Corporations - THE FOUR HATS YOU WEAR
If you are an incorporated small business, did you know you wear four hats, as the saying goes? You fill four equally important roles to be successful.
First you are a Shareholder - you own the business and want it to be successful as a result of the monies, sweat, worry, time and effort you invest in your business. The objective of your business is to provide enough profits annually to live comfortably, and eventually a big sale price so you can retire comfortably.
Second, you are a Director which the Shareholders elect annually. Directors are responsible to the shareholders for the success of the corporation. Directors make the strategic decisions about how the business will grow and be successful.
Third, you are also likely a Corporate Officer such as the President of the corporation. Officers are appointed by the Directors to carry out the strategic plan and the daily management needs of the business. Like Directors, Officers also have legal duties and liabilities.
Fourth but certainly not last, is the important position of Employee who is hired by an Officer. Being a small business owner, you very likely still work in your business as well as on your business.
And of course, as the saying goes, when you want an important job done, you need to do it yourself. In summary, there is a very good reason why the incorporated small business owner is feeling tired and busy because you are filling four roles = Owner, Director, Officer, and Employee.