IBA, as the premier business brokerage firm in the Pacific Northwest, is firmly established as a respected professional service firm in the legal, accounting, banking, mergers & acquisitions, real estate, and financial planning communities. Periodically, we will post guest blogs from professionals with knowledge to share for the good of owners of privately held companies & family owned businesses. The following blog article has been provided by Jane Johnson of Business Transition Academy (www.businesstransitionacademy.com):
Game of Thrones Lessons for Entrepreneurs
“Be the Master of Your Own Destiny”
Perhaps now more than ever, we are in the fight of our lives.
The difficult situation many business owners are in, prompted us to revisit the lessons we wrote about last year after the Game of Thrones (GOT) finale.
So much is at stake – our businesses, our families, our employees, and our livelihoods. Many of the GOT lessons may be applicable to your situation right now as you think about how you can recover, rebuild, and eventually exit.
Running a business may seem like an episode of GOT at times, i.e., forging alliances, marching into battle, conquering your enemies… Cersei Lannister did warn in the first season, “When you play the game of thrones, you win or you die.” As you well know, the same may be said about playing the great game of business.
“GOT gives us life, leadership and business lessons. Every character is written in such a manner that they teach us to learn from our mistakes, grow wiser, understand the world and never give up.” an Entrepreneur article argues.
Here are 5 key lessons that exiting owners can learn from Game of Thrones.
1. Plan your strategy wisely.
Exiting your business is anything but simple. Business owners are often so focused on the day-to-day challenges of running their businesses that they can’t see the big picture or plan for the long-term. But, this lack of planning can jeopardize the future of your company as well as your financial security. Should you sell externally or pass it along to a family member or an employee?
You will need to consider your financial needs, the needs of your business, employees, and family – it can be difficult to wrap your head around so many moving parts. But you can do it successfully with careful planning and ample time, which is why you need to educate yourself about your business transition options and devote time to the exit planning process well in advance.
2. Be prepared for the worst.
While it might not be the same level of death and destruction as in GOT, businesses face serious risks on a daily basis. Would your business be able to continue on without you should you become ill, incapacitated, or pass away? Other on-going dangers that businesses face include financial, operational, political, business interruption, failure to innovate, damage to reputation, increased competition, natural disasters, compliance (OSHA or EPA), and business obsolescence.
In the face of these risks, there are many facets of risk management that need to be addressed, including contingency planning, insurance, business continuity, health and safety, corporate governance, and finances. Having a plan in place and being able to put it into immediate action can mean the difference between staying open or closing your doors should disaster strike.
3. Take the emotion out of business leadership.
While many fans were disappointed by the chosen king, Bran, a Vox article contends that it kind of makes sense: “Bran as king makes at least some thematic sense. One of Game of Thrones’ obsessions concerns the impossibility of just leadership, because we are all limited by our human passions, intelligence, and blind spots… Bran—who can see everything that has ever happened—kinda-sorta isn’t human anymore. The implication, then, is that a just and wise ruler is someone who is so disconnected from humanity that his dispassion becomes an asset…”
As business owners, it can be difficult to take the emotional aspects out of your business. Unfortunately, most of us don’t possess Bran Stark’s gift (or curse) of being able to see the past, present, and the future.
After spending so much time and energy in your business, it can be especially challenging to re-establish your identity outside the business. But it’s particularly necessary to remove the emotional aspects as you think about your transition. You will need to remain clear-eyed and focused on your ultimate goal, including choosing your exit strategy, planning for succession, and writing your next chapter.
4. Your successor might not be who you think it is.
“Over the course of Game of Thrones’ eight seasons, Bran Stark gradually evolved from being one of the show’s more peripheral characters to being one of its most central and significant. For a long time, many viewers might have had little interest in his long quest to travel north and become the Three-Eyed Raven.” (Vox)
Try to keep an open mind when it comes to choosing who will take your place. It could be someone you haven’t considered. You will have to be objective in assessing their capabilities, skills, and desire to become the new owner. Not everyone has the entrepreneurial spirit, talent, or is in the right life situation to run a business.
It’s important to pick someone who thinks like an entrepreneur and has the experience, and confidence to run the business. Identifying the right person is a process that requires careful thought and planning.
5. Know who to trust.
Like the world of Westeros, the world of exit planning and mergers and acquisitions can be a very dangerous place, especially if you are inexperienced – and you need to be careful in selecting those you trust.
Selling your business, whether to an individual, a competitor, a private equity group, or someone internally, can be a potential minefield.
You will be well served to enlist the assistance of a trustworthy advisory team who can help guide you through the process, based on your unique circumstances. They can help you build company value, prepare you to compete in the marketplace, perform pre-deal diligence, and address potential deal killers in advance. There are myriad aspects to consider and lots of decisions will need to be made.
Not having the right team in place could cost you. Working with trusted advisors who are uniquely trained in this discipline will enable you to create a comprehensive plan that will achieve your desired outcome.
Be the Master of Your Own Destiny
Winter is here. If you’re thinking about exiting your business in the next few years, you still have time to control the ending of this chapter of your life. Just like in GOT, you won’t have the option of a “re-do” – your chance is now. Without a solid exit plan, you might not be happy with the outcome.
When it comes to planning for the future of your business, your family, and your retirement, there are no shortcuts to success. And just like in Game of Thrones, there are lots of dangers and pitfalls along the way. Most owners will only sell one business in their lifetime and it is usually the largest financial transaction of their life. Don’t leave the outcome to chance. Be the master of your own destiny.
Now is the time to rebuild your business AND position it for a successful exit after the economy rebounds.
Register for our next workshop:
Rebuild Your Business with Your Exit in Mind
This workshop is about surviving and thriving in this new world and planning for your freedom and your life after your business.
We hope to see you there!
Jane Johnson is the Co-founder of Business Transition Academy (BTA) and co-author with Kathleen Richardson-Mauro of the book, Cashing Out Your Business- Your Last Great Deal. Ms. Johnson can be contacted for additional information about this article, her book, or the services offered by BTA at (844) 469-3948 or jane@BusinessTransitionAcademy.com.
IBA, the Pacific Northwest’s premier business brokerage firm since 1975, is available as an information resource to the media, business brokerage, mergers & acquisitions, and real estate communities on subjects relevant to the purchase & sale of privately held companies and family owned businesses. IBA is recognized as one of the best business brokerage firms in the nation based on its long track record of successfully negotiating “win-win” business sale transactions in environments of full disclosure employing “best practices”.