As small business owner, you’ve learned how to be resourceful. You’ve been able to grow something from scratch (or nearly from scratch) by seizing on good opportunities, outfoxing your own weaknesses and finding the right people to do critical work. Whether you are in start-up phase, mature growth phase, or any stage in between, your divorce poses a potentially existential problem for your business. For instance, your spouse may want a large portion of your business assets; your spouse could be an integral part of your operation; you may be at a tender point in your business or product development cycle, et cetera.
Here’s a great strategy that you can use to stay profitable, stay in control, and avoid legal or ethical issues that could undermine your company:
The 80/20 Rule
According to a widely known principle about imbalances, known as the 80/20 Rule (or “The Pareto Principle”), 20% of inputs into a business are responsible for 80% of the outputs:
- 20% of your clients are responsible for 80% of your profits;
- 20% of your employees do 80% of the critical work;
- 20% of the decisions that you make in your business account for 80% of the results;
- Et cetera.
How can you use this concept to stop wasting time, find employees who can take over responsibilities while you go through the divorce, and minimize the effects of the divorce on your business? Here are some ideas. You might ask yourself: what are the most likely problems that the divorce will cause for the business? Generate a list of 20 items. Then take that list and apply the 80/20 principle; figure out the top three “big” problems. Then, instead of trying to address all 20 problems, just address those big three.
For help dealing with your divorce, connect with the team here at the Toussaint Law Firm, PC today for a free consultation.