Follow Dallas Linkedin
Email Dallas Email
Financial
Nov 3, 2017

For Business Exits, Being Inconsequential Is Of Great Consequence

Sponsored Content provided by Dallas Romanowski - Managing Partner, Cornerstone Business Advisors

It’s likely that few people, if any, have ever told you, “You need to make yourself less important,” regarding your business.

But sophisticated buyers look for businesses that can operate without their owners. Unless your goal is to sell or transfer your business, and then stay with the business as a subordinate to assure a smooth transition, you’ll need to train a management staff that can run the business without you.

This is the most important value driver you’ll install, and for many owners, it’s the hardest because they aren’t prepared to expend the emotional and mental energy required to remove themselves from their businesses.

There are countless technical strategies for making yourself inconsequential to your business, many of which we’ve discussed in previous articles.

But just as important as the technical aspects are the mental and emotional aspects, so let’s look at some of the common mental and emotional roadblocks you might face as you make yourself inconsequential.


Inconsequential does not mean useless.

We usually think about the word inconsequential as being identical to useless.

While inconsequential and useless are similar in meaning in a dictionary, they are not even close in a business exit context.

When you become inconsequential to your business, you’re giving the business the chance to survive without you, rather than leaving its existence solely in your hands. Like a parent giving a child away in marriage, you are passing your most important creation into the steady hands of a well-qualified successor.

Becoming inconsequential is a good thing for you and your business because it allows both of you to grow into new roles that extend your success.


Inconsequential does not mean forgotten.

Many owners take well-earned pride in building successful businesses, so the idea of being inconsequential - and vicariously, forgotten - is deeply troubling to them (history rarely remembers the inconsequential.)

But in terms of business exits, memory favors the inconsequential. The inconsequential owner knows he or she will not live forever, knows that the best companies outlast their founders, and confronts that reality by handing the baton to qualified successors. The inconsequential owner positions the business to continue when he or she leaves the helm, framing the owner as a forward-thinking founder worthy of remembrance. The consequential owner often goes down with the ship, leaving the deckhands stranded and asking, “What if?”


Inconsequential does mean more valuable.

It may seem like a paradox, but inconsequential owners are more valuable to their companies, their families and themselves.

Companies with inconsequential owners are worth more to buyers because they implicitly have strong management teams. This lets those owners sell their companies for top dollar, to the financial benefit of their families (or charitable organizations) post-exit.

Finally, with top-dollar payment often comes the freedom to pursue other interests, increasing the likelihood of a happy, comfortable post-exit life.

Don’t be misguided by the term inconsequential. In terms of your business exit, becoming inconsequential is supremely consequential to your company’s continued success, your legacy’s positive memory, and your post-exit comfort. If you’d like help making yourself inconsequential, contact us today.

© Copyright 2017 Business Enterprise Institute, Inc. All Rights Reserved
 
As a member of the Business Enterprise Institute (BEI), Cornerstone Business Advisors is an authorized distributor of BEI’s content and Exit Planning Tools.

The Cornerstone team includes former C-Level executives, successful entrepreneurs and advisers who offer unmatched experience in delivering advanced, custom-tailored, results-oriented solutions for business leaders. We developed the Performance Culture System™ to help clients implement best practices and drive high performance throughout their organization. For more information, visit www.launchgrowexit.com, call (910) 681-1420 or email [email protected].
 

Other Posts from Dallas Romanowski

Bizjournalblockad
Ico insights

INSIGHTS

SPONSORS' CONTENT
Lgoriginalheadshot 311794626

Summer is the New Holidaze

Laura Bransfield - Summerfield Custom Wellness
Rob20beale2 311791810

The Power of Learning and Development

Rob Beale - W.M. Jordan Company
Burrus rob headshot 300x300

The Ultimate Professional Development Cheat Sheet for Organizations

Robert Burrus - Cameron School of Business - UNC-Wilmington

Trending News

Chops Deli Co-owner Explains Financial Woes Behind Fundraising Campaign

Jessica Maurer - Jun 18, 2018

Hendrick Automotive To Operate Stevenson Honda Of Wilmington

Johanna Cano - Jun 19, 2018

At ILM, Regional Carrier's Technical Issues Cancel Flights

Christina Haley O'Neal - Jun 18, 2018

Plan A Advertising Adds Recent UNCW Grad

Christina Haley O'Neal - Jun 19, 2018

During Port Of Wilmington Visit, Cooper Says Port Jobs, Growth Good For NC Economy

Christina Haley O'Neal - Jun 19, 2018

In The Current Issue

Banks Respond To Dodd-Frank Changes

Just how will the much-trumpeted recent changes to the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act affect local financial...


Labor Market Checkup

The demand for health care workers in an area like the Cape Fear region is expected to remain healthy for years to come, experts say....


Millennials And Money

The age demographic that now represents the largest percentage of the workforce doesn’t feel confident about its saving and investing habits...

Book On Business

The 2018 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

2018 Power Breakfast - Dishing on the Restaurant Biz
2018 WilmingtonBiz Expo - Keynote Lunch with Eric Dinenberg, Rouse Properties
2017 Health Care Heroes