By Sankeetha Selvarajah
Today's issue is brought to you by Zensei LLC. We help high achieving entrepreneurs get clear on their growth by planning their exits in a mindful, systematic process. If you're an entrepreneur who is looking to exit and scale in a way that fits your lifestyle, sign up for our Zensei Group Accelerator with our discovery call here.
Your current Wealth Quotient Value
What’s your definition of wealth, Reader?
In past editions, I've screamed into the void about how cashflow is King (and Leverage is Queen) and that's the true measure of a "wealthy" business.
But, that's your business.
What's your personal, individual wealth value?
No, not talking about your bank account $ value.
Besides, money is the most BORING form of wealth. (Yawn.)
Easily quantified yet constantly misclassified as the epitome of success. Actual monetary currency also acts as a placeholder for more fulfilling forms of wealth.
I’d argue that true, personal wealth is the definition of being “complete”.
Let's explore an Exit Term I use: Wealth Quotient Value (WQV).
Before every exit transaction, I ask my clients to do the following Exercise. Then, we determine if their Exit Price is in alignment.
Perhaps your definition of wealth includes the following (Wealth Quotient Exercise):
1. How “safe” people feel around YOU?
2. Can you emotionally and creatively express yourself in your environments?
3. How much do you “feel” understood and “heard” by your loved ones?
4. How fast does your body recover? How pain-free are you? (Health is subjective, here)
5. How emotionally strong are you, when hard moments occur? (Also, subjective)
6. How supported are you by your community?
7. How fulfilled are you after a day in flow? Or, after a hard day’s work?
8. Fill in your definition of wealth here
9. Fill in your definition of wealth here
10. Fill in your definition of wealth here
Use these above to determine your current, WEALTH QUOTIENT VALUE (WQV).
Perhaps after all of this, you decide that money is a byproduct of an already "wealthy" life.
Or, perhaps you learn of areas that you want to improve upon.
The Wealth Quotient Test (WQT):
Now, when faced with a decision - ask yourself if your decision will increase or decrease your WQV.
Adjust accordingly.
Why this matters to you now, and for your exit:
Determining your current, personal "wealthy quotient value" now will dictate your decisions and standards going forward.
If you feel you are low on your WQV, then you may accept lower standards for your life to maintain your status quo. Or, you may decide to adjust accordingly to raise your current standards.
Applying the WQV to your exit decision, ask yourself HOW the sale/exit of your company will add to the overall WQ of your life?
Anecdotally, business owners have agreed to Fire Sales for their companies when their personal WQV was low or inadequate.
Usually at times of burnout, stress, high turnover. Or, personal demands that depleted their individual perception of value.
When asked months later if they regretted selling their company, the predominant answer was "No, but I wish I sold it for MORE".
The fact is....when you maintain a high WQV, you WILL demand a higher exit value (whether that's in money, earnout, time allocation, shorter non-compete, legacy value).
There's a domino effect that's always working here.
Action Steps for this life:
- Do the WQV exercise above every month or quarter.
- Use the WQV test when faced with a stalemate....or difficult decision.
Stay wealthy,
Sankeetha
Whenever you’re aligned, here is the best way way we can help you:
1. Our Zensei 4 week Group Accelerator is almost full for the next cohort in SEPTEMBER. At half the cost of an individual Exit Plan, this allows you and I to co-create a 2 year Exit Plan for 2024 and beyond. Taking a cohort maximum of 6. Every Exiter has a private, 2 hour Exit meeting with me at end of Program and a complimentary 30 day followup. Sign up for a free discovery call here to learn more.
2. Zensei Exit Membership. Sign up for a free discovery call here to learn more.
3. Do you want to scale your company faster by planning your exit? Apply for private, full exit planning for 2-4 years here.
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