#301: Why Is It Important To Get Clear On What You Want From Your Business and Why With Bo Burlingham

EP. #1 [THEME ONE]

My guest today is Bo Burlingham. I read Bo’s book (Finish Big: How Great Entrepreneurs Exit Their Companies on Top) back in 2015 and it was the reason I started this podcast and eventually lead to the creation of the Intentional Growth™ 5 Principles. I had the chance to interview Bo when this podcast was first starting and today, we have the chance to catch up and talk about the changes myself and my business have undergone over the past four years.

In today’s episode, Bo explains to us the wide range of “good” and “bad” exits from businesses built by owner-founder entrepreneurs and why over 75% regret the sale 12 months later. He shares what the entrepreneurs did who were proud and happy with their exit. Bo and I reconcile his research with my 4 years of work and over 200 interviews.

// WATCH THE INTERVIEW ON YOUTUBE: Intentional Growth™ Podcast

What You Will Learn

Why the word “exit” is a curse word for most business owners
Why the word “exit” can mean different things to your role vs your ownership
How to avoid regretting the eventual sale of your company
How to get clarity on what you want from your business
The 7 components of a sale that help an owner achieve the 25% who are happy
The importance of understanding how the company value impacts your exit options and your personal drivers
Bo’s 4 (sometimes 5) characteristics of a “good exit”
Why missing just one principle leads to a “bad exit” and can put you in the 75%
What to think about in order to prepare you to mentally for a sale
How Bo’s work intersects with the 5 Intentional Growth™ Principles
The Seven P’s of Evergreen companies according to Bo and the Tugboat Institute
How companies that plan to last over 100 years think about their businesses

// USE YOUR FINANCIALS TO CLARIFY A PATH TOWARDS A MORE VALUABLE BUSINESS: Intentional Growth Financial Assessment

Bio

Bo Burlingham is currently a contributor to Forbes where he produces the magazine's annual Small Giants section. Previously, he worked for 33 years at Inc. magazine, as senior editor, executive editor, and editor at large.

He is the coauthor, with Jack Stack, of The Great Game of Business and A Stake in the Outcome and, with Norm Brodsky, of The Knack (renamed Street Smarts in paperback). He is also the author of Small Giants and Finish Big. The popularity of Small Giants led to the creation of the Small Giants Community where business leaders learn and share practices and systems they can use to make their companies great, whether or not the businesses are big.

Interview Quotes

14:32 – “One thing that struck me was how many people I talked to were unhappy and wished they hadn’t sold their businesses and were full of regrets and that there were parts of the whole experience that they didn’t like.” – Bo Burlingham

21:42 – “People who have a clear idea in their own mind about who they are or what they want and why are able to make decisions that are going to make them happy. Whereas otherwise you end up making decisions based on other people and what they think you should do.” – Bo Burlingham

22:00 – “It’s important to build a sellable company and by ‘sellable’ I mean that you’re able to sell your company to who you wanted, when you wanted, and why--or for an amount that you considered fair.” – Bo Burlingham

52:00 – “There are a lot of responsibilities that come with ownership and there are a lot of times where you have to do things you don’t want to do.” – Bo Burlingham

58:43 - “I really think the most powerful business tool that I have ever seen has been open-book management. At least, as it’s been practiced by Jack Stack.” - Bo Burlingham