Business of failure

Had a talk with my elder sister on her business and her failures and she gave me advice on how best to manage a business especially in it's early stages. She's recovering from a business failure and it was good listening to her.

1. Money is the soul of business: Money is the language of business so in all you do, try your best in keeping more money than you spend and when spending always spend to get more. be the opportunist and take advantage of good deals.

2. Separate your business account from your personal account: This is a fundamental rule, Ive paid dearly for this in times past. No matter how broke or how much you need money, don't or at most borrow from it. Alternatively you could increase your salary but that can have an adverse effect on sustainability and continuity of your business.

3. Plan for crisis and don't let crisis plan for you: No one plans for hard times nor crisis but in the real sense when they often come. To help navigate trouble waters better, one should focus on building a strong capital and asset base and also the cardinal rule of not putting all all eggs in one basket, Diversify. A lot of other measures can be put in place, just think.

4. Sustainability and Continuity is key: Your business must be bigger than you and also richer than you. Don't own the business and in turn take from it as you will. Your business must be able to survive without you else you are running a one man show. Also your business must be able to survive a season of drought and low business activity.

5. Pay what's due to God: Your tithe is more important than your salary and as long as you won't want anyone messing with your pay, don't mess with God's.

6. Develop a non-spending habit: Personally this is an advice I really needed. Developing a non spending habit does not mean becoming a miser but its the to spend money less often. One might need to eat out less often, buy things in bulk, buy things that last longer. take cheaper transport and the list goes on.

7. Don't compromise quality: There are a lot of people doing what you do hence a simple compromise could make you loose a client for life or even more thats why it's a market. and in case of mistakes being polite and apologetic will save you a lot.

8. Be innovative and reinvent yourself: Everyone loves something new. Nokia thought me this. You can keep doing the same thing over and over, and get better results and at the same time keep your sanity but make sure you convince everyone you are doing something different.

Lastly, don't be like the CEOs of the top automobile companies in America who flew private jets to ask for taxpayers money to rescue their companies.

To be continued....

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