Shareholding
When setting up your shareholding in a company … and you’re a driven person, you have a number of aspirations regarding the direction of “your” company, you want something for yourself at the end (on sale, on exit etc) then the only choice is 100% ownership.
I am stating this for one simple reason … if you want to drive the ship forward then you can’t have other people telling you what to do … this is what happened to the Titanic. One ship, one captain! try running a ship with a committee and see how long it takes to go down!
Even if you get it totally wrong … there is more spirit in that than the total frustration you will experiance with others in your head.The ‘options’ open to you are:
- You own 100% of the shares and you drive your business;
- You own less than 100% but still have control and run the risk of dissension; or
- You own less than 52% and you are willing to do as you are told; or
- It’s a listed public company and you’re in it for the dividends
I believe that there are just two options:
- You own your 100% of the shares and you drive your business; and / or
- It’s a listed public company and you’re in it for the dividends.
I have seen too much lost due to too many directions conflicting with each other and everybody blaming everybody else. Having coached many hundreds of business over the last 20 years … the most frustrating to watch, and be involved in, both from the outside and personally, is conflict of values, conflict of direction and the resulting atrophy of the business.
Remember there have been many a partnership, group of people, coming together of like minds that think it will be different for them … and its a minority!
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