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Three critical duties of business owners

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Three critical duties of business owners

Introduction

In the beginning, the owners are often the best at making or delivering the product or service. Since they have the most at stake, they often assume a wide variety of roles, including sales, accounting, and much more.

Through a combination of skill, planning, talent, and perhaps luck, some businesses manage to grow. This growth leads to new and changing roles in the business for everyone, including the owner.

Of all the roles an owner has in the business, perhaps the most important one is to be the designer for the business. In the role of chief designer, business owners have three critical duties:

- Provide the vision and direction for the company
- Develop and refine processes and procedures
- Create the organization’s human resource structure

Vision and direction

Owners set the direction for the values of the company, develop its product and service strategies, and set the tone for its relationships with customers.

Processes and procedures

Owners design the “business model”, or the big picture formulas and processes of doing business. Then, they must fill in the details by analyzing processes and finding bottlenecks.

Human resource structure

Owners identify the positions and types of people the business needs, and then they find the people to fill those roles. In the words of Jim Collins, author of the bestseller Good to Great, “Get the right people on the bus, the wrong people off the bus, and get everyone in the right seats.”