Page 127 - merged.pdf

CHAPTER 4 BUILDING A BUSINESS THAT WORKS... WITHOUT YOU

create a system to select, train and manage the careers of
these people.

He also had no idea of his profit margins and whether his
profits were increasing or declining on a monthly basis, since
no one was tracking the numbers (part of finance). He found
himself working like crazy only to find that his profits were
declining every year.

Finally, although Richard was the Managing director in name,
he spent no time doing the things that an MD should be doing
(i.e. the strategic & leadership work).

This Is What Richard's Chart Looked Like

Chief Executive Officer
(Richard)

Aministration
(Cheryl)

Marketing Director Operations Director Finance Director Human Resource
(Richard) (Richard) Director
(Head Stylist) (Richard)
(Richard)

Advertising/ Stylist 1 Accounting MIS Training Recruitment
Promotions (Richard) (Richard) (Richard)
(Richard) (Richard) (Richard)
Stylist 2
Customer (Carol)
Service
(Cheryl) Stylist 3
(Terence)
Sales
(Richard) Hair Washer/
Manicurist

(Cindy)

Richard runs his hair salon with two other full time
stylists (Carol & Richard) and a hairwasher/manicurist
named Cindy. Cheryl, the third staff, attends to the customers,
works the cash register and handles the administrative matters.

118 SECRETS OF BUILDING MULTI-MILLION DOLLAR BUSINESSES