Tuesday, August 16th, 2022

Recently, a group of advisors offering diverse services to owners of privately owned businesses were discussing the state of affairs. We all know that the economic environment is difficult and challenging. The capital structure has vanished. Banks are not lending and when they do lend it will be with many stipulations. Interest rates are down – but still money is not flowing. Private equity firms are forced to use capital to keep their current investments alive. Only a few businesses are capitalized well enough to make strategic acquisitions and if they do, they are at bargain prices. Owners are forced to sell well below their expectations. It is not pretty, but all owners need to mitigate their risk of transition. They will not be getting a lot of cash in any near term transaction and they may be forced to finance any transition.

We have grown a lot in our business- we have some good clients- some really great people… my role is changing but I am not sure how….

If this or a similar thought has occurred- you are one of the many enlightened owners…Read this to learn how unique you are in your changing role as CEO!

Many companies started with an idea and survival skills of the founder. The founders value their clients; thrive on challenging themselves, recognizing and seizing opportunities. They have good instincts, but as they grow their enterprise their role changes from tactical to strategic. Some of these changes are understood and others not even recognized. In order to help a founder of a successful growing organization recognize how their role or job has changed, I developed and refined over time (thirty plus years of working with business owners) The CEO Position Description of a privately owned business. It is part of this article.

I would suggest that you review it with an open mind and rate yourself (1-5) on each item