Things I’ve Learned about Business
This is not, and does not pretend to be, all-inclusive. I’ve learned some of these things two or three times before they stuck. There are lots of things I’ll never learn.
Ø If you don’t understand what drives your business and what levers are available for you to apply to those drivers, learn quickly. Do not try to sell to a customer without knowing the same details about his business.
Ø For a business owner the rule is AND, not OR. You must run your business AND offer customers value for money AND develop your workforce AND continuously improve your business practices. These must all be done at the same time. If you’re not up to the task, sell the business and do better next time.
Ø You can do anything you wish in business until you run out of money. When you’re out of money other people get to make the decisions and your wishes are irrelevant.
Ø Do not hire friends or relatives to work in your business unless they are the best possible choice. Otherwise, you could lose your business and your friend too.
Fundamentally Different
Ø Service businesses are fundamentally different from product businesses.
Ø Businesses that sell to other businesses are fundamentally different from businesses that sell to consumers. Your twin goals with each business customer are to generate profitable business from happy customers, and to penetrate further into the customer. Typically, sales to consumers are one-offs, fire-and-forget.
Basics
Ø Unit price for raw materials is less important than having the raw materials available and being able to work with them.
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