In their Harvard Business Review article, “Every Business Owner Should Define What Success Should Look Like”, authors Josh Baron and Vlad Barbieri highlight and effectively describe the need for a well-defined “Owner Strategy” for an owner and their business. The authors provide a short account of Elisa and Mark’s watch business and how they needed to decide whether the business was a “passion project or growth machine” that paints a clear picture of the importance of a thoughtful and well-defined owner strategy.
The article is concise and effective in addressing an essential but often overlooked aspect of business owner planning. Also provided is a simple yet impactful framework for creating an owner strategy for the business that is based on the personal goals of the owner for the business. A strategy that “generates alignment among owners, board members, executives, and employees, which in turn, improves both performance and satisfaction.” And we would only accentuate their recommendation of clarifying the owner’s personal goals not directly related to the business (i.e., family, estate planning, travel, legacy, etc.). As well, add that determining how the owner eventually would prefer to leave or exit should influence an owner’s decision regarding a strategy of “Growth - Control, Growth - Liquidity, or Liquidity – Control.”
An investment of a few minutes reading the Baron & Barbieri article could have a huge impact on your future business growth and exit.