When
you think you have things heading in the right direction, something is bound to come up. In my case, the last month has been the bottom falling out of my day job. I know, the way I just wrote that can’t be a good thing…or could it? Let me explain things a little more.
Two years
ago, I negotiated a deal to end up with a significant piece of ownership at the company. It was to be earned over a period of time, 10 years, and from there, I could do what I wanted with the stock. From actively running the company to taking distributions on profit to just outright selling the shares and putting the money in the bank, it was my call. It was then that the bottom fell out.
The previous owner
passed away days after I started at the company from a freak accident. My shares weren’t called out in the Will and despite my notarized contract with the owner, the new, soon to be owners didn’t have much motivation in upholding my contract. So there I sat, in limbo land not sure what my fate looked like. What did I do? I worked really, really hard. New processes, new people, new systems, new everything really. The results? The best three years in the company’s history. Not bad considering I was really the only continuity plan and only had two days of experience in the role before taking over. Two years later, my shares of the company still aren’t mine.
So I offered
to buy the company outright. Since I wasn’t making much progress with the new owners, I took it upon myself to give it one last go. If my contract for earning shares wasn’t going to work then why not own the whole thing? So, I put an offer together and talked to the bank about the millions of dollars I’d need to pull it off. No problems there…I just needed an agreement. Not much to my surprise, my generous (20% over the valuation done one year prior) didn’t go anywhere. The owners passed and decided to keep the company.
This was
really frustrating as all of the new owners involved don’t have a lick of experience running a company between them. As it happens, the bottom just fell out again. After my offer for purchase was declined, I found out we’re subject to the lovely new tariffs taking effect. Let’s just say this stings the company A LOT! Between that and prime continuing to creep up…and losing one of our sales staff members, and having major delays with one of our top three vendors, I feel like things just keep falling. And while it is my role as President of the company to do everything I can to account for, and succeed despite these things, a small part of me is happy that my offer of purchase didn’t work out. If it had, I would have stumbled out of the gate. These challenges aren’t slight. As it turns out, what I perceived as the bottom falling out in the weeks and months prior, ended up being an advantage to me personally on the financial side.
When life gives you lemons…
Until next time.
Thanks for sharing so candidly about your small business. I’m curious if you have a non-compete and if you have considered starting your own thing. I’d love to hear pros and cons of that (maybe another blog post?). Our household started in traditional jobs, and the main reason for leaving was for more flexibility but another significant reason is to control our own destiny — i.e., starting our own business. Can’t wait to see how it turns out.
Hi Caroline – I appreciate your comment! I actually have considered another business and am in the planning phase. I can keep you updated on how things turn out. I think it’s awesome that you’re starting your own business. I’d like to hear more about it and just life in Costa Rica in general. We’ve talked many times about visiting…in preparation for a move. Anyway, I look forward to reading more about your journey and keeping you posted on how things go here.
– Brent