Instant Gratification vs. True Ownership: The Semi-filtered Guide for Aspiring Executives

Shel Hart 8-1-24

Dear [Young Executive],

I appreciate your enthusiasm for more authority, power, and income. Your ambition is commendable, but let me share some insights from the trenches of business ownership that may help temper your expectations.

There are over 29 million businesses in the U.S., yet the media obsesses over just 30 giants in the Dow Jones. Let’s talk about the 97% generating less than $100M annually—our real entrepreneurial heroes.

Privately held business owners take on huge risks, with 6 out of 10 startups failing in their first 18 months. It’s a noble pursuit requiring emotional fortitude, cash, a great idea, and willingness to sacrifice. Here's a brief overview of key entrepreneurial principles, particularly for those who might seek immediate gratification, prefer to instant message, and dream of a 35-hour work week in a 100% virtual environment:

• Get Paid Last: After employees, the government, suppliers, and ensuring there are reserves for future growth. Unlike the instant gratification of online likes, this requires a patience only a true masochist would enjoy.
• Decode Tax Codes: Navigate through bureaucratic mazes and pay the world’s highest statutory corporate tax rates. It's not as easy as coding a new app or fixing a bug, trust me.
• Re-Educate the Workforce: Combat the systemic lack of critical thinking skills left untaught by our schools. Consider yourself a modern-day Yoda, teaching young Jedis the ancient art of logical reasoning.
• Endure Double-Digit Medical Premium Increases: Provide health benefits while watching costs rise and coverage shrink. It’s like updating your software every year only to find it has fewer features.
• Sign Personal Guarantees: Put all personal assets on the line for loans and equipment. Imagine signing away your entire gaming setup every other week.
• Battle Passivity and Mediocrity: Stand against the tide of a dependent mindset. This is not a quest for the faint of heart—think Dark Souls on the hardest difficulty.
• Continuously Improve: Innovate to stay competitive globally. This isn’t just a system update; it’s a complete overhaul every fiscal year.
• Take Full Responsibility for Failures: Accept all blame and give others credit for successes. It’s like being the unsung hero in an MMORPG raid.
• Provide Vision and Hope: Inspire your team amidst sensational media and misinformation. It’s akin to rallying your virtual squad against an insurmountable digital enemy.
• Keep Up with Change: Stay in tune with rapid social changes. It's like trying to keep up with TikTok trends—just when you master one, a new one appears.
• Manage a Diverse Workforce: Navigate the needs of four generations under one roof. Think of it as managing a team where some prefer Slack and others insist on faxes.
• Restore Honor to Management: Uphold integrity in a field tainted by a few bad actors. It’s like being the one honest player in a game filled with cheaters.

Here's the kicker: None of this works without a deep care for your brand, culture, and people. You have to genuinely give a shit about the legacy you’re creating and be willing to sacrifice for it. The love and respect for what you build and who you build it with aren’t just nice-to-haves—they’re essential. It's about creating something that lasts, that has meaning beyond just profits.

To lead and aspire to ownership status, you must embrace the full spectrum of responsibilities and sacrifices. It's not just about enjoying the perks of authority and income, but about understanding your balance sheet, following your cash, committing to long hours, and accepting risks that come with personal guarantees and market uncertainties. Ownership is about creating a lasting legacy, driving the brand forward, and nurturing a culture of excellence and care. It requires a steadfast commitment to continuous improvement, an unyielding dedication to your team, and a genuine desire to make a positive impact.

Best regards,

Battle tested, and a little fatigued, Privately held Business Owner