4. Engage in Similar Management Philosophy – With the inception of a private business, the owners immediately share common goals and means to achieve those goals by virtue of creating the company. Stay on task. As the business grows and is subject to normal business cycles, opportunities are presented to alter that management philosophy. Have a mission statement and stick to it. Follow precedent. Discuss openly and set short term and long range policies that all owners can live by and follow them in the operations of the business. For example, set your policy on reasonable salaries and when profits are available an appropriate profit distribution without taxing the capital of the company.
This post is part of an 8 post series.