One Sherpa

I wish that someone had given me these three tips when I started out in business nearly ten years ago.

I had been an employee in other people’s businesses for nearly twenty years and then had the chance to start my own.

Having never started a business from scratch before, I really should have focused on these three tips and things would have gone better.

1. Keep It Simple

Don’t over complicate what you’re trying to achieve.

The famous Kellogs advertisement which says “The simple things in life are always the best” is a great piece of advice in starting your business.

2. Focus on Lead generation

There is a well known phrase “Build it and they will come” which was great before consumers got used to having lots of choice.

Your customers have so much choice these days that just building something will not mean customers coming through the door.

The focus in starting a business must be on getting customers coming through your door and the only way this happens is by focusing on lead generation and getting your business in front of as many people as possible

3. Keep Money in Separate Bank Account

The last tip is about structure and the fact that it really is not important when you’re first starting out.

In the future when you have plenty of business it becomes important and particularly when doing your tax planning.

When you start out just keep all the money side of your business in a separate bank account.

Make sure you understand and manage the cash in and cash out in your business.

Get the cash in greater than the cash out as fast as possible.

It had been another long week for Mike.

As he drove home that Friday night, he reflected on why his business had not performed as he had expected.

He remembered how exciting the idea was to have his own business.

He would be his own boss and have the freedom he’d always longed for.

Even if he made half the sales he thought were possible, he would be so far ahead financially; there hardly seemed any risk at all, and with all the profits he would make, he would be far better off financially

But things had not gone quite the way he’d thought they would. Every month there seemed to be more money going out than coming in.

It wasn’t just the wages bill, but also the fact that he had to buy stock to sell next month and pay rent and outgoings.

He dreaded each quarter when his accountant would tell him the amounts to pay his quarterly tax payments; and at the end of the day, even though he owned the business, he seemed to always be the last person to get paid.

Mike was in bad need of a turnaround. In fact he needed badly to do the 30 Day Business Turnaround.