Why You Want to Give Away Control in Your Business with Christine Nicholson
Jul 30, 2024Today, Shannon and guest Christine Nicholson delve into why relinquishing control in business is essential for growth and personal satisfaction. Shannon begins by sharing her journey from being an employee to becoming a fractional CFO. She emphasizes the crucial shift from technician to manager and finally to owner, underscoring the importance of self-awareness in this evolution. This shift is not just about changing job titles but about changing mindsets, enabling one to behave like a true owner.
Christine highlights how many business owners fail to document their goals, which is crucial for clarifying desires and providing a roadmap for others. While being a technician feels comfortable, defining your role, prioritizing enjoyable tasks, and delegating the rest is essential for any business to thrive. This transition allows the freedom and choice many entrepreneurs sought when they began their journey.
The episode delves into the elements of freedom and choice, explaining that even self-employed individuals face constraints. Building a business that allows complete choice comes from long-term planning and transparency. One of the hardest aspects for any business owner is giving up control, which is often emotional and daunting. Christine shares a story about a client who doubled their revenue after learning to delegate responsibilities, adding significant value to their business.
Maintaining control over policy and culture while trusting others to execute the vision is crucial for scaling any business. Early stage entrepreneurs are advised to align their personal disaster recovery plan with their business plan, preparing for unforeseen events like death, disease, disability, or divorce. Astonishingly, only about 20% of the UK population has a will, highlighting the importance of protecting your legacy and business value.
Christine uses an analogy to illustrate the importance of making a business sellable, comparing it to preparing a house for sale. Building a sellable business involves acquiring another business that complements your own in terms of customer access, capacity, and capability. Emotional attachment often leads business owners to overestimate their business's value, but buyers approach acquisitions logically, prioritizing factors like positive cash flow and consistent systems.
Christine shares a personal story about selling her car for less because the buyers showed emotional attachment and promised to care for it, illustrating the emotional nature of selling a business. Shannon also reflects on the emotional struggle of watching someone else control a business, recounting her husband’s experience. The episode acknowledges the emotional toll of this process, in addition to the legal and financial complexities involved.
The episode wraps up with Shannon offering a free guide called the "Money Pro Matchmaker" for finding the right support in accounting and taxes. She requests ratings and reviews, allowing listeners to connect more deeply with the podcast.
Letting go of control in your business might feel like losing a part of yourself, but as Shannon and Christine discuss, it's necessary for growth, freedom, and ultimate success.
Christine Nicholson is multi-award winning and seasoned expert on exit and succession planning in owner managed businesses including employee ownership, exit options and getting out of your own way. She’s the author of 4 books that give practical advice on running better businesses. she’s lived and worked in 10 countries and exited dozens of businesses generating hundreds of millions of value
Get your copy of “Sell it!” here: https://christinenicholson.co.uk/books/
Website: www.christinenicholson.co.uk
LinkedIn: https://www.linkedin.com/in/christine-nicholson/
Facebook: https://www.facebook.com/christine.nicholson.146/
What you'll hear in this episode:
04:09 Perceived control impacts business value and worth.
09:16 Business owners must document and share goals.
11:50 Business ownership brings freedom and joy.
13:48 Clear job roles lead to joyful work.
17:55 Fear of success leading to interference in business.
23:02 Plan for unexpected events to protect business.
24:30 Create a will, plan for business continuity.
31:18 Clients must consider business value from buyer's perspective.
If you like this episode, check out:
Strategies for Managing Remote Teams
Mastering Recruitment: Marketing Strategies with Shannon
Want to learn more so you can earn more?
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The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.
