- September 28, 2020
- Posted by: hpiadmin
- Category: Eccentric Entrpreneur
Passion is great, but there are still some rules!
In my upcoming book, The Eccentric Entrepreneur, I talk a lot of passion and the value of caring deeply about what you do because of who you are. That said, in Chapter Six of the book, I spend some time talking about some of the basic rules of creating and sustaining a vibrant business.
Here’s the skinny on this. It’s all about profit. As my partner Diane Janovsky has stated many times, if there is no profit, the business is dead… and she is right. A great deal of planning for how you will fund your business, especially in the early days, is critical to long term success. Where are your money sources? What is the “lag time” in terms of requesting funds and having them in place? What is the breakeven for the business in order to continue operating? How many months of cash do you need to have in reserve to carry the business from an operating perspective? How much capital investment is necessary to create growth? What are the risks associated with various funding sources?
Equally important to the financial issues are the strategies for how you will market your business and how you will “sell” your product or service. What type of administrative functions will you need and will these be internal or external resources? What kind of facilities will be required in year one, two, five, and so on?
Diane is an avid fan of strategy and planning, and is certified in a process entitled, “Stages of Growth.” SOG is a system for assisting you in defining where you are today, what non-negotiables are present that you must have or develop, and what the road looks like ahead at various milestones.
Connect these strategies in the right way, at the right time, and your passion will drive them forward.
Have a Great Week!