The Return of Wealth And Control
Back in Week 2 we examined the tradeoff between maintaining control and maximizing wealth. Once again, this tradeoff presents itself as the business grows and matures. For example, a founder-CEO who places greater value on controlling the business will be very reluctant to give up his or her position as the company grows – even if doing so would benefit the company the most. After all, as a business grows, its needs change and the original team of founders may not possess the newly required resources, talents, or abilities needed to continue the company on a trajectory of growth.
If a founder-CEO places greater value on wealth, however, he or she might be willing to relinquish the title in the name of better company growth and health. The nasty part comes when a founder-CEO is fired by others involved in the company, although this tends to occur more frequently when founder-CEOs value control more than wealth, according to The Founder’s Dilemmas. Personally, after thinking about this scenario to myself, I feel more strongly than before that taking an interest in wealth over control is usually the correct choice of motivations – since it provides both personal and company gain.
Bigger Business, Less Control – How I Fit In
Seeing as this blog post is the final installment of weekly posts for the Entrepreneurial Planning course, I thought it would be fitting to tie my own goals into this topic as a sort of “reflection” – especially since I rarely mention these goals and try instead to focus on topics that benefit all of us.
As I mentioned earlier in this post, I feel that I will value wealth more than control in the business that I one day operate. Although I haven’t always felt this way, I strongly feel this way now and I’ve condensed my reasoning into two points:
- A wealth-centric focus allows for the best interest of the company, since my abilities will eventually be inadequate and limited
- The wealth I gain from my business, even after losing control, can be used to invest into a brand new business. That sounds pretty exciting to me.
Additionally, it seems like valuing wealth over control will also result in less problems when the time comes for me to step down as CEO. In conclusion, let me ask you this same question:
Which do you value more? Wealth or control? Comment below and tell me about why you chose either one!
Bonchek, Mark (2016). How Leaders can Let Go Without Losing Control. Harvard Business Review. Retrieved from https://hbr.org/2016/06/how-leaders-can-let-go-without-losing-control (Note: although this source was not included in the post above, it did influence my thinking on the subject in a unique but somewhat unrelated way. Check it out, Bonchek talks about creating “Doctrine” in businesses as a way of giving employees more autonomy – and come to think about it, more employee autonomy is just what a “wealth” oriented founder would desire).
Wasserman, Noam. MC: Founders: Noam Wasserman – The Founder’s Dilemma: Rich or King? YouTube.com. Retrieved from https://www.youtube.com/watch?v=hw-K1FPmFXA
Wasserman, Noam (2012). The Founder’s Dilemmas. Princeton, NJ: Princeton University Press