1. Make a Profit
If we're not doing this, we don't yet have a business.
We simply have a hobby, and idea or a distraction.
2. Repeat the Profit
Without this, we have a one-hit wonder AT BEST.
Businesses (as opposed to products or fads) repeat their results.
3. Diversify the Profit
Products are nice, but what happens when someone does it better?
If we build relationships with customers, identify and satisfy some of their other related needs and wants, we can turn them into long-term clients.
4. Grow the Profit
Once we can Make, Repeat & Diversify our profit, we have a business. NOW we should grow it.
Scalability does not always equal profit. It's possible to scale losses, too (like bad real estate "investments"). We want to scale our profitable business.
5. Enjoy the Process
In order to have 10 year plus success, we will need to stay focused on the business.
If we're enjoying the process, we can do that.
PROFIT & GROWTH
If done correctly (which is not easy - just ask the other 95% who fail), we can create long term profit and growth.
In the meanwhile, we MIGHT LEVERAGE these other strategies OR they might be the DISTRACTIONS that lead to the failure of our business.
POSSIBLE DISTRACTIONS
1. Sell Lots of Stuff
This can be profitable or unprofitable. Sales don't always equal profit.
Should we be selling lots of little things or fewer big things? What will lead to long term profit?
2. Personal Recognition
This is almost always a distraction, unless we (like a celebrity) are the brand.
And even then, the celebrity isn't really the consumable product that people pay for. The actual product is how the celebrity entertains their clients or makes them feel.
3. Build a Huge Brand
This can be great for large corporations and can be good or bad for small business owners.
Quickly built brand names often fade away just as quickly. Quality reputations are earned over years, can't be bought and lead to long-term business success that weather the storms of recessions and other market challenges.
4. Paid Advertising
We can work 40 hours with a client to earn $4,000 then give someone else our $4,000 to tell the world how great we are and how much our company will help them. Then we need to work 40 more hours to get back our $4,000 (that's IF we have enough customers waiting for us). That's $4,000 profit in 80 hours. ($50 per hour net income).
Or we work 45 hours with a client to earn $4,000, and with the extra 5 hours we invest in them, really do an amazing job for them. Then we can invest another 5 hours in providing content for our prospects online and let our super-satisfied clients tell the world we're doing a great job (on Linked In and by sharing our content). That's $4,000 profit in 50 hours. ($80 per hour net income).
5. Peer Approval
Most people in business are there more money first, friendship second.
The people who we dominate in competition might not like us. Those who crush us in competition might love us. If we seek the approval of our Income Statement and our Accountant first, we will be best served.
EXCITEMENT & RECOGNITION
A start up business can be exciting. So can jumping from an airplane.
Solid long-term businesses eventually become boring for adrenaline junkies, but solid business people prefer this "boredom" and the depth that comes with sustaining and improving a long term business - like a 40-year married couple appreciates their lives, their grandchildren and the legacy they know they will leave.
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