My consulting work has created a real-life cautionary tale of two business owners: both in the same industry, both with a lifetime of experience, and both looking to successfully exit their businesses. But despite their similarities, these two men ended in very different places both professionally and personally, one reveling in a legacy business with the other shackled to a failing venture.
It may seem reductionist to suggest that I can identify the reason for their divergent ends, but, as I got to know these two real-life men and their stories, it became clear that the difference between these men was a matter of ego.
Eddie, from the earliest days of his company, decided that his goal was to build a business, not a paycheck. This mindset, which acknowledged the business as something bigger than one person, continued to guide his decision-making. At some point, realizing that he was not the best at all functions of the business, Eddie decided to invest in his company by hiring employees whose strengths and passion compensated for his weaknesses and oversight. Realizing that his competency was the lid that kept certain business functions from thriving, he chose to surround himself with quality employees and then to TRUST them. He handed off authority and resources, believing that his humble self-awareness would create the foundation for growth. And his business did grow … exponentially. Now, many years later, Eddie has an extremely profitable business and has largely passed on leadership, enjoying the return on his investment with very little presence required.
Doug, very oppositely, assumed ownership of his company and promptly fired many of his employees, believing himself to be the standard to which they allegedly fell short. While he did make new hires, those employees were not trusted with decision-making or strategy. Because Doug had a tight grip on every function of the business, he became the limiting factor. Not only did this have a devastating impact on the financial situation of the company, but he has created a job for himself that requires constant presence. The business does not have the value that he envisioned many years ago. For this business to survive and grow, it will take new vision and a new way of thinking.
Which of these two stories sound most like your company? Ask yourself these questions:
1. Do I have plans/dream/visions for my business that extend past my own career?
2. When I’m not at work, do I worry about the work being done by my employees?
3. Am I doing the work that only I can do, or am I constantly involved in the minutia of my company?
4. Are there people at my company who are better at specific functions than I am? If not, what does that mean about my hiring strategy?
5. What measures am I taking to KEEP quality employees? Am I quick to allocate resources and responsibility?
While no one would quickly admit to Doug’s level of control and short-sightedness, being a business owner requires constant self-examination to ensure that vision and strategy are never limited by our own capacity.
Today, what can you add to your vision or remove from your plate that will keep your business growing?
