Running a business is easy!
I lied, sorry. There are a lot of important things to do and mistakes to avoid in building and running a business. I’m sure you know plenty of these, but so do I and I’ve still managed to repeat a mistake here and there. This is as much a reminder for myself as it is advice for others. If you take anything away at all, remember that the only constant in business (and life) is change. Embrace it!
- Plan to run the business for your forever rather than to exit: This may be a wholesale change in mentality forcing a long term vision and a focus on planning out projects and goals without the distraction of short term objectives. If you can’t get away from it, you are more likely to be cautious in operating it and meticulous relative to the details and strength of its foundation. This also allows for a more relaxed and deliberate management/operational environment.
- Be conservative with your finances and do the math before you spend: Particularly important and so easy to overlook in a young and rapidly expanding business. I’m sure I’ve written about this before, but beating this drum a few more times in hopes of helping others can’t be a bad thing. Get a growth calculation tool and plug in some numbers. One thousand a week for 10 years can grow to more than $600,000.
- Get your financing in line (and keep it in line) before you need it: By this I am referring to working capital and credit. As clearly demonstrated by banks and lenders this past year, when times are tough, purse strings are tight. If you had a bad year and need some cash to help get back on track, it is often likely that the help will not be there, at least not in the form of anyone with a reasonable interest rate.
- Hire slowly, fire quickly: Oh man, I wish I remembered this one every day when I woke up. There is little of greater importance than having the right people on your team(s) and when you find out an apple has gone bad or a you found a worm in a seemingly perfect apple, get rid of it asap! The old adage is often true, ‘some dogs can’t hunt‘.
- You get what you inspect: I’ve spouted off about this one more than once also. When the company grows beyond just you and it comes time to delegate the things you used to do with your eyes closed, don’t hand it off and walk away. You absolutely have to circle back, more often than you’d like, and make sure that the work is being done the way you want it done before the results come back as something completely different and often useless. You get what you inspect, not what you expect.