ENT600 Week 2-Wealth vs Control

As entrepreneurs do what entrepreneurs do, it is important to know what your ideal outcome will be.  Going into my business, I knew that I wanted a long term income.  I see many entrepreneurs establishing the business, valuing the business and selling the business.  The business is not personal to them and it is easy to let it go for a tidy profit.  Whichever you choose, let the decision guide you in developing your business.  

If you are guided in obtaining wealth, you may as well plan on losing some or all control over the business. Whether you are losing control to board members, stockholders, investors or someone that is buying your business. These people will find value in your business and want to be a part of it.  

If you are wanting to keep control of your business, you may be passing on the public offering, buy out, or capital from other sources.  What you will have is the ability to call the shots and represent your own business and where the profits go.  

It is important to note that your motives may change over time.  While you may love what you do and are passionate about it, this could change as your interests change.  You may not be physically able to continue with the business.  You may decide that you need an exit strategy.  Knowing your options and keeping them open is very important as an entrepreneur.  The Founder’s Dilemmas by Noah Wasserman emphasizes that knowing whether wealth or control is your motivation will make decision making easier.  

Wasserman, Noam. The Founder’s Dilemmas: Anticipating and Avoiding the Pitfalls That Can Sink a Startup. Princeton, N.J.: Princeton University Press, 2012.

3 thoughts on “ENT600 Week 2-Wealth vs Control

  1. Hi Tina,
    I agree with most of what you wrote about this week and got a similar impression from our reading. I think it is important to realize early on whether your end goal is wealth or control. It will make decision making easier in the long run and help guide your business development path.

    I am thinking that I am going to hang on to as much control as I can out of the gate with my startup. My business is going to be retail sales of sewn items that I design and make. I think it is important to have creative and financial control over the business so I can establish a brand and an image. Maybe someday I will relinquish some control and change my mind, similar to that discussed in the readings about Blogger and Odeo.

    You make an interesting point about an exit strategy. There may come a point where no matter how hard you try and as much as you may want to, you don’t have the time of means to continue your level of control. It is good to have an exit strategy planned so in case of emergency you can proceed. Best to be prepared, right?

    good luck in the semester and I look forward to working with you!

    -Bri

    Like

  2. Hi Tina!
    I liked reading your thought process on this dilemma. I strongly agree with your point that motivations and interests can, and do, change over time for a variety of reasons. Just because someone wants more control in the beginning doesn’t mean that later on down the road they may seek to relinquish some control and enjoy more profit. Great read!
    Best wishes!
    Victoria Price

    Like

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