THE BIGGEST EXPENSE – IGNORANCE”
As I have journeyed in the last 5 years in becoming a successful entrepreneur, I’ve met so many eager and determined business people. Almost all of them committed mistakes and failures in the start. Some succeed instantly, yet they still meet failures or mistakes as they expand or create another business. And the most common reason for failure is IGNORANCE.
When I say ignorance, I don’t mean it like that person is literally being ignorant. In this case, it means lack of “invested education”.
For most starters, we often get “hyped” by trending business ideas and the “opportunity” of hitting it big right away that we don’t invest time in learning and planning. Although there should be a balance between planning and starting. Since there are also many starters who suffer from analysis-paralysis.
Yet before starting, I advise these 3 per-requisites:
1. Have a clear SYSTEM
For me, businesses are all about systems and when I say system, it doesn’t mean your admin or your IT system. It means for your entire business. Like:
– how do you get the word out
– how do customers receive your product or service from start to finish
– Your group of suppliers
– What are the fixed and overhead cost
– How do you get paid
– When do you pay (for bills)
2. Have a MENTOR on standby
Mentors are like your guardian angels in business. They help you avoid the costly mistakes that they went through. They also provide you with strength in times of discouragement and mistakes. The key is finding them. Remember mentors are people that have gone through or achieve what you want in your business. A very important note. Because when you seek advice, you don’t want an advice from a naysayer or unqualified person. (Read hear for how to find a mentor)
3. When does your CASHFLOW start
Having CASHFLOW is the make or break of your business. All the businesses that I failed were caused by not understanding CASHFLOW. The main focus once you’ve started letting money go-out (out-flow), you need to produce money that’s coming in (in-flow). Take a look at the starting capital (money on-hand) and try to check if you will survive the next months or even years before you start having in-flow of cash. I have an entire post of Cashflow and will share it to you in the future.
Suffice to say, the 3 above are guidelines before you “get-your-hands-dirty”.
That’s all for today.
Live well and Happy,
J.B. Happy Entrepreneur