Essentials Magazine Essentials Spring 2018 - Page 13

a person that is the true manager of a business and then purchases it from the individual that previously was their employer. Perhaps this person was never told that there were additional components of their job description that would change when the financial ownership of the business took place. The person that currently owns the business is doing themselves a great disservice if they are expecting the new owner to be making payments over a period of years to purchase the business. They need the new owner of the business to be even more successful than they were so that they can make the monthly payments for the business. Our “manager” looks at the business with an “I” viewpoint because, “I have to do so much of the work”. OWNER MINDSET Our second person to look at is the one that we have given the title of “owner”. One of the leading characteristics of this person and their business is that they become the focal point of the business. The business becomes a reflection of this person. It starts with the merchandise the business sells. If we were to ask the “owner” to give us a tour of their business, they would likely tell us how much they like all of the items they sell. Going back to the point where they purchased the merchandise at a trade show or through a sales representative calling on the business, we would likely hear the “owner” looking at an item and making comments such as, “I really like this”. We are not hearing comments about how well they anticipate an item will sell, but instead the comments, and selections of merchandise center on the likes and dislikes of the “owner”. The “owner” believes they have the ability to make the right choices with regard to what the business sells, so it is appropriate for the ‘owner’ to make the choices based upon their tastes. The concern that would be expressed for an ‘owner’ format business is that the “owner” will need to spend their time and effort finding customers that have the same taste as the “owner” does. The ENTREPRENEUR is passionate about business first and the business they currently own is more of a vehicle for that passion. Looking at the physical aspects of the business, the appearance of the business also is a reflection of the “owner”. The staff of the business is often a reflection of the “owner”. This happens because the “owner” displays a “my” attitude about their business. It may be a good attitude or a bad attitude, but it is their attitude that permeates the business. The same is true for how the store looks and what the store sells. The appearance and/or the inventory selection can be great or poor, but they are a reflection of the “my” aspect of the ‘owner’ of the business. The business that has an ‘owner’ often is one that is a reflection of the tastes and attitude of the owner. ENTREPRENEUR MINDSET Our third and final way of a business is one of an “entrepreneur”. The word we will expect the entrepreneur to use in describing their business is, ‘it’. This is not to be taken as cold and impersonal, but instead it represents the viewpoint of a person is more likely to be focused on the profitability of the business. This person may have owned several businesses over the past several years with each business being a different type; they may have owned a book store at one point, and a restaurant at another. When the “entrepreneur” first visits an area to look at a potential location for a business, they are not likely to come with the intent to open a specific type of business. Instead, they are looking Business Strategy at what would be the type of business that would have the highest potential for success. If they are adding another location, they are looking at the community not because they like it, but because the demographics fit their business model. The “entrepreneur” will more likely be drawn to statistics and information about the community as compared to wanting to open a specific type of business because that type of business is what they like best. As the “entrepreneur” is active in the community, this person may be one that is going to more often vote with their head or wallet instead of their heart. If the proposal does not make sense from a business standpoint – in the short or long run – they are going to be less likely to support it. Our “entrepreneur” is likely to be the most profitable of our three as well as being the one that spends the least amount of hours in their business each week. With the entrepreneur, we are also less likely to see the store or business as an extension of the person as we would see with the “owner”. The entrepreneur is passionate about business first and the business they currently own is more of a vehicle for that passion. A person can make the transition from “manager” to “owner” to “entrepreneur”. Doing so will surely improve the quality of the business. n TOM SHAY, owner of Profits Plus Solutions, is a fourth-generation small business owner with over 25 years of ownership and management experience. Tom provides the “nuts and bolts” necessary to improve the operation and profitability of their businesses coaching small businesses through challenging times and is the author of eleven books on small business and a college textbook on applied accounting. Reach Tom at tomshay@profitsplus.org or visit www.profitsplus.org for more. essentials | www.edmarket.org 13 Business Strategy a person that is the true manager of a business and then purchases it from the individual that previously was their em- ployer. Perhaps this person was never told that there were additional components of their job description that would change when the financial ownership of the busi- ness took place. The person that currently owns the business is doing themselves a great disservice if they are expecting the new owner to be making payments over a period of years to purchase the business. 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