Canonical definitions

Definitions for founder, owner, and principal decisions.

Plain-English entries for the structural patterns under business decisions involving control, capital, governance, authority, leadership, and exits. Each page is a canonical reference: what it is, what it is not, three short examples, when to use the frame, when not to.

Practice

Decision architecture

The practice of reading the structural pattern under a stuck decision before recommending any action.

Advisory role

Private business advisor

Confidential, principal-only advisor on consequential business decisions. Distinct from consultant, coach, fractional executive.

Structural pattern

Owner dependence

How much of the business stops working when the owner leaves the room. Measurable across five axes.

Structural pattern

Founder bottleneck

The pattern where decisions and approvals concentrate on the founder's desk. Four authority transfers fix it.

Governance tool

Decision rights

The explicit assignment of who decides, who is consulted, who is informed, who can veto.

Structural pattern

Founder ceiling

The level at which a company stops growing because the founder is the binding constraint.

Decision type

Principal decision

A decision made by the person whose stake is largest, irrevocable, and accountable. Distinct from operational, executive, board.

Risk concept

Decision delay cost

What it costs to keep a decision open past the moment it could have closed. Compounds across three layers.

Risk concept

Key person dependency

Owner dependence priced by buyers, lenders, and insurers. Valuation discounts of 20-40% are common.

Distinction

Authority vs ownership

Ownership is what you have. Authority is what you can decide. Founders often confuse them.

Capital mechanic

Founder secondary sale

Selling part of your equity without selling the company. Mechanics, tax, and signal effects vary materially.

Capital category

Private equity in small business

Control or majority capital with a three-to-seven year hold and an exit thesis. Fit varies by firm.

Governance tool

Decision rights matrix

One page that names who carries each consequential decision. Sharper than RACI.