The Business End

Hey everyone! I hope you are doing well. I just wanted to let everyone know that I am taking calls on skype today free of charge. If you have a question I will be more than happy to answer your questions! Just click the link above or click here!

I have not had a chance to update the blog but figured it would be nice to video conference with you today. Thanks and talk to you soon!

-jm

A number of factors go into why someone decides to start a new business. What was your reason? I think most would agree that they wanted to do something more. Others might argue that they wanted to push their potential in the marketplace without barriers. There could be a number of reasons, but what really makes a good business?

I have had several clients come to me with ideas that initially sounded pretty good. In time that business falls prey to those who run it. I think that there a couple elements that come to mind when looking back why ideas pass or fail:

1) Does the owner spend time on this new concept?

2) Does the owner sell the product well? Or do they talk too much?

3) Does the owner look for a quick buck?

4) Does the owner plan too much?

5) Is the owner disorganized?

You might have noticed that in all cases it comes back to the owner or visionary who had the initial idea. In all of these questions I am hinting to the question: “Have you built a business plan?” In most cases the answer is no. I have told my clients before that the hardest thing to do is run a business and the second hardest is to tell someone how you run that business. Basically that is what writing a business plan is all about. It’s about getting organized, its about staying focused and it’s about setting goals for you and the business.

Once you pass that hurdle and you still feel your idea works then you proceed to the financial section. How are you going to make money? Another common question is: “How much should I charge?” Who knows?? If you don’t I sure as heck don’t!! The visionary has to do the research and build his or her idea to the full potential that it is. Nothing is easy but when you create the foundation to your empire you can start to build a frame.

The best description of a business I ever heard was: “Buy it wholesale and sell it retail.” Other translations might go:”Buy it by the quart and sell it by the shot.” If you are making a profit in  your projections and you are being conservative, chances are you have a good idea. Often times people start a business out of need and because of this need they fail on the strategic planning part of the equation. Then when it fails, it’s always someone else’s fault. You have heard it before… Remember the days and months after 9/11. People were blaming their failures on the attacks. Don’t get me wrong. There were plenty of companies that were DIRECTLY affected. The remaining majority found it as an easy scapegoat that few would disagree with.

I’m telling you-all this not to make you upset but to realize your true potential. If you expect the unexpected and you roll your project out strategically you will be able to adjust and even in some cases predict paradigm shifts in the marketplace. Out of that chaos the shift creates is where you build wealth. Never forget that.

I think we all hate the question: “What are you working on?” Its a good question though and although its not the kind of question I like to take, it does help me figure out if I am working on something that is profitable versus minutia.

I will give you an example. Most business startups think that they need to be involved at every level. A business owner should have an understanding and know how required to do the job, but should not be doing the job. The primary reason is that you (the business owner) has the responsibility for making sure the ship sails. If you are doing all the tasks, how do you know where the ship is going? Most people who do not listen to this counsel find themselves headed for entrepreneurial shipwreck because they didn’t see the sharp rocks just under the surface.

So I’m sure someone will ask me: “Jeremy, what are you working on?” I will pause and reflect on my previous tasks and hopefully I should answer by saying “Making Money.”