One of the funniest things I’ve witnessed in an owner managed business (OMB) is the Managing Director being presented an idea that had been worked up into a plan. All the hard work that went into it proved the plan shouldn’t go ahead. This was evident from the Excel spreadsheet that showed the estimated businesses would deliver a whopping loss.
This was rapidly fixed by the MD who just increased the sales line in the spreadsheet, in an unrealistic manner, and then announced, “Look, I told you it was viable.”
The approval process became, “I’m right and you will confirm it.” The history of not planning, shooting from the hip and gut intuition continued. How does the owner transition into something with a little more science?