I get lots of questions about business. Here are the most common business mistakes.
- Starting a business, and then just raising money and getting investors, without focusing on profit. Then telling everyone “look at all this revenue, we are doing great!” You are not doing great. Money raised from investors is not revenue. It is debt. This is being delusional and living in a dream world.
- No focus. Starting a business, and then starting another business or starting several divisions in your existing business without any focus, planning, organization, budgeting, and without you KNOWING with 100% certainty what if any of the businesses or divisions is actually making a profit. You need to focus on 1 thing until you are making great profits and debt free (all investors paid back).
- Not knowing the score. Not knowing exactly what is profitable, and exactly how much money you are making (profit).
- Not managing cash flow. I know lots of people who kept saying they are getting rich with their businesses, then go bankrupt because they mismanaged their cash flow.
- Getting into debt. HUGE error. Operate out of cash flow.
- Going too fast. Trying to grow too quickly. Being in too much of a rush to be a Billionaire. This is the EGO being in control and leads to disaster.
- Doing things in your business to feed your ego. Needing publicity about you and your business. Needing recognition. Needing validation. Needing acceptance. Needing pictures with rich and famous people. Needing to be a part of the IN crowd. Spending money on a fancy office, a big corner office for yourself, an expensive desk, etc.
- Not budgeting. Spending money too quickly on things you do not need to spend money on (be frugal, thrifty, and tight with your money! Do NOT spend it easily).
- Living in a dream world. Being delusional about what really is happening with your business. Have a dream, but do not live in a dream world.
- Always talking about what you are going to do, and what you have done (embellishing your achievements). Looking for validation, approval and acceptance. Talking to everyone about YOU.
- Not understanding that it is ok to “fail” in business. Being unable to fire people, cut salaries and expenses, trim and cut spending and waste, or even shut down parts of your business or the entire business. (Most people stay on the sinking ship too long. If you are on the Titanic, get on the lifeboat!)
If you are in business, do a personal check on yourself. If you know people in business do not be judgmental, or critical if you see them with lots of these attributes. Know that most of us have to learn from our own mistakes. When I see this in others, they almost never see it in themselves. They are in denial that these issues exist. If I point them out, they in turn get angry at me! LOL
Lesson: Let others do their thing and simply love them unconditionally without condemnation, criticism or judgement. IF they ask, then share your OPINION with love and gentleness.
Until next time…