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RCBill

Some things new business owners may consider

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1. You are only as good as your word. If you say you can and will do something, do it. Or get a job with somebody who will.

2. You need to know what you are doing. In my opinion, you don't need to be the high sultan of a particular trade. But people that hire you think that you can deliver the goods. If you cannot, be a helper.

3. Know your numbers. You gotta know if you are making a profit. If you don't know if you are making a profit, or you are not making a profit, this is a hobby.

4. Marketing is the most important thing an owner does.

5. Work on your business not in it.

6. Build management systems. Or spend the rest of your life with sixteen balls up in the air.

7. Don't let your ego get in the way of growth. Speaking of growth, there are few avenues of life experience that will teach you wisdom. Building a business is one. Unfortunately, I think there is a direct relationship to pain and wisdom.

8. When I worked for another, I keep a daily log of how I 'spent' my time. This is very appropriate for every owner. If an owner does not know how he or she allocates their time, they do not know what their profit is.

9. Essential to profitablility is knowing what goes in, and what goes out. So we are talking Revenue minus Direct Labor, minus Direct Materials, minus Indirect Expenses, minus Taxes equals PROFIT. The thing that gets small service providers is the indirect costs. The man I learned how to allocate these costs from is Irv Chasen. You can Google him to get more information. This is where a small service provider can start, or boost, profitability.

10. Do not let a faulty paradigm set your price.

Bill

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