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Reviewed by Leonard Smuts for Readers' Favorite
As a business matures, the founder can become an unwitting constraint to further success. David Grau Sr. explains how to avoid this in The Founder’s Treadmill. The author is all too aware of how easy it is for an entrepreneur to want to control every aspect of the business, but such intense involvement can become a treadmill. The temptation is to do everything yourself, but hard work alone is not a sustainable long-term solution. A better model is needed. Business owners are confronted with three basic choices. They can stay as they are, run the business smarter, or step off the treadmill completely. Each option is assessed. The author shows how to build capacity over time, not just by hiring extra hands, but by delegating responsibility and authority. A comprehensive five-year plan is provided, which adds structure without losing flexibility. The timelines can be adjusted to individual needs, while interim steps are optional. Each year has a checklist, with constant improvement as the aim. He also outlines what a CEO should be spending time on. Legal entity and tax implications are described, along with financial planning and the appropriate capital structure. Pointers to recognizing the treadmill symptoms are provided, such as not being able to take time off.
David Grau Sr. has more than 30 years of business ownership experience to share with readers. He points out that the statistics for new business failures make sobering reading and offers solutions for sustainable success. Business should not consume your life, so learn to say no. Leadership is preferable to survival. Setbacks are normal. He advocates thinking like an investor, assessing what you wish to get out of the business to compensate for your input, while reviewing the cost of success. Owners should draw up continuity and succession plans, deciding when to step back. This useful guidebook gives practical advice to those business owners who are stuck on the treadmill. It enables them to understand the problem and sets out a functional plan for implementing regular upgrades, then transitioning to sustainability before retirement. The three-basket cash flow model is particularly noteworthy. The Founder’s Treadmill offers easy-to-understand checklists. The text is concise and self-explanatory, with no ambiguity. It is thus easy to read and digest, making it an ideal management tool for any newly established business.