Business Education

You Own a Small Business and Just Hit the Jackpot—Now What?

Practically everyone dreams about winning the lottery. And this includes small business owners too. But, what if you owned a small business and hit a life-changing jackpot? It’s an interesting thought experiment and gets even more profound when trying to apply it to practical circumstances.

In other words, what would be the logistics of such an unimaginable situation? How would you deal with collecting a larger-than-life windfall when owning a small business?

One thing is for sure—it’s not an easy question to answer. There are just too many moving parts and contingencies to come up with a simple, on-the-fly, satisfactory plan of action.

How Small Business Should React When Winning the Lottery

Winning the lottery is a life-changing event, but for small business owners, it introduces unique challenges and opportunities. The sudden influx of wealth can spark a whirlwind of emotions and decisions. So, this thought experiment explores what happens next and how to navigate such a weird and sudden reality.

Step 1: Pause and Reflect

Before making any drastic decisions, take time to process your win. Winning the lottery can be overwhelming, and rushing into choices might lead to regret later. Consult a financial advisor, CPA, and lawyer to help you understand the implications of your newfound wealth.

Step 2: Assess Your Business

Now that you’re financially secure, ask yourself: “What role does my business play in my life?”

Passion vs. obligation. Do you run your business because you love it or because you need the income? If it’s a passion project, the lottery win might allow you to expand or innovate without financial constraints. If it’s purely for income, consider whether it’s time to step away.
Business viability. Is your business thriving or struggling? The lottery win could provide an opportunity to invest in growth or pivot toward new ventures.

Step 3: Explore Your Options

Winning the lottery opens doors to possibilities that were previously out of reach. Here are some paths to consider:

Option 1: Stay Involved

You may choose to continue running your business but with less financial pressure. Use your winnings to:

Expand operations.
Invest in new technology or marketing.
Hire additional staff to reduce your workload.

Option 2: Step Back

If running the business feels like a burden, you could:

Delegate responsibilities by hiring a manager.
Transition into a silent partner role.
Scale down operations for a more manageable workload.

Option 3: Exit

Sometimes, winning the lottery provides an opportunity to walk away entirely:

Sell the business and use the proceeds alongside your winnings to pursue other interests.
Close the business if it’s no longer viable or fulfilling.

Step 4: Consider Your Legacy

With newfound wealth, think about how you want to leave an impact:

Philanthropy. Use your winnings to support causes aligned with your business values.
Community support. Invest in local initiatives or mentor other small business owners.
Family wealth. Create generational wealth through smart investments.

Step 5: Avoid Common Pitfalls

Lottery winners often face challenges such as overspending or strained relationships. To safeguard your finances and peace of mind:

Develop a clear financial plan.
Avoid making impulsive decisions based on emotions.
Be cautious about sharing details of your win publicly.

Wrapping It All Up

Winning the lottery doesn’t mean abandoning everything you’ve built—it means you have choices. Whether you decide to grow your business, step back, or exit entirely, focus on aligning your decisions with your values and long-term goals. This windfall is an opportunity to redefine success on your terms.

Want to Accomplish More?

Do you want your company to grow faster and earn more while you spend more time with your family doing all the things you started your business to do?

We can make that dream a reality. Give us 30 minutes and we will show you how to get your life back. Skeptical? Good! Put us to the test.

You can call us for your free appointment at 480-636-1720, or, if you prefer, send us an email. You can also visit us at Waters Business Consulting Group to learn more about us and the services we offer.

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2 Strong Signs You’re Actually Successful, Even if You don’t Believe It

October 21, 2018 No Comments

What does success actually feel like? It’s not always obvious, especially on the days when you feel like you’re falling short. The bottom line only tells part of the story. Here are a couple of subtle but powerful signs that you’re doing better than you think — even when it doesn’t feel that way.

How Provident Law Found Its Breakeven Point and Stopped Subsidizing the Firm

October 2, 2026 No Comments

.elementor-widget-text-editor{font-family:var( –e-global-typography-text-font-family ), Sans-serif;font-weight:var( –e-global-typography-text-font-weight );color:var( –e-global-color-text );}.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:var( –e-global-color-primary );}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap, .elementor-widget-text-editor.elementor-drop-cap-view-default .elementor-drop-cap{color:var( –e-global-color-primary );border-color:var( –e-global-color-primary );} A Successful Firm, an Owner Footing the Bill On paper, Provident Law was doing fine. The Phoenix-based firm, built on strong convictions about justice and client care, had a solid practice and a loyal client base. But managing partner Christopher Charles knew something wasn’t right underneath the surface: he was personally subsidizing part of the firm’s overhead out of his own pocket, quietly reducing his own take-home pay to keep the business running smoothly. He didn’t have a clear picture of the firm’s true breakeven point, didn’t know exactly how many attorneys the practice needed at current fee levels to cover its costs, and was struggling to get the accounting system to give him answers instead of more questions. “John Waters has been key to helping my firm understand its revenue and helped us create a strategic plan for sustaining and growing our business. He tries hard to understand our business and it is obvious that he truly cares about our success,” said Christopher Charles, Managing Partner of Provident Law. Finding the Real Numbers Behind the Practice Waters Business Consulting Group started where every strong financial strategy has to start: with the historical numbers. WBCG dissected Provident Law’s true overhead costs and analyzed past financial trends to understand where the business had been and where it was actually heading. From there, the work turned to identifying exactly how much revenue needed to come in each month — in the form of partner contributions — to meet overhead obligations, since the firm’s profit margin left little room for error. That analysis led to the central deliverable of the engagement: an accurate breakeven calculation, along with a simple way for Christopher to recalculate it himself as the business grew or changed. WBCG also helped identify the type of internal bookkeeping support the firm needed and forecasted where the practice was likely to grow across 2019, 2020, and 2021. None of this happened in a single meeting — WBCG met with Christopher two to three times a month to review financial performance and help him prepare a clear “state of the law firm” update he could share with his partners. Turning Numbers Into a Conversation Partners Could Understand Perhaps the most delicate part of the engagement wasn’t the math — it was the conversation that math made possible. Christopher had been quietly covering a gap in the firm’s operating funds, and he needed a way to explain to his partners why shared overhead fees needed to increase. With WBCG’s help, he was able to present the numbers clearly enough that the partnership could understand not just what needed to change, but why. Clarity Where There Was Once Guesswork By the end of the engagement, Christopher had a fundamentally different relationship with his firm’s finances. He understood what it took to meet and exceed Provident Law’s monthly obligations, and he had a clear rationale for bringing on additional attorneys to support that goal. The firm transitioned to a higher-quality accounting system, and Christopher gained visibility into billable hours and rates relative to attorney headcount, the maximum volume of matters the firm could realistically manage, and the average case size needed to hit growth targets. He could now track, week to week and month to month, how many matters opened, how many billable hours were logged, and how much was actually collected — the operational heartbeat of the firm, finally visible. Not Sure What Your Breakeven Number Actually Is? Many successful business owners are, in effect, subsidizing their own companies without realizing it. If you don’t have a clear, current answer to “what does my business need to bring in this month to break even,” that’s exactly the kind of clarity Waters Business Consulting Group can help you build. Contact Waters Business Consulting Group to schedule a free consultation.

Don’t Let Your Attempt to Hide an Embarrassing Problem Accidentally Advertise It (Like Barbara Streisand Did)

September 24, 2026 No Comments

Sometimes, the “solution” can easily be far worse than the problem. We’ve all heard this sentiment in different forms. It’s a crazy but very real phenomenon, and it goes against intuition. After all, what could possibly go wrong? Well, a lot could and probably will go wrong. That’s because there’s just no way to plan for every plausible (and implausible) contingency. Still, a circumstance we know we should handle a certain way deep in our gut is too unbearable to let play out. So, we go against our instinct, fearing it will backfire, and then watch in horror as it blows right up in our face.