If you are not a capitalist at heart, you will never have a successful business, whatever your definition is. “No system has ever been created by which men can legally acquire riches through mere force of numbers, or without giving in return an equivalent value of one form or another…. There is a principle known as the law of economics… It is a law no man can beat… it is far more powerful than all the politicians and political machines… Capitalistic South Africa¹ insures every person the opportunity to render useful service, and to collect riches in proportion to the value of the service.
The ‘System’ denies no one this right, but it does not, and cannot promise something for nothing”².
In #3 of “unpacking” and “demystifying” Vison, Mission, and Purpose (VMP), and why it is critically important, I today address your Compensation and the Financial Health of your business.
Compensation – Personal Vision
Are you paying yourself a monthly salary “in proportion to the value of the (your) service”?
A salary that reflects that you are the owner? Or are you an employee?
Do you know how much money and what type of rewards you want from your business?
Is that number and detail written down?
Or are you settling for what you get, and you live accordingly? Nothing wrong with this, but then why not just go back to being an employee?
At year-end, do you allocate a certain portion of your annual Retained Earnings to yourself?
Answer this question – how satisfied are you with the compensation and rewards you receive from your business?
Give yourself a rating on a scale of 0 to 10, where 0 is “not at all” and 10 is “100% satisfied”.
Financial Health – Company Vision
Cash in the bank, is the reward for what your business did in the past – month, year, after you paid yourself a salary.
At year-end, do you allocate a certain portion of your annual Retained Earnings to pay for the plans you have for next year?
Answer this question – how satisfied are you with the Financial Health of your business?
Give yourself a rating on a scale of 0 to 10, where 0 is “not at all” and 10 is “100% satisfied”.
If you are not satisfied with one or both of your above scores, let’s have coffee.