Unknown Speaker 0:00

The Law of the architect.

Unknown Speaker 0:03

When it comes to success, many business owners and entrepreneurs are failing due to
their inability to follow or lack of awareness regarding the law of the architect.

Unknown Speaker 0:15

This law is powerful and is largely overlooked when it comes to running a
successful business. This is apparent if you just look at the sheer number of small
businesses that are started and failed within the first year or two.

Unknown Speaker 0:29

To be successful in the small business sector or in growing a large corporation, we
must strictly adhere to this law without exception.

Unknown Speaker 0:38

An architect is a designer or a person who designs and guides a plan.

Unknown Speaker 0:45

This sounds simple enough, but the confusion arises when it comes time for a person
to design the future of their business and in the guiding of their plan. To
illustrate, suppose three young men agree to start a business together, each of the
men possess their own unique talents and strength and all three men have agreed to
be equal equity holders in this newfound venture.

Unknown Speaker 1:09

Which man should fill the role as the designer or is set to be the one to oversee
the plan. This responsibility should always be given to the founder, the founder is
the architect and should always take the responsibility as the one who designs the
vision and overall plan for the company. Now, in our illustration, the argument
could be made that all three of the men are founders, they are all participating
from the beginning of the company and work equally hard to run the business. They
even have equal shares in the business. However, the fact remains that there can
only be one founder. You see, one of the three men came up with an idea which
spawned the seed of inception, they were the originator of the vision, and likely
shared the vision with the other two men. No doubt the other two men shared his
enthusiasm and even enhanced the vision, but the fact remains that there is only
one founder.

Unknown Speaker 2:09

Making these distinctions early in the starting of a business is critical to its
success. It doesn't diminish the roles or value of the other two partners, but
determining who the founder is, is in the best interests of all who work for the
company. Now that we have identified who the founder is, it is important to focus
on his or her roles.

Unknown Speaker 2:33

The founder has three primary roles. First, to gain clarity of vision for the
company's future, and to identify what objectives and systems need to be put in
place to accomplish those objectives. Second, is to impart that vision very clearly
to the other partners and remaining team members. The founder also needs to share
what objectives need to be met and what type of systems may need to be put in place
to accomplish the vision. It is not the founders job to take the lead in
implementing the action steps necessary to accomplish set objectives. Nor is it
their job to implement the systems necessary to get the company running smoothly
and efficiently. If the founder has his head down, working diligently to directly
implement the action steps necessary to succeed, how will he be able to see where
the company is going and remain in a position to navigate the company's course to
safety.

Unknown Speaker 3:30

all team members need to work diligently to make any company succeed. This is
especially true in the startup phase.

Unknown Speaker 3:39

However, it is the deadliest of mistakes to allow the founder to participate in
running day to day operations and in most cases, the single action that leads to
the company's demise. The third and primary role of the founder is to keep his or
her focus on the building of the asset. The majority of business owners are so
focused on trying to run a successful company, they fail to plan and take the steps
necessary to build the company into a valuable asset. This duty will always fall on
the shoulders of the founder, the architect of the business.

Unknown Speaker 4:16

In certain industries, a company will naturally acquire some assets. This may be in
the way of product inventory, land, or the ownership of a building. There are also
many things the founder can do in order to grow the asset, such as planning to
acquire certain equipment or other tools that will be added to the company's list
of assets while simultaneously creating efficiencies for the company. These new
efficiencies will also promote savings, which in turn allow the company to build up
its cash reserves.

Unknown Speaker 4:49

Many companies however, assume that since they have a strong gross income, the
company automatically has a high value or worth. This is simply

Unknown Speaker 5:00

Not true. Suppose a small business is generating $1 million a year in gross annual
earnings. It would be assumed by many that the company was worth 3 million or more.
But what if the company was operating at a 30% profit margin was renting their
location and was in the business of providing a service rather than the selling of
valuable products, they may have little to no assets, and that company may be worth
a half a million or less, especially if it is holding current debt. If you are
renting your location of business, and are in an industry that provides a service
rather than the selling of valuable products, it is imperative that the founder be
allowed to fulfill his or her role without distraction and look for ways to build
assets. These assets may be gained by the way of creating other sub products,
programs or tools such as proprietary marketing solutions, software programs, apps,
or other proprietary systems that can be owned by the company and sold to
competitors. It is of the utmost importance for all Alliance members to create
generational wealth. This is largely accomplished by the building of personal and
business assets and not by the focusing of running day to day operations of a
business for the purpose of increasing revenue.

Unknown Speaker 6:21

If a founder is focused running a successful business, he or she cannot be focused
on building valuable assets and the wealth necessary to ever make a real impact.

Transcribed by https://otter.ai