If you follow these powerful suggestions in running your small business you will have an excellent chance of creating your own Gold Mine. No Kidding. Heres how: - Make sure that your business, whatever it is today, has the legs to grow into the future.
If your business is in a dying industry, and you know it, then find an economical, sensible way to get out. For instance, I have clients in industries that are losing business to Chinaand I mean rapidly. If these domestic companies dont quickly find joint venture partners in China they wont survive another three years, maybe less. Research like crazy to be sure that your companys products/services have survivability. - Make a business plan for this current year and for each year for the next five years
Do not delay in doing this. I know that making a business plan is a pain, particularly if youve never created one. Its also hard seeing five years out. But try anyway. Think what your customers and their marketplace will be looking for five years down the road. Get out from behind your desk and go see your customers. Ask them questions. Listen carefully to their answers. - Hire the best people you can find and do whatever you can to keep them enthused and happy.
Give them responsibility. Help them plan their own careers and their personal lives around your company. Try to give/ sell your key people equity in the business. At best you can create ownership for your people. Your success and financial future is in lock-step with your employees. Be hard nosed about hiring and keeping the best people. Set up a not to be violated model for employee re-cruiting. Do not waver. Never hire an inferior person because you might be needy at that time. Be sure your people understand what you want from them. Even more important is that you know what they want from your company---then help them get what they want and you will realize much more than you even planned for. - Watch your cash and your cash flow.
That isnt saying the same thing. Whatever your system you use, complex or simple, get a cash balance everyday. You also should look at how much cash has come in for the week to date, month to date and year to date. These are simple items and are easy to generate. You must also receive a daily cash outgo report. Demand that a Profit and Loss Statement and a Balance Sheet are on your desk no later than 10 days after the end of the previous month. Do not accept excuses for not receiving this information. At the end of every week, look ahead to the next week to forecast your AR and the AP list. Run current aging reports every month. Speak to your outside accountant once a month when you receive your financials from the prior month. Once a year ask your accountant for an appraisal for the market value of your company. Basically, its nice to know information, even though retirement may be years away. Do not depend on anyone, nor count on any outside retirement plan to fund enough money for your retirement. Check out these links for almost every day-news about retirement age people who have been victimized by their own employers and the economy: Some day you may want to sell your company. If youve planned correctly--you could have your own private gold mine or better still your own private Bank. Just so were clearI think working for a corporation as a career is folly. In subsequent articles Im going to make my point that depending on a long term job, with a large company that will be financially sound 15-25-40 years from now is not good planning. There are all kinds of small business opportunities today, like never before, that can bring financial independence to you and your family. I will offer examples in future articles. |
