Finance Guide

The First 5 Goals of a Successful Business

Posted on by Admin

PRIMARY STATE GOALS

1. Make a profit

  • We don’t have a business if we aren’t doing this.
  • We have a hobby, an idea or distraction.

2. Continue the Profit

  • We are a one-hit wonder at BEST without this.
  • Businesses, as opposed to products and fads, repeat their results.

3. Diversify Your Profit

  • Although products are great, what happens when someone does it better than you?
  • We can make long-term relationships with our customers if we establish trust and meet their other needs.

4. Increase Profit

  • We have a business when we are able to Make, Repeat, and Diversify our profits. We must grow it NOW.
  • Profit does not always come with scaleability. Scalability can also be used to increase profits (e.g. bad real estate investments). We are looking to grow our profitable business.

5. Enjoy the Process

  • We must remain focused on our business in order to achieve success over the next 10 years.
  • We can only enjoy the process if we are enjoying it.

PROFIT & GROWTH

  • If done right (which can be difficult – ask the 95% who fail), it is possible to create long-term profit and growth.
  • We MIGHT LEVERAGE other strategies in the meantime, or they could be the DISTRUCTIONS that cause our business to fail.

POSSIBLE DISTRACTIONS

1. Lots of Stuff

  • This can either be profitable or not. Sales don’t always equal profit.
  • Do we sell lots of small things or few big items? What is the best way to make long-term profits?

2. Personal Recognition

  • This can be distracting unless the brand is us, like a celebrity.
  • Even then, the celebrity is not the consumable product people pay for. The product is the way the celebrity makes their clients feel or entertains them.

3. Create a Big Brand

  • This can be a great advantage for large corporations, but it can also be a problem for small business owners.
  • Brands that are quickly established often disappear just as quickly. Reputations that are built over time and can’t easily be bought lead to long-term success in business, which can weather the storms of recessions or other market challenges.

4. Paid advertising

  • To earn $4,000, we can spend 40 hours working with clients and then give $4,000 to someone else to show the world how amazing we are and how our company can help them. To get our $4,000 back, we will need to work 40 hours more (if we have enough customers). This is $4,000 profit in just 80 hours. ($50 an hour net income).
  • We can work 45 hours for a client and earn $4,000. The extra 5 hours that we spend in them makes them a great job. We can then invest 5 hours creating content online for prospects and our clients will be super satisfied to tell the world that we are doing a great job. In 50 hours, that’s $4,000 profit. ($80 an hour net income).

5. Peer Approval

  • Businesspeople are most interested in more money than friendship.
  • We might not be liked by the people who dominate us in competition. We might be loved by those who beat us in competition. We will be most well served if we first seek approval from our Income Statement and our accountant.

EXCITEMENT & RECOGNITION

  • It can be thrilling to start a business. You can also jump from an airplane.
  • For adrenaline junkies, solid long-term businesses can become dull. But for businesspeople who are serious about their business, this is what they prefer. A 40-year-old married couple will appreciate their life, their grandchildren, and the legacy that they have left.