Why Every Father Should Think of Themselves As A CEOSep 24, 2022
I was having a conversation with someone who's involved in a network I belong to yesterday. He's the former CEO of some startups (and current businesses) and aligned well with me regarding how we see the family and the home. Naturally, in a 30-minute chat, we discussed everything from ministry to business and family as guys like us often find ourselves doing. It was during this chat that he reminded me of a truth I deeply believe but desperately needed encouragement around on that particular day.
He said "Remember, you're the CEO of Cirullo Co. whenever you're involved in any venture, you're actually contracting out your time for the equity vesting and the cash flow of Cirullo Co. The goal is to maximize the equation of how much time you're spending, contrasted with the amount of cash flow and asset growth you're generating as a return."
What he means is that whether I'm an employee at a job, building a family business, purchasing an investment property, or any other activity, I'm making a conscious choice as the CEO of Cirullo Co. to enter into a contract that aims to build the assets and the cash flow of our family enterprise.
Why is this framework of thought important for every father?
Let's start tracing back through time for a minute. The industrial revolution was one of the larger cultural events that essentially put the nail in the coffin of the wider perspective of family economies. Prior to the industrial revolution, many families operated from this family-centered economic perspective. They saw the family as the primary entity they worked for, and the primary entity that they had responsibility for when it came to asset building. Many families were agrarian, raising and growing their own food, and finding ways to create an economic engine that centered around "family production and growth of family assets".
After the industrial revolution, the family began to outsource their fathers and the economic activity of the home (primarily out of necessity and cultural shifts in many cases). Fathers began to trade time for money as they worked tirelessly in jobs that were building the family assets of select wealthy individuals who had started successful businesses, and were still stewarding their own family's multigenerational wealth and assets.
Put another way, most fathers stopped focusing on their own family asset building and began building the assets of other families, for a simple paycheck.
This is one of many reasons why small businesses have really begun to disappear. When an entire culture trades their responsibility for family asset building, for simply collecting a paycheck, the creation of new small businesses, and the widespread value people once held for small businesses, plummets.
This leaves us with a small number of wealthy families who were successful across multiple generations at this concept of asset building and a vast majority of families who are now employed for them. This is the 'vocational equivalent' to renting a home that someone else owns, rather than buying your own. You're investing your resources to grow someone else's assets. Let that sink in for a minute.
When you simply work for a paycheck - similar to when renting a house - you're investing a nonrenewable resource (you and your family's time) to grow the assets of another family and not your own. You're making ends meet, but not furthering your family's wealth, available time, freedom, or legacy.
On the other hand, a father who sees himself as the CEO of his family's economic engine will think differently about the utilization of resources. Much like a startup CEO, a father must make decisions (sometimes hard ones) that further increase the cash flow of the business and the value of the business's assets, while minimizing losses and making the business more efficient.
The goal is to over time increase the production of healthy cash flow and the value of the asset column, while decreasing leverage and time spent.
The father who gets this will begin to think very differently about his home, his family's finances, and how he approaches the work that he does. He'll be thinking like a CEO, and will ultimately change the way he views every decision, most notably how he uses his time and his family's resources.