WARNING and a DISCLAIMER! This blog is not written on the pretence of helping everyone. It’s written specifically for the business owner and entrepreneur who is particularly interested in building a profitable business.
And frankly, why else would you be in business?
In a world of economic uncertainty and insecurity, where cash flow shrivels, pain and anxiety prevail, it’s never been more important for the business owner and entrepreneur to become ruthless and tough minded when managing their business for profit.
Some of you will find parts of this blog hard to swallow. But if you do, suck it up any way. It’ll introduce you to a new and better model for creating wealth in these tough times that seem to not want to end.
As a business owner and entrepreneur, what is your entrepreneurial responsibility?
Well, from an employee point of you, it’s definitely not job security or retirement guarantee.
It’s certainly not to provide a fun and enjoyable, happy place for employees to work that is devoid of profit.
After all without a profit, we all go home including the employee.
Although, management theorists and academics who have never owned a business may disagree on this.
Recent front page headline in the West Australian newspaper read “RIO AXES 350”.
The article went on to say how… “350 construction workers were stood down because RIO and BHP are looking to trim excess fat from less successful commodities to instead focus on their successful Pilbara iron-ore operation. BHP announces this week up to 100 job losses at its Olympic Dam project in South Australia.”
It seems all of this came as a surprise to the workers who commented that… “it started off like any other day and the next thing we know, we’re on a plane back home.” and that… “At Perth Airport, workers said they were angry and disappointed at the cost-cutting move.”
I like anybody else is sad to read about the loss of jobs and the pressure it places on those affected by such decisions. But I’m also a business realist who knows that the primary responsibility of any business owner or manager is to the shareholders.
In the case of big business, shareholders are those with shares in the business. In the case of small business, it’s the owner, you and me, who are the shareholders.
So your primary responsibility is to you.
What the academic theorists and most politicians don’t get is that when taxes go up and electricity goes up, when rents go up and the superannuation goes up, when wages go up, we put up prices and cut costs and that often means job losses.
Bottom-line, businesses don’t pay for the taxes and the increases and loss of profit, clients do and sometimes, employees do by way of losing their jobs.
So I believe, your entrepreneurial responsibility as a business owner is to provide jobs, pay your taxes, only sell transformational products or services, improve your customers’ lives and more importantly,…
maximum profit and wealth to you and your shareholders without lying, cheating and stealing
So the only real purpose of a business is…
Maximum Productivity and Profit
As a business owner, your business is your life 24×7. On the other hand, an employee’s life is outside of their job. Here’s proof…
Fairly recently, I asked one of my all-time favourite, past employee, Michelle Spernick (can you believe she left me for another man? In fact, a client’s son, younger and better looking and moved to the Gold Coast) to rank her top 20 considerations, she had that day.
Here’s Michelle’s list…
- Will I knock off on time tonight
- Will I have enough time to go to the gym
- What am I having for dinner
- Will my wage cover my bills
- Do I have enough money for the weekend
- Can I buy those shoes
- Planning the weekend
- Grocery shopping
- Holding the relationship together
- Planning for an upcoming holiday
- Taking care of your partner
- Taking care of your pets
Look, we only got up to 12 but you get my drift. My business and profit didn’t crack a mention and as I said, Michelle is a stand-out employee who I’d have back in a heartbeat.
Am I saying, all employees don’t care the employer’s business? No, I’m not. And I have some fantastic employees after all they put up with me.
What I’m saying is there’s a difference in agenda and that’s a fact.
There’s a really plain and simple answer to all of this. A business owner’s agenda is in complete and utter conflict with an employee’s agenda as was so rightfully pointed out by Michelle’s list.
Our agenda is the business and profits, their agenda is outside of their job or the business.
That’s why in my opinion, those books on “Ownership Mentality” are a crock of crap. They’re great in a book but not in reality.
You see ownership mentality comes from being a business owner, employee mentality comes from being an employee in a business.
A business owner…
can’t afford their business to be an academic social experiment for the good of mankind
Your agenda is PROFIT and that agenda is in conflict with their agenda and you and your business are mostly a giant pain in the arse! Daisy, my much loved PA, indirectly tells me that literally every day!
And that’s just a fact that the entrepreneurial business owner needs to recognize and come to terms with.