June 30, 2017

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Should owners be involved in managing a business

Many a business owner believe that they ought to have an answer for every question and a solution for every problem concerning their business. After all, they are the proprietors or proprietresses. Nevertheless, merely owning a business cannot make them Mister and Mistress-Know-all.
A good way to escape from this rather awkward mindset is to recognize the difference between management issues and ownership issues—the former issues are the daily, weekly and monthly things that must be done to ensure the smooth running of the business, ranging from staffing the business to cope with seasonal variations to stock control to taking orders and chasing up debts. All of the daily processes needed for making operation of the business a success come under management issues. If these are executed effectively, the business will then succeed.
On the other hand, ownership issues are the things that only an owner can do. They tend to be more strategic and might include dealing with the bank or finance company to ensure sufficient capital to grow, negotiating on suitable freehold or leasehold premises for the business to operate out of, maintenance of relations with other proprietors or investors in the industry, deciding on future strategy and creating a compelling vision of the future. Last but not the least, they have to look for talented people with
great attitudes to join the business and help to serve your customers. Without talented people, no business can have a competitive advantage.
When the business is small, owners can manage well but as the business firms grow in size, the owners cannot manage the whole business very well. And the key decisions will be delayed when owners are away either on business or on vacation. Because no one but the owner is accountable, lots of things never got done. This being so, owners should empower their staff at the management level.
It is worth noting that when the owners are doing whatever needs to be done, CEOs don’t do work, delegating everything, hiring talent with high pay, always recruiting and raising funds, defining objectives, providing, resources and stepping aside, giving praise, sharing credit, encouraging critique, cultivating culture, holding others accountable for results, coaching, cheerleading and directing.


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