No. 11: But I’m Unique!

I watched a Gene Wilder documentary the other night as this comic genius played an early role in his own career. The character he played wished to portray a young, new but aspiring actor, “the next Rudolph Valentino”, as he prepared and dressed for this important audition. It was obviously a big deal. Gene’s character was adorned in a fine, white suit and a complimentary tie, a stylish hat, and all the accoutrements appropriate for the times. On the way to the audition, the actor clearly and confidently expressed to his accompanying lady friend that he knew he had the part won based just on his meticulous preparation and presentation – well before he’d even set foot on stage. The world was his. He looked and sounded like a winner in every respect!

Gene Wilder, in character, responded to his friend who expressed concern that he might fail against stronger, more experienced competition, shouting confidently, “You don’t understand, I’m unique! There is no one else like me in the world!”…only to turn the corner and see a street filled with a hundred other actors auditioning for the same part, of similar stature and appearance, all dressed and adorned exactly the same way he was.  

Many small business owners quickly settle in to the same practice building processes and procedures as their peers. They maintain sole proprietor approaches and strategies. Information and strategies are shared directly between peers, or indirectly through the owners’ legal and tax counsel. In the end, most small business owners do things very much the same, right or wrong. That would be OK if everyone followed sound business principles designed around fast growing, scalable businesses with sufficient levels of profitability that were built to last. Over the 35 years I’ve been working with professional service providers as a securities regulator, attorney and business owner, I honestly haven’t seen much uniqueness or many second generation businesses that happen on their own. Most of the Profit & Loss Statements are very similar except for the amount of gross revenue flowing in.

This isn’t an attempt to humiliate anyone or to humble any practice or business owner. I did the exact same things as a young attorney when I hung out my own shingle. Most professional service owners don’t start out wanting to run great businesses – instead, they want to make a difference, help people, and do what they’re good at and trained to do.  

The point behind writing Building With the End in Mind is to say, “Yes, but you can actually do both­—run a great business and deliver great professional services.” Building a business that, one day, can work for you and perpetuate what you’ve started is smart, lucrative…and truly unique. But you have to work for it and have a plan.

I ran into a business disruptor many years ago who liked to say, “If it ain’t broke, break it!” The wisdom in that thought applies here. If you run your practice or business like everyone else, doing the same things, and having the same struggles with growth, profitability, attracting and retaining next generation talent, and you start to accept these things as normal, as a consequence of your profession, it’s time to break that mold and try something different. Building one-generational practices that die out with your career end is not good for anyone and there is a better way.

The process of developing a Succession Plan requires that you build an investable business. The investors, to be clear, are likely your key employees, now and in the future, and perhaps even a son or daughter. We’re talking about giving them a reason to want to invest in what you’ve started as the founder and that means top-line growth and bottom-line profitability. For starters, please revisit “The Three Basket-Cash Flow System” in Lesson No. 7, and make sure you set up the proper entity to support it all. If you have questions, use the “Ask Questions” tab on my website and I’ll help you figure it out. These are the first, basic steps in building something that your Successor Team will want to invest in.

If you want to stand out from the crowd, you have to do things differently, and better! The earlier you start to build with the end in mind, the easier it is.

Thanks for reading,

David Sr.