Business Success Series – Part 1
What Is The Secret of Business Success?
Over the last year, I’ve seen more businesses struggle and even go under than at any other time in the eighteen years I have owned my CPA firm. Everybody blames the economy, like there is no other option but to fail. That is the farthest thing from the truth! So, the question is, “Why do most businesses fail and others prosper?”
I believe the main thing that stops a business owner from being successful is that they do not understand and accept a key concept – If you want to be successful in business, you must run your business the way successful businesses are run. Yes, that may sound like a bunch of bologna; but, think about it. It just means that you must learn and master the basic business skills that successful business owners have mastered. Take it from me, it took me a while to get this; but once I did and actually applied it to my business, it really paid off.
So this leads me to the number one reason for business failure – Ignorance! Let me explain, in no way does this mean you’re uneducated, just that there are different business skills (such as sales management, marketing, employee hiring, employee management, time management, purchasing, accounts receivable collections, operating efficiency, taxes, cash management, etc.) that one can learn and benefit from. So, unless you have experienced every type of business dilemma out there, you can always learn more! Failure to at least educate yourself and act proficient in all of these areas results in your gambling with you and your family’s financial future, just plain and simple. Come on, no one goes into business to fail. So, why hold yourself back?
Now to the good stuff. What do successful business owners do? First, they understand what makes a successful business. There are only five essential parts to a successful business:
A business must…
1. Produce a product or service that people will pay for that allows the business owner to make a profit.
2. Develop an efficient system to market and sell the product or service.
3. Produce the product or service efficiently and deliver it to the customer on a timely basis with a consistent quality.
4. Control all costs by demanding that ALL expenses be justified by helping accomplish one of the first three items.
5. And finally, have an accounting system that is used constantly to ensure that the first four items are happening as planned.
Sure this is a short list, but implementing it isn’t easy! Trust me. If it was, more businesses would be successful. The good news is that these five basic small business success principals can be broken down into small, simple success procedures that any small business owner can master. In future posts, this series will provide you with simple steps to start operating your business the way successful business owners do.
Have a great day and let’s keep those profits flowing!