A pal of mine runs an amazing small business …
But he has a problem. (I hope you don’t have the same problem).
He’s a lovely chap. Hard-working and bright. Started his business from a spare bedroom (I started the same way, so I have respect for that). A self-taught entrepreneur with a £410,000 turnover.
He’s married to a lovely lady; they drive nice cars, have two children and a nice home in the country. (It’s OK, you’ll never work out whom I’m writing about!).
So Paul, where’s the problem you mentioned?
The problem is serious because his business is not what it seems.
Despite appearances, he doesn’t have any money, to speak of. The cars are financed, there’s a huge mortgage on the house, credit cards are maxed-out and I swear he only has one business suit to his name (at least, I’ve never seen him wear much else).
But surely, the business provides him and his family with a nice living? Not really. Given its turnover, the bank overdraft is eye-wateringly out of control. So basically, it’s run on finance.
I’m getting anxious here, just writing about this.
Here’s the thing.
Being a self-taught entrepreneur, turns out to be another way of saying he ‘wings-it’. He doesn’t know how to run the business profitably and spends too much time fire fighting problems that are of mostly of his own making.
He’s spending too much time rushing from one mess to the next and not enough time learning the new business skills he so desperately needs in order to change the business for the better.
But, this was the situation at Christmas 2015.
So, what happened next? Well, at the time it was a body blow to him.
The credit card bills came in after Christmas for the business and personally. He and his family very nearly ran out of cash (and luck).
He didn’t yet know that in two months, the bank would call in half the overdraft. They didn’t even convert it to a loan. Just gave him 45 days to cut it in half.
Let me bring you up to date, to December 2016.
Last January my pal asked me to help him fix his business and to coach him; so I’ve been showing him how to change and run a better business since then.
Today, he’s a lot calmer, knows how to run a business properly and is in total control.
There’s only a tiny overdraft, a strong cash flow and charge cards. And the business, now at almost £700,000 turnover is one of the most profitable I know.
So, why have I told you this story?
Because I meet too many business owners like my pal who could be generating substantially more profit in their business and earning much more, if only they’d recognise the need to make a few changes in the business.
So, I’m making 2017 the year that more business owners should earn more from their micro or small business – for themselves and their family.
I’m on a mission!
If earning more is of interest, then keep an eye on my blog posts and website where I’ll provide all sorts of guidance and support, from free ‘how-to’ guides, workshops and webinars, to an amazing online course I’ll make available in January – How to Double Your Profits and Earn up to 50% More in 2017.
If you know a micro or small business owner needing to earn more, then please, do them a favour and forward this note … (thanks).
Season’s Greetings …