If You Want to Be a Successful Entrepreneur, Take Note of These 7 Lessons

While everyone seems to have a good business concept, few ever execute their ideas successfully.
If You Want to Be a Successful Entrepreneur, Take Note of These 7 Lessons
By: Alejandro Saracho

One of the main objectives of creating a business is related to the generation of wealth: for the environment, for society, and for the business owner.

The generation of wealth is related to money and its correct management. Many entrepreneurs start their business as operators or technicians and never delve into money management. That makes their businesses stay small or not survive over time.

That is why I decided to write this article entitled “7 secrets of money to undertake successfully”:

1. Entrepreneurial Mindset

Many people think that all they need to start is a good idea. Unfortunately, it is not like that, good ideas abound everywhere and are destined to die if you do not have an entrepreneurial mindset.

Creating a new business requires hard work, high tolerance for frustration, being willing to carry on when it seems like all is lost, implementation, implementation, and more implementation. But above all, it requires an obsession to achieve your dreams, more than an obsession to generate money.

If you look for money, your chances of success will decrease (because at the beginning you won’t have it). If you seek to transform people’s lives and make a change on the planet, money will come as a consequence.

So do you or do you not have an entrepreneurial mindset?

2. Viable Business Model

Most people who start a business become obsessed with their brand and their product, and this is one of the most common mistakes I see in entrepreneurs. Your brand and your product are worth nothing unless they show that they are capable of generating money.

  • First: you need to make sure that someone is willing to buy your product/service. Describe who your valuable customer would be, approach people who meet the characteristics, and see if they are willing to buy.
  • Second: you need to develop your business model — that is, know how to interconnect all parts of your business. You need to know how you are going to attract prospects, how you are going to convert them into customers, how you are going to produce and deliver your product or service, how you are going to charge, and how you are going to pay. When you have it assembled, you will realize that your model requires money to function. Those are your costs and your expenses.
  • Third: you need to make your financial statements or your numbers and make sure that your business is profitable and scalable. You find profitability when you calculate your sales minus your costs and minus your expenses. You find scalability when you validate that there are many people who meet the characteristics of your valued customer, that you can serve them through your business model, and that you have enough money to start and maintain it.

If you meet these three points, we can say that your business is viable. If you realize that it is not, you can adjust your business model as long as you validate that someone is willing to buy what you offer.

Your Dream of Working From Home and Enjoying the Good Life Is Here! Click Here to Learn More!

3. Absolute Austerity

One of the mistakes people make when starting their business is that they buy and overspend. They look for the best computer, the best offices, the best car or they use their money on things that are not directly related to generating sales.

A principle that Carlos Slim uses that I highly recommend is called Absolute Austerity. When you buy something, make sure that it is directly related to the generation of sales.

If you need a computer, ask yourself which computer meets your basic needs (not which one meets the needs of your ego). And ask yourself, if I buy a more expensive computer, will this increase my sales?

4. Cash Flow

Cash flow is the gasoline that drives businesses. Many businesses that are highly profitable (that is, that generate profit), die because the entrepreneur or business owner did not know how to manage their cash flow.

There are three levers that I recommend to manage your cash flow well:

  • The first: charge before and pay later. In this way, you can finance your business with the money of your clients, instead of you becoming their bank.
  • The second: handle low inventories. One of the places where your money gets stuck is in inventories if you have too much of it. Try not to give in to the temptation to buy too high a volume for a discount.
  • The third: reserve of protection. Try to have enough backup money to pay for one to two months of business. There are always fat cows and skinny cows. When you don’t have the money to pay for the lean operation, a profitable business ends up going out of business.

5. Reinvest Your Profits

One of the temptations of the entrepreneur is to spend his earnings as soon as they arrive. My suggestion is to reinvest them in the same business. You can use them to attract more prospects with marketing and sales or to streamline your operation and lower your costs and expenses.

Until when should you reinvest your earnings? Until you have reached a good critical mass and the business can operate even without you.

Gas Prices Are Heading Higher. Where Will They End Up At? Enroll For Your Chance of Winning a $1000 Gas Gift Card. Click Here to Enter! 

6. Plan Your Transition

One of the questions that I get asked the most is: when is the right time to quit my job and dedicate myself fully to my business?

The answer is when your business is able to generate enough money (consistently and constantly) to replace the salary that your work generates.

It is important to plan the transition with clear goals and objectives. In such a way that you say: in six months the business must leave me this amount of money. When I reach this amount of money I will quit my job. This way you will know where to focus and when the transition will occur.

And I know that many entrepreneurs are kamikazes and are willing to quit right now.

Can you do it and achieve it successfully? Of course. However, if you want to avoid or lessen the impact of entrepreneurial trauma and emotional crises, I recommend planning your transition.

7. Continuous Learning

This part is essential for any entrepreneur. You need to be willing to continually learn if you want to be successful. If you don’t like learning, maybe entrepreneurship is not for you because, in a short time, you will become obsolete and the business will end up failing.

Now, there is a type of education for every purpose.

  1. If you want to learn to be a better collaborator in a company, you need to consider academic education (such as masters, diplomas, specialties).
  2. If what you want is to learn how to generate better results in your business, what you need is focused education (such as conferences, seminars, workshops).

The difference between the two is that the first gives you a lot of theory (and takes a lot of time) and teaches you how to run someone else’s business and the second teaches you implementable principles (in a short time) and teaches you how to run your business.

What is the first thing that I recommend you learn? To manage your money. To manage your personal finances.

Business money is a reflection of how you handle your money. If you learn to do it, you will achieve that your business generates sustainable results.

Related:

30 Ways to Become a More Successful Entrepreneur (neilpatel.com)


The New Online Classified Ads Site Designed to Make You Money, Save You Money, and Improve Your Life, Is Here!

How To Utilize Data To Inform Your Sales Process

The Four Ways That Data Can Be Utilized To Inform Your Sales Process

By Dave Mattson | August 28, 2020


For as long as there have been salespeople, there has been data to analyze about the process they use to bring in business. The only issue has been how effective leaders are at drawing conclusions from that data.

All too often, companies don’t make effective use of the information available to them from their sales teams. They fail to generate the most relevant data points… or they focus on information that is familiar to them but less than meaningful. These common mistakes result in, among other things, the dreaded “garbage in, garbage out” sales forecast. So: How can you as a sales leader use data to support both the organization and the sales team? Here are four questions that will help you to do just that.

Question One: Do you have a sales process? This may sound like an obvious requirement, but most organizations we work with do not have a sales process! If you start breaking down data without a systematic process in place for generating sales, the data you come up with isn’t going to do you a lot of good. Note that a sales process gives people the steps they need to follow, from start to finish, to create revenue for your organization. Every company has a slightly different process; you can think of the data generated by the various steps of your sales process as being like an MRI. When it’s done properly, that kind of comprehensive scan is going to tell you what you need to know about the internal workings of your sales team. But to be useful, the analysis must line up with a functioning sales process!

Question Two: Have you identified your expectations? What are your expectations for each of the phases of your sales process? Break the process into its constituent parts: lead development, also known as prospecting; qualification; and then fulfillment and servicing the account. These three phases can also be understood, in the enterprise world, as landexpand, and renew. So. What are the specific outcomes you want to see within each of those three areas? What are the behaviors that make those outcomes possible? What are the departmental benchmarks – meaning what are your time-bound goals for behaviors that will land new business, expand existing business, and renew relationships with your best customers? Once you know that, you can break it down. What are the team benchmarks? What are the individual benchmarks? Set specific expectations. Hopefully, you’ve overlaid some competitive information, and you are meeting or exceeding the relevant industry benchmarks as you work with your team to identify the right goals. Once you have set the expectations, you will have something to compare the relevant real-world data to. (See Question Three.)

Question Three: Are you measuring the right stuff? Get meaningful data. Specifically, make sure you are getting data that connects to a specific step of your sales process. Make sure you are using your CRM system as a source of actionable business intelligence… not as a demonstration of compliance on the part of your salespeople. Make sure you are tracking leading indicators (activities that predictably generate revenue, such as having an initial voice-to-voice conversation with a decision maker) not just lagging indicators (activities that connect to revenue that has already been generated, such as filing a signed contract). Often, leaders spend too much time on lagging indicators and not enough in leading indicators. Identify the leading indicators that spotlight the effectiveness of a particular step of your sales process (such as the number of times a salesperson begins a discussion about the budget). Use that data to strategize improvement. What specific tools, resources, and behaviors will help everyone ensure the needle is moving in the right direction? How will you share the data in a way that inspires salespeople to monitor – and control – their own behavior?

The TW3 Work From Home Business Opportunity is Right For You. Click Here to Learn More!

 

Question Four: Are you looking at a problem… or a symptom? This is perhaps the most important question of all. Is the data you’re examining pointing you toward an actual problem, or is it identifying the inevitable result of some underlying issue that you haven’t yet addressed? Sometimes, what seems obvious about a sales team’s needs isn’t obvious at all. Let me give you an example: Often, companies will look at their presentation-to-close ratio, realize that it’s low, and then self-diagnose based on that. They’ll say to themselves, “Okay, we need some help; we need to get better at delivering our presentations.” They think that’s the right response to what the data is telling them. But time after time, we find that’s not the problem.  When we do some digging, what we generally uncover is that they have a poor qualification process. The majority of those people they’re presenting to, they shouldn’t have been presenting to in the first place. They had no opportunity to win. Remember: There is a time to step back and get some help in assessing what the data is really telling you.

New technologies in CRM, in artificial intelligence, voice intelligence, and in any number of other areas are giving us all access to much deeper analyses than we could have made just a few years ago. As sales leaders, we can get the right data up on the dashboard… we can use that data intelligently… and as a result of what we learn, we can do a better and better job of leading our teams and our organizations in the direction they need to go. That starts with asking ourselves the four questions I’ve shared here – so we can avoid the all-too-common mistake of trying to land the plane without an instrument panel!

Interested in learning more about how you can utilize technology and data to inform your organization’s sales process? Learn why Sandler partnered with Gong to bring a measurable, data-driven approach to sales learning programs.

 


 

Marketing Is Crucial To Any Modern Business’ Longevity And Success

Marketing Is Crucial To Any Modern Business’ Longevity And Success

Advertising and marketing have historically always played an important role in any business’ longevity and success. These days, there is a much stronger call to action for active and consistent… Read more »

The post Marketing Is Crucial To Any Modern Business’ Longevity And Success appeared first on Noobpreneur.com.

Marketing Is Crucial To Any Modern Business’ Longevity And Success
Marketing Is…

View On WordPress

7 Ways an Entrepreneur Can Increase Their Productivity by Switching Off

7 Ways an Entrepreneur Can Increase Their Productivity by Switching Off

If you’re like most entrepreneurs, then you may have a hard time getting and staying productive. That’s partly because you find ideas everywhere. While it’s great to have so many ideas during the start-up phase, new ideas can keep you from completing tasks. There’s always something new pulling you away from the tasks that will move you closer to achieving your goals and seeing your vision through.

View On WordPress

How To Know If Your Business Processes Are Optimized For Best Performance

How To Know If Your Business Processes Are Optimized For Best Performance

Dejana Marich knows that the most effective way to boost profits and overall performance is to optimize business processes whenever possible.
Process improvement must not be confused with full automation… Read more »

The post How To Know If Your Business Processes Are Optimized For Best Performance appeared first on Noobpreneur.com.

How To Know If Your Business Processes Are Optimized For Best…

View On WordPress

Financial Success For Your Future Through Market America, UnFranchise Businesses

Financial Success For Your Future Through Market America, UnFranchise Businesses

Since its inception in 1992, Market America has provided unmatched, entrepreneurial opportunities for middle-class individuals. They believe that integrity and prosperity are intertwined, and the company culture reflects that. UnFranchise… Read more »

The post Financial Success For Your Future Through Market America, UnFranchise Businesses appeared first on Noobpreneur.com.

Financial Success For…

View On WordPress