Now, at 80 years old, Dick Clark should become America's newest retiree.

For decades Dick Clark has been the face of American youth.  However, over the last few years he has transitioned into an icon of a generation that does not know when to let go.  Mr. Clark led an entire era of followers through changes in color barriers, clothing styles, and musical genres.  Today it is time for him to lead his supporters off the dance floor, out of the limelight, and into retirement.

The issue with Mr. Clark is the present day impact on his image carefully crafted over half a century.  Dick Clark's "Rockin' New Years Eve", a television staple since 1972, has dropped a full Neilson share point, representing over one million viewers, over the last four years.  Most of this lost audience is the younger set looking for an edgier, fresher, and more entertaining show; the demographic advertisers crave. 

The question to be asked of business owners is this:  Are they doing what is necessary to create a sustained future, not just surviving the present.  Mr. Clark's presence on New Year's Eve is not attracting tomorrow's viewers and may have a long-term influence on broadcasting for generations.

Several years ago Beacon sold a business for a couple in their 80's.  While the business was profitable, year-after-year they lost customers, gross margins and technology passed them by.  Had they sold five years earlier, they would have received an additional $3,000,000 in purchase price (or $1,000,000 per grandchild).  Continuing to work was a very expensive way for them to spend their retirement years.

As your client's most trusted business advisor, ask yourself, which of your clients is Dick Clark, holding on to the past to the detriment of the business?  Which client should be easing into retirement before it costs them too much?

Wishing you and your clients a wonderful and profitable 2010.

David Humphrey
dhumphrey@BeaconEquityAdvisors.com
781.551.8000