Champions Energize Inertia
Champions are not just born and happen to grow up to be champions. Whether they are individual athletes, athletic teams, leaders, companies or countries, they become champions through vision, determination, discipline, hard work, resilience, persistence, consistency and doing the right thing. It’s these traits that make them champions and distinguishes them from the rest of the competitors. As Jim Rohn posits, “Champions don’t just grow by accident. They grow by design.”
Change is a certainty in life, and embracing change is the ethos of a champion. Further, accurate risk assessment in the face of change, both short-term and long-term, enhances the optimization of risk mitigation which is another core competency of champions.
Mortality risk is a clear and present danger for all founders and owners of privately held businesses, and it compounds with company growth and success. Nonetheless, because developing contingency plans is so fraught with contentious issues, it often falls victim to inertia. Sadly, the risks posed by that inertia are legion:
- A leadership vacuum and/or leadership battles within the company at the exact moment when the company requires strong leadership and direction
- Corresponding business dips, dives or disintegration
- Substantial uncertainty risk for employees & their families, clients and communities
- Potentially catastrophic risk exposure for founders’ families: including their spouse, (sometimes ex-spouses), children, grandchildren and overall family cohesion
The first step to break the constancy of inertia in this space is recognizing and acknowledging the inherent risks posed by premature mortality in the absence of:
- A solid business succession strategy & liquidity solution
- A long-term, personal financial plan & family cash flow analysis, an investment portfolio design informed by the financial plan, and an experienced, long-term investment portfolio manager overseeing its management.
- Appropriate life insurance and long-term care insurance
- Income and estate tax mitigation strategies, including current wills, trusts and estate documents, which reasonably reflect family wealth profiles, goals, values, dynamics and culture today
The second step is to effectively energize the inertia by taking pro-active steps to mitigate mortality risk by building a team of trusted, professional advisors who are experienced with navigating complicated financial and life transitions. Building a championship level team of trusted advisors, who have the patience and dexterity to work closely together as a team, for the long-haul, is no small task. The full team of specialists will include:
- An experienced financial advisory group which has successfully navigated through multiple, full market cycles
- A CPA who is well versed in all things having to do with the sale of a business and the nuances of installment sales, 453A issues and the “sting tax”
- A strong T&E attorney capable of navigating optimal revocable and irrevocable trust structures
- Potentially, a strong M&A investment banker and/or ESOP specialist
Developing championship level teams demands focus, tenacity and determination. However, as the “owner”, if you can build the right team, engage the right coach to coordinate it and get on board with the process, a clear and present danger will be duly mitigated for the benefit of all stakeholders.
“Champions prepare meticulously, leaving little to chance. Their preparation is both mental and physical, and they take pride in their readiness.” Joseph Brown in “The Characteristics of Champion Teams and People” 10/7/25