momentum on your team and in your personal life with flow triggers. He also shares how embracing change and discomfort is pivotal to growth.
Chris discusses the law of accelerating returns, which signifies the exponential progress of technology and culture. In order to keep up with our ever-changing world, business owners must be open to pivoting their plans and products and constantly innovating.  
Being immersed in a state of “flow” is necessary for creativity and momentum. Think about a time when you were effortlessly absorbed by the task at hand because your mind was in a state of inspiration. Certain triggers, like risk and novelty, contribute to the flow state.
When organizations learn to remove flow blockages and create an environment, routines, and culture that include flow triggers, innovation and motivation will come to employees naturally.
Lastly, he shares two action items for owners:
1. Figure out what to do when you reach your goal. Continue innovating and thinking about ways to spin your products and business, or what the next project should be. The dark side of flow is that when you obtain success, there now exists a large gap that must be filled with the next journey.
2. The brain and body require rest in order to bounce back to their most creative, inventive state. When you rest, let yourself completely relax and step away from work.

Disclosure: Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and are subject to change. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice. You should consult with your attorney, finance professional or accountant before implementing any transactions and/or strategies concerning your finances.

“They have to build some value.” — Scott Snider, President and Co-owner of the Exit Planning Institute (EPI) and the Operating Partner of Snider Premier Growth. In this episode, Scott offers his expertise on how to best prepare for your ripcord moment from the perspective of a lifelong entrepreneur who has worked with his father to create a formal training program called the CEPA (Certified Exit Planning Advisor) within the Exit Planning Institute. 
At a recent national summit for the Exit Planning Institute, Scott spoke about the impact of finding his personal purpose and the impact that this has had on his business and succession planning. He believes that finding your personal purpose as a business owner is crucial to aligning your business, personal, and financial goals. 
The Exit Planning Institute recently released their purpose as a company, which mentions working with business owners to create companies of significance rather than just success. When considering the purpose of the company, Scott thought about what the company meant internally to employees and externally to its members and the surrounding communities. He says he considered how many business owners have seemingly successful businesses, but when selling their business, they don’t end up getting what they want for their company or the sale takes much longer than expected. He believes this issue boils down to a focus on success and growth instead of a focus on building value and significance. 
Scott discusses who he turned to for coaching and mentorship when constructing his personal purpose and the purpose of his company. He says he went through transformational leadership training with InitiativeOne Leadership Institute, a program designed to bring teams together to create a better communication system and make better decisions across a company. 
He talks about the importance of knowing your personal purpose before selling your business, because an exit can leave business owners wondering, “Who am I?” This is critical for not allowing your business to define your entire being and being able to separate yourself from the business. 
Scott tells us that 78% of owners don't have a board of advisors and 63% of owners have not sought out any advice about exit or transition planning for their business. He stresses the need for business owners to surround themselves with a strong external advisory team to create accountability and allow the owner to be more of the strategic visionary.
Lastly, he shares two action items for owners:
1. Find your purpose, write it down, and begin to live by it immediately. It'll change all aspects of your life—business, personal, and financial.
2. Understand and know the value of your business by conducting an annual discovery event, which is like a diagnostic of your entire company. It will change the way you operate and will create a more successful company today and a more significant one when the time comes to exit.

Disclosure: Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and are subject to change. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice. You should consult with your attorney, finance professional or accountant before implementing any transactions and/or strategies concerning your finances.

“These business owners, they just have a lot of grit.” – Joe Gerber, CEO at Intelligent Optical Systems, Inc., who has over two decades of C-suite experience and over a decade of buy- and sell-side M&A investment banking and private equity group experience. In this episode, Joe offers his expertise in bringing high-level strategy and operational experience to building, restructuring, and scaling businesses, providing them with strategies and initiatives that drive company growth with proven results.
Joe discusses the path that led him to his current role as a sort of “CEO for hire.” He details some of the lessons he’s learned from working with business owners, including the grit and willpower that it often takes to move the needle and get things done. He says that he quickly discovered issues constantly arise in a business and he needed to step back and create a process that could continually assess and improve the business. 
Joe dives into an overview of his process, mainly focusing on the first one hundred days. He likes to start by organizing issues into bucket lists, and then force ranking each bucket for what needs to happen, who needs to work on it, and what the timing is on a solution. He then follows this up with weekly meetings where he can assess each department and keep them on track. 
Joe goes deeper into the importance of creating an action plan for those first one hundred days. He likes to interview the board, senior management, etc., upon his arrival to truly find out what is and is not working and follow that up with a solid plan. He says that if a reset of the management team is necessary, it will happen within the first one hundred days. 
Joe discusses how he builds trust with a business owner from the start when coming in to a new company. He knows that handing over the reins of a company can be a huge step for an owner, so he likes to include them in his first one hundred days process as much as possible[BY1] . Joe likes to remind owners that change is a constant. He is coming into a business because something wasn’t working or the owner wanted certain things to change from the start. 
Joe shares what he looks for when hiring a CEO. Beyond experience, Joe likes to look at personality, cultural fit, adaptability, how goal-oriented the person is, and the balance between the industry knowledge and the financial knowledge. He stresses the importance of considering what you as the owner want to accomplish by hiring a CEO and deciding which of the above characteristics will help you achieve those goals. 
Lastly, he shares two action items for owners:
1. Using a process like this allows an owner to be objective about what's working and what's not with the company and to figure that out well in advance of the five-year last growth period before selling a business.
2. Augment the management team and get the floor laid out properly, really getting the company buffed and polished well in advance of a sale or exit.

Disclosure: Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and are subject to change. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice. You should consult with your attorney, finance professional or accountant before implementing any transactions and/or strategies concerning your finances.