This year, we asked our Contributors three questions: What is the single biggest lesson you’ve…
Want to Grow Your Business With Confidence?
Sometimes we think about whether we want to be in our Small Business.
How will our Small Business become a medium or big business? Our answer lies within our business, and you have probably (hopefully) explored this question with someone you trust, have confidence in, and ultimately respect their wisdom. If not, one of your urgent challenges is to find at least one, before you do much else.
Wise people are rare and highly valuable. The trusted person or people you turn to for unbiased, bottom line and matter of fact advice are now required to answer your questions ‘with’ you, not ‘for’you.
Some questions you may ask?
- Is your business vision developing (or developed) and your path forward clearing?
- Does your vision match what you ‘think’you are doing or what you are ‘actually’ doing?
- Is your target industry segment or ‘niche’, sustainably growing in a longer term unstoppable global trend?
Before spending unlimited hours invested in your visionary endeavour, use the wisdom of others to answer these questions.
If you have grown or have a vision to grow beyond a micro or Small Business consider this:
I try to buy … businesses that are so wonderful that an idiot can run them, because sooner or later, one will. – Warren Buffett.
- Is the business nearly indestructible?
As Warren Buffet observes, “When [your]… managements reputation for brilliance tackles a business with a reputation of bad economics, it is the reputation of the business that remains intact.”
OK, you want to be in your business, you have a growth vision, your wise ‘others’ provided trusted input, you’ve identified an unstoppable global trend, and Warren Buffet hasn’t talked you out of it. What’s next?
Consider why businesses fail.
A quick Google search revealed a 2011-12 report into corporate insolvencies by the Australian Securities and Investments Commission (ASIC)which stated:
- 44 percent suffered poor strategic management,
- 40 percent fell victim to inadequate cash flow or high cash use, and
- 33 percent went under because of trading losses.
I’d say Item 3 occurs because of Item 1 and Item 2. It is because of these facts that most times it is best to pass up those ‘amazing’ opportunities unless you can respond honestly to the questions above.
Now to your success.
Answer all the above questions and reaffirm your application of scarce time and cash in your growing business that is within an unstoppable global trend and next time you look, you’ll be slightly older, but wiser and in a medium or bigger business. Your business will have great vision, management and economics and if your reasonable, Warren Buffett might even want to buy it.
“The opinions expressed by Smallville Contributors are their own, not those of www.smallville.com.au"
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