As an established entrepreneur, I can say that I have gathered a bit of knowledge about some of the rules of business and having read different books on success.
Hi everyone my name is Timileyin and in this post I will be discussing with you on the rules of business by different successful entrepreneurs and i want you to read this post with the mindset of gaining a couple of tangible things that you can also implement in your enterprise for the same order of result to be achieved.
There are some things you should know about rules of business which then begs the question on the facts about rules.
Fact 1: Rules help to serve as a guide to what to do and what not to do
Fact 2: Rules help to preserve and prolong the life span of the enterprise .
Fact 3: Rules helps to constrain the entrepreneur from doing things that would tamper with the operations.
Now that we are aware of the importance of rules, we can now appreciate them more when it comes to our businesses.
” There is one boss- the customer, and he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else’ – Sam Walton.
The rules of business are :
- Commit to your business and believe in it
- Share your profits with your partners (employees)
- Motivate your partners, challenge them and keep score.
- Communicate everything
- Control your expenses
- Start small to grow big
- Focus on your core business
- Ensure you have a compelling business idea
- Ensure you are running with a vision
- Build your business one after another
- Do not try to compulsorily create a new idea
- Prepare for the worst
- Never go about your daily activities without reading a book
- Be real with yourself
Let not your business ownership dream cloud your reality
Select products or services you will sell for much more than you need to produce or purchase them.
1. COMMIT TO YOUR BUSINESS AND BELIEVE IN IT.
Just as Catherine Pulsifer said ” The most important element in the failure equation is your personal commitment to keep trying “.
As you commit yourself to your business, the believe you have in it fuels your desire to keep on with it.
2. SHARE YOUR PROFITS WITH YOUR PARTNERS (EMPLOYEES )
One of the rewards of hardwork is profit making, as a Ceo/Founder and having people work for you, the best way to make them keep working for you effectively is to constantly share your profits with them, i.e your employees and partners. It helps to build the team’s spirit.
3. MOTIVATE YOUR PARTNERS, CHALLENGE THEM AND KEEP SCORE.
As a business owner, one way to keep the team’s spirit high and in line to success is to constantly motivate them , challenge them and making them see the best in themselves.
4. COMMUNICATE EVERYTHING
Your relationship with your partners, clients, customers, employees matter a lot, you must communicate everything to them, wisely of course.
When communicating, learn the right words to say, when to say it and how to say it. Understand the emotional status of the person you are relating with. This is one of the rules of business.
5. CONTROL YOUR EXPENSES
This is one major area in Entrepreneurship, to stay afloat in business, ensure that your cash inflow outweighs your cash outflow.
Do not spend more than you earn. Just like Warren buffet said. ” if you buy things you don’t need, soon you will have to sell things you need “.
6. START SMALL TO GROW BIG
One of the quickest ways to fail in business especially at a very early stage is to try to sell to everyone. One wise man once said that “if you want to make everyone happy, don’t be a leader sell ice-cream”.
The solution is to select a niche where you want to operate at your level instead of trying to reach and touch everyone.
As a growing business, it is better for you not to be a generalist at least not at the starting phase of your business because most small businesses do not have the necessary resources to attend to everyone.
The resources could be financial, it could be the lack of adequate customers.
7. FOCUS ON YOUR CORE BUSINESS
I know you may be wondering what I mean by core business, core business is just the main business that generates the main income for you.
There are several business owners that have other minor businesses that they run, well it’s not a bad idea though but those other businesses shouldn’t get in the way of your main business.
If you know that you most likely will get distracted while focusing on the minor businesses then I advise you to shut them down and focus on your main business.
8. ENSURE YOU HAVE A COMPELLING BUSINESS IDEA
No matter the expertise you put into your business, if your customers don’t see value in your business, they won’t patronize you.
The best thing to do is to do a thorough market research on what the customers really want because creating a great product has to be for the sole purpose of satisfying the customers and not what satisfies you.
9. ENSURE YOU ARE RUNNING WITH A VISION
As an entrepreneur or business owner, you need this as one of the rules of business. Why? You may ask, there are a handful of reasons but one of the obvious reasons is that you get to know what to expect at certain periods in your business. During this process, a document called business plan is normally created to put all those vision into writing.
Some of the things to consider while having this thoughts are your competitors, your market and your strategic position in the market niche.
10. BUILD YOUR BUSINESS ONE AFTER ANOTHER
When building your small business, there are tendencies that you may need to diverge into other directions. What I’ll advice you to do is to be very patient and allow your business to grow well before building up another one. This is to ensure your attention isn’t divided.
11. DO NOT TRY TO COMPULSORILY CREATE A NEW MARKET.
What I mean about that rule is that while coming up with ideas to further grow your business or to start a business, you do not need to reinvent the wheel. This is due to so many reasons
One of the reason is that developing existing market or products helps you safe time, resources and money whereas trying to create a new market or product will most often than not waste or spend too much time on it and also wasting other resources like money.
12. PREPARE FOR THE WORST
You do not need to panic on this, what it means in this context is that you need to be aware that most times, things take longer and are most expensive than actually planned. Therefore, for smooth flow of business, ensure you have surplus instead of deficit as it relates to money, time and other factors.
13.NEVER GO ABOUT YOUR DAILY ACTIVITIES WITHOUT READING
One of my favorite quotes for entrepreneurs is that “readers are leaders”. The books is where secrets of great business are mostly hid and because most people don’t read they just go about their businesses struggling and trying to grow their businesses without having a clue as to what needs to be done.
14. BE REAL WITH YOURSELF
Regardless of how much money someone else makes, if you don’t enjoy the business you wouldn’t be proud to show your relatives what you’re doing, and how you’re doing it, then don’t. If you run a business that you do not like or believe in, even if you have temporary success, it will come back to haunt you somehow.
15. LET NOT YOUR BUSINESS OWNERSHIP DREAM CLOUD YOUR REALITY.
You may have dreamed of opening your own fashion business for years, or you’ve created a handy new tool to get the crumbs out of a toaster oven, or you’ve come up with an idea for a service you’re sure businesses will want. Don’t get so enamored of your great idea that you’re skipping or glossing over information about the business viability you want to start. Your great business idea is just as good as the number of people who will be spending money on what you are offering.
16. SELECT PRODUCTS OR SERVICES YOU WILL SELL FOR MUCH MORE THAN YOU NEED TO PRODUCE OR PURCHASE THEM
If the gap between your cost and prices for sale is too small, you will find it difficult to grow the business. If profit margins are too small, you’re not going to have enough money to hire staff, pay for rent (when you need to move the company out of the house), advertise more and do certain stuff you need to grow.