A Larger Pie

I know a business owner who’s giving away 40% of his business.

No, he’s not an idiot. He’s actually very smart.

It’s MBO-based. In other words, as we hit certain milestones, I will earn equity tranches.

We’re going to triple his revenue & double his income.

Some of a large pie > all of a smaller pie.

The Story

He’s been in business about 4 years now.

He’s built a successful, mostly sustainable business; providing a good income for his family.

But he wants more.

He has bigger goals than the Right Now.

He has a vision for what could be, and he’s chasing it.

Enter me.

He & I connected several months ago. My company was originally going to become his client.

When that didn’t work out, I reached out.

“Hey man, I’m sorry we can’t work together. But I believe in what you’re doing. How about I become a partner instead?”

He outlined his vision for the company.

We craft a game plan & compared notes.

We decided on an MBO model.

If we hit certain growth milestones, I earn equity in the business, gradually becoming a bigger partner in what we’re building together.

Our goal: me a 40% partner.

40%?! He’s giving away 40% of his business?! Is he nuts?!

No, actually. He’s smart.

He recognizes: owning 60% of a much larger pie > owning 100% of a small pie.

To illustrate: imagine two scenarios:

You own 100% of a business making $75,000 profit each year. Your income = $75,000.
You own 60% of a business making $500,000 profit each year. Your income = $300,000.

Which would you rather have?

For my partner, a smaller piece of a much bigger pie > all of a small pie.

What are your goals?

Own 100% of your business, no matter how big/small it is?

Or do you want a certain level of income, and are willing to partner with someone to get there?

$75k/year or $300k/.year?

To each their own.

Consider the questions above.

What do you want from your business? What will it take to get there?

You going it alone? Or does bringing on a partner make sense?

Clarity = Direction.

Direction = Progress.