Quick Insight
A small group of owners can create a larger set of shared goals. A large group of investors has a much smaller set of shared goals; it often gets reduced to the lowest common denominator of profit. Make sure investors don’t deprive your company of its meaning to you, your customers, and your employees.
The number and types of owners determines the purpose and goals of a company. Fewer owners means more options for the purpose of the company.
A small group of owners can create a larger set of shared goals. A large group of investors has a much smaller set of shared goals. This means profit ends up being the sole or dominant goal. Higher goals shared by a small group of owners get reduced to the lowest common denominator of profit.
Large companies are also often owned by shorter-term investors rather than long-term ownership of small companies. This changes the strategies and goals they want the company to take.
Choosing investors for your company determines its purpose. They determine its fate based on their personal goals. Make sure their money doesn’t deprive your company of its meaning to you, your customers, and your employees.
I wish you owners with a shared purpose. I wish you well.
- Rob Stephens
Further Insight
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