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The owner role of an entrepreneur

There is often much confusion regarding the three roles an entrepreneur plays in his business.

Nearly all of his is spent as president, executing the plans of the company and making decisions in the company's best interest. This is a very hands-on role. Sometimes he is in the CEO role where he works to create strategy and systems for the company's growth and future benefit. This role is much less hands-on, but critically necessary for the long-term success of any organization.

The Owner Role

However, the role of owner is often most confusing to everyone, including the entrepreneur himself. Unlike President and CEO, the owner of a business is not an employee and therefore has a different role. The owner must make a financial investment in the company, which is often used to fund its startup and growth initiatives. In return for this investment, the owner receives shares of the company. Since owners are not employees, they are not paid a salary, but instead receive dividends.

In addition to their investments in the business, owners are usually required to personally guarantee the responsibilities of the business. This puts owners at significant financial risk and exposure. As such, successful owners will ensure that their businesses are properly cared for to ensure healthy growth. This oversight includes ensuring successful strategies/systems, proper financial management, effective leadership, strong teams, and valuable products/services. In small businesses, most owners are also employees when they serve other roles in the company.

By defining and providing clarity to these roles, both the entrepreneur and all those around him will benefit. Many times in business, the roles get blurred. This can cause enormous confusion in a business. Once these roles are defined, it is best to state which role the entrepreneur is playing, when communicating with others.

Comments
wedding dress's Gravatar As a CEO,these things must to note,thanks for your write.
# Posted By wedding dress | 11/14/07 10:46 AM
Werbeagentur's Gravatar Many thanks for the interesting article
# Posted By Werbeagentur | 1/29/08 7:31 AM