Herman School of Business
Business specifics to ponder.
Sometimes as a writer we want to stay in the ethereal. Not wanting to get specific because the reader audience is not all the same. But three specifics should be discussed once in a while to keep all of you thinking about the place you are so you won’t contribute to your upcoming failure.
RENT : Or the cost of your space to do business. People feel they need a hot address, the right location, and that beautiful surroundings are a must. Rent is money you will never see again. If you can’t buy your space so that the money is going to become equity, then you better have the cheapest rent possible. If that means you operate in an ugly setting, in an ugly building, then so what. Ask yourself this. How much does the landlord make a month versus what you are taking home now? People invariably let their ego and need for “status” in where they operate help make failure an easier option than success.
YOUR CAR: Look at me it screams. I am so successful. Where the hell is that next monthly payment coming from? Sell the Lexus now. Get rid of the Mercedes Benz mentality. What are you thinking…if you want big success make a big sacrifice. Cash out of that money-waster and buy something with whatever cash is left. That’s right, even something many years old. You need transportation, not a toy that makes you feel good. If you can’t pay cash for the Benz then you bought it too early.
ADVERTISING: Of course you need marketing. But not all of it works. Restaurants advertise in magazines all the time. And almost all of them are gone in less than three years. Are you advertising to get customers or to tell the world, look at me, I own a business. There is so much waste in marketing costs it is amazing to me. People spend money for ego and not efficiency.
Three specific things you control, not anyone else. Where you operate, what you drive, and who you tell about your business. I bet you could save a lot of money controlling these three things you actually can control.
HERMANISM # 16
Someone Is Better At It Than You Are.
- Posted: 7 October 2007
- Comments: 0
- Category: Running a business
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