The Top 10 Things Every Business Person Should Know
By John Ellsworth of Success Strategies
1. Always know where you want to go by Setting Annual Goals. This process will force you to really think. I am not suggesting that you haven’t been thinking, but the goal setting process changes our focus from “problem solving,” which we all have been doing since 2008, to process improvement and overall achievement of greater efficiencies in our objectives. Breaking through the inertia of standing still and actually getting started is what separates achievers from dreamers. This is further reinforced by Management Guru Peter Drucker who said, “The best way to predict the future is to create it.”
2. Understand your potential problems by Developing a “Disaster Agenda.” This leads us to outline the three worst items that could happen to our business. In response to those, we define what the best action would be. Even if those items don’t occur, but something similar happens, we will, undoubtedly, be better prepared to respond successfully. This process can really stimulate great business thinking, improving the odds of greater success.
3. Know your Cost of Production by using both “In House” and CPA Prepared Financial Statements. Financial Statements are an absolute must for two reasons. First, they are an excellent tool to have for the ongoing financial management of your business. Second, they assist both you and your lender to truly understand what is going on in your business, because these accrual financial statements help account for any changes in inventories, prepaid amounts and accounts payable within your business, not just the cash inflows and outflows that we watch monthly. . .