Step Away from your Business

This week’s article in response to Dragons’ Den has to do with a deal that was offered, and then turned down. Since the editing this season makes it difficult to determine the exact nature of the business and the terms of any deals offered, though, I will not discuss the deal in particular, but rather the lesson that every business owner needs to learn at some point.

There are times when the best thing you can do for your business is to step away from it. That’s not to say you’re shutting it down, but rather, handing over the reigns to someone else who is better suited to running the business to new levels.

Naturally, this is a difficult concept for some people. After having invested their sweat equity in their business, they find it difficult to hand over control to someone without that kind of emotional investment in the business. Often, this will mean that their own future in the business is limited, though other times they will find themselves in a position of reporting to their new manager.

However, if the business is to succeed, then that may be exactly what the owner needs to do. When talking investments, it may be required by the investor, who now has their own money on the line. They have a different vision for how the company will grow, and have decided that the owners, for whatever reason, are not suited to bringing the company there. As such, they may require sufficient control of the company, whether in shares or in seats on the board of directors, so that they can exert sufficient influence on the growth and development of the company.

Can you step away from your business? It would depend on whether or not you could see the benefit. If you are operating a business that nets a million dollars annually in profit, can you see relinquishing control of that same company, along with 51% of the company, so that it could bring in a hundred times that amount?

A true entrepreneur recognizes both their own strengths and weaknesses. When their weakness stands in the way of the growth of their business, rather than insist that they are best suited for the job, they hand over that responsibility to someone better equiped to do that work.

Sometimes, that position is the CEO of the company. Such is the life of an entrepreneur.