Introduction: Do You Have an Exit Strategy for your Business Partnership
Interview With Anne Grant, Mediated Solutions Incorporated
I interviewed Anne Grant nearly five years ago and the interview is still relevant today. This interview shows that it is very important to have an exit strategy for partnerships.
Challenge: Do You Have an Exit Strategy for your Business Partnership
As one of four directors/shareholders in a boutique consulting firm, I came to the realization that my business needs were not being met by the organizational structure. I believed that after five years together, the business was ready to grow and that we needed to expand our in-house personnel beyond the directors to include associates and affiliates. One of our directors was philosophically opposed to expanding the firm beyond four individuals. I disagreed with her. However, as a group of four operating on a consensus basis, I had to convince all of my partners that expansion was beneficial before anything could be implemented.
Solution: I spent time individually and at director’s meetings building the case for additional personnel. In the meantime, the director who was opposed to expansion decided she would prefer to have a solo practice, and invoked our shareholders agreement to be bought out. Because the ground work had been laid in advance, the remaining three directors were able to move quickly to recruit affiliates and associates after her departure. The inclusion of additional personnel has strengthened and added value to our consulting business as well as expanding our internal community of interest. Further staying within the agreed consensus process, that is a cornerstone of our firm, kept us true to our founding principles. Even if an obstacle seems insurmountable, investing time in building support for new ideas can result in an accelerated move when the timing is right. Our expanded firm is all the more successful for the diversity and wisdom of our additional colleagues.
Lessons Learned from Anne Grant
- Be aware of and use existing processes to resolve conflict
- Be true to your principles
- Comply with organizational values
- Take the time to lay the groundwork and build consensus before trying to implement your vision
Anne Grant's Formula for Success
I take care of myself as well as my company. When I am happy, healthy and refreshed, my business thrives!
Do You Have an Exit Strategy for your Business Partnership: Application
If you were in Anne's position, what would you have done differently?
Final Thoughts: Do You Have an Exit Strategy for your Business Partnership
Before entering any partnership, make sure that you have a contract which anticipates any eventuality, including exit strategies. Draw up contracts for friends as well.