Business people are focusing their activities in the wrong direction. Sure in order to experience success one has to work hard; however, there has never been anything called "Work hard and Get Rich". There is a book written by Napoleon Hill some time ago called "Think and Grow Rich". Yet, many haven't read it though they are seeking success.
If you are to be a leader, you have to be a reader.
Success is a system. Yet people are not getting it because they are not receiving the information that is all around.
The title of this article will probably wonder what I mean, well here's what I mean:
- Entrepreneurs know how to put money into their businesses, but they don't know how to get it back out: When you make an investment into a business, then stop trying to get paid via a salary. When you do this, you are demonstrating the wrong mindset. You have to have a strategy that you can - legally - use when you are in business. Business people don't want to invest in learning about the different forms of business setups. It seems like attorneys suggest the incorporation so they can get the fees for incorporating the entity. The people, their clients, who are in business don't understand why they even incorporated.
- The business has a lot of moving parts, being good and something doesn't mean that you'd be good at running a business in that area. Here's what I mean. E.g. a good plumber doesn't necessarily run a great plumbing business. They want to focus on plumbing. They don't want to do the administrative aspects of it. Therefore over time, the really successful plumbers realize that business is a team activity.
- Why don't businesses grow their profits and thrive? The simple answer, the principles have the wrong mindset. Many don't have the mindset for handling large sums of money. When they do get the breaks they go on spending sprees until they get back to the level of money they are comfortable handling. Oftentimes, they make bad decisions along the way. There is a need to ask and answer some long, hard questions.
- Dealing with businesses over the years, I have found that the owners are quick to settle within a comfort zone rather than strive to go to the next level. Does this mean that their goals are set too low? Perhaps not, they set it to what they want. E.g. Some people just want to have gainful employment rather than leave a legacy. What this tells me though is that we seem to be conditioned to study for a grade rather than have the discipline to study to get paid. Studying to get paid doesn't have to be formal. It can mean just reading, listening to the material or even taking short courses to keep informed about developments in business.
- Not enough business people know/understand taxation, therefore they are unable to do proper tax planning to make the tax structures work for them. The result is the business haemorrhaging by paying more taxes than absolutely necessary and failing to make claims to which they are entitled.
Are there other considerations? Yes, but this is not a consultation to diagnose every scenario that impacts all businesses. Just enough to get you to recognize that you need to have someone in business development help you.