10 Financial mistakes that business owners are still committing
Once a successful business is launched, the challenges of the owners of these businesses are just starting. At this stage, the millions of organizations that want to remain in the realm of competition must begin their long-term planning to maintain the factors that make them more profitable than their current operations.
In this article, we introduce Garrett Gunderson. Gareth Ganderson is an entrepreneur from Salt Lake City. Ganderson founded several successful companies at the age of 35 and is the author of the selling book Killing Sacred Cows. The title of Ganderson's book illustrates the approach he has taken to advise thousands of business owners and entrepreneurs; business owners and entrepreneurs, many of whom specialize in professional services such as dentistry and chiropractic, chiropractic therapy, and spinal cord transplantation. And Ganderson is trying to teach them how they can be prepared for the results. Gonderson also specializes in helping business owners optimize their monetization practices and discover ways in which they will inadvertently discard some of their money.
Ganderson tells us about the biggest mistakes that business owners make and tells us what they think they should do. Many of Ganderson's strategies are contrary to expectations and beliefs and their results are impressive, but he assures that none of them requires unusual investments or strange tax strategies. Here are some of the mistakes Ganderson has noticed most of all, and we provide suggestions we can all use to better manage our business finance:
1. Focusing on gross profit and ignoring income and net income
If you hear that your rival has reached $ 10bn or has hired 10,000 people, the first thing that comes to your mind is to figure out how you can get ahead of it, right? But a much smaller business can operate at a higher level of profitability, and generally a stronger organization. Each thousandth you earn, and you consider it as the net profit of the company, for your business and for yourself as the owner of the business, is much more valuable than the huge amounts earned before deducting your costs and expenses. Can you streamline processes? Save on inventory? Save on taxes? These are the most valuable questions you should ask yourself. But most business owners and businessmen do not think about these questions, or at least they do not pay enough attention to these issues. Do not even go out when needed tax advice from accredited institutions. Some of them, even though they do not have enough time to design and follow up the proper financial system, do not buy website traffic out to outsource accounting services.
2. Earlier business diversification
Where should you invest your profits? Ganderson offers a new idea and asks: Why not invest in your business and your own? Ganderson says, "Focus on your business and do not seek to diversify your work. By keeping cash in your business as an opportunity archest, create opportunities for your business. "Gonderson continues, Cash is the first and best investment since it allows you to make good choices. When you have a small cash, you accept bad customers. He calls them "killers of time." But your growth happens when you have enough money and spend on things you know about them. "I'm not familiar with social media traffic, so investing on Facebook shares is an inappropriate idea for me," says Gunderson. But I know trade and money. The best thing to do is invest in your own business and then invest in something you know. "Ganderson says there is not any bad investment, but there are only bad ones.
3. The lack of focus on the correct value equation
Gonderson continues, billion revenues are generated as a result of value creation. The largest forms of capital in each business are Mental Capital, your expertise in product and service provision, and relationship capital, audience, platform, organization, customers, family and friends.
Intellectual Capital + Communication Capital = Financial Capital
When these factors are in balance, the organization achieves brilliance and success. But when you're not in harmony, trying harder to work based on false philosophies will not yield good results. The business activities that go beyond your capabilities and capabilities are like running on a treadmill and asking others. Sometimes the business owner also tries to provide a value proposition that has been successful for someone else or for a different set of customers, but not for him. Like a dentist who tries to sell real estate alongside his main job or a marketing consultant who suddenly decides to use the revenue earned from targeted email marketing services to buy and lease private jets. When the business cannot match its value proposition with its platform and its natural audience, things do not go well.
4. Not understanding the fact that novices rely on investment, but geeks rely more heavily on cash
Have you ever noticed that the biggest investors usually spend more time on making cash, not investing? But business owners feel the need to invest heavily on this and that, and do not work enough to protect their cash by keeping cash. What is the biggest cause of business stress and ultimate failure? In general, this is not a problem on the balance sheet, but there is a lack of operational cash.
5. Lack of investment on individuals
Ganderson says many business owners hire very cheap employees. This is wrong thinking and they have to hire the best. They should also invest in technology and expertise, as they simplify and streamline processes and eliminate duplicate processes. Meanwhile, smaller companies may recruit part-time professional and professional staff rather than hiring some specialties that do not require full-time attendance at a company. The optimal mode is to provide professional and accredited institutions with some of the company's activities, such as financial services and tax services that are routine but vital and time consuming and do not require direct business owners.
6. Not understanding that there is nothing like passive income
According to Ganderson, nothing will be earned in return for doing nothing. Recurring revenue requires less work overtime and therefore a worthwhile goal. But if you do not manage this income at any stage, then the performance of the result and even your income will be lost.
7. Believing that they should do things themselves
There are things that you do better than anyone else, and so you continue to do the work yourself and delay the hiring of others to perform those tasks or avoid paying for quality, and you say: "If you want to do this right Do it yourself, you have to do it yourself. "Gonderson says this is a misconception that prevents your business from growing with targeted web traffic (or even your own).
8. Listen to financial managers who have a "diminishing" mentality
The worst advice given by some financial managers to business owners is to tighten their belts and reduce their costs, while they cannot tell where to cut costs. Or sometimes they tell you to increase your cash flow by getting a second job. "If you have a dentist and have a second job, I will not go to you again," Ganderson said. "This mentality is diminishing, and the mentality is not productive, and it's basically wrong. If you spend the time spent on the second job, concentrating more on your work, you will succeed. "So, be careful when choosing financial directors or institutions you want to get financial advice from, and first, transparently with Leave them together. Having such a mentality will in the long run hurt your company's core business.
9. Not understanding that debt and debt can be good
In business, Gunderson says, do whatever it takes to make a cashier to spend on the owner of the business. (Of course, this cash must be spent on increasing your business revenues, not for additional rewards for buying a vacation home and luxury cars.) According to traditional thinking, when you have extra money, it is used to pay any debt that is due to be paid. Or, follow the cost of your balance sheet with the highest interest and pay it first. But according to Ganderson, the best way is to look at the loans you have, divide the monthly payments, and assign your cash first to the one that creates the lowest cash flow indicator. To do this, you need to use accurate calculations to choose the best loan appropriate for your business.
10. Imagining that more work should be done for more results
Gunderson says, "If you have an income of one billion a year and find out that other people who have your business earn $ 2 billion a year, you get upset. But when you have a better strategy, you'll find ways to increase your productivity, employee productivity, and business development boundaries, profitability and revenue without having to work more. It's just enough to get the most out of your strategy with better resources than the available resources or resources that are at your fingertips.
Want to reach your targeted demographic while they are out and about this summer? Our traffic comes from mobile devices, both iOS and Android. To buy mobile traffic, simply select the amount of traffic you want including geography (by country) and one category that best fits your business/topic and we will start sending traffic your way. Financial mistakes are not summarized, and depending on the type of business, the industry and the country in which you operate are different. So, choose the right team members for your business team and if you have limited financial and human resources, go to outsourcing and get advice. Talking to people who are specializing in their field and looking at your business and your challenges with their own perspective. Looking for the highest quality traffic that is keyword-driven from the major search engines and has the added benefit of boosting your Alexa ranking? Look no further. Buy targeted organic traffic and watch the results. It's safe and easy, and considering all you get for it, it's a pretty good deal!
Now log in to the following link for advice and contact the experts of this institute.
CommentairesAucun commentaire pour le moment
Suivre le flux RSS des commentaires
Ajouter un commentaire