Decentralized Business Administration
I have been thinking about my future business plans a lot lately. I wasn’t sure if I would write this blog because I couldn’t come to grips with where I would start. Before I really get into this, I am going to refer to something I stated in a blog I previously wrote on blogging.
In the blog, “Writing a Blog,” I wrote the following.
“As I stated above, I may or may not have the title. The subject might be the title, or the title will be written around the concept from the subject. If the subject is something that isn’t clearly defined, I might just start writing.”
When I sat down this morning, I did not have any intention of writing a blog. I logged in to trash several blogs that were in the draft. These were previous blogs that, for one reason or another, became rejects. I decided if I was going to continue to blog, I had to take a deep look at what I wanted to share. I told a friend of mine a story about tomatoes. Then I told him I had become the tomato. It’s a long story!
I came up with the title of this blog although it may be changed at some point while writing this blog. The title at some point may wind up becoming a bullet point for this blog. I had to come up with something that would fit my future business plans and the best I came up with at the time is Decentralized Business Administration.
I have been looking at some business schools lately because I have been after some information that I wanted to blog about. Of course, they don’t want to give you information unless you tell them who you are first. This morning I ran across an ad in our blogging site for Business Administration for a local college nearby. I clicked on the ad. The same thing occurred of course.
I began thinking about this concept of business administration. What was it they don’t offer. In Michael Ellsberg’s book, “The Education of Millionaires”, he talks about the lack of sales education in Business Administration Schools. With a deeper dive into this thought pattern, I came to a reasonable assumption. I probably won’t find what I am looking for here either. This is when I came up with the idea of Decentralized Business Administration.
Business Entities (Design)
I should include the Google Drawings page I put together last year on this. However, I would not want to tempt anyone into stealing any of my business names. I have 14 structures on that page. A lot has changed since then. Last week in a meeting with a legal firm, I told the representative I was talking with that I would ultimately need at least 20 entities to accomplish my goals. These goals started right here with a late-night conversation with Henry James Banayat regarding the things we will be able to do because of Compumatrix.
Now we can circle back around to the concept of Decentralized Business Administration. Compumatrix is a decentralized business concept. While thinking about this, I concluded that whatever I did as a result of Compumatrix has to be an extension of this ideal. Therefore, my plans have to be as decentralized as possible and by any means as diverse.
I plan to partner with some of my more distant family members with a business concept. Starting, this would center around Compumatrix. Beyond this would be the beginning of the Entity structuring. Each partner would be a key employee of a particular Limited Liability Company (LLC). This LLC would contract with the main corporation (C-corp). The C-corp would contract with a Payroll and Tax Administration Services company. (The details beyond this would need a more inclusive write-up.)
The components of the above structure would include multiple contracts, entity structures, investment products, and above all, cash flowing life insurance policy. (The cash flowing insurance policy mandates specified structuring of its own to fully function as necessary.)
Above, I mentioned the 14 structures I had in my Google Drawing page. This includes a variety of structures such as Trusts, Foundations, and Charitable Remainder Trust in addition to the Partner Structures I mentioned 2 paragraphs ago.
Since I am jumping up and down on this page, let me quickly mention something regarding the conversation 2 paragraphs up (again). I breezed over mentioning the Cash Flowing Life Insurance Policies. This is just one of the keys to the entire design. There are 2 financial advisors out there you may be familiar with I won’t mention their names (d.r. And s.o.) as they tell everyone to stay clear of Whole Life Insurance. Their claim is “buy Term Insurance and invest the difference!” I am not going to argue with them as they have some validity with their statements. However, buying the right product is even more important than comparing apples to oranges. The Whole Life Insurance product I am talking about is like comparing 2 varieties of Apples. I will not discuss this further at this point as it necessitates certain educational opportunities to understand the different products and what they can do and more importantly, WHAT THEY CAN NOT DO!
I am almost off-target now with the direction I wanted to take. With that said, let me get back on target before I close this up. Last week, I prematurely met with a legal firm regarding my business plans and the structuring of entities. I say prematurely because I wasn’t planning to have this meeting until we have officially launched our Compumatrix business. I had to secure information on another matter so I set up the meeting.
Every moving part of your business plans needs to be carefully oiled and maintained. It’s like a fine-tuned car. You are not going to top the oil with anything you might have in the garage, but you are going to buy the best car needs. Your business is similar. For me, I have studied this for years. Once we can move forward with our plans, it will be time to pull all the pieces together. It will be time to talk face-to-face with the lawyers, the accountants, the personnel management company, the life insurance people, and the investment companies. (Did I mention the purpose of the Cash Flowing Life Insurance program?)