If problems or mistakes arise in the business (which is common and expected) this needs to be corrected immediately. Continuing the same behavior and looking for a different outcome doesn’t work.
“Problems cannot be solved by the same level of thinking that created them.” Einstein
If you want to have a profitable business – you should emulate a successful business way before you actually have one.
I like to compare this to being a parent. One thing I realized as I started to raise young adults is that if my mindset had been a little different I could have avoided some mistakes. For example, if I had the mindset that I was raising small adults instead of children, I think I would have made some better decisions in my parenting choices.
From the very beginning its essential that we begin to train our children to have the skills needed to be successful adults. It’s the same with our businesses. If we make really good decisions when it’s small – we set the stage for growth and success.
Entrepreneur Education – Build a Solid Foundation
You wouldn’t build a house on a pile of dirt and you can’t build a profitable business on hopes and dreams. It’s imperative to start out in your business making good decisions that are based on long-term results.
Even if you’ve been in business for a while but you’re still not where you need to be. Perhaps it’s time to go back. I’ve known entrepreneurs that struggled in their business for years and still haven’t gotten it off the ground.
A strong foundation requires knowing exactly what your objective is in your business, what market you’ll serve, what you want to accomplish, then knowing exactly how you’ll get there.
Structure is Crucial
The number one reason businesses fail is from lack of capital. In other words they don’t know how to make enough money to survive. From day one even if you’re only making $200 dollars a month in sales – every single month you should close out your business and know exactly what came in and what went out. I’m not referring to the documentation you would prepare for an accountant. I’m talking about you having something that puts your finger on the pulse of your business fast. This is a practice that if you have it starting out you’ll create a mindset that focuses on profitability.
You would be shocked at how many businesses small and large skip this simple but crucial exercise.
Keep it Real
Many entrepreneurs stay in denial about the reality of the state of their business. They’re afraid that if they knew for example how much money was coming in and what exactly was going out that they would be forced to let go of their dream. This is not true! It’s just the contrary! Facing up to the real facts will force you to make that dream a reality.
You can’t go forward with your business and grow if you’re first not real about where you actually are.
Put a Dollar Sign On Your Time
One of the smartest things I did in my business was to treat myself like an employee. I decided what my time was worth and I made sure that I got paid.
It’s funny how sometimes as entrepreneurs we have a sense of entitlement. Like we shouldn’t have to “punch the clock” that we’re supposed to have freedom. While that is somewhat true, if you don’t have a business that makes money – you don’t have an actual business.
I knew how much money I was currently making so I decided how much I actually wanted to make. Then I said okay what’s the gap between the two? I figured out what my time was worth – what my hourly rate was. Then I came up with a plan to get paid.
Adapt to a Big Mindset
Once you adapt to these mindsets in your business things will start to shift. Whatever you want your business to be, structure your business now for that vision.