RANDOM THOUGHTS #94
Steve Cole muses: I watch these business makeover TV shows (Restaurant Impossible, Hotel Impossible, Tabitha Takes Over, Restaurant Stakeout) and see business owners who say "I have been losing money every month for five years. I have refinanced my home, maxed out my credit cards, sold my car, and borrowed from relatives to keep this business going." My response is "Why didn't you do something five years ago to stop losing money?" I would not keep borrowing money to keep a failing business open. I'd fix it or dump it. Here are some things you could do.
1. Watch business makeover shows instead of American Idol. You might learn something applicable to your business.
2. Read a business book about the area where your business is suffering the most. Read all of Dave Ramsey's books, especially EntreLeadership.
3. Take a college course in business, or accounting, or marketing, or all three. (Hey, how about doing that before you go into business in the first place?)
4. See if the local university (or someone else) has a business advisory office or something. Here in my small city in Texas we have a group of university professors who pass out business advice and a group of local businessmen who pass out advice. All of that is free for the asking.
5. Instead of surfing the internet, look specifically for business information that helps your business.
6. Start two years ago making friends with people in similar businesses in non-competing areas (say, a restaurant across town, or a supply business in the next town) and ask them for advice.
7. Ask anyone you know who owns a business if he has any advice for you. Ask everyone you know if they know anyone who could give you some advice.
8. Hire college interns for some positions. You get trained and skilled people who are willing to work hard for half of the pay of a graduate (and no expensive benefits). They mostly work part time (when you need them) and firing them is much easier than firing regular employees. They are usually not eligible for unemployment so you do not pay insurance premiums on them.
9. Too many of the fatal problems with businesses are built in from the start. Buying an existing business is tricky, as the business owner thinks it is worth a lot but if it's often not. (Restaurant customers are the least loyal in the world and will leave for no reason at the drop of a spoon.) If it's going to cost you a lot of money for a business (especially one you have never been part of) maybe you'd do better to spend that money starting a new business in a new building with a new team and no baggage.
10. Most importantly, examine yourself as a skilled and qualified leader. If you cannot lead or don't know what you're doing, you don't need to be in business.
1. Watch business makeover shows instead of American Idol. You might learn something applicable to your business.
2. Read a business book about the area where your business is suffering the most. Read all of Dave Ramsey's books, especially EntreLeadership.
3. Take a college course in business, or accounting, or marketing, or all three. (Hey, how about doing that before you go into business in the first place?)
4. See if the local university (or someone else) has a business advisory office or something. Here in my small city in Texas we have a group of university professors who pass out business advice and a group of local businessmen who pass out advice. All of that is free for the asking.
5. Instead of surfing the internet, look specifically for business information that helps your business.
6. Start two years ago making friends with people in similar businesses in non-competing areas (say, a restaurant across town, or a supply business in the next town) and ask them for advice.
7. Ask anyone you know who owns a business if he has any advice for you. Ask everyone you know if they know anyone who could give you some advice.
8. Hire college interns for some positions. You get trained and skilled people who are willing to work hard for half of the pay of a graduate (and no expensive benefits). They mostly work part time (when you need them) and firing them is much easier than firing regular employees. They are usually not eligible for unemployment so you do not pay insurance premiums on them.
9. Too many of the fatal problems with businesses are built in from the start. Buying an existing business is tricky, as the business owner thinks it is worth a lot but if it's often not. (Restaurant customers are the least loyal in the world and will leave for no reason at the drop of a spoon.) If it's going to cost you a lot of money for a business (especially one you have never been part of) maybe you'd do better to spend that money starting a new business in a new building with a new team and no baggage.
10. Most importantly, examine yourself as a skilled and qualified leader. If you cannot lead or don't know what you're doing, you don't need to be in business.
posted by Federation Commander at 7:31 AM
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