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
Nealjohnson 12191614553

Five Front Door Ideas for a Great First Impression

Neal Johnson - Network Real Estate
Geofflosee300x300 10221511305

Five Things Business Owners Should Know About Trademarks

Geoffrey Losee - Rountree Losee LLP
Andyolsen 161723521

Trusts As A Tool In Long-term Care Planning

Andrew Olsen - CSH Law

Trending News

Builders: Vibrant Local Housing Market Could Face Struggles

Cece Nunn - Dec 15, 2017

Company Lands $225M In Road Contracts, Including Military Cutoff Extension

Cece Nunn - Dec 14, 2017

Mortgage Firm To Open Wilmington Office

Cece Nunn - Dec 15, 2017

New Hanover County Sues Opioid Manufacturers, Distributors

Christina Haley O'Neal - Dec 15, 2017

The Top Stories Of 2017

Staff Reports - Dec 15, 2017

In The Current Issue

Convenience Stores Rethink The Fill-up

Convenience stores across the country are employing diverse business models to fill niches and increase profit margins as changes in fuel pr...


Is Reverse Osmosis Plant Swamped?

Having lost re-election by just 19 votes, H2GO board member Carl Antos delivered a swan song that resonated throughout the Cape Fear region....


Townhomes Remain On The Rise

New townhomes are rising or on the way in Wilmington as demand and developer interest continues....

Book On Business

The 2017 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

2017 Health Care Heroes
Major Developments
WilmingtonBiz Expo - Key Note Lunch with Keynote Lunch with Chip Mahan - 2016