The Eighth Wonder of the World (For Family Businesses)

Fellow steward,

As I’m getting older, I’m appreciating the laws of nature more.

There are timeless lessons for us to learn.

Here's the most powerful formula in business:

A = P * (1+r) ^ t

r = rate of growth
t = time

This is the compound interest equation.

Einstein called it the eighth wonder of the world.

It's a non-linear function.

You can have a modest growth rate (r) with an unreasonable time horizon (t).

The focus should be on staying in the game. Protecting the "t."

Keep the business in the family. Keep the relationships, the learnings, the team intact.

Keep turning over rocks. Keep putting one foot in front of the other. Keep believing. Keep going. Take more shots on goal.

Stay in the game. 

Luck happens when preparation meets opportunity.

I’ve seen enough in my almost four decades to definitively declare: All great things take time. 

Read any biography of any great historical figure. It took time. No such thing as overnight success.

John Wooden. Steve Jobs. Warren Buffett. Michael Jordan. Kobe Bryant. James Dyson. Steven Pressfield. Sam Walton

The list goes on.

They compounded learnings, wisdom, relationships, and trust along the journey. They made constant tweaks to keep their modest growth rate in place (r). What they did differently was that they stayed in the game.

It took John Wooden a decade to solidify his pyramid of success. Then, it took him another 15 years in a dingy gym at UCLA to get his first NCAA tournament victory.

James Dyson cried himself to sleep in his 40s, completely broke, embracing invisible progress.

Steven Pressfield (one of my favorite authors) was writing porn flicks in his late 40s just to make rent.

Great leaders and great companies POUND the COMPOUND. Great people focus on the “t” rather than the results. Embracing invisible progress is rare.

Playing a long-term game with long-term people hits different when you understand this compound equation.

That's what we get to do in family business. We get to think in centuries and build for centuries.

I don't think family businesses cherish the opportunity to have unlimited time horizons enough. It allows the journey of business and life to be lived out to its fullest. We can integrate in a way no other capital structure can.

A family business allows the game to be played the way it was meant to be played. No artificial finish line. Focus on the right things. People are getting a little bit better every day for a very long time.

How can you change the conversation in your family business by unlocking time as your greatest advantage?

Let's embrace the small growth rate and protect the "t." Keep it in the family. Keep the momentum going.

That is the greatest unlock in business.

It's not easy. That's why we find others to walk alongside.

Thank you for joining me on this learning journey.

Onward,
Matt