Being the face of your business is not the same as building a business that is dependent on you.
We live in a world where influence moves the needle; look at what Elon Musk is doing with Tesla. History shows that some of the largest companies weren’t really synonymous with having a face for the brand, however, it has now become increasingly popular for large brands to do just that.
There are a few clear reasons why having a face can be advantageous since customers are able to develop a stronger connection with a person rather than just the brand itself. In most cases, the Founder is able to tell the story better than anyone else – and in the end this can help build authority and loyalty.
So yes, for many entrepreneurs and business owners, becoming the face and building your influence is lucrative, however, if you plan on selling your business one day you need to ensure your business isn’t dependent on you. Businesses that are dependent on one founder, one customer, one vendor or one supplier will have a hard time selling, especially in the micro market (which we define as businesses with a value under $5m).
There is a need for harmony between you and your business and the truth is that no buyer wants to enter a business with so many unknowns. They also don’t want to be scared losing clients or suppliers that will jeopardize operations due to their dependency on a particular founder or owner. This is why it is ideal to build a self-sufficient business. From the outside the concept sounds pretty easy and straight forward, however, many business owners tend to disregard the importance of this. Through our experience at BuyAndSellABusiness.com, we’ve seen that less dependency in business operations equals a more valuable and sellable business.
In the end, using your image to back your business can be more powerful than any form of traditional advertising, however, as a leader, if you’re not replaceable in your business, you are a liability. So, ensure you really focus on building a business that can run without you, and that starts by developing operating principles, processes and company values. This will allow a company to operate with no dependency on certain stakeholders, which creates a less vulnerable business, and therefore a more valuable and sellable one.
So go ahead, be the face of your business, but ensure it isn’t dependent on you to survive and thrive.
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