Best way to grow a successful business
KacieParker subscriber Posts: 1
edited September 2014 in Growth Funding
The best tip to growing a successful business is figuring out how to get residual revenues from your customers.
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Thought this might help you guys out when looking at options for working capital.
The Bakery Man!
A few behaviors will drive you. Always know your company's cash position in advance. If you need $50,000 in cash to pay employees and vendors but have none, you could go out of business in weeks even though your income statement says your company is profitable. By knowing your business' cash needs in advance, you have time to raise funds from banks loans, receivable financing, credit cards, lines of credit, investors, etc.
You must know what you want out of your business. To do that, you must know what you want. If you want a net worth of $50 million or more to buy nice toys, travel the world and become a philanthropist, you need to scale one or more businesses quickly, then sell or do an IPO. You would not consider your business successful if you only generated $125,000 in net income to yourself each year and no one wanted to buy it.
On the other hand, if you want a business that gives you flexibility, plenty of time with your family, a nice, steady income and low stress, your concept of a successful business drastically differs. Your successful business is one that eventually requires perhaps 10-30 hours of your time each week. You can grow it quickly to hire external managers or you can structure a business that doesn't require you to work continuously between 8am - 5 pm.
Everyone's idea of success differs. What is success for me, is not success for her, and vice versa. To build a sellable business you must operationalize your activities, transfer all your regular activities to machinery, software, employees or independent contractors. When you try to do it all, you limit your business significantly and will never have a truly successful "business." At the most you'll have a great job working for yourself.
The Resourceful CEO