Think for a moment how you would act or react if you had equity in another business? What sort of input would you like to have in the way the money is spent on R&D and marketing or wasted on yet another batch of pink T-Shirts for the next convention. Now consider your own business, I assume you have equity in this? Why then do we ignore the way we often waste our resource just because we have the authority to do so. The Share Holder’s hat needs to be worn all the time to assist in the distribution of funds and budget compilation and approval. How different would you run your business if you have 30% equity invested in say me? I would require regular financial reports and discussions about where my money is going. When any person owns 100% of their business they seem to throw this hat away or hang it up on a peg of non-concern.

It is very interesting to see how this changes when a loan is required and some form of equity or surety is signed. Then all of a sudden the papers fly and new reports are produced. Take time out today and put on your Share Holder’s hat and consider what you would say to the business manager about how they are running your business. Then go look in the mirror and have a board meeting.

Next week we continue with the Chairman’s hat