Strictly Business

Tuesday, Apr 01 2014 01:00 PM

RUSS ALLRED: Concentrate on right issues to earn wealth, leisure

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    Russ Allred, business consultant and author at Sunbelt Business Brokers & Advisors.

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BY RUSS ALLRED Contributing columnist

The warming weather and waning winter distract students from their studies. The lure of leisure can also affect a teacher's concentration. Most business owners lack the luxury of extended vacations because they too are distracted from what should be their concentration.

Consider these two organizations. The first is a seasoned business. The owner says they turn down sales for lack of trained technicians. The other is a school for children with special needs. The income for the school is determined by enrollment. The only thing they lack to increase revenue is trained teachers. Both leaders know exactly what is needed to increase their income, but they are concentrating on the needs of the day, not the future.

Selling and production processes should be elementary for entrepreneurs, but one has to graduate to grow. In the case of the two leaders, they should have been developing recruiting and training programs instead of doing busy work.

A "secondary" business will include the following on its transcript: Employees do the daily work. Supervisors ensure attendance and productivity. Monthly financial statements are used as tools to determine problems and plan for needed changes. Jobs that require specialized skills or equipment are outsourced. These are prerequisites so the owner can better manage a growing business.

The baccalaureate into advanced business requires independent managers. The difference between a supervisor and a manger is control of a budget. Managers have buying power. They can commit the resources of the business on a limited basis. This collegiate comparison conjures thoughts of a new freshman. You don't give them carte blanch, but if they remain within your limits, they retain some independence.

In the case of a manager, the "limits" are policies and they should be in writing. Managers and policies allow the owner freedom within reason. An owner at this level can take extended vacations or search for new business opportunities. This level of business is attainable for most entrepreneurs.

The next, or "C" level requires an advanced degree of business knowledge. "C" refers to chief as in chief executive officer or chief financial officer. For the entrepreneur to rise to this level usually requires the loss of ownership percentage in favor of collecting more capital.

It is counter-intuitive, but the rewards can be exponential. While most entrepreneurs work tirelessly for a six-figure income by selling interest in their business and using the cash to expand, they might make millions. While this article references educational institutions, you don't need an advanced degree to excel in business, but you do need knowledge and focus. Learn this lesson; you need to concentrate on the right things to earn wealth and leisure.

Russ Allred, MBA, is a business consultant and author with Sunbelt Business Brokers & Advisors. These are his opinions, not necessarily those of The Californian.

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