As a business strategist, over the last ten years, I have asked business founders what their reasons were for starting their businesses. A combination of the following is common:
- They found an underserved need that is not currently being met in the market.
- They believed they could deliver a service more effectively and or efficiently.
- They wanted more autonomy.
- They wanted a different way of building wealth.
The above are examples of what I call the ‘owner’s vision’ – the unique picture of what you want your business to be, the raison d’être that every small-business owner starts out with. It’s important to keep your owner’s vision in mind to keep your business on track and prevent you from making business decisions that you later regret. Unfortunately, many small-business owners lose sight of their owner’s vision along their journey.
Case study: “John”
Recently, I worked with an SME owner whom I will call John. John’s business is very successful from both a cultural and financial perspective. He received an offer to buy his business that, on the surface, seemed like a good one to take.
After supporting him in drafting his owner’s vision, however, it became clear how poor the offer was. By clarifying John’s vision, we discovered that he has very specific criteria that need to be met for him to sell. John had always wanted to build other SMEs, and retaining his business provided leadership development and funding to fuel expansion.
John’s situation is an example of the need for guardrails to reduce the risk of reactive decision-making. If John had accepted this offer, he would most likely have suffered from seller’s remorse.
What is your vision now?
As a small-business owner, you need to clarify what you want the business to deliver in service of your own aspirations. Ask yourself questions like:
- How much time do I want to spend working?
- How do I integrate my family and other interests into my life?
- Do I want to sell my business? If so when and how?
- Do I want to keep the business and build for the long term?
- What sort of work do I enjoy? What roles in the business do I want to do?
- If I want to scale/grow, what will my part be and in what roles?
- What do I want for our people?
- What do I want for our customers?
- What are the possibilities for future ownership?
- What values are critical as cultural guardrails for the business?
The process of documenting your owner’s vision leads to many other discoveries. What are the possibilities for succession of ownership? Many owners think the only option is to sell the business. However, building a family-, employee-, leader- or stakeholder-owned business are all feasible ideas. Learning about your options can expand your business vision.
In sum, give yourself the time to make sense of what you want your business to deliver, using the above questions as a starting point. Being clear on your owner’s vision can pay dividends and steer you away from unwise business choices.
