or “The Knack” of the Attack
by Norm Brodsky & Bo Burlingham – both columnists for “Inc” magazine 2/10 a Book Review by Peter/CXO Wiz4biz
This book is a good gift to any entrepreneur. The book is filled with pearls of wisdom about “real companies facing real challenges”. The basic premise of the book is that there is no magic formula or step-by-step process for running your own business, Rather, “there’s a mentality that helps street-smart entrepreneurs solve problems & pursue opportunities as they arise. Brodsky calls this mentality “The Knack” – the title of their book. Among the morsels of business wisdom you will find here:
1. Financial Numbers measure a business. – If you don’t know how to read them, you’re flying blind. Start tracking them by hand as soon as you launch your business, then get an accounting type later. Review these numbers often – probably monthly in your early stages – so you’ll know how you’re doing and can adjust accordingly.
2. A Sale isn’t a sale until you collect the $$. – A receivable is like a loan. Make sure your customers are credit-worthy before you trust your product or service with them.
3. If your short-term Liabilities exceed your short-term Assets, you’re ready for the Asylum. – Keep track of how much you’re going to collect and don’t spend in the next 12 months unless you collect it
4. Forget about Shortcuts. Run your business as if it’s forever !!! – In the long run, your shortcuts will prove to be detours on the road to achieving your goals. Think what’s best to do long-term.
5. Cash is hard to get & easy to Spend. – Make it, before you spend it. Monitor your Cash Flow. Be in the know, so you can make the best decisions. Bootstrapping is a good option, because you don’t have to give away your business.
6. You have no Friends in business, only Associates. – You can laugh & cry with your employees, but neither you nor they. should forget that it’s a business relationship.
7. Gross margin isn’t gross. It’s only the most important number on your Income Statement. Don’t make the mistake of focusing only on Sales. Your Expenses are just as important. Keep it lean to have a money-making machine.
8. Identify your “true” Competitors, and treat them with respect. – Their opinion of you will play a critical role in determining your reputation. If they believe you have a good product in one area, they might recommend you. You should reciprocate to them.
9. Culture drives a company. – The boss’s most important job is to define the Core Values of the Company Culture – along with the Mission & Vison, then enforce them.
10. Your Life Plan has to come before the Business Plan. – You need to figure out what you want in your Personal Life before deciding how to get there. There has to be a balance between your Personal & Business so you can keep a good relationships in your family.
Comments: What do you think? Have we covered everything important?