The Achilles Heel for your Business

Achilles in modern suit

When we talk about what makes a business attractive to investors or potential buyers, the conversation often revolves around profitability, growth potential, or market position.

However, there’s a less talked about yet critical aspect that can dramatically affect a company’s value: transferability.

Just a few weeks ago, OpenAI nearly disintegrated. After the CEO Sam Altman was suddenly ousted, an overwhelming majority of the workforce—700 out of 750 employees—threatened to leave OpenAI for Microsoft, following Altman.

This mass exodus prompted the board to reconsider their decision, ultimately leading to their resignation and Altman’s triumphant return.

Why did the Baord back down?

After all, at that point of time OpenAI was highly profitable with an enviable technology and exponential demands for its services.

However, its key assets were its staff.

The people and intellectual prowess were not anchored to Open AI itself. So once these assets, the people themselves threatened to leave, the company’s valuation plummeted to near zero.

How does this apply to you?

Well for your business to be truly transferable, and thus have some real value, its core assets must be embedded within the company’s structure and not solely tied to you or any key individual or group.

Transferability is about ensuring that the business can operate and thrive independently of its current owners or key employees.

As you assess the transferability of your own business, consider the following questions:

  • Are the skills and knowledge required to run your business documented and accessible to others?
  • Have you developed systems and processes that do not rely on any one individual?
  • Is your customer base diversified, or is it dependent on personal relationships with you or key people?

The story of OpenAI serves as a poignant reminder that the true value of a business lies not just in what it does, but in its ability to continue doing it, regardless of who is at the helm.

It’s about owning an independent business instead of a job.

If you want to find out more how to make your business more independent, profitable and attractive so you can stop watching opportunities pass you by, then sign up for our Masterminds.

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