-
Often the primary long-term goal of business ownership is to increase personal wealth to achieve financial independence. Wealth can consist of non-financial assets valued to show a high net worth. But financial independence requires liquidity. Liquidity is achieved when readily available liquid assets are held at a low risk of loss. Non-financial assets such as…
-
Governance of businesses generally consists of two structures: hierarchical (pyramid) or nonhierachical (flat). Can it be determined that one structure is more conducive to effective decision-making than the other? The hierarchical structure is the traditional legal governance structure of the corporation. That structure creates an overall executive officer (president or chief executive officer), a vice…
-
Most would immediately doubt the wisdom of a plan to place a building on the top of an active volcano. Yet, a majority of businesses consisting of more than one owner are built on a base that will erupt like a volcano. As with the volcano, the exact time of eruption or how much lava…
-
The owner agreement – that understanding between multiple owners of a business – is the fabric of the business and is the basis of how the business may be sustained. This owner agreement fabric has many threads consisting of the communications between the owners. These communications, including oral, written, and experiential, are woven together to…
-
The time-change continuum at once motivates a business to plan and prevents the planning from being effective. In a competitive marketplace, where change may be exploited for economic advantage, to sustain profitable performance over time a business must change. Without getting into the mathematical complexities of the space-time continuum model (the description of an event…
-
It is not what you say, but what you do. Many founders of businesses who are now owner-managers of the business they founded, will tell you they want to make their businesses more valuable. But is that reflected in the actions they take? There are established actions business owners can take to make a business…
