For Baby Boomer entrepreneurs, this is something to take seriously. Even if you are just starting your business and are planning to work beyond the next five years, you should be thinking about an exit strategy. Unless you expect to just close up shop when you retire, you need to start thinking - and planning - how to maximize the value you are building in your business. After all, the sale of your business could become a significant part of your retirement next egg if you plan ahead.

And it’s not just retirement you need to consider. As we get older, the likelihood of illness or accident preventing us from working for an extended period of time increases. What would happen to your business if you couldn’t work? Do you have a plan?

All this came up as part of a discussion I had with Bob Simpson, a coach and succession planning expert. He told me that most businesses need several years to get into a position where the owner can maximize profit on the sale of the business.

The first problem small business owners face is that many have built their business around themselves. If the business is dependent on you, it has little value when it comes time to sell it. In order to plan for succession - either sale or passing on to family members - you need to move from an owner-dependent business model to a system dependent model. In other words, you need to create systems that anyone can implement so if you are out of the picture, your business will continue to be profitable.

If you’ve read Michael Gerber’s The E Myth Revisited (if you haven’t, you should) you’ll remember he said that many small business owners are not really entrepreneurs. They’ve merely traded a job where they have one employer for a job where they have many employers. If you have a service business that is dependent on you providing the service, you fall into this category.

Bob shared a story with me that illustrated why this is a problem. He has a relative who is a dentist. This man became seriously ill and was unable to work for several months. When he was finally able to return to work, he had virtually no business left as most of his patients had found other dentists.

According to Bob, in this situation, as soon as this dentist discovered he was ill and likely to be off work for several months he should have tried to find a buyer for the business. He had a full practice and his customer list would have been a valuable asset for a dentist just starting out.

Because he waited, by the time he recovered he had no business, other than the physical assets, and had to restart his business from scratch. Now this isn’t necessarily an insurmountable task for a 35-year-old. But for someone within ten years of normal retirement age, who has just recovered from a serious illness, this is a daunting task.

Another thing this dentist, or other service providers, could have done is build a larger practice. I think of the dental clinic I go to. There are several dentists practicing there. If one dentist leaves the practice, the business continues. Most of the dentists there are actually employees of the practice. But the dentist who owns the clinic has set things up so he has an income, regardless of how much - or little - he personally works.

Interestingly, I was speaking to a friend just last week who just sold his business. From the start he had always planned to sell, so he built the business with systems that didn’t need him to run. He had actually planned to work for another five years but when a buyer appeared who was willing to pay the right price, he jumped ship early. Now he and his wife are heading off to an extended tour of Asia.

Tomorrow I’ll talk more about the specifics of creating an exit strategy for your business.

Andrea J. Stenberg

This week’s Carnival includes over 40 makeup tips, helping children understand the enormity of the election of Barack Obama as president, counting your blessings and much more.

If you’re looking for some guidance for surviving the “middle ages”, please check out this week’s contributions.

However, if you’ve built a good social media network, you can have the next best thing.

I’m currently organizing a course - Getting Started with Social Media Marketing: How to Use Facebook, LinkedIn and Twitter to build your brand, increase traffic and make more money. I also set up an affiliate program - other people can sell my course and get a commission on the sale. I used a service that was recommended to me, figured how to set it up so Paypal will accept the payments and purchases will be added to the appropriate Aweber mailing list. Then the problems started.

First, several people I emailed to invite into my affiliate program couldn’t receive my emails because their ISP blocks links to the affiliate provider. Then I got an email from a friend. She visited my sales page and her anti-virus software warned her my site contained spyware. I was pulling my hair out.

Shopping cart; that was the solution. More expensive and difficult to set up than I wanted at this time, but that’s the cost of doing business. Then I heard from a respected colleague with more experience then me that he won’t participate in affiliate programs tracked by this shopping cart because of errors it makes.

Arrrrrrrrgh!!!!!!!!!!!!

Did I mention this was only 10:30 am? I was stumped. What do I do? Where do I turn?

Then I got the answer: my social network. I tweeted about the problem and got four good replies right away. I posted it on LinkedIn and so far have seven great solutions. Yes, some of the advice is contradictory, but I have more information to go on and more options. Even better, everyone giving me suggestions is recommending a product they actually use.

So, next time you’re stumped go on Twitter, LinkedIn and Facebook to ask for help.

Andrea J. Stenberg

How has your network helped you? Leave a comment and tell us how your network as pulled you out of the fire.

Goal One: Connect with people, don’t just collect names

First you need to remember the social in social media. And you need to keep in mind social media sites were designed as social networking tools not social marketing tools.

Why does this matter? The real power of sites like Twitter, Facebook and LinkedIn is the ability to get to know people. Too many users of these sites are just trying to collect as many names as possible without truly connecting with anyone. If that’s all you’re doing on social networking sites, then you’re really just a social media slut. And if all you’re doing with your huge number of casual encounters is promoting your business, then you’re a social media spammer.

So how do you build a descent sized network of people you really connect with? I hate to say it, but it takes time. Social media is not an automation tool; you need to put in the work. Just like you can’t outsource all your in-person networking, the same thing is true of your online social media networking.

Send a personal message to everyone you invite to connect on LinkedIn and Facebook. Look at everyone’s profile. Leave a comment on their Facebook page. Participate in the community. Join groups; leave comments and ask questions. And from time to time, connect with someone privately.

You don’t have to make everyone your best friend, but try to get to the point where if you see a name you’d at least recognize they’re in your network.

Goal Two: Get people onto your own site

The second goal with social media is to get people from your network onto your website or blog. You want to get them to join your mailing list. Remember, the money is in the list - but only if you own the list.

Yes, you can contact people through social media, but you can’t always sell via social media without breaking written or unwritten rules of the site. But more importantly, you don’t want to be dependant on someone else to maintain your list of contacts. What if the site goes down? Or loses your contacts (those on Twitter remember that happening earlier this year)? Or what if you get kicked off?

Don’t be at the mercy of other people’s rules and whims. Get people onto your own mailing list. Send a Tweet whenever you write a new blog post. Import your blog into Facebook and LinkedIn. Create an event page in Facebook whenever you host a teleseminar. Invite new Twitter followers to sign up for your ezine. Include teleseminars and your ezine in your LinkedIn profile.

If you keep these two goals in mind - getting to know people and getting them on your mailing list - you’ll be successful with your social media marketing efforts.

Andrea J. Stenberg

Are you still on the fence about social media marketing? Have you joined Facebook, LinkedIn or Twitter and thought “now what”? Please join me for Getting Started with Social Media Marketing: How to Use Facebook, LinkedIn and Twitter to build your brand, increase traffic and make more money. This four-week course will introduce you to Facebook, LinkedIn and Twitter and get you started using them effectively. Please join me.

Just this week I fired off an email to a colleague complaining about the service I planned to use to set up my affiliate program … it wasn’t going to work. Really, I just wanted to vent to someone who understands. Imagine my delight when she replied with three alternatives, one of which is better and cheaper than the one I had planned to use. Her quick email saved me tons of time searching for an alternative, not to mention money. It also means I’m going to be using a service that is referred, not going in cold and hoping it delivers.

That’s not the only time a network of colleagues has saved my bacon. When I first started my business, a mailing list of copywriters was invaluable. I could ask questions about marketing, pricing and just about anything else and get quick and thoughtful answers. Networking with colleagues has allowed me to locate amazing people to interview for my book. I’ve found great guests for Andrea’s More Effective Marketing Podcast. The list goes on.

It’s not just me. I know a group of coaches who were having trouble marketing their services because in my area, coaching is still so new many people only think hockey when they hear the word coach. They banded together to promote the field as a whole. As a result, all their businesses took off.

If you aren’t actively building a network of colleagues, you are missing out. Whether it’s help solving a problem, joint marketing, joint ventures or just a sympathetic ear, networking with others in your industry is just as necessary as networking with your customer base.

Andrea J. Stenberg

Many small business owners are worried; some with good reason. My parents have noticed several businesses they have shopped with in the past have gone under in recent months. Their landscaper had to close down because high gas prices ate up all his margin. I’ve noticed some similar things in my home town as well.

On the other hand, many top-level internet marketers are telling us not to worry; there is still money to be made. They tell us they are still making thousands each month and we can too; it’s just a question of mindset.

But is that true? If you’re mired in debt, not sure of where your income is coming from shouldn’t you be worried? Maybe even give up your business and look for a dreaded j-o-b? Isn’t it a little insane to adopt a “don’t worry, be happy” attitude when Chicken Little is telling us the sky is falling?

But what if these successful people are right? What if money is just a matter of mindset, regardless of what the economy is doing?

I’ve certainly had my financial ups and downs over the years. And yet currently while I am surrounded by all this talk about financial doom, I’m experiencing financial calm in my business and personal life.

My income hasn’t gone up dramatically; in fact it’s been pretty steady for the past six months or so. And my expenses haven’t gone down. I don’t know where economists get their numbers when they tell us that inflation is low. My grocery bill has increased by 50 percent and we all know what gas and utility prices have been doing. Sure, electronics and appliances have gone down. But really, how frequently do most people make those types of purchases?

So what’s changed?

My attitude towards money. Six months ago I made a decision to stop worrying and take concrete action to improve my financial situation. I set some clear financial goals - both for my business and my family. I took a hard look at where I was and what I needed to do to get to where I want to be. I started keeping better financial records; something I’d neglected in the past.

The results: currently I’m in a position of financial calm instead of financial chaos. Where in the past I’d be scrambling at the end of the month to get money for the mortgage payment, I’m now looking at how much money I have in the bank for January’s mortgage - two months ahead. I’m up-to-date on all my bills and have started to reduce my debt. I’m on track to have my personal debt cut in half by next September. Plus I have money available to invest in my business.

This wasn’t rocket science, nor magic. It really was a case of taking what I already knew and implementing it. Isn’t that always the case?

If you are worried about your financial situation, stop! Worrying doesn’t help - actions help. Take a good hard look at your current financial situation. Then create a plan and take action. Use the Law of Attraction and stop focusing on your financial woes. Instead, focus on having more money, attracting more paying clients and achieving your financial goals.

Feel like you need some help?

Two books I highly recommend are Overcoming Underearning: A Five-Step Plan to a Richer Life and Secrets of Six-Figure Women: Surprising Strategies to Up Your Earnings and Change Your Life.

These practical and inspirational books by Barbara Stanny really helped me overcome some of my personal money issues. I think they’ll help you too.And yes, Stanny has written them with women in mind as her target audience, but her advice is universal.

Andrea J. Stenberg

This week’s Carnival topics are even more varied than usual: are 50-year-old men the most romantic, reduced size of exit packages, Alzheimer’s disease, Adventures In Nest Swapping and much more.

This is a great opportunity to expand your internet horizons and “meet” some wonderful new bloggers. So visit Blogging Boomers Carnival and if you like what you see, subscribe to the blogs or leave a comment - or both!

Andrea J. Stenberg

He began looking at purchasing a franchise. “I wanted to buy myself a job.”

Harry was interested in looking at the make-your-own wine industry; an industry not available in Alberta at the time. Doing his homework, Harry visited three head offices of three different chains, discussing his options. Rather than start a business from scratch, Harry asked if anyone had an existing franchise they wanted to sell. There was a franchise available in Owen Sound. It had been in existence for about five years and already on its second owner. Harry became the third owner and moved to Owen Sound.

A full-time employee was working in the store and Harry chose to keep him on. “He didn’t stay long,” says Harry. “But long enough for me to learn the ropes.”

The first thing Harry did was run some radio advertising. This proved really successful as his first two months as new owner his sales were the highest the store had ever seen. But Harry thought he could do even better.

He started looking at the store’s database which contained almost 1300 names. Many of these names were not really customers but names picked up at trade shows. After running the store for six months, Harry decided he needed to find out who were really customers. He hired a telemarketer to call everyone on the list. Her purpose was to introduce Harry as the new owner and to delete numbers not in service or people who weren’t really interested.

The telemarketer was really experienced and did an amazing job for Harry. She worked for two and a half months, calling every name on the list. If someone wasn’t home she didn’t leave a message; she called back until she spoke to a person. Eventually she culled the list to about 400 names. After a few months she called these 400 people back announcing a sale. These two rounds of telemarketing resulted in an increase in sales of almost 40 percent.

With the list culled to 400 names of people who are real customers, Harry could then switch to mailings. Because he new mailings were going to people who are actually interested in buying he could keep his costs down and get a good return on his investment.

After his round of telemarketing, Harry focused on the customer experience. He thought since customers are spending $100 or more each time they come in they should be comfortable and enjoy themselves. He updated the store and focused on creating an enjoyable, relaxing environment.

Next, Harry implemented a customer referral program. When an existing customer refers someone new, they both get a discount. The more someone refers, the more of a discount they get.

Not every marketing attempt has been successful however. Harry tried print advertising. “It doesn’t work for me at all,” Harry said. “I think of it as a colossal waste of money.”

Networking doesn’t work for Harry’s business either. Attending the Chamber of Commerce monthly breakfasts has resulted in one or two sales over four years. “You’d think in a small town it would work but it hasn’t.”

On several occasions Harry also tried creating a newsletter. The professional, glossy newsletters were distributed to 20,000 households. Very few new sales resulted.

One thing Harry has avoided was having sales or competing with other wine-making establishments on price. When you discount you have to work harder for the same money. Instead he focuses on his existing customers, and never offers something to new customers that he doesn’t also offer existing ones. “Why should I offer a discount to someone waling in for their first batch of wine when I have someone coming in for their 15^th batch that year?”

Buying an existing business was really the right decision for Harry. “I didn’t have to reinvent the wheel. I just had to do it better than anyone else.” And clearly he has done it better. Since buying the store Harry has grown the business to 900 regular customers and does double the business he did in the first year.

Andrea J. Stenberg

Then I started following someone who sent a private message inviting me to sign up for his email newsletter and get some useful free reports. I immediately thought “what a great idea” but thought it seemed like a lot of work to keep up with sending messages to every new follower.

That’s when I discovered TweetLater. This service lets you set up post-dated Tweets, for times when you’re going to be away from your computer but don’t want to have Twitter silence. But more importantly, TweetLater let’s you automatically follow new followers and send them a private message. It’s all automated.

It took me a few tried to get it configured properly - it helps if you read ALL the instructions - but it’s now quietly working away for me. New followers get a message from me thanking them for following and a link to a post I wrote about Twitter.

Since this automated message started going out, I’ve noticed a huge increase in email newsletter subscriptions - almost quadruple. This is very important for me because now I can keep in touch with these new visitors even if they don’t make it back to my blog very frequently.

If you have an email newsletter and are on Twitter, I definitely recommend this method. It only takes an hour or so to implement and the paybacks are huge.

Andrea J. Stenbeg

On September 18, 2007, Carnegie Mellon University computer science professor Randy Pausch delivered his last lecture to a live audience of 400 people. What made this lecture particularly poignant was 47-year-old Pausch, while looking and feeling physically strong, was suffering from pancreatic cancer and only had a few months to live.

Pausch’s “last lecture” was neither morose nor sad - it wasn’t about death and dying at all. Instead it was humorous, hopeful and inspirational. Titled “Really Achieving Your Childhood Dreams”, Pausch’s last lecture was his prescription for living.

Early in the lecture he says, “We cannot change the cards we are dealt, just how we play the hand”. And while he was dealt some particularly harsh cards, he wasn’t planning on wasting time whining about it. He was going to play the cards he had the best he can.

Afterwards a recording of the lecture was posted to YouTube and rapidly became one of the most popular videos on the site. Between September 2007 when he gave his “last lecture” and his death in July 2008, Pausch made the most of the cards he had left. An appearance on Ophrah, co-authoring a book based on his lecture, achieving many childhood dreams, plus spending valuable time with his young family, Pausch really lived his last months.

Last week I had a chance to see a television interview with Jeffrey Zaslow who co-wrote the book The Last Lecture with Pausch. He commented how he and Pausch received many letters and emails from people who were inspired by the speech and the book to give up things in their life that weren’t working and to reach for their dreams. Everyone who wrote agreed that life is too short to accept anything less than wonderful.

If you knew you only had a few months to live, what would you do that you’re not doing today? Would you worry about being perfect, or would you just give it a shot because it might be your last chance?

I’ve seen too many entrepreneurs struggling because they’re afraid to step outside their comfort zone and try something they’re not good. They’re afraid of looking foolish, of failing, of getting it wrong. Whether it’s cold calling, public speaking, podcasting, or whatever, too many people let fear hold them back.

If this sounds even slightly familiar, please watch the Last Lecture. Then pick something you’ve been putting off or avoiding and give it a shot. Really, worrying about it is probably far worse than the worst case scenario. And even if you fall flat on your face, so what? You’ll live. And it will be easier next time.

Andrea J. Stenberg

Really folks, I’m serious. What new thing are you going to try? Be brave. Leave a comment telling us what you plan to change then report back and tell us how it went. Me? I’m planning to approach some “big name” people about appearing on my podcast. These are people who I’ve been afraid to contact. But what’s the worst they can do? Say no.