OUR STRATEGIC ALLIANCE NETWORK
"The first method for estimating the intelligence of a ruler is to look at the men he has around him." â Niccolò Machiavelli
No matter how talented or driven you are, you cannot achieve greatness alone.
While you might be able to handle the work of two or three people, true success demands more than sheer effortâit requires collaboration. You can't simultaneously be at a bank in Sydney finalizing financing and in Melbourne closing a deal. Even the most determined, passionate, and visionary leader lacks the expertise, energy, and time to oversee every action, verify every figure, and review every contract necessary for a growing company.
Your company, your entrepreneurial creation, is a source of immense pride. No one else shares your level of care, concern, and vision for it. However, for your company to reach its full potential, you must entrust significant portions of it to others. Holding on too tightly to your creation can stifle its growth. Many promising companies have failed because their founders refused to delegate.
Consider the analogy of raising a child. You have a beloved son, and your highest ambition is to see him grow into an intelligent, happy, and successful man. But you cannot do this alone. Along the way, you must trust him to the care of teachers, coaches, and mentors. Achieving your ambition for him means sharing control with these carefully selected specialists.
Your relationship with your company is similar. You must hire and retain experts in finance, accounting, and tax law to provide the guidance you cannot offer alone. You need the skills of stockbrokers, investment bankers, attorneys, accountants, and consultants from various fields. Eventually, for the sake of growth and financial stability, you might sell parts of your company to investors who view it not with your passion but as a means to secure their financial future.
To achieve extraordinary success, you need to leverage two critical resources: Other People's Money and Other People. These individuals, recruited from diverse sources, make up your Ultimate Team. The first members of this team are your board of directors, who will help you assemble the rest of your essential team.
Your Board of Directors
When you think of a board of directors, you might assume it's premature for a small company. However, directors are essential from the start. You wouldn't play a baseball game or rugby match alone, so why run your company solo? If you're aiming for significant growth, you need to fill key positions before the game begins.
Incorporate your business, retain the titles of President and CEO, and start assembling Your Strategic Alliance Network. The immediate benefits of a board are credibility and prestige.
Look for recently retired CEOs and top executives from local, regional, and national companies. They're often accessibleâjust call or email them. Explain your vision and how their experience can help. Many retired executives are eager to contribute and have the time to do so.
Begin by selecting an experienced chairman with a strong reputation, even if not from your industry. Your chairman should be a seasoned executive who has handled numerous business transactions. The rest of your board should include individuals with more business and financial experience than you. Aim for a financial expert, an accounting specialist, and one or two individuals who have successfully grown companies through acquisition.
Your board should be small, ideally four or five members, who bring invaluable contacts, tips, and ideas. They will be the foundation for building an aggressive, acquisition-focused corporation. Ensure your board is "lawsuit-aware" and prepared to support you in legal battles, as litigation can be a part of exponential growth.
Regarding compensation, don't address it in the initial discussions. These individuals likely have substantial wealth from their careers. Eventually, offer each director 2% to 5% of your company, with additional points for the chairman based on involvement.
Assemble your board of directors before seeking outside accounting and legal professionals. Once your board is complete, continue building Your Strategic Alliance Network.