The Problem of Points for Small Business Owners
This article explains how the Problem of Points affects partner exits, buyouts, and business dissolutions. You’ll learn why focusing on future outcomes, not past effort, leads to fairer and more accurate decisions.
Why Equal Buyouts and Splits Often Destroy Value
Small business disputes often end with someone saying:
“Let’s just split it evenly and move on.”
That decision feels peaceful.
It often destroys value.
Where the Problem of Points Appears in Business
Common scenarios include:
•
Partner exits
•
Partial buyouts
•
Dissolving ventures
•
Unequal future involvement
The mistake is focusing on past contribution instead of future outcomes.
Example: A Partner Leaves During Growth
Two partners build a business.
One leaves just before:
•
A major contract
•
A scale phase
•
Reduced operational risk
An equal buyout treats future success as uncertain.
It isn’t.
Most of the risk has already been resolved.
The Business Owner Reframe
The Problem of Points shifts conversations from:
•
“Who worked harder?”
to
•
“What is likely to happen next?”
That change alone prevents many bad deals.
Final Thought
In business, fairness isn’t backward-looking.
It’s probabilistic and forward-looking.
Owners who understand this don’t just resolve disputes better.
They preserve value when it matters most.