There can be times when you own a business and don’t care about its future. You bought a company to sell off the assets, or you made a quick profit in an unusual situation. But most of the time, you care deeply about your business’s future.
Most of the time, the management team wants to build a business to last. That’s how you make the transferable value that can be sold to another investor. That’s how you make generational wealth. To build a company to stand the test of time usually means the business needs to be bigger than just the one owner. Multiple people should be involved. But that is easier said than done.
# 1 The owner needs to give up some control. This can be a real challenge. Many owners want to be involved in every aspect of the business, and it’s common for them to resist passing responsibility to others. Learning to delegate, learning to involve others in the business is typically a process, something that takes time.
# 2 The business needs to commit to systems. The business needs to get bigger, which means more and more people need to be involved. And they need to be doing things in a similar way to avoid confusion. If different people in the business do things different ways, expect conflict. If everyone operates from the same playbook, the business can grow faster. It can do more.
# 3 The owner needs to share some information. Part of the process of getting other people involved is they must be in-the-know. They must understand what’s going on in the business so that they can make a difference.
If these three things can be done, then the business can grow. Others are involved, and the business will get bigger. The business needs to be independent of any one person, so the business can continue if that person is no longer available or involved.
Eventually, the business can be robust enough to withstand the departure of several people. The key is to adopt the philosophy that the business is separate from the owner and should operate independently.
What’s your experience building companies that stand the test of time? Have you had challenges? Join us in the comments below and let us know.
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This posting is intended to be a tool to familiarize readers with some of the issues discussed herein. This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique. Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer Bas van de Wiel.
About the Author
R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment (www.rshawnmcbridelive.com/3laws), gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at firstname.lastname@example.org or (214) 418-0258.
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