I am looking at buying into an existing business. I can afford it. The business is still young. I have followed the founders journey over the last few years and I know the product works already. I think the founder is a good person and someone I might like to do business with. The valuation of the business is still low but sales are steadily increasing. I know I can add value to the business and the ask for investment is not that much.

So I made an offer and the founder rejected it. Which is fine. I was ready to counter offer for higher... However, we hit a snag because I think I found something in the personality of the entrepreneur that made me think twice.

So I called up a friend who I know who built and exited a business through a sale successfully for 9 figures.

He shared with me this powerful concept. "Do you think the founder wants to be rich or wants to be king?" It was so great I wanted to share it with you.

Here’s a refined summary of the idea “The Founder’s Dilemma” (Harvard Business Review, Noam Wasserman, February 2008):

🔑 Core Insight: Rich vs. King Founders typically start companies wanting two things: wealth and control.

Unfortunately, as Wasserman found, after interviewing hundreds of founders, you usually can’t have both

📊 Data from 212 Startups In the late ’90s and early ’00s, Wasserman tracked 212 U.S. startups: By year 3: 50% of founders no longer served as CEO.

-By IPO time: fewer than 25% were still in charge.

🤝 The Equity Trade-off Giving up more equity to cofounders, employees, and especially investors correlates with: - Faster growth - Higher company valuations

- Ultimately more wealth—even with a smaller ownership share

🧭 The Two Paths: Rich or Royal

Those who are committed to being 'Rich' Take in investors, accept professional CEOs, grow fast, and lose some or all decision-making control.

Those who want to be 'Royal' Stay in control, avoid dilution, maintain CEO status, and the company grows more slowly and stays smaller.

💡 What Is Success, Really? Founders must clearly decide what they want: If wealth is the goal, they might willingly let go of control.

If control (being Royal or “king or queen”) matters most, they’ll prefer to remain in charge, even if it limits growth.

✅ Practical Takeaways Clarify your motives early: Do you want riches or the throne?

If you're a founder, tailor your strategy accordingly: For riches: Be open to equity dilution, bring in top talent, give up the CEO role when needed.

For control: Choose business models that require less capital, and lean on your own skills and network.

Plan for succession deliberately: If wealth is the aim, map out how and when you’ll bring in a pro CEO—and what role you'll play afterward.

• Summary End

Although this is an example I share from being a founder's and investors perspective, I feel this is the same, no matter what our journey to financial excellence. So many people want to do things alone, but they could do things sooo much better and achieve financial excellence faster by seeking out the help of others and working with a team such as a financial advisor or investment professional.

I am afraid this founder may stay stuck where they are or suffer slow growth and stick with being 'royal' as examined by those other founders.

Don't let that be you. Said another way, "If you want to go fast, go alone, if you want to go far, go with a team." Wealth is about the journey and the end result at the same time.

My first launch of "How To Become Financially Indestructible" starts this Saturday and there's still a few spots open. Just reply and let me know if you want to get ahead faster with a team.

Thanks,

Michael