For the prospective small business owner who is willing to be directly involved in the business, there must be a serious commitment to the company through time, labor, and attitude. Profit has a high correlation to how much time and effort an owner-manager expends. Involved owner-managers have a clear idea of the inner workings of their company, with a precise understanding of everything from employee needs to inventory requirements, and from the company’s yearly consolidated financial statement to customer requests. Though the commitment is considerable, for companies led by an involved person, the benefit to employees, to operations, and to the company financial statement is immeasurable.
Before the purchase of a turnkey business, the prospective business owner must decide if he or she will be an active or passive participant in the company. Each management method has its advantages and disadvantages, but knowing beforehand what style of management is best-suited to a business and to a particular person can mitigate the conflicts that arise from incompatible expectations.
