I spend a lot of time with my father because we are business partners. We have a lot of discussions about our business and the direction we feel it should go. My father is extremely talented when it comes to the technical side of our business. Without his expertise, the business would not exist today. For over 10 years, my father has transferred knowledge to me, but still there is so much I need to learn from him. One of my strengths is business operations management, which is crucial to have if you want to have a successful business. It is not enough to have a good product.
There have been so many failed businesses that had great products, but the businesses were poorly run. For one, you need to bring awareness to your business through proper marketing and sales. Secondly, you need to make sure your business is profitable which can mean you need to cut out some fat and make your operations more lean. It does not always pay to hire employees just because they’re your friends and they need a job. We need to constantly review financials and let your balance sheet speak for itself. After collecting financial data for an extended period of time (i.e., 1 year, 2 years), make decisions that favor the growth of your company. As I always mention, gather information/data to better prepare yourself for the future. The more data you have the better!
Over the years, I have heard stories of businesses closing because their customers simply were not paying them. If your customers are not paying you, stop servicing and/or selling products to them. Make sure you take the right steps to make them pay you. Some may say, I don’t want to upset my customers because they may not come back. Well, if they are not paying you, then they are not very good customers to have and you should get the money that is owed to you.
There are many businesses that perform poorly because there is some sort of emotion attached, which may be making the business owner make poor decisions. A lot of times people will tell you to go with your gut feeling or want to their business story to be a fairytale. The truth is, there are not many fairytales in the business world. Make sure you are determining your next moves off of hard data and not soft emotion. In business there are going to be tough decisions you need to make, which is fine if it is for the good of the business. Build your strategy to help your business grow. Make sure you create an environment that allows your business to succeed and not an environment that restricts growth.
These are just a few tips that I’ve learned along the way and they seem to be helping me tremendously. There are many more I have, which I may write later about. Please reach out with any questions. Also, comment if you have your own opinions on this.
Category: business, Financial, thoughtsTags: always right, balance, business, customers, getting paid, good operating, importance of, management, operating business, operations, ops, paid more, set emotion aside, success, technical