succession planning Archives - Steve Sammartino

What exit strategy?

Posted on May 20, 2008 by Steve Sammartino

I once said that “investors only ever get married with divorce in mind”. In fact, it’s often the most popular question at most start up events. “What’s your exit strategy?”

At the Hive event last week, local entrepreneur Simon Crowe of Grill’d had a refreshingly alternative view: He doesn’t have one.

What Simon wants to do is build a profitable business which grows beyond him. One which can operate without him. Simon gets it.

Here’s some advice all young entrepreneurs should heed. Because when you can achieve the above you don’t need an ‘exit’, you have ‘options’.

Want to be wealthy?

Posted on March 22, 2008 by Steve Sammartino

Well, why not behave the same way in which wealthy countries do. It’s a very simple formula:

Invest in health care & education.

The 3 wealthiest countries in the world by GDP per capita – Luxembourg, Norway & Switzerland, have outstanding healthcare and education systems which are largely government funded.

The two most valuable assets you can ever have are your health and education. If we’re healthy we can do anything. If we educate ourselves, we can always find ways to generate income.

For those about to argue about about wealth not being ‘economic’…then please refer again to what these countries invest in. Financial wealth is the outcome, not the driver.

Let’s hope

Posted on March 11, 2008 by Steve Sammartino

That if we achieve our startup dreams. Our legacy is far greater than conspicuous consumption or a large trust fund for our kids.

If you make bank, don’t become a jerk or ruin your kids.

Succession planning

Posted on February 6, 2008 by Steve Sammartino

Sadly Roc Kirby the founder of the Village Roadshow empire in Australia died last week. While reading an article in the Australian Financial Review the reporter mentioned how his kids had taken over the organization with great success. But we also were given another clue as to why.

As soon as his kids were old enough they worked the concession stands serving soda and popcorn and selling cinema tickets. Not in junior executive positions. They learnt the business bottom up.

No amount of explaining spreadsheets, balance sheets, P & L statements, and public company boardroom battles can prepare someone for a running a business like working at ground level can. The real understanding of any business comes from being where the money is exchanged with actual customers. This is what builds the foundations for a deep understanding of what’s important in a business – operationally and strategically.

If you’ve got a business which is succeeding and you need to think of succession. Startup blog says – think bottom up, not top down.