As an entrepreneur and independent businessperson, you have the coveted position of being the one in charge of . . . everything.
These perspectives and truisms helped me start and manage three successful start-up businesses.
1. Review monthly bank and credit card statements. Whether or not you have a CFO, you need to understand your cash flow
As a business owner, you need to know what is going on in and with your company. There’s lots to know, and what better way than by knowing your numbers?
Too many executives believe that only the chief financial officer and director of finance must know the numbers. Wrong!! You as the leader of your company must understand profit and loss statements, balance sheets, cash flow — you don’t need to be a forensic accountant and comprehend all the nuances — but you better know what those numbers mean. At the end of the day, it’s your company!
Through my many years of working in finance (and especially having owned a credit card processing/merchant services company), I am shocked how many chief executives of both private and even public companies don’t really have a complete grasp of their numbers. The numbers don’t lie!
2. Have you completed your business and vision statement? Is it all fluff? Or does it mean something special for your company?
When was the last time you went on a two- or three-day business retreat to work on your vision and mission statement with your colleagues? Never, every six months or once per year?
Did you create your vision statement sitting in your office, many years back, by quickly scribbling your trite words like “we want to be profitable” or “provide great customer service to our customers.” The great companies have incredible vision statements with powerful and meaningful words that permeate through the organization and really mean something.
I’m guilty of initially having a commonplace vision statement that really was just copied from a business book and had some big words in it that didn’t capture the real essence of our business.
Don’t do what I did. Really think of words that embrace your company and educate your people of this powerful mantra. If done correctly, these words will change the future of your organization and help create a successful and profitable organization.
3. “Building relationships” – that’s what I tell my employees when I want to go golfing for the afternoon
Let’s think about why customers buy from your company. Maybe it’s because your product/service is so unique and patented and it doesn’t exist anywhere else. In my opinion, this is the rare exception. Most products and services are competitive in nature, commoditized, and the reason customers buy from you is because of you!
Build relationships, get out there and spend time with your customers, your vendors, your strategic partners. I love golf, and have developed some incredible and powerful friendships in this relaxed environment.