Philosophical shift #1…move from working income to equity income
Most business owners earn money by:
- 1. Having a “job” in the business such as salesperson, manager, etc.
- 2. Doing the high-variety work that’s hard to delegate.
- 3. Serving as the key manager or leader.
- 4. Doing high-value entrepreneurial work such as strategy, planning, relationship-building, etc.
- 5. Earning a return on their invested capital.
- Items 1, 2, and 3 have got to go.
Philosophical shift #2…it’s not your presence that makes a difference, it’s your Picasso work
What does it take to make a painting a Picasso? Only the brush touched to the canvas by the artist. Every other activity does NOT require the special genius of Picasso. You too have special genius. You will need to boil your special genius down to its essence.
Philosophical shift #3…it’s not your people you will need to trust, it’s your systems
Business owners hate imperfection and systems are inflexible. This makes them 99% perfect, not 100%, so we default to people-based systems. The problem with people-based systems is they are employee-dependent. This means your employees own your systems, not you , it creates unpredictability, and systems leave when employees leave.
Blueprint for Half-Retirement©
Most business owners take one year to complete the phases. Remember, it took years to create your business; you won’t be able to create a viable exit plan over a weekend. Sorry.
Below are the eight phases to the Half-Retirement© Plan:
- Phase 1: Discover your Picasso work
- Phase 2: Use a process (e.g. 98/2) to shift lower-value work to the team
- Phase 3: Shift from owner-driven enterprise to employee-driven enterprise
- Phase 4: Create a “this is how we do things” culture so you do not need to be the standard bearer
- Phase 5: Create a strong second in command
- Phase 6: Strengthen systems so the systems run the business and the people run the systems (and not the other way around)
- Phase 7: Create tight financial controls to protect your income
- Phase 8: Enjoy the spoils of Half-Retirement