In the rush to entrepreneurial success, many people make a tragic mistake. They are
certainly entrepreneurial. It's success they just can't seem to grasp! Therefore, they
make decisions intended to prop up their images so people will assume them to be
successful. Meanwhile, behind the scenes, their business is struggling and collapse
is just around the corner. The scenario is so common, it seems normal. But is being
normal such a good idea?
How can an entrepreneur achieve business success without drowning in a sea of
debt? Maybe the following ideas will help.
1. Have a plan! It is easy to start a business. That's the good news... and
the bad news! It's good because people with the spirit of an entrepreneur can get
started without delay. It's bad because people can start businesses without thinking!
To be successful in business you must have a realistic plan with realistic goals. Your
business will grow slowly, so plan accordingly.
2. Keep it real! Almost every new business owner wants to lease a
Hummer, wrap it in promotional jargon, put up a billboard, and have a reception
following the ribbon-cutting ceremony. What about customers? Your services and
products are only as valuable as your customers say they are. Building a business
requires a solid foundation of loyal customers. Spending $100,000 on self-
indulgence and ego-stroking is certainly a temptation. In the end, however, few
people who do that stay in business very long.
3. Under-promise and over-deliver! Many entrepreneurs over-promise
and under-deliver. If you want to set yourself above and beyond your customers,
make sure you over-deliver! Go the extra mile in doing something that will make
your customers feel good about having done business with you. Be honest about
your services, products, and costs. Deal with people the way you want them to deal
with you. If you like dealing with jerks, be a jerk... just don't quit your day job!
4. Grow slowly! Many businesses can be started as part-time with little
investment of time or resources. As you begin, make your business a spare-time
endeavor. When necessary, move into the business on a full-time basis or hire your
first employee. The danger in moving too quickly is that your monthly obligations
exceed your initial business revenue. You put incredible pressure on yourself when
you try to generate $25,000 in monthly revenue because you have plasma
televisions in your offices, twelve computers, a neon sign, and the lease payment on
that Hummer. You might want to eat, pay your mortgage, and put gas in that
Hummer! Let your business drive your expansion!
Charles was a go-getter... at least that's what people thought. He owned several
businesses and had buildings named after himself. His offices were tributes to his
success and he obviously spared no expense in providing only the best for his
employees and his customers. Every week included trips to the many cities in which
he had businesses. He stayed in the finest hotels, ate in the finest restaurants, and
was driven to and from meetings in the newest limo he could rent. People were
awed at his success. After all, he was young and obviously wealthy.
But one day things began to change. Charles had outspent his earning power and
was sinking deeper and deeper into debt. He had an image he had to maintain and
he was certain things would turn around... but they didn't. Charles slowly began to
liquidate assets but it wasn't enough. He had a "fire sale" to generate some cash. His
payroll checks started bouncing. He was maxed out on his credit cards so he
couldn't even buy a plane ticket or book a hotel. He eventually filed bankruptcy and
closed several of his businesses. He left his creditors on the hook for his debts. He
was forced to sell his home and move into an apartment. Even his expensive "status
car" was repossessed. Charles climbed to the top of the business world, and like
many others, he fell down!
It's easy to start a business the wrong way! If you borrow money to start a business,
your profits are mortgaged until the loan is paid. But if you start a business slowly,
work hard, and stay out of debt, your success will be real not artificial! Think about
it!
Dr. Terry Hadaway is the owner of Rapid Fire Learning, a writer, university professor,
and conference leader. For more information about Dr. Hadaway and Rapid Fire
Learning, visit http://www.rapidfirelearning.com
