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Introduction

The Art of Business

Levels of Development

Questionnaires

 

Levels of Development

Beyond the general design principles what other considerations are there for the business artist that seeks to create a business of exceptional value?


We believe that there are six levels of development in any closely held business. These are as follows.


The Self Proprietor
The Operational
The Strategic
The Entrepreneur
The Industry
The Global

The art of business is an approach that focuses on finding beauty at each level of design. A beautiful company regardless of its level of development is one that attracts attention and has the greatest chance of succeeding. Beyond the three general principles of design there are specific considerations that determine the beauty of a firm and it is these with which we are concerned.
 

The Self Proprietor

In level one, the self-proprietor level, we learn by personally doing it, recording it, profiting in it, delivering value, building a following and recording a profit . We begin to learn how to deal effectively with customers and employees. We learn how to price and collect for our products and services. We begin to build our mental model of how a business works versus just understanding the technical nature of our products and services. We prepare ourselves to make a transition from artisan to business owner. It is during this stage that we crate our vision and purpose. Your goal is to create a mono business unit that works as a mono unit and is complete and beautiful. You get it to the point where it operates beautifully day in and day out. Just when this happens you are ready for a transition to the next stage of development or not. You can certainly stay at this stage if the economy will let you. Many move forward to create more profit and value while others have to move forward because they are too small to remain competitive and attractive. The key is that you can move forward and still retain the beauty of your original creation. You simply have to keep your design principles in mind for the larger scale of enterprise. It is just like a painter scaling up his picture from a thumb nail sketch.


The Operational

Level Two is the most demanding for most closely held business owners. This is the operational stage where they take their original beautiful idea and begin to scale it up. They have to do a lot of thing that they may find uncomfortable or non-appealing. Among these are the addition of a lot more employees, constant training, more systems and technology and a loss of direct contact with all of the customers and all parts of the business at all times. They move from being the business to running the business. New business skills are required and everything has to be kept in balance. This stage is the dark night of the soul for most closely held businesses. The owner artist must empty himself or herself of the need to be in control of it all and let go to others in the business. Why does anyone do this and how does this contribute to value. The answer is that the business will have its greatest value when it no longer is dependent on the owner. This is just the first step in that direction. A lot of closely held businesses will either neglect this stage or not spend enough time developing it before moving on to the subsequent stages. This is an invitation to disaster. If you haven’t built your business model at this stage you will not be successful in subsequent stages. In fact you will be setting a time bomb in place.


The Strategic

The third level is the one where the business artist begins to get more strategic. Up until now most closely held businesses will have been built in traditional ways. Traditional products and services along with tradition ways of selling, distributing are thematic for the first two stages. It is like the artist learning the basic principles of his or her craft. Once you have your business model working, however, you can begin to get more creative. You now know the traditional principles well enough that you can break the rules, invent new and better ways of doing things and create for yourself a differentiation. This is where you begin to accelerate the value building in the firm. You will begin to earn more on each dollar sold because your offering is better or unique. Many business owners are excited about this type of work and leap into it before they learn the basics. This compromises their ability to actually deliver on the new strategy and may spell the end of a firm. The new is great but is must be built on a sound traditional base of knowledge and skill. They say that a great painting is the result of great drawing ability. While painting is different from drawing it is dependent on it. In the same way successful strategy can only be executed with a good business model. Together they form a thing of beauty.


The Entrepreneur

The Entrepreneurial level is level four of our building. Once you have successfully differentiated yourself from the market you will get operating at earnings levels higher than average. This positions you to have money to invest in new or existing ventures. Buying other businesses and merging them into your own business model is a logical next stage. You will be able to buy them based on their lower earnings model and convert them to your high performance model. Again you will be adding value not only to your firm but also to the marketplace in general. You will be expanding our span of control over a greater segment of your industry and will set new benchmarks for firms dealing in your products and services. The ends result of this in perhaps an IPO. If you can generate enough market share and have a good sound business model you can create a work of great beauty at this stage. You will also have a greater public profile to admire your offering.


The Industry

If you elect to go beyond the entrepreneurial level you will most likely begin to work at the Industry level. Beauty is created at this level by seeking to get the entire industry to embrace your principles of business art. You begin to promote a new school of thinking within the industry. You may elect to write a book, go on the speaker circuit or work at the National political or governmental level. The principles are the same but the potential impact is greater. The canvas is very broad and all of the world wants your work. As long as you can keep your wits about you and not get carried away with your won success you may at this level do your best work. This is a level of service and in service you will find a new beauty.


The Global

The final level is like the last level of spiritual quest. Few make it in their lifetime but it is certainly worth the trip. The final level is one of the highest level of beauty. Here you may create an entire new industry. You may seek and find a cure for a problem that has plagued your industry or businesses in general forever. You will have, through diligent effort, accumulated all of the knowledge and experience you need to begin to reflect and create solutions at will. This level is not for everyone and you may have become well satisfied at a lower level. But for the one who is on the quest of the ultimate adventure in business this level holds rewards like no other. The key at this level is to ask the right question and seek to solve it. Make it a big question and do not shrink from the work necessary to solve it. You have spent a lifetime working toward this moment and the final reward will be the answer you discover. It will be your final work of art and your final contribution. It will be your hallmark.


So these are the principles of design and the levels of structure through which you may pass. Where do you stand at the present moment? How does your business stand up to the three major design principles? Where do you stand on the journey through the six levels? How do you get on the journey and execute in the best manner to build a beautiful business and a great work of art. One that has the greatest value. The J.R. Hull Co., can help you discover these answers for you or your client. Begin the Journey with the initial questionnaire and find out where you are and what lies before you in your quest.

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