Growing up in a marketing agency working for clients, I added exactly how a business makes money to my knowledge base. I leaned in to really learn how to sell something for above market value, to comprehend product or service gross margin, what business expenses you easily see and those which are hidden, and the most important thing of all, to really understand and manage cash flow. It’s one thing to want to start a company based on an idea or a problem .
If you are thinking of starting a small business, make sure you follow these important principles for small businesses.The number one reason small businesses fail is a lack of cash, not a lack of profits. You need to do good cash planning, and really understand the decisions and expenses in your business that can affect your cash.
Telling your friends and family that you are starting a business is the easy part. Building a business is much harder but rewarding. If you are going to try and create a successful business, know what you need to focus on and understand the key principles of the business that will help you hedge your bets to actually surviving, and hopefully, one day thriving.
MrRussellDavis is opening a new business. Did you hear about it?