There was a great story a few years ago in the Washington Post about David Eisner's Dataprise (in Tom Heath’s “Value Added” column). Three things jumped out at me:
- David’s entire net worth is wrapped up in his company. I LOVE this! I don’t necessarily advocate it, since there are many things one cannot control – disasters, government intrusion/regulation, one’s own health, etc. – but this is a fundamental characteristic of entrepreneurs that most people don’t understand. When I shifted retirement assets into capital for my company, I saw it as shifting from one asset to another (albeit with a high penalty). Others saw it as monumentally risky. However, if you can’t bet on yourself in your own business, what on earth are you doing in that business???
- I was drawn to the
"build lifestyle into the business so I don’t have to sell"
quote. I suppose what David means is that he wants to pull himself out of the day-to-day operation of the business so that he has more lifestyle. At his company’s size, this no longer needs to be an issue, and so David can take steps immediately to pull himself out. Moreover, by pulling himself out of the day-to-day operations, he makes the company far more valuable. - That leads me to the “don't have to sell” part of the quote. My clients always hear me chant the Stephen Covey “start with the end in mind” mantra: designing a business from the get-go so that it can be sold for a premium should be the goal of every entrepreneur. It doesn’t mean that an owner needs to sell, but a company that is designed to sell is scalable (unlimited growth), sustainable (operates without the owner and is not greatly impacted be losing employees or fluctuations in the economy), and valuable (the owner isn’t the “special sauce”, so the business is more attractive in the marketplace).
It’s a great story for any entrepreneur that will give you a good kick-in-the-tail as you plan 2010!
Grow Strong!
Coach Grev
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