Control vs resources: how stepping aside early may benefit your startup… | The Oxford Review - OR Briefings

Control vs resources: how stepping aside early may benefit your startup…

Research Briefing

Looking at the two consumer electronics behemoths Apple and Microsoft one may be led to believe that having the visionary who founded the business at the tiller while it goes from a garage based business to a multibillion dollar company is essential. But this is far from it…

Far from it – new research that looked at over 6000 US IT and life sciences companies found that often the founder devalues the company by between 17.1 – 22% by retaining control of the business after three years of operation. In short, if you as an entrepreneur wants your ‘baby’ to grow into a giant, you should make succession plans at an early stage and bring in professionals to run the company for you.

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