Acquiring Minds
– WHERE BUSINESS DREAMS TAKE FLIGHT!
Good morning, entrepreneurs!
“Acquiring Minds” – Imagine turning a business not just into what it currently is, but into what it could be!?
"Opportunities don’t happen. You create them."
?????- Chris Grosser
Today's Power-Packed Agenda:
·????? Thinking Like a Seller: System Six. The Math of Management
·????? Book Spotlight: Think and Grow Rich by Napoleon Hill
System Six
The Math of Management
‘Would you tell me, please, which way I ought to go from here?’
‘That depends a good deal on where you want to get to,’ said the Cat.
‘I don’t much care where—’ said Alice.
‘Then it doesn’t matter which way you go,’ said the Cat.”
From Alice’s Adventures in Wonderland
by Lewis Carroll
In a newspaper article, there was a story about a granite company. The owners were very good at what they did. Their granite countertops and other products were made extremely well and people raved about the quality of their work. But they were going broke. . .
Just because someone is a good technician, does not mean that they are qualified to own their own business.?
The owner admitted to the reporter that he did not understand the financial issues of billing and cash flow. He could not stand the pressure of having to meet the payrolls, arrange financing and get new business.
The skill sets are not the same, and, in fact, good business owner skills require that you not be the technician all the time. If you are working in your business, you do not have the time to work on your business.
Luckily for him, an interior decorator who frequently used their company did understand those things. She agreed to invest some new capital and take over the management side to bring order to their chaos. She is now providing the bookkeeping and handling the marketing so that the technicians can do what they do best.
The result is a good team that focused on the strengths of the individuals. The article said that the company has doubled its billings in the past year. Unfortunately, the article did not address the bottom line of the business. Doubling sales does not always translate into increasing net profit.
How do you know when you are doing well? Some business owners are comfortable when they have money in their bank account. But sometimes money is in the bank because they are not paying their bills!
In sports, there are measurements to gauge your performance. In business, there are measurements to gauge your success as well.
Do not lose track of the goal of any business: to make money for the owner. The goal may secondarily be to pursue the owner's love or passion, but the business is there for one main reason: to make money for the owner.?
However, your goal should be even higher: to make a lot of money. As business owner, you assume the risk of the liability of employees, rent, expenses, etc. You could have a regular job instead without as much risk.? But your goal is create a business that generates a cash flow stream.? A business that can be evaluated on a cash flow stream, that does not require the owner to participate, is worth many times more than a business where the cash flow stream is dependent on the owner selling her time or being the main producer. To put it in perspective, try 10 times cash flow rather than 2 to 3 times cash flow!
On one of my monthly telephone conference interviews, I interviewed a financial consultant. The topic of the interview was the financial reporting of a business and the various types of reports (measurements) to determine how a business is performing.? She suggested that measurements must be regular: weekly, monthly, quarterly, and annually.
Weekly you should create (translated, have created) flash reports that tell you last week's sales, collections, bank deposits, checks written, cash on hand, cash requirements for next week, accounts receivable, accounts payable and weekly profit based on cash.? You should also be looking at customer leads, presentations, and closes so that you can track your closing ratio.
Monthly you should do a bank reconciliation and an income statement so you can see how you did every month.
Quarterly you would meet with me, or a like advisor, to review the year to date financials, accounts receivable, accounts payable, lines of credit, and a balance sheet. In July and October, you should do a projection of your taxes and discuss potential changes with your tax planner. In March, you should do a complete review of your insurance package to make sure that you are adequately covered for property and casualty as well as life, disability, and health needs.
Annually you should hold your company meeting, review your corporate books and have a complete review of financials, budget, and five-year plan.?
If you don't know where you are going, and have no method to measure whether you got there, you are guaranteed to never arrive! It would be terrible if your ship came in but you could not find the dock.
Steps to take next:
It's time to get to work on your business now that you know what processes and systems you and your company need, as well as the critical order in which they must be implemented. However, you cannot go it alone. The significance of getting a guide—a personal mentor who can help you start thinking more like an Entrepreneur and less like the chief Technician of your company, who can help you define your goal and spot when you've lost sight of it; someone who never forgets the results you're after and knows how to help you achieve them—is central to the Six Systems Approach.
Jim Montgomery
What are the six systems you must have in your business? Detailed in my book, Sell Your Business and Profit. Get your copy here .
No B.S. Wealth Attraction for Entrepreneurs
By Dan Kennedy
If you're tired of the same old wealth-building clichés, Dan Kennedy's "No B.S. Wealth Attraction for Entrepreneurs " might just be the breath of fresh air your entrepreneurial spirit needs. Kennedy, ever the straight shooter, lays out his principles with the kind of no-nonsense clarity that makes you wonder why everyone else is beating around the bush.
Imagine you're at a motivational seminar, and instead of the usual fluff, someone hands you a manual on exactly how to get what you want without the sugar-coating. That's this book. Kennedy's advice is as practical as it is provocative, challenging you to ditch the excuses and embrace a mindset that attracts wealth like bees to honey—or perhaps, in Kennedy's world, like marketers to a high-converting sales funnel.
The humor is subtle, but if you've got an eye for it, you'll find yourself chuckling at the sheer audacity of some truths we often ignore. Like when he talks about "money repellent" behaviors—I'm pretty sure my last business pitch could have doubled as bug spray.
Here are some key action steps from the book to help you start attracting wealth:
Overall, "No B.S. Wealth Attraction for Entrepreneurs " is a must-read for those ready to stop dreaming and start doing. Just make sure to keep a pen handy; you'll be underlining insights faster than you can say "ROI."
Where to Find It: No B.S. Wealth Attraction for Entrepreneurs
Full disclosure: I may earn a small commission if you purchase through this link.
# NoB.S.WealthAttractionforEntrepreneurs #businessgrowth, #acquiringminds, #JamesMontgomeryLaw
Deal Spotlight:
Want to Buy a Business?
"The only limit to our realization of tomorrow will be our doubts of today."
?????- Franklin D. Roosevelt
Subscribe above and we will explore some more ideas for acquiring minds next week,
?Jim Montgomery
PS: Get the Insider's Guide to Maximizing Your Business Sale. Free 10-Part Course (Limited Time Offer!)
Are doubts about valuation, timing, or finding the right buyer keeping you up at night? This free course breaks down the top seller worries, giving you the strategies and insights to navigate the exit process like a pro.
Check it out here: 10 Seller Worries