Networks

Why Startups Should Ignore Peter Drucker

Did you know that as a business owner you should spend LESS time selling and innovating? Learn why.

The late Peter Drucker – arguably the greatest management thinker of all time – cautioned senior managers to avoid getting stuck with back-office details and to focus instead on the two critical functions of any company: 

  • Product innovation
  • Sales and marketing

 Most startups don’t need a management guru to tell them to focus on delivering great products, but if you’re too good at serving your customers and all of your company’s best ideas come from you, your business may not be worth very much.

Counter intuitively, you need to spend less time selling and innovating and more time teaching employees to follow Mr. Drucker’s advice. That way, when buyers come along to kick the tires on your business, they can see that your company not only can exist without you but that it can thrive without you.

Acquirers like to buy businesses with a predictable profit stream that appears to extend well into the future. If your employees are responsible for selling, marketing and product innovation, it will be easy to see how the business will succeed without the owner calling the shots.

BONUS: Be sure to listen to John
Warrillow’s accompanying podcasts "Make Your Business Attractive to Acquirers" and "
Don’t
Give Your Employees Equity
" for
additional business exit strategies!

Total
0
Shares
Related Posts
monetizing your true purpose
Read More

Monetizing Your True Purpose: How to Make Money at Anything

By now, you've mastered the importance of cracking your life’s purpose code and finding your purpose. Now, it’s time to discuss monetizing your true purpose. There are five primary reasons people do not achieve their...
cyber liability insurance
Read More

5 of the Biggest Gaps in Cyber Liability Insurance

An alarming number of data breaches and cyberattacks have occurred in the past several years, thanks to a global pandemic and various other factors. More precisely, cyberattacks have increased by 27% compared to 2020, with...