All posts by John Psarouthakis

drjohn11aDr. John Psarouthakis, Executive Editor of www.BusinessThinker.com, Distinguished Visiting Fellow at the Institute of Advanced Studies in the Humanities, University of Edinburgh, Scotland, publisher of www.GavdosPress.com and Founder and former CEO, JP Industries, Inc., a Fortune 500 industrial corporation

Some Things Are Not Reversible

Dr. John Psarouthakis, Executive Editor of www.BusinessThinker.com, and Founder and former CEO, JP Industries, Inc., a Fortune 500 industrial corporation

Certain actions described in the laws of physics are not the only indelible forces in our world. Many powerful genies cannot be put back in the bottle. “Irreversible” is a descriptor of immense power, something I first pondered scientifically in an MIT physics class. It’s a concept—a fact—that lays the foundation for all economic, industrial, political, or social discussions. One could fairly say that my  book published 5 years ago, see reference at the end of this article, is about how best to cope with irreversible changes that we can’t put back in the bottle, even if we wish we could. In the end it is also about a grave danger I see for the free-market economy and innovative, self-reliant national mindset that has made the United States the world’s destination of choice.   In that light, we begin by discussing our era’s two great, and irreversible, socioeconomic drivers: technology and globalization.

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It’s the Livelihood, Stupid:

JP Bio PhotoDr. John Psarouthakis, Executive Editor of www.BusinessThinker.com, and Founder and former CEO, JP Industries, Inc., a Fortune 500 industrial corporation

How Dumbed-Down Politics Is Riskimng Us Lose the Economic Competition

With ideological shouters exhorting the citizenry toward one precipice on the left and another on the right, a polarized America seems poised for a rocky future.  The debt bomb and the entitlement bomb, to say nothing of other bombs, wait for no man. Depending which true-believer cliff one leans toward, America is descending into either a communal hell of withering fortune and lost freedoms, or an eternal blue flame of capitalist greed. If you find the shouters outrageously out of touch (not in their Doomsday forecasts, but in their self-fulfilling gridlock), you obviously are not alone. So where can a reader turn to find a compelling centrist message for our generation, or even a little book of bull’s-eye polemic? Where is Frank Capra when you need him, someone who can make us believe in the American Dream even as the 21st Century limps into adolescence?

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To Solve a Problem, First Define It

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Dr. John Psarouthakis, Executive Editor of www.BusinessThinker.com, and Founder and former CEO, JP Industries, Inc., a Fortune 500 industrial corporation

 

       This simple concept might be the most important thing I learned while earning an MIT engineering degree. Engineers understand this concept in depth, but policymakers and politicians have a lot of trouble comprehending it. In my lifetime America has burned billions—trillions—of dollars in treasure by leaping to solve problems without first doing a proper job of nailing down exactly what the problem is and then doing a proper job of constructing a solution. The “then” part of the equation is important, too. Government has a decent history with engineering projects. It has a dismal history with social engineering projects. Not paying attention to that history portends, of course, constructing still more dismal history.

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THE DECISION: TO GROW OR NOT TO GROW THE BUSINESS

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Dr. John Psarouthakis, Executive Editor of www.BusinessThinker.com, and Founder and former CEO, JP Industries, Inc., a Fortune 500 industrial corporation

Consider this unusual concept: you don’t have to grow to be self-employed and financially secure.

Peter started several businesses during his life, but once each venture was underway, he eventually reached a point where the business managed him rather than the other way around. While adept at identifying new markets and making sales, when it came to working with other employees, assigning tasks and coordinating their efforts, he never seemed quite able to make the transitions needed to assure business success. After several such failures, Ron hit upon a suitable niche for his talents–as a promoter of trade shows. He has no employees to contend with, each show is of relatively short duration, and he can move on to the next project before he gets bored or runs into complex management challenges.

Peter opted for zero growth–no employees, no hassles, and a good income.

John is CEO of a tool and die shop.  At one time he was committed to growth of his firm but when the firm approached about twenty employees, John had to make a decision. If he continued to grow, he would have to add middle managers. As things stand, he is making an extremely good income and is able to house all his employees in one large unpartitioned quonset-style building. With this physical layout, and an organization of project teams, he can oversee his whole operation alone. His wife does the bookkeeping and he is able to handle all administrative and sales work in one small room in the front of the shop floor. He has made his decision: simplicity. This is not to diminish his staff’s technical accomplishments. Even the Japanese have toured this little plant, which produces some of the most innovative work in his industry.

Hacked and Blocked

JP Bio PhotoDr. John Psarouthakis, Executive Editor of www.BusinessThinker.com,

Dear readers, visitors, and contributors to the BusinessThinker.com.

Early last month the Business Thinker(BT) was hacked and blocked that rendered it inaccessible in the Internet. I am delighted to inform you that BT is back on line!

I am sorry about this happening. It is the 3rd time it has happened during the 6 years of BT’s Internet presence, however, it was the most severe. It seems that the more BT grows in the number of visitors from across the Globe the more of these hackers become a problem. We will try to protect the site more so from here on.

Glad to be back and looking forward to your visiting the site and keep up with our business related articles.

With my regards

Dr. John

1 in 3 Companies Constrained by Corruption

jim-kimBy Dr. JimYong KimM.D., Ph.D. is the President of the World Bank Group. Soon after he became president in July 2012, the organization established two goals: ending extreme poverty by 2030 and boosting shared prosperity for the bottom 40 percent of the population in developing countries. Kim’s career has been focused on health, education, and delivering services to the poor.

Approximately one in three companies around the world identify corruption as a major constraint to operating their business. We can and must do much more to combat corruption. It poses an enormous obstacle to the global goal of ending extreme poverty, denying resources to the poor and undermining the delivery of services to the vulnerable. 

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How to Determine What Type of Investor Is Right for Your Business

In Inc. Magazine
By Tim Chaves, founder and CEO of ZipBooks.

As founder of an accounting software startup, I’ve raised over $2 million in venture capital funding to get my company off the ground. And that’s not unique: If you’re selling goods, you need inventory; if you’re selling software, you have to build it. But doing that costs money — there’s usually some period of losses long before you begin to see profits. Someone has to be willing to take those losses, but who would be willing to throw money at a project that’s intentionally losing money?

For the entire article go to:

http://www.inc.com/young-entrepreneur-council/how-to-determine-what-type-of-investor-is-right-for-your- business.html

Actions Immediately after Closing the Acquisition Deal

drjohn11aBy Dr. John Psarouthakis, Executive Editor of www.BusinessThinker.com,  Founder and former CEO, JP Industries, Inc., a Fortune 500 industrial corporation

This is the 16th and last of a Series of  short articles on “HOW TO BUY THE RIGHT COMPANY”  that have been posted herein.

Once you close the deal, you need to be prepared to go in the very next morning to meet with your management team as well as your entire staff.

What you do in the first days and weeks will set the tone for your relationship with your employees for some time to come, possibly even the duration of your ownership.

Remember that the chief concerns of your employees and managers may be somewhat different than your own agenda. Employees will be concerned, first and foremost about their own job security and future with the company now that it is under new ownership.

Management shares this concern, and may also have more narrow issues facing them in their own departments, that nevertheless they may feel requires immediate attention.

An easy model to follow includes a short initial introductory meeting with management, an all-employee meeting to include all management and non-management staff, and then a third more formal meeting with management.

These meetings will set in motion the planning to carry out the three objectives of the transition: addressing your key constituencies (employees, customers, suppliers and bankers), revision of the action plan, and implementation of significant changes outlined in the plan.

Other meetings will follow in the first days and weeks, but it is essential to try to fit these first three meetings into the first day if at all possible.

As a new owner, you must be careful to listen carefully, building trust and goodwill with your new employees.

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Briefly Reviewing the Closing of the Acquisition Deal

JP Bio PhotoBy Dr. John Psarouthakis, Executive Editor of www.BusinessThinker.com,  Founder and former CEO, JP Industries, Inc., a Fortune 500 industrial corporation

This is the 15th of a Series of  short articles on “HOW TO BUY THE RIGHT COMPANY” They will be posted at one a week

Here we briefly review the closing of the Acquisition deal. The key aspect of this step is the preparation and signing of the purchase agreement and other documents needed for closing.

Beyond the legal requirements of having a purchase agreement, the preparation of the document itself is an important aspect of the due diligence process. Because of the representations and warranties a seller is obligated to vouch for, frequently, problems surface during this period that you may not otherwise uncover. For this reason, it is very important to begin work on the purchase agreement as soon as the letter of intent is signed and you begin formal due diligence.

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