DecaMillionaire Decoded

The idea of selling a company to a manager or a group of employees isn't unheard of. In my decades of being an entrepreneur and consultant to other business owners, I've listened to many conversations about transitioning organizations to workers. But should you actually sell your business to your employee? What are the holes and blindspots that you need to consider?

In this episode, I discuss the advantages and disadvantages of selling your company to a key employee. I reveal the tax and legal risks involved in transitioning your business to an employee or group of employees. I also explain how hiring financial advisors can help manage risks during the selling process and share some different exit planning tools and approaches to use when selling your company to an employee.

"A key employee—because they have tenure and understand the mission, values, and legacy of the company—will more than likely remain committed to the direction and charge of the company." - Justin Goodbread

This week on the Financially Simple Experience:

• The advantages and disadvantages of selling your company to a key employee
• The survival rate of transitioning a business to a key employee
• The different exit planning tools and approaches to selling your company to a key employee
• The installment sale approach to selling your business
• Legal and tax risks associated with the installment sale approach
• Exit planning with the employee stock option plan and how it works
• The disadvantages of using the employee stock option plan

Our Favorite Quotes:

• "There's a certain fire in the belly of business owners that many employees may not have or may not be comfortable with; just because they're a great employee doesn't mean they're a great entrepreneur or business owner." - Justin Goodbread
• "If the key employee is willing to take on their own capital and use that to put the down payment, you know that they're sincere." - Justin Goodbread
• "You, as a business owner, should be able to know where your business is heading just by looking at your critical success factors: your key performance indicators, performance indicators, and key results indicators." - Justin Goodbread

Related Content:

• Pros and Cons of Selling Your Business to Employees Using an ESOP with Ben Wells

About The Financially Simple Podcast If you are looking for a podcast that speaks directly to the challenges and puzzles of running a business, you've come to the right place. The Financially Simple podcast was built for you. With over 400 episodes and counting, our host Justin Goodbread covers a broad range of topics, from starting a small business, to prepping it for sale, to growing your personal wealth. Justin's combination of analytical skills, tough love, and a healthy dose of experience delivers practical ideas that will benefit business builders at every stage of their business journey.

If you have questions, or comments for Justin, submit those at: https://financiallysimple.com/ask-justin/ Connect with Justin: Financially Simple newsletter Facebook LinkedIn Twitter Subscribe Here: Apple Podcast Spotify Google Podcast iHeart Radio Stitcher

Let us know your thoughts about the show - please leave a review on iTunes to help others discover the podcast.

Financially Simple is a division of WealthSource Partners, LLC ("WSP"), which offers investment advisory and financial planning services. All investing involves risk of loss, including the possible loss of principal. Past performance does not guarantee future results and nothing in this podcast should be construed as a guarantee of any specific outcome or profit. All market indices discussed are unmanaged, do not incur management fees, costs and expenses, and cannot be invested into directly. Business planning services offered by WealthSource Business Advisors, LLC ("WBA").

This podcast is distributed for informational purposes only. The content of this podcast represents the views and opinions of Justin Goodbread and/or the podcast's guests and do not necessarily represent the views and/or opinions of WBA, WSP or their affiliates or representatives. Statements made in this podcast are subject to change without notice. Neither WBA, WSP or their representatives, the podcast's hosts or its guests have an obligation to provide revised statements in the event of changed circumstances. Statements made in the podcast are not to be construed as legal or accounting advice or as personalized advice of any nature. Listeners should conduct their own review of any statements made or strategies discussed and exercise judgment or consult with their own professional advisor to see how the information contained in this podcast may apply to their own circumstances.

Whenever I sit down with business owners and ask them where their business is going to end up, the majority of them have the same answer: they'll give it to their kids. But even if business owners transition their business to their family, it is not without risk. So, if you're an entrepreneur who wants your children to continue your business legacy someday, what are the things you can do to make a successful transition?

In this episode, I discuss selling your business to a family member and transitioning your company to your children. I describe the "Three Generation" rule and share some studies about the longevity of family businesses. I also highlight the risks involved in selling to family members and share my advice on how to groom your children to be your business successor.

"Start your child in the business as soon as possible working from the bottom up. Let them get to know every aspect of the business." - Justin Goodbread

This week on the Financially Simple Experience:

• Why it's important to assess whether a family member is a viable business successor
• The "Three Generation" rule and how long businesses usually last
• The reason family businesses last longer than publicly-traded companies
• What makes businesses cease operations and why companies quit
• The oldest companies in the world and what contributes to their longevity
• The risks involved in transitioning a business to a family member
• Preparing your child to take over your business

Resources Mentioned:

• Book: The Centuries of Success by William T. O'Hara

Our Favorite Quotes:

• "Family business is not without risk if you're dealing with a transfer." - Justin Goodbread
• "As you're picking your successor, you need to figure out if the business is in line with the future of the successor." - Justin Goodbread
• "If you're going to transfer your business to your child or children, your employees, customers, vendors, and bankers all have to have confidence that this child knows what they're doing." - Justin Goodbread

About The Financially Simple Podcast If you are looking for a podcast that speaks directly to the challenges and puzzles of running a business, you've come to the right place. The Financially Simple podcast was built for you. With over 400 episodes and counting, our host Justin Goodbread covers a broad range of topics, from starting a small business, to prepping it for sale, to growing your personal wealth. Justin's combination of analytical skills, tough love, and a healthy dose of experience delivers practical ideas that will benefit business builders at every stage of their business journey.

If you have questions, or comments for Justin, submit those at: https://financiallysimple.com/ask-justin/ Connect with Justin: Financially Simple newsletter Facebook LinkedIn Twitter Subscribe Here: Apple Podcast Spotify Google Podcast iHeart Radio Stitcher

Let us know your thoughts about the show - please leave a review on iTunes to help others discover the podcast.

Financially Simple is a division of WealthSource Partners, LLC ("WSP"), which offers investment advisory and financial planning services. All investing involves risk of loss, including the possible loss of principal. Past performance does not guarantee future results and nothing in this podcast should be construed as a guarantee of any specific outcome or profit. All market indices discussed are unmanaged, do not incur management fees, costs and expenses, and cannot be invested into directly. Business planning services offered by WealthSource Business Advisors, LLC ("WBA").

This podcast is distributed for informational purposes only. The content of this podcast represents the views and opinions of Justin Goodbread and/or the podcast's guests and do not necessarily represent the views and/or opinions of WBA, WSP or their affiliates or representatives. Statements made in this podcast are subject to change without notice. Neither WBA, WSP or their representatives, the podcast's hosts or its guests have an obligation to provide revised statements in the event of changed circumstances. Statements made in the podcast are not to be construed as legal or accounting advice or as personalized advice of any nature. Listeners should conduct their own review of any statements made or strategies discussed and exercise judgment or consult with their own professional advisor to see how the information contained in this podcast may apply to their own circumstances.

This past year—after over three decades of being a business owner—I finally sold my business. There were a few things that I was fortunately prepared for and I was able to avoid devastating blindspots. Unfortunately, not a lot of business owners plan for their exit and, when they do eventually sell their company, they sell it for well under their expectations. How can you avoid this and ensure that you sell your business to its full value?

In this episode, I discuss the value of exit planning and building your business for the perfect buyer. I outline different business blindspots and how to detect them. I explain why it's difficult for business owners to detect blind spots and why it can be challenging to let go of a business. I also describe the emotional struggles of selling a company and how I felt after selling mine.

"Preparing today through exit planning—planning the business for transaction—is just good business strategy." - Justin Goodbread

This week on the Financially Simple Experience:

• Where a business owner's net worth is locked up
• What a business concession is and the importance of exit planning
• What proximity blindness means for your business
• Why it's hard for business owners to let go of their companies
• How business coaches have helped me see my business's blindspots and challenged my thinking
• Business attractiveness and how to measure it
• Thinking about your ideal client and target persona for a business sale
• Owner readiness and why business owners should think about their personal wealth gap
• The emotional struggles of selling your company
• How I've felt since selling my businesses

Resources Mentioned:

• Book: The E-Myth Revisited: Why Most Small Business Don't Work and What to Do About It by Michael Gerber

Our Favorite Quotes:

• "The perfect client is the individual or company who'll acquire us and create a liquidity event." - Justin Goodbread
• "A business owner who has gone through a transaction understands the emotion that you face as you consider a transaction." - Justin Goodbread
• "Consider what your business's attractiveness looks like right now and if you're ready to sell it. And if they look good, consider who you're selling your business to." - Justin Goodbread

About The Financially Simple Podcast If you are looking for a podcast that speaks directly to the challenges and puzzles of running a business, you've come to the right place. The Financially Simple podcast was built for you. With over 400 episodes and counting, our host Justin Goodbread covers a broad range of topics, from starting a small business, to prepping it for sale, to growing your personal wealth. Justin's combination of analytical skills, tough love, and a healthy dose of experience delivers practical ideas that will benefit business builders at every stage of their business journey.

If you have questions, or comments for Justin, submit those at: https://financiallysimple.com/ask-justin/ Connect with Justin: Financially Simple newsletter Facebook LinkedIn Twitter Subscribe Here: Apple Podcast Spotify Google Podcast iHeart Radio Stitcher

Let us know your thoughts about the show - please leave a review on iTunes to help others discover the podcast.

Financially Simple is a division of WealthSource Partners, LLC ("WSP"), which offers investment advisory and financial planning services. All investing involves risk of loss, including the possible loss of principal. Past performance does not guarantee future results and nothing in this podcast should be construed as a guarantee of any specific outcome or profit. All market indices discussed are unmanaged, do not incur management fees, costs and expenses, and cannot be invested into directly. Business planning services offered by WealthSource Business Advisors, LLC ("WBA").

This podcast is distributed for informational purposes only. The content of this podcast represents the views and opinions of Justin Goodbread and/or the podcast's guests and do not necessarily represent the views and/or opinions of WBA, WSP or their affiliates or representatives. Statements made in this podcast are subject to change without notice. Neither WBA, WSP or their representatives, the podcast's hosts or its guests have an obligation to provide revised statements in the event of changed circumstances. Statements made in the podcast are not to be construed as legal or accounting advice or as personalized advice of any nature. Listeners should conduct their own review of any statements made or strategies discussed and exercise judgment or consult with their own professional advisor to see how the information contained in this podcast may apply to their own circumstances.

If something in your business can be measured, it's something you can improve. But we business owners often don't measure; instead, we're keen on licking our forefingers and sticking them up in the air to see which way the wind blows. If we want to scale our businesses and increase their value, we need to create a systematic guideline that's objective, measurable, and repeatable.

In this episode, I discuss what standard operating procedures are and why every business needs to have them. I explain the importance of putting standard operating procedures (SOPs) into writing and how you can choose the appropriate format for your SOP manual. I also discuss how writing a solid SOP document can increase the value of your company and underscore how having effective SOPs can give you the freedom that you deserve.

"SOPs are instruction manuals for your company; they ensure that you're documenting every step you've done, so you can control the quality in your company." - Justin Goodbread

This week on the Financially Simple Experience:

• What standard operating procedures mean for your business
• What tasks require standard operating procedures
• Why SOPs need to be put into writing and what it means to "train-scale"
• The KISS theory of business and how to write company SOPs
• Choosing the appropriate format for SOP documents
• Different CRM systems for your SOPs
• Deciding who writes your operating processes
• Outsourcing the creation of your SOPs
• How creating solid standard operating procedures can give you freedom and liberation

Resources Mentioned:

• Zoho CRM
• Confluence
• LucidChart
• Loom
• Process Street

Our Favorite Quotes:

• "There are so many tasks in a company. If you see a major process, you'll want to make an SOP for that, especially if it's a repeated task." - Justin Goodbread
• "When you delineate SOPs into writing, it gives your team the rules on which it can operate, providing them with consistency while decentralizing management." - Justin Goodbread
• "You don't have to let your business own you. Processes and SOPs are the keys to efficiency and liberty in business; they give you freedom." - Justin Goodbread

About The Financially Simple Podcast If you are looking for a podcast that speaks directly to the challenges and puzzles of running a business, you've come to the right place. The Financially Simple podcast was built for you. With over 400 episodes and counting, our host Justin Goodbread covers a broad range of topics, from starting a small business to prepping it for sale, to growing your personal wealth. Justin's combination of analytical skills, tough love, and a healthy dose of experience delivers practical ideas that will benefit business builders at every stage of their business journey.

If you have questions or comments for Justin, submit those at: https://financiallysimple.com/ask-justin/ Connect with Justin: Financially Simple newsletter Facebook LinkedIn Twitter Subscribe Here: Apple Podcast Spotify Google Podcast iHeart Radio Stitcher

Let us know your thoughts about the show - please leave a review on iTunes to help others discover the podcast.

Financially Simple is a division of WealthSource Partners, LLC ("WSP"), which offers investment advisory and financial planning services. All investing involves risk of loss, including the possible loss of principal. Past performance does not guarantee future results and nothing in this podcast should be construed as a guarantee of any specific outcome or profit. All market indices discussed are unmanaged, do not incur management fees, costs and expenses, and cannot be invested into directly. Business planning services offered by WealthSource Business Advisors, LLC ("WBA").

This podcast is distributed for informational purposes only. The content of this podcast represents the views and opinions of Justin Goodbread and/or the podcast's guests and does not necessarily represent the views and/or opinions of WBA, WSP, or their affiliates or representatives. Statements made in this podcast are subject to change without notice. Neither WBA, WSP, or their representatives, the podcast's hosts, or its guests have an obligation to provide revised statements in the event of changed circumstances. Statements made in the podcast are not to be construed as legal or accounting advice or as personalized advice of any nature. Listeners should conduct their own review of any statements made or strategies discussed and exercise judgment or consult with their own professional advisor to see how the information contained in this podcast may apply to their own circumstances.

I have been helping business owners and entrepreneurs reach their dreams and goals through consulting for over two decades. And over the years, one thing is obvious to me: the companies that have detailed and implemented processes are the companies that often yield the best results. So how do you build and implement impactful business processes that can help you scale your organization?

In this episode, I outline what a business process is and the four characteristics that make it effective. I explain how writing your company's business processes in detail can help your organization be more efficient and reach your goals. I also discuss why you need to communicate to your team that a new business process can help them reach their goals and highlight why a business process needs to remain flexible and replicable.

"The ability to pause and put into writing your processes creates more efficiency, helping your company reach your goals." - Justin Goodbread

This week on the Financially Simple Experience:

• What a business process is
• Creating business processes and why they matter
• The importance of identifying business processes and putting them into writing
• The four characteristics of an effective business process
• Why a business process should be finite
• Creating repeatable business processes
• Why business processes should be flexible at all times
• Identifying, outlining, and mapping the necessary steps in a business process
• Implementing a business process in your organization
• Perfecting the adoption or execution of a business process

Our Favorite Quotes:

• "There are so many processes to help our businesses turn, but a business process is simply an action that helps us reach our goal." - Justin Goodbread
• "When we write our process and give each clarifying step, we create valuable things for our company." - Justin Goodbread
• "As business owners, we are amazingly creative when it comes to reaching something we want to reach. When someone tells us we can't get something, we'll find a way to get them." - Justin Goodbread

About The Financially Simple Podcast If you are looking for a podcast that speaks directly to the challenges and puzzles of running a business, you've come to the right place. The Financially Simple podcast was built for you. With over 400 episodes and counting, our host Justin Goodbread covers a broad range of topics, from starting a small business, to prepping it for sale, to growing your personal wealth. Justin's combination of analytical skills, tough love, and a healthy dose of experience delivers practical ideas that will benefit business builders at every stage of their business journey.

If you have questions, or comments for Justin, submit those at: https://financiallysimple.com/ask-justin/ Connect with Justin: Financially Simple newsletter Facebook LinkedIn Twitter Subscribe Here: Apple Podcast Spotify Google Podcast iHeart Radio Stitcher

Let us know your thoughts about the show - please leave a review on iTunes to help others discover the podcast.

Financially Simple is a division of WealthSource Partners, LLC ("WSP"), which offers investment advisory and financial planning services. All investing involves risk of loss, including the possible loss of principal. Past performance does not guarantee future results and nothing in this podcast should be construed as a guarantee of any specific outcome or profit. All market indices discussed are unmanaged, do not incur management fees, costs and expenses, and cannot be invested into directly. Business planning services offered by WealthSource Business Advisors, LLC ("WBA").

This podcast is distributed for informational purposes only. The content of this podcast represents the views and opinions of Justin Goodbread and/or the podcast's guests and do not necessarily represent the views and/or opinions of WBA, WSP or their affiliates or representatives. Statements made in this podcast are subject to change without notice. Neither WBA, WSP or their representatives, the podcast's hosts or its guests have an obligation to provide revised statements in the event of changed circumstances. Statements made in the podcast are not to be construed as legal or accounting advice or as personalized advice of any nature. Listeners should conduct their own review of any statements made or strategies discussed and exercise judgment or consult with their own professional advisor to see how the information contained in this podcast may apply to their own circumstances.

In our business or personal lives, it's probable that we sometimes step on other peoples' toes. We're only human, after all. As entrepreneurs and business owners, it's also probable that there will be times when we need to handle a conflict or complaint brought to us by an employee or stakeholder. Whenever there's a workplace issue, we need to follow some key actions and guidelines to effectively deal with conflict.

In this episode, I discuss how you can handle conflicts and complaints in the workplace. I examine why you may want to consider hiring an outside investigator when handling disputes in the workplace. I explain why you need to have a working knowledge of employment law whether you decide to hire an external investigator or not. I describe the Society of Human Resource Managers (SHRM), the work that they do, and their guidelines for handling workplace investigations. I also underscore the importance of protecting all parties involved and highlight why you need to be detail-oriented when proceeding with an investigation.

"We have a lot to carry as business owners. What's at risk are our reputation, livelihood, net worth, and the reputation of our team and the livelihood of families we've been entrusted with." - Justin Goodbread

This week on the Financially Simple Experience:

• The value of hiring external investigators when dealing with workplace issues
• The Society of Human Resource Managers: its mission and goals
• Employment laws and regulations every business owner should know
• SHRM's guidelines for conducting a workplace investigation
• "Need-to-know" confidentiality and how to enforce it
• How to protect the parties involved in a workplace complaint
• Hiring an external investigator
• Characteristics to look for in an external investigator
• Why creating a plan of investigation matters
• Developing investigation interview questions and why they need to be detailed
• What investigation summaries should contain

Resources Mentioned:

• Society for Human Resource Management

Our Favorite Quotes:

• "If you are to do an investigation, you have to maintain strict, need-to-know confidentiality." - Justin Goodbread
• "You need to have a working knowledge of employment law, have strong interpersonal skills, and be able to build rapport, so you're perceived as neutral or fair." - Justin Goodbread
• "You need to bring everything to light to ensure to the ultimate tribunal that you've done everything in your power to bring the truth." - Justin Goodbread

About The Financially Simple Podcast If you are looking for a podcast that speaks directly to the challenges and puzzles of running a business, you've come to the right place. The Financially Simple podcast was built for you. With over 400 episodes and counting, our host Justin Goodbread covers a broad range of topics, from starting a small business, to prepping it for sale, to growing your personal wealth. Justin's combination of analytical skills, tough love, and a healthy dose of experience delivers practical ideas that will benefit business builders at every stage of their business journey.

If you have questions, or comments for Justin, submit those at: https://financiallysimple.com/ask-justin/ Connect with Justin: Financially Simple newsletter Facebook LinkedIn Twitter Subscribe Here: Apple Podcast Spotify Google Podcast iHeart Radio Stitcher

Let us know your thoughts about the show - please leave a review on iTunes to help others discover the podcast.

Financially Simple is a division of WealthSource Partners, LLC ("WSP"), which offers investment advisory and financial planning services. All investing involves risk of loss, including the possible loss of principal. Past performance does not guarantee future results and nothing in this podcast should be construed as a guarantee of any specific outcome or profit. All market indices discussed are unmanaged, do not incur management fees, costs and expenses, and cannot be invested into directly. Business planning services offered by WealthSource Business Advisors, LLC ("WBA").

This podcast is distributed for informational purposes only. The content of this podcast represents the views and opinions of Justin Goodbread and/or the podcast's guests and do not necessarily represent the views and/or opinions of WBA, WSP or their affiliates or representatives. Statements made in this podcast are subject to change without notice. Neither WBA, WSP or their representatives, the podcast's hosts or its guests have an obligation to provide revised statements in the event of changed circumstances. Statements made in the podcast are not to be construed as legal or accounting advice or as personalized advice of any nature. Listeners should conduct their own review of any statements made or strategies discussed and exercise judgment or consult with their own professional advisor to see how the information contained in this podcast may apply to their own circumstances.

Whether you realize it or not, we are all playing the Wealth Game. Some never get off first base; others sprint and find themselves in second base; a lucky few reach third base. However, no matter where you are in the game of wealth, you must finish the game and reach the home plate of your financial life. So, what does winning the Wealth Game look like and how do you get there?

In this episode, I discuss why it's important to finish the wealth game by reaching home plate and outline how to get there. I enumerate the three characteristics of people who have reached home plate. I share the financial tools you can leverage as you generate wealth—including life and disability insurance—and explain why the IRC is the single greatest wealth generation tool in America. I also highlight the value of working with coaches and financial advisors.

"The game of wealth is plausible. You can reach home plate. Run as fast as you can, and listen to your coach." - Justin Goodbread

This week on the Financially Simple Experience:

• What winning the Wealth Game looks like
• How you know you've reached home plate
• The three characteristics of people who reach home plate
• Teaching others financial literacy
• The books and people who taught me about the principles of wealth and financial literacy
• The definition of generational wealth
• Financial tools to leverage as you generate wealth
• The value of working with coaches and financial advisors

Resources Mentioned:

• Book: Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! by Robert Kiyosaki
• Book: The Total Money Makeover: A Proven Plan for Financial Fitness by Dave Ramsey
• Book: Financial Peace: Restoring Financial Hope to You and Your Family by Dave Ramsey

Our Favorite Quotes:

• "The game of wealth isn't about creating money, but creating wealth so we can reach home plate and bless others." - Justin Goodbread
• "This is what I notice about people who have reached home plate: it no longer becomes about them. They take care of their families and then they become generous by setting up foundations." - Justin Goodbread
• "The people who win the game of wealth understand the importance of one thing: the importance of having a coach to lay out their plan and hold them accountable to reach their goals." - Justin Goodbread

About The Financially Simple Podcast If you are looking for a podcast that speaks directly to the challenges and puzzles of running a business, you've come to the right place. The Financially Simple podcast was built for you. With over 400 episodes and counting, our host Justin Goodbread covers a broad range of topics, from starting a small business, to prepping it for sale, to growing your personal wealth. Justin's combination of analytical skills, tough love, and a healthy dose of experience delivers practical ideas that will benefit business builders at every stage of their business journey.

If you have questions, or comments for Justin, submit those at: https://financiallysimple.com/ask-justin/ Connect with Justin: Financially Simple newsletter Facebook LinkedIn Twitter Subscribe Here: Apple Podcast Spotify Google Podcast iHeart Radio Stitcher

Let us know your thoughts about the show - please leave a review on iTunes to help others discover the podcast.

Financially Simple is a division of WealthSource Partners, LLC ("WSP"), which offers investment advisory and financial planning services. All investing involves risk of loss, including the possible loss of principal. Past performance does not guarantee future results and nothing in this podcast should be construed as a guarantee of any specific outcome or profit. All market indices discussed are unmanaged, do not incur management fees, costs and expenses, and cannot be invested into directly. Business planning services offered by WealthSource Business Advisors, LLC ("WBA").

This podcast is distributed for informational purposes only. The content of this podcast represents the views and opinions of Justin Goodbread and/or the podcast's guests and do not necessarily represent the views and/or opinions of WBA, WSP or their affiliates or representatives. Statements made in this podcast are subject to change without notice. Neither WBA, WSP or their representatives, the podcast's hosts or its guests have an obligation to provide revised statements in the event of changed circumstances. Statements made in the podcast are not to be construed as legal or accounting advice or as personalized advice of any nature. Listeners should conduct their own review of any statements made or strategies discussed and exercise judgment or consult with their own professional advisor to see how the information contained in this podcast may apply to their own circumstances.

If you've reached third base in the Wealth Game, congratulations! You more than likely have achieved your financial goals. You know, without a shadow of a doubt, that you and your family are financially secure and that you can meet your goals, whatever they are. At this point of the Wealth Game, you might think that that's it—you've won. But the game is not over yet. Your journey is not complete until you make it to home plate.

In this episode, I discuss the trap of third base. I describe what it feels like to be on third base and why you can't stay there. I explain why money shouldn't be your focus when playing the Wealth Game, what you should aim for, and the Rule of 4%. I also highlight why money is only a tool and underscore how a team of advisors can help you successfully win your journey to home plate.

"As you stand on third base you need to start thinking outside of your own needs, for money is no more than a tool to meet our needs and to bless others." - Justin Goodbread

This week on the Financially Simple Experience:

• What reaching third base feels like and why you can't stay there
• The Rule of 4%
• The value of having financial advisors at third base
• Why money shouldn't be the focus of the Wealth Game
• "The Sandcastle Effect" and how to avoid it

Our Favorite Quotes:

• "Life's not about getting all you can, canning all you get, and sitting on your can. The same thing is true about money." - Justin Goodbread
• "If you're reaching third base, now is the time to meet with your advisors and develop a plan so you can make your wealth last and use it to bless others." - Justin Goodbread
• "At this point in the game, your advisors and your team become invaluable to continuing the growth of your wealth so you can finish the wealth game." - Justin Goodbread

About The Financially Simple Podcast If you are looking for a podcast that speaks directly to the challenges and puzzles of running a business, you've come to the right place. The Financially Simple podcast was built for you. With over 400 episodes and counting, our host Justin Goodbread covers a broad range of topics, from starting a small business, to prepping it for sale, to growing your personal wealth. Justin's combination of analytical skills, tough love, and a healthy dose of experience delivers practical ideas that will benefit business builders at every stage of their business journey.

If you have questions, or comments for Justin, submit those at: https://financiallysimple.com/ask-justin/ Connect with Justin: Financially Simple newsletter Facebook LinkedIn Twitter Subscribe Here: Apple Podcast Spotify Google Podcast iHeart Radio Stitcher

Let us know your thoughts about the show - please leave a review on iTunes to help others discover the podcast.

Financially Simple is a division of WealthSource Partners, LLC ("WSP"), which offers investment advisory and financial planning services. All investing involves risk of loss, including the possible loss of principal. Past performance does not guarantee future results and nothing in this podcast should be construed as a guarantee of any specific outcome or profit. All market indices discussed are unmanaged, do not incur management fees, costs and expenses, and cannot be invested into directly. Business planning services offered by WealthSource Business Advisors, LLC ("WBA").

This podcast is distributed for informational purposes only. The content of this podcast represents the views and opinions of Justin Goodbread and/or the podcast's guests and do not necessarily represent the views and/or opinions of WBA, WSP or their affiliates or representatives. Statements made in this podcast are subject to change without notice. Neither WBA, WSP or their representatives, the podcast's hosts or its guests have an obligation to provide revised statements in the event of changed circumstances. Statements made in the podcast are not to be construed as legal or accounting advice or as personalized advice of any nature. Listeners should conduct their own review of any statements made or strategies discussed and exercise judgment or consult with their own professional advisor to see how the information contained in this podcast may apply to their own circumstances.

In baseball, moving to third base is a natural progression: you hit the ball, turn first base and run to second, then move to third. Of course, you wouldn't stand idly on second base if you wanted to win—the same is true for the Wealth Game. At the second base of the Wealth Game, you might consider yourself successful. You're living within a budget; your income is sustained and stable; you're making regular contributions to your retirement plan; maybe you have a business you're expanding. But don't stop just yet—it's time to move to third base.

In this episode, I discuss the transition from second to third base and how it differs from the previous moves. I explain how you can calculate your net worth to assess whether you're ready to move to third base. I also reveal the secret sauce to accumulating wealth and describe how to make your assets support the lifestyle you want to live.

"The goal of the third base is to go where our assets provide us with enough income to cover the cost of our lifestyle." - Justin Goodbread

This week on the Financially Simple Experience:

• How to know if you're ready to move from second to third base
• How the move from second to third base differs from the move between first and second
• The Millionaire Next Door Calculation Gap and the power of compounding interest
• Using your income increase to expedite your transition from second to third base

Our Favorite Quotes:

• "Compounding interest is the secret sauce to making your track easier to the third base and providing you the income that you need." - Justin Goodbread
• "As your income increases, allow the spread of your lifestyle and earnings. If you can increase your investment and take your surplus over your lifestyle to magnify the speed at which you move from second to third, it's a win-win." - Justin Goodbread
• "Shift your mind away from reliance on income—the job that you have, and the business you sacrifice so much for—and move into the assets you're accumulating." - Justin Goodbread

About The Financially Simple Podcast If you are looking for a podcast that speaks directly to the challenges and puzzles of running a business, you've come to the right place. The Financially Simple podcast was built for you. With over 400 episodes and counting, our host Justin Goodbread covers a broad range of topics, from starting a small business, to prepping it for sale, to growing your personal wealth. Justin's combination of analytical skills, tough love, and a healthy dose of experience delivers practical ideas that will benefit business builders at every stage of their business journey.

If you have questions or comments for Justin, submit those at: https://financiallysimple.com/ask-justin/ Connect with Justin: Financially Simple newsletter Facebook LinkedIn Twitter Subscribe Here: Apple Podcast Spotify Google Podcast iHeart Radio Stitcher

Let us know your thoughts about the show - please leave a review on iTunes to help others discover the podcast.

Financially Simple is a division of WealthSource Partners, LLC ("WSP"), which offers investment advisory and financial planning services. All investing involves risk of loss, including the possible loss of principal. Past performance does not guarantee future results and nothing in this podcast should be construed as a guarantee of any specific outcome or profit. All market indices discussed are unmanaged, do not incur management fees, costs and expenses, and cannot be invested into directly. Business planning services offered by WealthSource Business Advisors, LLC ("WBA").

This podcast is distributed for informational purposes only. The content of this podcast represents the views and opinions of Justin Goodbread and/or the podcast's guests and do not necessarily represent the views and/or opinions of WBA, WSP or their affiliates or representatives. Statements made in this podcast are subject to change without notice. Neither WBA, WSP or their representatives, the podcast's hosts or its guests have an obligation to provide revised statements in the event of changed circumstances. Statements made in the podcast are not to be construed as legal or accounting advice or as personalized advice of any nature. Listeners should conduct their own review of any statements made or strategies discussed and exercise judgment or consult with their own professional advisor to see how the information contained in this podcast may apply to their own circumstances.

Where are you right now in your journey through the wealth game? Do you have savings or emergency funds? Are you investing in your future? Do you have a 401k? Have you started your own business? If you have, congratulations, you're in second base! As we continue our journey through the wealth game, we want to begin saving, investing, and accumulating assets while we cast our eyes to third base. Yet—just as the run from first to second was difficult—the run from second to third can be arduous. So, how can you get there?

In this episode, I outline how to move from second to third base in the game of wealth. I define the Prestigious Accumulator of Wealth category and explain how you can get there. I describe why entrepreneurs should build assets inside and outside their businesses. I also highlight the role of coaches in playing the game of wealth and underscore why staying the course to third base is worth it.

"Those of us who make prudent investments, who make wise decisions, who keep the targeted mind—those of us who focus on that intensity—reach third base." - Justin Goodbread

This week on the Financially Simple Experience:

• Reaching second base and beginning to invest in your future
• How to calculate your net worth
• The Prestigious Accumulator of Wealth category
• Why business owners should pull their businesses out of their net worth statement
• How owning a business can quickly propel you to third base
• The importance of building a portfolio of assets inside and outside your business

Resources Mentioned:

• Book: The Millionaire Next Door: The Surprising Secrets of America's Wealthy by Thomas Stanley

Our Favorite Quotes:

• "Stay the course. If you find it hard to guard yourself against the naysayers in your world, find an advisor or coach that can encourage, push, and strengthen you." - Justin Goodbread
• "We need coaches, no matter where we are in the game of wealth." - Justin Goodbread
• "Moving from second to third base is tough. The reality is we'll spend decades of our lives there, but it's worth it. Keep the journey—stay focused." - Justin Goodbread

About The Financially Simple Podcast If you are looking for a podcast that speaks directly to the challenges and puzzles of running a business, you've come to the right place. The Financially Simple podcast was built for you. With over 400 episodes and counting, our host Justin Goodbread covers a broad range of topics, from starting a small business, to prepping it for sale, to growing your personal wealth. Justin's combination of analytical skills, tough love, and a healthy dose of experience delivers practical ideas that will benefit business builders at every stage of their business journey.

If you have questions, or comments for Justin, submit those at: https://financiallysimple.com/ask-justin/ Connect with Justin: Financially Simple newsletter Facebook LinkedIn Twitter Subscribe Here: Apple Podcast Spotify Google Podcast iHeart Radio Stitcher

Let us know your thoughts about the show - please leave a review on iTunes to help others discover the podcast.

Financially Simple is a division of WealthSource Partners, LLC ("WSP"), which offers investment advisory and financial planning services. All investing involves risk of loss, including the possible loss of principal. Past performance does not guarantee future results and nothing in this podcast should be construed as a guarantee of any specific outcome or profit. All market indices discussed are unmanaged, do not incur management fees, costs and expenses, and cannot be invested into directly. Business planning services offered by WealthSource Business Advisors, LLC ("WBA").

This podcast is distributed for informational purposes only. The content of this podcast represents the views and opinions of Justin Goodbread and/or the podcast's guests and do not necessarily represent the views and/or opinions of WBA, WSP or their affiliates or representatives. Statements made in this podcast are subject to change without notice. Neither WBA, WSP or their representatives, the podcast's hosts or its guests have an obligation to provide revised statements in the event of changed circumstances. Statements made in the podcast are not to be construed as legal or accounting advice or as personalized advice of any nature. Listeners should conduct their own review of any statements made or strategies discussed and exercise judgment or consult with their own professional advisor to see how the information contained in this podcast may apply to their own circumstances.