Business owners often ask

• How can I get investors to be more interested in my business?

• How can I also get more work-life balance as an owner?

Here’s something that can answer both questions:

Make the business more owner-investor ready

What does this mean?

In the world of small medium businesses, there are two main types of owners:

1. Owner-investor

2. Owner-manager

Both types of owners have different levels of involvement in the day-to-day operations.

They spend different amounts of time, and also have different goals and priorities.

We must also understand this:

Not all business buyers want to be an owner-managers

Let’s explore further.

Owner-investor

An owner-investor is a business owner who focuses on strategic work of the company. Their goal is to maximize returns on their investment in the company.

• They may hire a CEO or other executives to handle the day-to-day operations of the business

• This allows them to focus on high-level planning and decision-making

• An owner-investor can provide oversight for the business without sacrificing their work-life balance

• Owners need to be willing to use some business cash flow to hire an executive to run the business for them

The benefits gained by the owner from this transformation is priceless: Time

Owner-manager

An owner-manager is a business owner who is also the CEO and runs the day-to-day operations of the business.

• They are heavily involved in the day-to-day decision-making and operations of the company

• This can provide a greater sense of control and ownership

• They do more hands-on management over strategic thinking

• Owner-managers must be willing to dedicate a lot of time and effort into the business

• They may not have as much time for family, hobbies, or other pursuits

This can lead to a lack of work-life balance for the owner-manager.

For some business buyers, the owner-manager approach means buying themselves a job.

Some may enjoy it, others not so much.

For owners-managers planning to retire or sell their business, it will be best to find the right executives to manage daily operations.

• The work-life balance gained will be priceless

• It can also attract business buyers interested in businesses that are owner-investor ready

Stay inspired!

Read more:

• How to value a business

• 8 common reasons why owners sell their business

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