Lesson 47: Ownership
“Do you want to be a CEO or the owner of a business?” asked Alex Hodgkin. Alex graduated from Booth with his MBA in 2014 and now serves as one of the Entrepreneurs-in-Residence at the Polsky Center for Entrepreneurship and Innovation at the University of Chicago. I was selected to join the Polsky Center’s ETA Discovery Cohort. Yesterday, Alex asked our cohort this question to gauge our risk tolerance as entrepreneurs.
My risk tolerance has always been high. Not long after learning how to ride a bike, I tried to ride around the neighborhood using only one hand on the handle bars. Soon, I was riding with no hands. Eventually, I asked for a unicycle and my mom bought one and took me to Piedmont Park to practice. I failed miserably, but my risk tolerance continues to push me to bet on myself.
During Alex’s presentation, he described the spectrum of risk tolerance across ETA.
Sponsored Search is on the low-risk end of the spectrum for those more interested in becoming the CEO of a business than taking on the financial responsibility of buying a business. Traditional Search is in the middle if you want to be a CEO with a group of investors familiar with search, and who have possibly succeeded in ETA. Self-funded Search is on the high-risk end. This is full ownership of a business, and you bet on yourself to source a deal, operate the business and accept the downside and upside returns of the investment. I am willing to bet on myself so self-funded search is the path for me.
Self-funded Search will teach me the full responsibilities of entrepreneurship. Imagine walking into work with the weight of making payroll each week. Imagine walking into work with the weight of replacing an employee who quit that brought in 20% of your revenue. Imagine the weight of a personal guarantee on a loan that will bankrupt you if the business goes under. Alex said, “This is the most difficult thing you will do in your life.” The weights of an entrepreneur will either make you sink or make you stronger.
My vision is to leverage my influence as a Black business leader to pursue economic justice. The weights of ownership come with present trouble and future rewards. Acquiring a trade school will provide financial rewards for both myself and my students to help close the racial wealth gap. Today, I spoke with Thaddaus Dawson, founder of 10K Black Appraisers, who said, “Reaching out to you, helps bridge the gap.” Our mutual support is necessary to close the racial wealth gap. Bearing the weight of owning a business is a small price to pay for all ships to rise.
This is Lesson 47: Ownership. Next week is Lesson 48: Peace.
