Is Your Business Creating Wealth?
Is your business creating wealth or just providing you a paycheck? As a business owner, you have a duty to view the ownership of your company in the same way that you would view the ownership of any other income-producing asset, such as a stock, bond, or investment property. That is, your business must provide you an appropriate return on invested capital. If it is not providing you with a return, such as annual dividends or capital appreciation, you must determine why, otherwise you are squandering valuable time and resources and not building wealth. (more…)