Ali Mayar’s great advice for upcoming entrepreneurs to grow their business:
The biggest problem founders and small businesses have is that they’re experts within their field and novices with what it really takes to effectively operate a business. That’s what usually trips them up, eventually.
Don’t allow that to take place. Admit that you simply don’t understand what you don’t learn about business, beginning with these 15 tips certain to keep you as well as your company out of warm water. Many are straightforward, others are counterintuitive, but they’re all true. And a few day they’ll save your valuable butt.
Always make sure there’s and will also be enough money in the financial institution.
Period. The most typical business-failure mode, without doubt, is running out of cash. Knowing you’ve had a cash flow or liquidity problem approaching, repair it now.
You can’t fire bad employees quick enough.
You just can’t. Just be sure you realize they’re the issue, not you (see next tip).
The issue is probably you.
After I would be a young manager, my company sent all of us to some week of quality training where the most significant concept we learned was that 90 percent of troubles are management problems. When things aren’t going well, the initial place to consider answers is incorporated in the mirror.
Look after your stars.
It goes for each company, big and small. The price of losing a star employee is enormous, yet business leaders rarely take time to ensure their top performers are properly motivated, challenged, and compensated.
Your individuals are not your children, your individual assistants, or perhaps your shrink.
If you are using and abuse them this way, you will arrived at be sorry. Capiche
Learn to say yes and no a great deal.
The two most important words business people and founders have available are “yes” and “no.” Learn how to say them a great deal. Which means being decisive. The most crucial reason to focus – to be clear on which your organization does is to be clear on everything it doesn’t do.
Listen to your clients.
It boggles my mind how little most entrepreneurs value their clients when, not just are their feedback and input one of the most critical information they will ever learn, however their repeat clients are the simplest business to obtain.
Learn two words meritocracy and nepotism.
The very first is the way you run a company – by recognizing, rewarding, and compensating based solely on ability and achievement. The second reason is the way you don’t run a company – by playing favorites and being biased.
Know when so when to not be transparent.
Transparency is really as detrimental at sometimes because it is beneficial at others. There are times to talk about openly and times to zip it. You should know when with whom to complete one in comparison to the other. It arrives with experience.
Believe in gut.
This phrase is usually repeated but rarely understood. This means that the own instincts are an incredibly valuable decision-making tool. All too often we wind up saying in retrospect with regret, “Damn, I knew which was an awful idea.” But the key would be to understand how to access your instincts. Just sit, be quiet, and listen to yourself.
Protect and defend your intellectual property.
The majority of you don’t be aware of distinction between a copyright, trademark, trade secret, and patent. That’s not acceptable. Should you don’t protect and defend your IP, you’ll lose your main competitive advantage.
Learn how to read effective agreements.
You know the expression “good fences make good neighbors” It’s exactly the same running a business. So much the better your agreements are, the greater your company relationships is going to be.
Run your company just like a business.
Far too many entrepreneurs run their business as an extension of the personal finances. Bad idea. Very bad idea. Construct the best business entity and it separate from your individual life.
Know your money inside and out.
If you don’t know your revenues, expenses, capital requirements, profits (gross and net), debt, income, and effective tax rate – amongst other things – you’re asking for trouble. Big trouble.
You don’t understand what you don’t know.
Humility is really a powerful trait for leaders, and that applies to start up business owners, veteran CEOs of Fortune 500 companies, and everyone in between. More times than not, you’ll come to regret thinking you knew all of the answers.
Behind every failed company are dysfunctional, delusional, or incompetent business leaders. The irony is, not one of them had the slightest concept that was true at the time. Even sadder, many of them still don’t. Don’t end up like one of these.