Every SME (small and medium-sized enterprise) owner should have an ownership strategy to ensure that the company’s operations yield the desired benefits for its owners. An ownership strategy also maps out the owners’ wishes, willingness, and readiness to invest in the business, whether in terms of work hours, additional funding, or other resources. This ensures that the business doesn’t demand more than it gives. A good ownership strategy is directly linked to the company’s strategy: the ownership strategy defines what is desired, and the business strategy defines how to achieve it.
An ownership strategy is particularly useful when there are multiple owners, but even a sole owner should have a personal strategy for their business. Without an ownership strategy, there’s a risk of the company’s development stalling and, at worst, disputes arising between owners. There’s also the danger that the owner works long hours indefinitely without ever reaping a proper reward for their efforts.
“When you own and lead alone, you need a partner like Aamu Partners, because you can become blind to your own thoughts.”
-Riku Suomalainen, CEO and sole owner, LSB Yhtiö Oy.
“Creating an ownership strategy is important for every company, and it’s advisable to use an external and independent entity for this process. Collaboration with Aamu made it possible to have constructive and goal-oriented discussions, during which even more challenging issues could be addressed, providing many new perspectives from the owners’ point of view.“
-Sanni Seppälä, founding partner, Kakadu
Aamu Partners’ Ownership Strategy Service
The service includes:
1. General training for owners on the importance and structure of an ownership strategy.
2. Clarification of owners’ roles in workshops, with preliminary surveys and 1-1 interviews.
3. Mapping of owners’ goals and resource investments in workshops, with preliminary surveys and 1-1 interviews.
4. Unification of owners’ goals and resource investments in workshops.
5. Formation of an ownership strategy from the owners’ goals and resource investments.
6. Linking the ownership strategy to business objectives.
7. A documented ownership strategy, easy to refer to later.
8. Financial calculations for the company to achieve the ownership strategy.
9. Creation or clarification of a business strategy based on the ownership strategy.
10. Clarity service partnership to ensure the achievement of business objectives and the implementation of the strategy in operational activities.
Why Should an Ownership Strategy be Developed with an External Party?
It’s advisable to develop an ownership strategy with an independent external party because an experienced expert can effectively lead the strategy process and provide a neutral and objective viewpoint. This allows for the discussion of even difficult issues and constructive conversation for the completion of the process. An external expert also brings structure and efficiency to the process, ensuring that the ownership strategy is completed smoothly at the agreed time, rather than being left hanging for “less busy times”. Read more in our blog.
Ownership Strategy Clarifies What You Want, and How to Get It
A company’s mission is to generate financial benefits for its owners, but the journey to accumulating these benefits depends a lot on the company and the entrepreneurs’ intentions. Owners must clearly define the financial benefits they expect from the company and the timeline for these benefits. Consider whether the company should be a dividend-paying profit machine or if it’s better to sell the company at the right moment. Consider whether the owner wants an early retirement, to work long hours and become wealthy, or if securing a livelihood is sufficient. Consider whether to invest personal savings into the business.
Different approaches require clear plans, calculations, and a mapping of resources. Aamu Partners’ service is comprehensive and can include, if desired, a mapping of intentions and resources, as well as future calculations of the company’s earning potential for owners.
In addition to financial benefits, it’s important to consider other values. Do you want the company’s activities to achieve personal goals, such as professional development or building a personal brand? The owner’s goals might also be social, ecological, or educational. Goals may also relate to whether the owner’s relatives can work in the company. In the ownership strategy, it’s good to consider the balance of qualitative goals against the company’s financial objectives, an area where Aamu Partners has extensive experience.
An ownership strategy lays the foundation for a business strategy. When the ownership strategy clearly defines what is to be achieved, the strategy is implemented by incorporating it into the business strategy. When the business strategy is directly aligned with the ownership strategy’s goals and takes into account the owners’ resource investment, the owners’ goals are achieved within the desired timeframe. You can read more about the topic in our blogs:
If you, as an owner, want to maximize the benefits from your company, contact us