Issue #12 - What Type of Community Do You Want?

Business "Closeness" and Community

In a recent case note (link below), Professor A.J. Wasserstein from the Yale School of Management and a few colleagues wrote about work-life integration as a CEO. The article shares valuable advice and I encourage readers to take the time to consider its contents, whether you are a CEO or not.

One related idea that the article brought to my mind was the impact that the type of business a CEO operates can have on the personal community they build.

Let me give two examples.

Imagine a hardware store. The owner goes in every day, speaks with customers from the neighborhood, hires local employees, supports the town community by sponsoring softball teams and working at the annual pancake breakfast fundraiser. Over time, she and her store become deeply embedded in the fabric of their town and the CEO develops close friendships and countless acquaintances that she encounters every day as she goes through life.

In that same town is a successful software business selling a solution to customers all over the world in a variety of industries. The CEO has gone 'remote first' and, while some employees still come into the office, the number goes down each year and the CEO now only spends about half of her time there. She is regularly flying to industry events, to customers and prospects, and to quarterly off-site team building meetings. She has lots of contacts in nearly any city she visits and regularly chats with friends and contacts on the phone, text, and over Zoom. She is also one of the hardware store's customers and knows the owner well enough to share a smile and quick hello, but rarely sees many other people she knows around town. Both are content and earn enough to support their families and enjoy a nice standard of living.

These two examples are extreme, but illustrate the point I'm trying to make: the type of business you run can greatly impact the life you lead and the community--which I believe we all are seeking to some degree--that you build. One choice may be more lucrative than the other or bring different benefits to the CEO that are valued and more than offset the trade-offs for that person, so there is no objectively better choice for everyone. The decision is subjective. But, if you're one of those ambitious and talented people looking for a business to buy, or working with or supporting one, and you have discretion about the company you ultimately want to lead, I think that considering the "closeness" of a business to its employees and surroundings is one additional criteria that should be considered.

On the Nature of Work-Life Integration as a Search Fund CEO by Professor A.J. Wasserstein

This case note will explore the often-challenging proposition of integrating work and life dimensions as a search fund CEO.

MAJORITY SEARCH-RELATED CONTENT

Tim recently appeared on Chris Powers' podcast, The Fort, to talk about search funds. Chris is a great interviewer and if you're interested in learning more about search funds and entrepreneurship through acquisition, this is a good primer.

We also added a Resource Library section to our website. It contains some of our favorite books, podcasts, articles, and newsletters related to operating and leading a small business. If you have suggestions for time-tested, foundational items we have left out, please contact us.

The FORT Podcast - Fort Capital

On this episode, Chris and Tim discuss the search fund industry, how Majority Search structures deals, and lessons from small businesses.

Majority Search - Resource Library

We've added a compilation of CEO resources (books, articles, newsletters, podcasts) that we've found helpful throughout our career.