The point of being in business is to make money. No arguments, I expect.
Yet, depending on your industry and/or work situation, the measure of success is often something other than money in your pocket. Success might be determined by the number of sales completed or appointments made or clients seen or gross income achieved.
There is always the temptation to measure your success in relation to what someone else has done or what someone else expects.
But, the real goal of being in business is to have money…not just make it. I once heard of a very successful businessman who separated from his mentor because the mentor suggested he should be more concerned about money in his pocket…as opposed to numbers others could see. He was spending a lot to make himself look more successful than he actually was. Big mistake, in my opinion.
A concept Gary Keller talks about in the best seller Real Estate book, “Millionaire Real Estate Agent,” is to lead with revenue. As I work with entrepreneurs, this is a principle I emphasize. Practically, it simply means, don’t spend money you don’t have.
There is a huge temptation to take out big ads, to buy space in the newspaper, to think that your face in the community magazine will bring you tons of business. It is tempting to think that you need to have posh office space and the newest technology to start into business. Impressive furniture and staff to do what you don’t want to do can seem like a good business plan.
A common mistake beginning business owners make is to spend too much on things they don’t really need.