The Most Important Person in a Business

Summary

• When starting a business, you might get excited about new trends and opportunities, but remember that you can't change the person running it.
• Especially with minority investing, you have no control if the leader makes poor decisions, which can impact your investment.
• We learned this lesson early on after experiencing setbacks, realizing that betting on the right person is crucial.
• Over the first 12 months, we had to divest from several businesses due to misaligned leadership.
• A year and a half later, our successful investments showed that having the right leader, or "jockey," is everything for business growth.

Video

How To Take Action

I would suggest implementing some key strategies when starting a small business or personal growth journey.

First, focus on the person leading the effort. Whether it's you or someone else, ensure the leader is dependable and aligned with the goals. You can't change the person, so investing in right leadership from the start is crucial.

Next, avoid chasing every trendy opportunity if it means compromising on leadership quality. New and exciting ideas can be very tempting, but always prioritize solid, reliable leaders over the novelty factors.

A good way of doing this is to set up a vetting process. Spend time getting to know potential leaders or collaborators. See how they handle different aspects of the business or personal development tasks. If investing in another business, spend time with the entrepreneur to understand their vision and leadership style.

If you find yourself in a situation with misaligned leadership, don't hesitate to divest or step back quickly. The first 12 months are critical. Don't waste time trying to change someone. Redirect your efforts towards finding a leader who is naturally compatible.

For entrepreneurs, focus on self-development. This means continually learning, setting clear goals, and being open to feedback. Strong self-leadership will safeguard your business from potential pitfalls associated with poor leadership.

Lastly, keep track of successes and setbacks. Review and learn from these experiences. Recognizing patterns can help in identifying the right leaders for future ventures. Choose leaders who have a proven track record or show strong potential for growth.

By applying these strategies, you'll find yourself on a more secure path to success, whether in business or personal growth.

Full Transcript

sometimes the business is so enticing and it's sexy and it's new and it's capitalizing on something that's trending right now that we're like we just want to get in on this we can change the product we can change the sales we can change the marketing we can change everything we just can't change the person who's running the company and specifically for us because we do minority investing or at least we did we have no control if that person decides to steer the horse the wrong way and so there was times in the beginning where we learned the hard way because essentially we were like betting on this person so coming to that in the first 12 months was what led to us divesting our interest in a number of businesses a year and a half later it's like our entrepreneurs who have blown up the companies that we've invested in they're the right jockey