Systemic bias is a severe issue that can negatively impact both individuals and society as a whole. Systemic bias occurs when entire systems, like education or the legal system, are designed in a way that disproportionately benefits or disadvantages certain groups of people. This often happens unintentionally, but it can profoundly affect people’s lives..
Joanna Griffiths, Founder and President of Knix, had a great business idea, but when she went to pitch it to potential investors, she was told that she was too niched down in her market.
Joanna Griffiths
Griffiths was hesitant to change her plan and vision for the business, rejecting the idea that she was too niche. She launched Knix “with the goal of transforming an underwear market that had too much frill and not enough function. A trailblazer with the creation of Leakproof Underwear, she continues to focus on listening to what people want and bringing revolutionary solutions to life.”
Griffiths sold 80 percent of her business in a record-breaking deal for $320M USD. The deal values Knix at an enterprise value of $400M USD and sees Essity taking an 80 percent stake in the business. making the purchase the largest publicly disclosed private sale of a DTC brand by a female founder to date in Canadian history, and one of the most significant sales of a brand by a female founder in US history.
Although Griffiths wasn’t actively looking to sell Knix, Essity was a strategic partner with similar values, and Griffiths was excited about what they were doing. It was important for Griffiths to retain 20 percent control of the company, and her title will be moved to President while continuing her role.
When you’ve put your heart and soul into building a business, the decision to sell can be a tough one. It’s important to remember that it is a profoundly personal decision. There is no right or wrong answer, and no single factor will make or break the deal. The most important thing is, to be honest about what you want and need from a sale. If you’re not ready to let go completely, consider options like selling a minority stake or passing the business on to a trusted employee. Whatever you decide, make sure it’s a decision that you can live with.
When considering selling your business, it is crucial to understand what is important to you and the criteria you want the buyer to meet. There are several factors to consider, such as the type of business, the size of the company, your personal goals and objectives, and the financial stability of the buyer. It is also essential to consider the potential impact of the sale on your employees, customers, and suppliers. By taking the time to understand your goals and objectives, you can increase the chances of finding a buyer that meets your criteria and provides a smooth transition for all parties involved.
When considering selling your business, clearly understanding your business numbers is essential. This will help you ensure that you get fair value for your business. Keep in mind that a number of factors can affect your business’s value, such as the current market conditions, the size and scope of your business, and your financial history. If you’re not sure what your business is worth, it’s a good idea to consult with a professional appraiser. Once you understand your business’ worth, you can start thinking about the best way to sell your business and get the most value for it.
The bottom line is that systemic bias can be challenging to overcome because it is often entrenched in the structures we take for granted. For example, Griffiths had repeatedly been told not to niche down with her products. But she persisted and sold her business in a historic deal nine years later.
To overcome systemic bias, we must become aware of how it manifests in our everyday lives. Once we can identify instances of discrimination, we can start challenging them.
Melissa Houston, CPA is the host of She Means Profit podcast and blog. She is a Finance Strategist for CEOs where she helps successful business owners increase their profit margins so that they keep more money in their pocket and increase their net worth.
The opinions expressed in this article are not intended to replace any professional or expert accounting and/or tax advice whatsoever.
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