Profit (or loss) also known as net income (or net loss) are commonly referred to as the bottom line of a company because this figure sits at the bottom of the Profit and Loss statement. Net profit occurs when there is a surplus (or positive amount leftover) after all the expenses of running the business have been deducted from the revenue billed to customers. A loss (or negative profit) can of course incur if expenses are greater than revenue.
Cash flow is another beast entirely.
Positive cash flow occurs when the net amount of cash that flows in and out of a business during a period of time is greater than zero. In a nutshell, it means that the bank account of the business went up during the period because the company’s liquid assets are increasing. And for those of you following along with the Penny and Ernest metaphor, it means that the amount Ernest collected and put into the bank account, exceeded the amount that Penny spent.
- It is possible for a company to have positive cash flow while reporting a loss on the Profit and Loss
- If a company has positive cash flow it means that it’s liquid assets increased over that period of time
- It is entirely possible for a company to post a loss on its Profit and Loss but still have positive cash flow because it received enough cash from borrowing and investing activities to offset the loss for accounting purposes
Net profit or loss from the Profit and Loss statement is merely the starting point for calculating cash flow. Most businesses use something called “accrual accounting”, which means that profit includes revenue and expenses that may be collected or spent at some future point in time and some non-cash amounts. And if these items haven’t (or won’t) hit the bank account, they aren’t relevant to cash flow.
Since the Profit and Loss contains stuff that hasn’t happened yet (or is not relevant to cash), we cannot rely on it solely to make good decisions for the business. We must remove or adjust everything that hasn’t happened yet or is not relevant to cash, in order to get back to a number that represents pure cash flow. Said another way, we are looking to isolate the amount that Penny and Ernest have each run during the period.
To do this in practice, we need to look at the inter-relationship between the Profit & Loss statement and the Balance Sheet. This holistic perspective will give us a true picture of cash flow.
For example, if we were to start from a position where the expenses of a business exceeded revenue (i.e. a net loss or negative income), the most likely result would also be negative cash flow. It is always more difficult to achieve positive cash flow when the business starts from the position of operating at a loss.
However, it is entirely possible to start with a net loss and simultaneously achieve net positive cash flow, but the following scenarios (which are not an exhaustive list) would have to happen in order for that to be feasible:
- The company could receive an influx of cash from either borrowings (i.e. bank debt) or the injection of further equity via investors.
- If the company has a net loss and also a large amount of depreciation expense recorded, the add-back of the depreciation expense (which is a non-cash item since no money leaves the business when depreciation is deducted for tax purposes) could push the company into positive cash flow territory.
- The sale of an asset, or just the reduction in total fixed assets over the period due to depreciation, could also kick up enough cash to help the company record positive cash flow under certain scenarios.
- The collection of receivables (or other money owed) that were posted in a prior accounting period but were collected and put into the bank in the current period is another simple way to push a company into a cash flow positive zone.
- Expenses are recorded on the Profit and Loss when they are incurred, not when they are paid. If a company posts a net loss due to a large amount of accrued expenses (where they were deducted in computing the loss but are not due to be paid until a subsequent financial period), it is entirely possible that the adjustment for these expenses might enable a company to maintain positive net cash flow, despite recording a net loss for tax purposes.
27 Aug 2014
Can Biology Predict Business Success or Failure?
What if the best quantifier for business success is not be your IQ, emotional intelligence, charisma, or good looks? New research indicate the secret may reside in the level of testosterone you were exposed to while in your mother’s womb and the impact it had on the length of your ring finger.
Are Females at a Disadvantage?
Despite the fact that many women start small businesses, statistics show that only a small percentage of Fortune 500 or venture funded businesses are headed up by women. And there are a lot of ideas and reasons put forward for “why” that is – most women don’t have enough technical expertise, most VCs are headed by men (and they are by and large sexist boys clubs), women find it harder to juggle family and career, fewer women ask for money etc. Unfortunately, most of these are just hypotheses and none of them have been proven to be true. Furthermore, they don’t explain the interesting outliers – why do some women break through and achieve phenomenal business success?
Let’s Look at The Science….
Economists Aldo Rustichini and Luigi Guiso were particularly intrigued with the answer to that question. So much so, that they ran a studyinterviewing over two thousand Italian male and female small-business owners. Halfway through the interview, each entrepreneur was asked to hold out their right hand so that a photograph could be taken of their palm. The researchers wanted a close up of each hand so that a precise calculation could be made of the length of the ring finger relative to the index finger.
Those (male and female) with longer ring than index fingers, were found to be more assertive, competitive, stronger (stamina) and more willing to take risks. Also, the most successful among them (in terms of business success) were found to have ring fingers 10 to 20 per cent longer than their index fingers.
And as you hold up your hand now to examine your biological endowment, you’re probably questioning the efficacy of this research? It sounds implausible doesn’t it? Truth be told, it’s not really about the length of your fingers per se, but what was going on in your mother’s womb during your early months of gestation.
Just after the first trimester, fingers begin to become more defined and elongate. The early limbic brain is also forming and becoming organized. Both are affected and influenced by the prevalence of testosterone and oestrogen in the womb. Interestingly, the foetal ring finger has many receptors for these hormones, while the index finger has less. The presence of testosterone lengthens the foetal fingers, while oestrogen stunts or stops their growth. Thus, the balance of the two hormones in your mother’s womb directly impacted the length of your ring and index finger differently and the development of your brain.
While all of the ways that these hormones impact the brain are not yet fully known, researchers have noticed that higher levels of prenatal testosterone hardwires your brain to be more sensitive to testosterone, permanently. For those of you who were exposed to more testosterone during this formative period, it means that your body now reacts more strongly to fluctuations in bloodstream testosterone. And it’s also why men’s ring fingers tend to be a bit longer, while women’s index fingers are a bit longer on average.
All of this is of course just a convoluted way to explain that the length of the ring finger is a reliable marker for fundamental brain system differences and also pre-disposition to your ability to be able to deal with stress and testosterone. These factors have also been found to correlate with business success.
This study seems to suggest that entrepreneurs are in fact special – hard-wired that way from the earliest stages of foetal development. More men might statistically be wired this way than women, but if you are wired this specific way, it transcends gender.
But Wait, Here’s A Fascinating Distinction….
In the Italian study, the successful female entrepreneurs displayed a distinctly male pattern: their ring fingers were longer. In fact, it was a much more pronounced difference in length than the men’s. And their ring fingers weren’t the only things that were bigger: on average, they ran bigger companies, with higher growth rates and displayed a greater capacity to withstand enormous workloads and pressure.
Now before you get too excited and insist on taking a photo of the hand of every entrepreneur that you might invest in, or get depressed because your own ring finger is shorter, not all of this can be chalked up to determinist biology.
Even Rustichini is cautious about these findings and postulates that all of these biological components may only encompass 40% of the explanation. The other 60% is highly influenced by experiences and conditioning (nurture). If the environment that you are brought up in as a child does not support your entrepreneurial spirit (particularly if you are a woman), then your potential will be markedly curtailed, regardless of your genetic predisposition.
The good news, however, is that sex is more of a distraction than a determining factor. Finger length tells you far more about potential business success than gender ever will. However these foetal stage brain differences, coupled with the early childhood environment, each play a role in determining which entrepreneur has the stamina, persistence, confidence and risk-taking tolerance vital for success. Thus, it appears that biology has something to do with business success and growth, but it still might be a bit premature to run out and blame your parents!
**This blog is an excerpt taken from a series of posts and press releases on this subject in 2012 by Rhondalynn Korolak. She is a lawyer, chartered accountant, media commentator, keynote speaker and best-selling author of 3 books, the most recent of which –Sales Seduction–is in theTop 20 Sales and Marketing Books on Amazon.com
We live in a world with unlimited distractions, challenges, emergencies and interruptions – it’s a miracle any of us stay focused, sane and on track towards what we want (business improvement).
There are always going to be multiple tasks and priorities competing for your time – marketing campaigns to design, team members to manage, customers to respond to, business opportunities to explore, personal commitments etc. However, when you try to tackle too many things at the same time, nothing gets done. In the end, success and business improvement come down to focus.
In a world where there never seems to be enough time to get everything done, how can you avoid overwhelm, stay on track and get the things that are most important to you done? After all, it has been said there is always enough time in the day to do everything that is WORTH doing.
Here’s a list of questions that I have compiled over the years and shared with my clients and friends. They have helped me to put every challenge, “emergency” and distraction into perspective so that I can choose to focus my energy on what I really want and move forward toward my goals and business improvement each day. I hope some of these will also resonate with you…
1. Has Anyone Died? If not, relax, take a deep breath and know that as bad as things seem right now, “this too shall pass”. I learned this lesson the hard way when I was twenty four years old and had to come to grips with the terrible news that my mother had been murdered. As horrific and paralysing as this event was in my life, I eventually began to rebuild and discover strength that I never knew I had. And I learned a very important lesson – as long as no one has died, the situation really isn’t that grave, and there is always a solution or upside to every challenge you face.
2. Are You Trying to Eat an Elephant in One Sitting? Breaking things into bite-sized chunks makes the world of difference. Having broad high level business improvement goals are good but oftentimes it is easy to get overwhelmed by the amount of work that has to be done. That’s why having an actionable plan is essential – a step by step plan to help you move forward every day and get from where you are to where you want to be. After all, a journey of 1000 miles begins with one single step.
3. Are You In A Bad Neighbourhood? If you are in the ghetto emotionally, you need to change your physiology immediately. That means get up and get moving – put on your favourite song, connect with someone face to face or do a hobby/sport that makes you smile. Whatever it takes, do it NOW.
4. Are You Grateful For What You Already Have? It is impossible to attract more of what you want into your life if you are feeling ungrateful about what you already have. It has been said that the whole is more than the sum of its parts. In many ways gratitude is a bit like that – it’s not what you say, the mere words that count, but sum of the words and the heartfelt emotion that you put behind them.
5. Are You focused on What You Want or Don’t Want? Whether you realise it or not, you are visualising things all the time – visualising either what you want or don’t want. If you are relentlessly focused on the negative outcome and are riddled with fear, your thoughts will impact your reality and push what you want further away.
6. Does it Have To Be Perfect? Perfection can immobilize you and hamper business improvement – prevent you from making a decision, starting a project or signing off on a piece of important work. Truth is, most tasks on your list don’t have to be 100% perfect, you just need to pull the trigger and sign off on them today. The other way that this problem can show up is when you deceive yourself by believing that no-one else can do the job (even simple routine tasks) to your exacting standard, so you must do it ALL yourself. Try the 80/20 rule – delegate what you do not have to do yourself and give yourself permission to be human!
7. Are You Still Holding On To The Past – Have you ever caught yourself saying “last time I tried that, it didn’t work”? Or have you ever avoided doing something that you know you need to do but were afraid because it didn’t work last time? Even though it’s a good idea to stop doing what clearly isn’t working, it’s also important to remember that the past does not necessarily equal the future. If you catch yourself using reasons from the past to justify why you are not moving ahead today, you owe it to yourself to recognize this for what it is – self sabotage – and take action.
8. Are You Listening To Your Own Inner Voice? – The quickest way to guarantee failure and unhappiness is to worry too much about what other people might think. Deep down you know what is right for you in every circumstance. Sometimes it is tempting to suppress or ignore your gut instincts but there is freedom and relief in choosing to listen and to stand behind the decisions that you know are right for you. If you choose to please others, there will always be at least one other person who is unhappy with your choices, plus yourself.
9. Are You Avoiding Your Fears? – Ironically, everything you want is on the other side of your fear. Sometimes we are coaxed to the edge of our fears and pushed off, yet other times we willingly wander there, oblivious to what lies ahead. Either is good – for at the moment you feel your feet leave the safety of the cliff top – you will always find your wings and fly.
10. Are You Afraid of Making a Mistake? – It is only when we are stretched that we discover new things about ourselves. Often it is adversity and mistakes that allow us to become aware of and uncover our own innate talents. If mistakes were fatal, we wouldn’t enjoy most of the modern conveniences that we take for granted every day. Taking a risk and making a mistake is far better than doing nothing. In the brilliant words of Theodore Roosevelt “the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing”.
11. Do You Have Reasons or Results? – In life you either have results or you have reasons, but it is impossible to have both. If you don’t like the results you have produced, you will do one of two things (1) find a reason or excuse to explain why or (2) change your behaviour to produce a different result. Looking for justification as to why things have not worked out is a pointless exercise. When we look at causes, rather than reasons, things are very different. There is no failure, only results. Essentially, it means never having a reason or excuse again.
12. Are You Unrealistic? In order to succeed and achieve your goal of business improvement, you have to be at least a little unrealistic. Being realistic, never led to any significant change, innovation or giant leap forward. Only unrealistic thinking will achieve a result that until now seemed impossible. In the ‘60s, U.S. President Kennedy seemed unrealistic when he announced to a very large audience that America would put a man on the moon in less than a decade. Prior to that statement, a lunar landing seemed impossible, or at the very least, something that was a long way off.
13. Have You Forgiven Yourself & Others? Perhaps we never really completely understand life until we face death. What if we all started off on our deathbeds? Would it make a difference? Would it change the way we choose to play the game? Would it take us to forgiveness sooner? On our deathbed, I doubt any of us would say ‘I wish I held onto more anger and resentment or took a bit longer to forgive.’ In fact, if you were to look out into the future and imagine the world and all of your relationships from a position where you knew with absolute certainty that they would be gone tomorrow, would you act differently today? Would you mourn the years that you kept yourself enslaved by bitterness, blame and indignation? Would you lament the loss of pleasure, love and peace that could have been yours if only you could have found a way to forgive sooner?
14. Are You Hiding Who You Really Are? – We all have scars, but they are not ‘terminal’ blemishes, evidence of your defects, or validation of your lack of worthiness. Richard Nixon once famously said “the finest steel goes through the hottest fire”. Life isn’t easy but that perhaps it was never designed to be! Amazing things can happen, character and strength often develop through the most challenging circumstances – whether the heat destroys you or sculpts you is entirely up to you.
15. Are You a Poor Communicator? – Anytime you have more than one person observing an event, the door is open for the possibility of misinterpretation and miscommunication based on differing maps of reality. Learning to recognise that we all have different maps (filters by which we see and process the world around us) allows us to see the world through another person’s eyes and therefore understand, relate and communicate with greater respect and results.
16. Are You Thinking Inside Your Box? – Our beliefs about what is true, right, real or possible are largely assembled in childhood through a process called conditioning. Essentially children learn what is ‘normal’ from the people around them. These beliefs about the world can have a massive impact on how your life turns out. Einstein referred to limiting beliefs as the “boundary conditions of our thinking” – they act as a box that we unconsciously put ourselves in from a very young age. What we consider possible is influenced by these rigid ideas. That is why it has often been said that the thinking that got you to where you are now will never get us to where you want to be.
17. Are You Running Away? – Sometimes a fresh start can do you a world of good, but the interesting thing about a fresh start is that it never stays fresh for very long. The irritating part of physical or geographical changes is that you stay the same – wherever you go, there you are. As time passes you are forced to realise that while there may be a new job, new boss, new partner, or a new view out the window of your kitchen – you are exactly the same! Now might be a great time to look at the changes that need to come from within.
18. Are You Over Thinking It? – Most of us make a ‘decision’ today, knowing that tomorrow we can change our mind, backtrack or simply do nothing. That isn’t a decision. Unless you take action immediately towards your goal, you haven’t really decided … you are merely thinking about it.
19. Are You Motivated? – No matter whether you have experienced awful things in life or not, there is an innate drive in all of us to seek meaning and purpose. If we understand our ‘why’ then we can deal with any ‘how’ that life brings our way. Even in the darkest of nights, we can all find a way to let the light of who we really are shine through, if we believe in our hearts that there is a grander purpose.
20. Are You Driving The Bus? – I am the only one who can attribute meaning to the events in my life and the same is true for you. Positive, negative or neutral – the choice is always yours. If you are not happy with the choices you have made so far in life the great news is that you can choose new meanings immediately that will drive you towards your bright and compelling future. It’s never too late to become the person you were meant to be!
21. Are You Your Own Worst Enemy? – In my own life, it has never been the load or the obstacles that broke me, but rather the manner in which I chose to carry them. Despite what happens or what others think/say, it’s the things we tell ourselves when no one else is listening, that have the biggest potential to harm and hold us back. Re-writing negative self-talk is the single biggest gift you can give yourself this year.
It’s very easy to get so caught up in the emotion of emergencies, distractions and thoughts that don’t serve you – you can easily lose sight of what is most important to your success, business improvement and well-being. These simple questions (and keeping your sense of humour) are vital to helping you to stay focused and moving towards your goals and success.
Breaking Bad, one of the most beloved television shows of all time, came to a close this year after six successful and gripping seasons. Viewers finally got to witness Walter White’s unforgettable exit and find out which of the key characters made it out alive.
For those of you who haven’t seen it yet, the series is set in a post-GFC, recession ravaged America. The protagonist Walter White is an understated high-school chemistry professor who is forced to take on a second job at a car wash to make ends meet for his young family. After being diagnosed with lung cancer and realizing that he does not have enough health care to cover his treatment, he puts his expertise in chemistry to use and begins cooking the most pure crystal methamphetamine (meth) on the market. But as this career teacher quickly realizes, starting and learning to grow your business successfully, isn’t as easy as it looks.
But there’s more to Breaking Bad than exciting science, shocking drama and riveting character development – there’s plenty here for you to take and apply to grow your business. If you want to succeed as an entrepreneur and be even more profitable than you are right now, you should consider these practical lessons from Walter White at Heisenberg College.
1. Technical Expertise is Not Enough
When faced with insurmountable medical bills, Walt realizes that he is never going to make enough money working as an employee. Like so many other entrepreneurs, Walt is passionate about his technical skill (chemistry) and he starts a business that has the potential to maximize the return he can get from that expertise, albeit in this case, an illegal activity.
What he quickly discovers is that he knows nothing about actually running a business – inventory, distribution, marketing, collections etc. So he does what most entrepreneurs do – he wings it and finds out with disastrous consequences that he needs to educate himself quickly on how to operate a successful business and how to outsource the things that he does not have the skill or the time to do himself.
The Lesson: If you really want to grow your business, you need to invest in your development, put a good strategic plan in place, outsource tasks to others who can do them well and learn to manage your team members properly. Don’t expect success to be easy. Every business faces its own obstacles and challenges. Those who succeed, do so because of their ability to adapt quickly and take responsibility for their actions.
2. Establish a Premium Brand Then Establish a Premium Price
Walter White was a world class chemist and as a result, he consistently produced the highest quality crystal meth that you could buy. In fact, his trademark “blue sky” was widely recognized by both the Drug Enforcement Agency (DEA) and drug users as “the bomb”. Walter could easily have cut corners and produced a mediocre range of product that appealed to the mass market at a discount price, but he didn’t. His pride in his own expertise and his commitment to excellence meant that he owned the upper end of the market.
By creating unprecedented demand for his unique formulation, he could dictate the terms his product was sold under and the price consumers would have to pay. In Walter’s own words – “Corner the market, then raise the price,” White says. “Simple economics.”
The Lesson: If you insist on competing based on price, you are doomed to failure. Anyone can cook crystal meth (or make a mediocre version of the product/service that you are currently selling) but only one person can truly be the best in the world at creating the most pure version on the market. To grow your business and succeed, you must be willing to do what it takes to cure the #1 pain that your customer has with buying your product/service.
3. If You’re Good Enough, You Can Get Away With Murder
There is no denying the fact that Walter White was the best in the world at cooking crystal meth. This fact rendered him virtually untouchable. Walter’s unparalleled cooking skills kept him alive over and over again. Even Gus Fring (the chicken man and notorious drug lord) could not afford to kill him after it became clear that both Walter and his junkie sidekick Jessie, were loose cannons. When Gus came close to finding a replacement, Walter was quick to eliminate his competition, thus restoring his own unassailable status.
Even Jessie, as flawed and messed up as he was in his personal life, was excellent at distribution and sales, thus making it difficult for Walter or Gus to eliminate him easily.
The Lesson: If you are without question, the best at what you do, you cannot easily be fired or replaced and you can charge a premium for your expertise.
4. If You Can’t Decide, You Won’t Succeed
Throughout the fast paced six seasons, Walter was continually forced to adapt to changing circumstances and make decisions. When Gus hired a hit man to kill Walter in Season 3, the only thing that saved him was his clever last minute call to Jessie. Armed with the address of Gale Boetticher (the chemist that Gus had hired to replace them), Jessie was then forced to put a bullet into Gale’s head.
This episode and in fact the one that followed were not for the faint hearted or the squeamish but they illustrate one important point very clearly for you as an entrepreneur – your success or failure relies solely upon your ability to make quick and good decisions… and then take action immediately, based on those decisions.
The Lesson: In order to be the boss and grow your business, you have to be willing to make decisions and do whatever it takes to achieve your goals. You can’t afford to sit on the sidelines of your business hoping and praying that things will change. You need to be the change that you want to see and you need to get good at making decisions today.
5. No One is Ever Successful Without Help
Nothing is impossible when you have the right team around you. As flawed as they were as individuals, Walter and Jesse were successful together because they each brought different skills to the table, they divided up the tasks and they trusted each other to deliver on their responsibilities. On their own, neither one of them would have survived two weeks in the meth business but together, they thrived for years and built a multi-million dollar enterprise.
The Lesson: If you want to grow your business and build a scalable, robust business that runs without you (or is saleable), you need to stop trying to do everything yourself and learn how to delegate and lead others.
6. If You Can’t Negotiate, You’re Doomed to Fail
Ever wondered why most people don’t say “yes” to your product/service? Without a doubt, it’s because you have no idea what they need to hear in order to make a decision in your favour. Walter White started off with absolutely no clue how to run a business or negotiate with suppliers, colleagues or customers. And more than once, this shortcoming almost cost him his business and his life. He stumbled upon a universal truth – that if a person’s pain is bad enough and you provide the only solution, they will decide immediately and won’t need “time to think about it”.
The Lesson: The best negotiators know how to persuade others. In order to succeed you need to master the art of identifying, quantifying and curing your customer’s (employee’s or supplier’s) #1 source of pain. If you do this well, you immediately disqualify your competition and are much more likely to get a “yes” today.
7. Distribution Can Make or Break Your Business
As phenomenal as Walter’s blue sky crystal meth was, he would never have achieved market penetration, leading brand recognition and phenomenal sales without Jessie’s distribution efforts. Jessie’s ability to build relationships, enforce collections and find distributors who were willing to do the hard yards to reach customers, was integral to their commercial success.
Walter didn’t know the first thing about pricing, competitive analysis, money laundering or channel management; he needed to connect with the right people – Jessie, Saul Goodman, Gus Fring et al.
The Lesson: If you insist on doing everything yourself, then you must be prepared to accept the fact you will never have a scalable, successful and saleable business.
8. First Impressions Are Everything
Gus Fring was by all outward appearances a legitimate, respected member of the Albuquerque business community. He owned a chain of successful fried chicken restaurants and he was a vocal and public supporter of the DEA. He was also the most feared and successful drug lord in the southern states. Even though he was targeted and questioned by the DEA, Gus avoided investigation and culpability by always putting his best foot forward. He was articulate, well-dressed, outwardly legitimate and successful. He made it difficult for anyone to identify and convict him as a drug trafficker. Both Gus and Walter understood that first impressions are everything.
The Lesson: You only get once chance to make a good first impression. The part of your customer’s brain that decides is highly visual and hasty. If you don’t appear credible and trustworthy, it will be infinitely more difficult to influence and persuade others to do business with or believe in you. Fail at making a good first impression, and you will never grow your business successfully.
9. It Pays to Manage Your Liabilities
Slowly over the six seasons of the show, Walter and Jessie go from being small time players (much like the typical consultant or start up) to fully fledged business owners of a manufacturing and distribution empire. But there’s just one problem. No matter how much they make, it seems that the overheads (fixed costs of running the business) just keep getting bigger and bigger. Sound familiar? Not only does Walter have to pay Saul Goodman for legal protection, but there’s also plenty of money going towards collections, enforcement and dealers who “know too much”.
While Walter is initially disgruntled about all these expenses he learns an important point – while it’s important to keep your overall expenses as low as possible, you should never skimp on items that are crucial to your success. Although you might be frustrated with fixed expenses, you can afford to pay top dollar for the best employees, legal services to keep your business on the right side of the law, or an advisor/coach to help you grow your business profitably.
The Lesson: If you want to grow your business you cannot afford to be penny wise and pound foolish. If someone or something is integral to your success, ensure that you invest your time and money here. You can always find money in the budget for everything that is worth spending on or investing in.
Breaking Bad was poignant, provocative and powerful on many levels. And the genius of the show is this – despite all his shortcomings, killings, and character flaws, Walter While has longevity and likeability as both a character and successful business man. When it comes to learning how to grow your business, these 9 lessons from the Walter White School of business, are a whole lot more applicable, memorable and engaging than a boring, introductory business book like the eMyth.
**This blog is taken from a series of posts and press releases on this subject by Rhondalynn Korolak. She is a lawyer, chartered accountant, media commentator, keynote speaker and best-selling author of 3 books, the most recent of which –Sales Seduction–is in theTop 20 Sales and Marketing Books on Amazon.com
13 Jun 2013
Why Do You Need a Business Coach?
Do you aspire to be a great leader and grow your business profitably this year? Then it’s time to find the right business coach who can inspire and empower you to step up and reach your goals.
Almost every business is under pressure right now to attract more leads and close more sales in this tough economic environment where global competition is increasing every day for your potential audience. It is hard enough to keep up with the changes in your industry and the barrage of ads that target your potential customers – not to mention the innovation in technology, increasing complexity of running your business and complying with the tax legislation, HR issues, operational challenges and business planning. Having a Business Coach isn’t a luxury in this day and age, it is a necessity that you need in order to survive and thrive.
By far, one of the biggest assets that you will gain as a result of working with a business coach is accountability. Remember, it’s difficult to get a truly objective perspective or opinion from yourself, your spouse or your team members, but your business coach is there to be your “unreasonable friend” – to tell you the truth, challenge your assumptions, push your boundaries and motivate you to take action (especially when you are procrastinating).
A Business Coach or mentor will teach you “how to fish” rather than simply putting a fish in your hands when you need it. With years of successful experience (running their own business and helping hundreds of other entrepreneurs just like you), your business coach will help you develop and achieve your goals, put a solid business plan in place, execute effective strategies that will grow your bottom line, track and measure your progress and highlight blind spots or opportunities that you have overlooked.
You may be able to scrape by without the help of a business coach, but it’s almost impossible to consistently grow your business profitably without the training, guidance and focus you will achieve by working with a good business coach.
Find out more today by contacting us to speak to a business coach that can help you breakthrough your perceived limitations, make better decisions, step up as a leader and achieve your goals.
And remember, most importantly a business coach will:
- help you focus and eliminate all tasks that are taking up resources but adding value
- challenge assumptions and perceived limitations about your business and industry
- motivate you to ask better questions and make better decisions
- highlight opportunities or pitfalls that may not be obvious to you
- give you tips and proven strategies based on years of experience across many different industries
- be a valuable sounding board and provide a balanced, objective perspective
- help you develop and execute plans that grow the bottom line and cash flow safely & predictably
- track and measure your financial progress in a way that is meaningful to you
- assist with an exit strategy
- be your unreasonable friend with a wealth of experience across multiple disciplines – marketing, sales, training, systems, leadership, finance, legal issues and technology.