What Entrepreneurs Do to Be Successful
Success is defined as achievement of something planned or attempted. So, business success may mean that you launched your business, you have happy clients, and you are selling your products or services. By now you have been doing it for a few years. It may, but it does not have to mean that your business is growing right now. The business is making money (revenue).
In working with clients I discovered that often when an important client leaves, or an unexpected expense shows up, or something breaks down, the entrepreneur has to figure out if they can quickly make more money, or they have to cut an expense or will not pay a bill this month. Almost every unexpected event becomes an emergency that has to be dealt with immediately. It takes time, energy and a lot of stress. Do you frequently find yourself in this mode?
Typically the owner sacrifices something when unexpected things happen in business. Often it's something personal, such as time with the family, personal income, leisure, or something they want. And that's part of what makes the business sustainable. "I just need to make more money" or "I need to work hard" is often the answer to a situation the entrepreneur is facing. That is a hard way to run a business.
Business and financial success do not automatically go together. A business may be successful and thriving with lots of happy clients, but its financial picture may be different. The business could be just making enough money to cover its expenses, or make just enough profit for the entrepreneur to "get by" financially in business and personal life. A business could be bringing lots of revenue, but if the owner, the entrepreneur, struggles having money for what is needed in the business, or is uncertain about having money to pay bills next month, or is unable to hire someone even as sales are growing, that is not a picture of a financially successful business.
Financial success in business is measured by generating planned or near planned level of revenue and profit (net income). Or looking at it another way, business is profitable and you, the entrepreneur, are receiving the desired income from the business. Any successful business has an opportunity to be financially successful. Financial success is a step up from having a successful business.
Entrepreneurs who run financially successful business deal with the business or personal choices with ease, they don't have to sacrifice. They are focused on the direction the business will take in the future as they adjust the workings of the business to the current and expected business conditions. They plan for the future and set milestones for success. They plan not just to grow the business or maintain happy clients; they plan for the costs that will be involved in growing the business or keeping clients happy. Whether the cost is their time or they'll pay someone else to do something, they have a way to measure the progress. Having measures and monitoring progress allows them to adjust the actions or the plan, it saves them a lot of time and money. It is also what makes them more likely to achieve their goals: business and personal.
Entrepreneurs who are running financially successful businesses planned for certain level of variability in revenue and in costs. They have cash reserves in the business. They don't have to take time immediately, scramble or stress over an unexpected event. In the planning process they already identified what adjustments they will make and when they'll have to make the adjustments. They have time to think and react. This is one of the reasons why running a financially successful business is easier.
Interested in making your successful business financially successful?
Steps and tips in future articles...stay tuned
Ilona
What Entrepreneurs Do to Be Successful
By: ana
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