The importance of a healthy cash flow for your business

..People often get into a business with 100% devotion, but over time they tend to lose that one thing that made them get into doing this in the first place. I feel that if one is to do something, do it with devotion or don’t get into it at all. Half-hearted business deals, or ideas go half-way and then they die while taking your cash with them.

So the very simple thing you need to keep in mind is, “keep the revenue coming”. You really need to be very active in selling your services and products, every single day of the week. Time is passing, and your plans of becoming the king (or queen) of your niche will also stay a dream unless you really do something with it.

Always over-deliver!

Plan your meetings, meet your clients, over-deliver, and always have some special deal for those clients who purchase a lot from you. I have on and off, twice-a-month deals for my regular customers, and I sense that they really appreciate it. On one hand, I have done my bit and then they do theirs by placing an order for a bunch of products that might just be lying in storage if I don’t sell them.

Communication is the key

Don’t underestimate the power of communicating with your clients, just like you, they also like to be remembered and offered something for a “better” reasonable price than the rest. As I mentioned before. To really see the value of a client, imagine your monthly sales without their purchases. Every customer counts, and to survive, you really need to keep selling and keep the revenue coming!

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Trust your gut feeling

indigestion-gut-feeling

We are often in a situation where we have nothing else to rely on than our own gut feeling. It could be at the time when you are thinking of adding a new product in your collection to introducing a service that you think will blow the competition away. I think no matter what your situation is, your gut instinct will definitely have to be playing a role as well. I try to learn from my mistakes, and just to be frank, I too have had products in my collection that haven’t given that much in return, and instead something I didn’t think of as a product worth investing in, managed to do so well. That’s how our experience is polished, and that’s how we don’t make the same mistakes again.

So to keep this short, I would advice that whenever you are thinking of doing something that has a bit too much financial risk, always consult someone who might be sitting on more knowledge and experience than you, and someone you highly respect and trust. I often speak with my customers on one to one level, asking them about their experiences so I don’t make the same mistakes. When you talk to others openly about your fears within a new market they have more experience in, they respect you for being open, honest and most of all a human being who is willing to learn.

So all in all, a gut feeling is not always the best way to decide something in your business, it could most probably just be indigestion.

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Remember those that’ve helped

In the world we are living in, everyone is trying to use someone as a ladder to reach the top. There is nothing wrong in it, unless you are doing it for the wrong reasons. If you are a genuine person, who has a thankful nature, you will use the other person to reach a higher goal and in return be loyal enough to not forget the people that helped you.

As they say, remember people when going up, because you will see them again when you are going down. So true is that. How many times have you seen people you have helped, not respond back in the same way you did? Did it make you feel bad about helping them? Well, I don’t think it should. What they did is their choice, what you did was how you are. Then you might say, well I was used, and I don’t allow people to use me! Same response, you did what you did because you are kind, if someone didn’t see the intention behind it, don’t waste your time by trying to make them see it. If they didn’t see it then, they won’t see it now.

Instead of the negative affects of remembering those you have helped, focus on those people who have helped you. Be generous to them, ask them if now THEY need help and how you can be of assistance. Remember, what goes around comes around. And I hope in the long run, you can be a kind entrepreneur who has a heart in the right place.

 

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Wrong motives to be an entrepreneur

entre There are lots of reasons why a person would “want” to be an entrepreneur, but not all of them are reasons good enough to jump into this whole new world. I see an entrepreneur as someone who has this instinct that the others don’t have, he/she has an eyesight that sees things differently, and sometimes is also called “crazy” whenever they present an idea everyone else doesn’t seem to grasp the concept of.

I am a strong believer of the fact that entrepreneurs can’t be “created”, they have to be the way they are. They have always, since childhood carried that special thing that the others didn’t have. They always tried something new, always wanted to make things happen, and were seen as the smart-one among the other kids in a group.

I am sure all of you are saying “Hey, that’s me”, but keep reading. :)

Wrong reasons to start as an entrepreneur:-

  • You hate your boss, and want to decide your own hours.
    Being an entrepreneur doesn’t solve this, you will have lots more to do to even get a minute of rest. Just having the name “Managing Director” on a card won’t make you a millionaire.
  • You are seeing everyone else doing well in what they do
    They are doing well because they put time in it, and are probably experts in that field. Don’t even think of getting into a field just because someone else is doing good in that sector.
  • Everyone calls you a loser and you can’t get a job
    Well, this is a tough one. If everyone calls you a loser, first try to divert that negative energy into something positive and do something about it. Sometimes people are right, although their words can be harsh. If you can’t find a job, ask yourself if it’s because you are lazy, or because the market is tough. No matter what it is, that shouldn’t be the sole reason for being an entrepreneur.

 

So who has the licence to be an entrepreneur then?

Someone who is not afraid to lose their sleep and comfort to make their business a success. Someone who trusts their idea and passion to be the driving force behind it all. Someone who is NOT in it for the money. Yes, I said it! An entrepreneur is not in this for the money, he’s in it because he loves doing what he does, and in return he gets the money as a bonus.

So ask yourself, are you in it for the right reasons?

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How to choose the right segment?

good_businessNo matter how we look at it, this has to be one of the most important factors considering it’s the segment you are working in that will take you where you want to go.

But how do you choose a segment to start your business in? Is it ok to get into retail because everyone else is doing it? Why not set up a grocery store because every other person you know runs a store?

The above reasons are totally wrong since you are basing your whole future on the apparent business success of other people and not on fact that if you even like that segment. A person who gets into a business just because other people are in it, needs to ask himself a few questions, and one of them has to be

“Can i work day and night to succeed in this sector, or will I get bored and give up?”

If the answer is no, look for a segment that you burn for, rather than choosing one that will burn you in the wrong way.

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