White Glove Business Group

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?”

Our Plan

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.

Picture This

To illustrate: imagine two scenarios:

  1. You own 100% of a business making $75,000 profit each year.  Your income = $75,000.
  2. 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.

Take Aways

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.

Reflect On...

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.

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