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 .
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