By Sankeetha Selvarajah
Today's issue is brought to you by Zensei LLC. We help high achieving entrepreneurs get clear on their growth by planning their exits in a mindful, systematic process. If you're an entrepreneur who is looking to exit and scale in a way that fits your lifestyle, sign up for our Zensei Group Accelerator with our discovery call here.
Spare tires and being ALPHA.
Around 2005, the German automobile manufacturer, Porsche made an executive decision to remove all spare tires in their commercial models to reduce drag and allow the car to gain speed faster.
Porsche drivers (and lovers) loved this. (Full disclosure - I am one of those lovers).
Now, this would make sense for an actual racing model on the track with a trained pit crew ready with planned rest stops.
But for the average driver on the mean streets of Boise or Boston, this was new.
Just think of the surety and the outright arrogance that decision entailed, for Porsche.
This, however, was not an unplanned decision.
Here's how this company did it:
First, Porsche knew its customers loved the fast, driving experience. Reducing drag, literally increased the speed of the vehicle, which this company had built its reputation upon.
Second, by confirming and believing that the drivers were going to be physically safe with this change.
Third, by including a gel sealant for the damaged tire, as a quick remedy, Porsche replaced the "security blanket" of the tire with a much easier fix.
Fourth, by betting that this change wouldn't affect market sales due to safety concerns.
Soon after, other car manufacturers decided to follow suit and stopped adding the spare tire.
Why this matters to you:
Remember, you as CEO of your company are always Alpha.
Not your customers.
It's a symbiotic relationship where you listen and understand trends, but you can dictate HOW and WHERE your company's products and services are received by those customers.
It takes acute planning and confidence that you will prevail either way.
So, where's your spare tire?
Where in your business are you playing it safe?
Be arrogant enough to be the Alpha you are.
Action Steps for this week:
- Is your current business plan your "spare tire"?
- What other personal "spare tires" are holding you back?
- Think of 2 new ways to make bold, educated decisions in your company's future. Implement those in the next 14 days.
Go faster,
Sankeetha
Exit Term to know: Asset Sale Agreement
An Asset Sale Agreement (ASA) is one of the methods of buying a company (the other is Purchase Sale Agreement - PSA). In this method, the Buyer only buys the Assets of the Company (Inventory, Equipment, IP, customer lists, websites etc), NOT the Company Stock/Equity and the Assets.
Seller keeps the Company Stock/Equity after the Sale, sometimes, with no assets left.
Ex: Buyer-Lamps LLC did an Asset Sale Agreement for the entire inventory of lamps of Seller-Shades & Blinds Inc.
Whenever you’re aligned, here is the best way way we can help you:
1. Our Zensei 4 week Group Accelerator is now in waitlist for the next cohort. At half the cost of an individual Exit Plan, this allows you and I to co-create a 2 year Exit Plan for 2024 and beyond. Taking a cohort maximum of 6. Every Exiter has a private, 2 hour Exit meeting with me at end of Program and a complimentary 30 day followup. Sign up for a free discovery call here to learn more.
2.Do you want to scale your company faster by planning your exit? Apply for private, full exit planning for 2-4 years here.
Unsubscribe · Preferences
(c) 2024 Zensei LLC. All rights reserved.