It is something that we all wake up with every day. We are given the choice of reaching for it, or letting it waste away.
It has been said that potential is the most underutilized resource on the earth. While I agree with this on a macro level, it is refreshing to work with entrepreneurs, business owners and founders who not only achieve their potential but also pull and help others in achieving theirs. These entrepreneurs are the ones willing to assume all of the risk in building a business around a concept, product or service that ultimately benefits the end client.
Maximize Your Potential
Successful entrepreneurs are constantly weighing their options for growth, stability of their company, increasing the number of stakeholders in the business and ultimately—when the time is correct to exit—selling or reducing time spent in business. The growth and protection aspects of the business seem natural and don’t require a step outside of most entrepreneurs’ comfort zone. In stark contrast, the decision to exit the business, through a sale or by reducing the time spent and focus on the business, is something that can lead to internal conflict because it feels like an unnatural position. I believe this is due to entrepreneurs’ knowledge and grasp of the power of potential: they know that more is always possible.
In determining the best course of action for their exit, the entrepreneurs I work with usually see two options:
For the most part this is self-explanatory : sell a portion or all of business and receive earnout compensation for a defined period of engagement.
Leads to less surety for the purchaser and ultimately a lower price for the business.
Knowing that entrepreneurs are always weighing the power of potential, I propose another option to Advisor entrepreneurs looking to potentially exit the business:
Leads to maximizing potential both now and later. First, partner with the firm that you believe has the highest potential to address the areas that you would like to improve, develop or change in your business now, to achieve your end objective. Whatever your end objective is—to own the business as long as possible, to experience the highest valuation, or to have the stability to pass on the business to another member of your team—you must know this up front. In partnering first, you have the power and ability to experience the power of the potential in action, and not make an irrevocable decision for your business. You have the power to truly capitalize on what should be the best years of your business; the years when you are leveraging all of your experience, the trust built over your career, and the brand that you have established in your community.
The power of your potential is what drove you and made you the successful entrepreneur that you are today. When it’s time to begin thinking of separating yourself from your business, give yourself an option to continue to realize what is arguably one of the most powerful resources in the world: potential.
For advisor use only. Not intended for client distribution.
Interested in learning more about “option 3”? Connect with a member of our team.