Law Two: The law of the shareholder wealth creation

Carl Bates writes in his book The Laws of Extreme Business Success about the 12 laws of business success. The second law looks at the shareholder issue and how we treat our own investment differently to that of others we have put our money into. The law states:

Extreme business success requires you to treat your investment in the same manner that you would treat an investment in any other company. This means that you have to know what your business is worth, what dividends you are receiving, and whether the future dividend prospects are justifying your retention of, and potential further investment into, your own investment in your own business. Extreme business success can only occur if the board and management team of your business are focusing on activities that grow shareholder wealth.

This book and others from Carl Bates are available here