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- Managing your Business in 2 Hours
- How we buy companies for under $5,000
DO NOT start or buy a business until you see the 16 reasons for business failure.
In 44 years we’ve seen business failure happen over 1,000 times. Here is why!
The one question is…. “Do you have the emotional fortitude to own your own business?”
Of course you do. If you didn’t – you would not have clicked on this article. You’ve already made the decision that entrepreneurship is for you. You see, business success is just a simple set of check lists and reports so you know you’re on the right trail. Bottom line, if you want to be your own boss – that one word “WANT” is all you need to get started. It is far easier than you think.
That means on this web site we can skip the psychobabble of meaningless questions about your emotional capacity for risk and self-reliance. We can cut the success platitudes and generalities that sound good but have little real life meaning. You’re in dude (or dudette) so let’s get busy with a methodical process for getting it done.
Here are the most common mistakes that business owners make – leading to business failure.
- Remember the purpose of business is to sell a product for less than it cost to deliver it. Work on implementing this rule EVERY moment your ‘on task’ or your business will NOT last.
- Keep your product SIMPLE. If you cannot explain what you do in 10 words no one else will be able to understand it either. It is better to be in a simple business that you do a little better than your competitors then to start up a new business no one can easily understand.
- Know your cash position at all times – even better pay someone to tell you.
- If the needs of the owner are not met first, the business will NOT survive. Pay yourself first. All those ultraistic ideals are fun to spout off, but they aren’t worth a hill of beans if you can’t make the rent. Believe me, your team will be happy that your needs are met – or they have no chance of ever getting what they want over the long term.
- Do not commit the sin of the “inaccurate assumption.” Based out of ‘gut feelings or instinct’ the average business owner spends 80% of their time working on the wrong marketing, customer, location, employee, product or idea. Get client feedback and financial reports so you will know where to focus on the 20% of what you’re doing that is making money. The failure to keep accurate meaningful books – and review the reports at least once a week, is the biggest killer of business. It is a killer mistake. I keep saying this over and over on this list. Cash is King, you’re in business to make money. You can do all that ‘help the world’ stuff AFTER you have helped yourself.
- Watch every cent that goes out of your company for the first five years. Never spend a dime unless you absolutely have to. Sign every check and review every credit card statement.
- It is more important to have a hungry audience who want what you sell, then it is to have the highest quality product. This includes creating a solution to a problem that no one really cares about but you. Sell what people are buying, not what you want to sell.
- Focus your best efforts on getting grade “A” clients. Bring in at least one new client a day.
- The second most important daily task is building relationships with your team. They are more important than customers. Then meet with vendors and ask for ideas and help. With that done you can take time to visit your clients. This allows you to put your effort where it will have the highest impact and makes sure that everyone knows what you are trying to accomplish. They will help.
- Third: never do work that someone else can do – you CAN NOT afford to put time and energy into any task that can be delegated or outsourced. Do every job in your company one time, then write down how you did it and then delegate it. Then go to a bigger task with higher ROI and do that one time, etc.
- Hire people who are better then you. Give them authority to make decisions.
- Fire fast. When you wonder if you should keep someone it is probably already 15 minutes past the time you should get rid of them.
- Make friends before you need them. Get a lawyer, accountant and a group of other advisors on your quick dial and stay in touch. If you might need money in the future, line it up NOW.
- Keep your temper. Never yell at employees or show disdain in any interaction. Your job as the owner is to get the best out of everyone who works for you. Your team is your biggest and most costly asset. Treat them with respect at all times, even if they are dumber than a tree stump.
- Approach advertising cost with extreme caution. Today’s most successful small companies are the ones who are personal friends with 100 grade “A” clients. Build relationships not sales funnels.
- Have fun, if the company is an emotional drag, you will eventually lose it. This includes taking time off. Build your business from day one to run without you and you’ll enjoy the calmness this brings a thousand times over.
Owning a business is the fastest way to create wealth and dependable high monthly income possible in America today. Even if you decide to do a start-up, which we think is plum nuts compared to buying an existing company, this check list will help you uncover gaps in your process and focus your efforts so you don’t get blindsided someday when you don’t have enough money in the bank for rent or payroll.
In our seminars we’ll show you how others have steered away from these 15 common mistakes and have a fun life, full of adventures. We hope to see you at one of our weekend classes soon.