Russ Using The Classroom To Teach Entrepreneurship
Using The Return Driven Strategy Framework
As an adjunct professor of Entrepreneurship and Strategy at DePaul’s Kellstadt Graduate School of Business Strategy, Execution and Valuation Center, Russ works closely with Dr. Mark Frigo to teach how companies and start-ups alike ethically create and maximize wealth. The principle is built on nine tents and three foundation tenets.
Using RDS Framework: How Start-Ups Can Ethically Maximizing Wealth
The key to any successful start-up is writing a strong business plan that charts each step needed to become a successful business. The business plan must incorporate a one page executive summary, a background of the concept and how the business will fulfill an unmet customer need, a map of the sales and marketing plan, a section that includes how the company will engage both customers and employees, background on what the IP or genuine assets of the company are, a well thought out and descriptive financial model and finally an exit plan for potential investors that details how an investor in your company will maximize their wealth or in other words create a personal profit. The first order of business for a start-up is to create a plan so that the team, including the original founders understand the natural path of where you want to take the business. A skilled attorney should sit down to discuss the following three options.
- As an entrepreneur, you could grow the business so that you pass this onto our children.
- As an entrepreneur, you can grow the business so that you and your team eventually creates a public offering or IPO
- As an entrepreneur, you could grow the business to sell it by creating a premium on the marketplace.
- As an entrepreneur, you can grow the business to profitability.
There are other ways that companies choose to ethically maximize wealth however this is our philosophy. In Commuter Advertising’s case, the goal was to ethically create wealth for our stakeholders and shareholders who invest into Commuter Advertising, our partners who we strategically partner with, our customers who rely on Commuter Advertising to bring in new business and our employees who work so hard to make.
Commuter Advertising the fastest growing media transit advertising company in the country. The following is a strong example of what entrepreneurs can do to plan effectively and ethically generate wealth in their startup businesses.
- Creating a plan for success from begging to end of the business life cycle.
- Discover where to raise capital and how to do it ethically.
- Define wealth in terms of monetary and non-monetary goals, timetables and acceptable risk levels.
- Commit managers to wealth creation as defined and align with entire organizations plans and activities toward the wealth creation goals.
- Act with knowledge of long term investors’ wealth is dependent on the organization, employees and customers of the firm
- Defining wealth in terms of wealth creation vs. cash flow returns: Comparing cash flow returns against opportunity costs.
- Employ genuine assets to create and sustain wealth
Disciplined performance measurement and updating of biz plan is critical for a startup to continually ethically maximize wealth for their company. For revenue goals, start up companies need to set specific revenue targets for senior leaders to manage on an annual, quarterly, monthly and daily basis. As an entrepreneur, if you can’t measure it, you can’t manage it. Ultimately, it’s important for an entrepreneur to drive the company to produce returns equal to its cost of capital or in other words profitability.