The “Don’t” Rules of Successful Business

Hey, Hunter!

Starting and running a business is an exciting adventure, but it’s not without challenges. Success requires knowing the good and bad signs to look for and making smart decisions to avoid common traps.

This newsletter dives into insights from one of my videos: Good and Bad Signs While Running a Business.

The Foundations of a Strong Business

At its core, every business needs to create assets and revenue streams. But here’s the key: your assets must be resilient.

Don’t Rely on the Future

A media business with a high readership might seem like a strong asset—until writers strike or advertisers disappear. Every business faces tough times, and the businesses that fail are those that aren’t prepared for them. Always plan for worst-case scenarios.

Diversify Revenue

Relying on a single source of income or a single business model is risky. Industries change, markets shift, and laws evolve. Diversifying ensures that your business remains stable even when things don’t go as planned.

Avoiding the Silent Killers

Minimize Liabilities

Fixed costs like rent can quietly cripple your business. A $1,000 monthly rent might seem small, but over 10 years, it adds up to $120,000—an amount that could make or break your success during tough periods.

Eliminate Single Points of Failure

Whether it’s relying on an indispensable co-founder or external funding, single points of failure leave you vulnerable. Instead of relying on investors, test your idea by asking for prepayments. If people won’t pay upfront, it’s a sign that your business may not solve a real problem.

The Trap of “Do Advice”

In today’s culture of encouragement, “don’t advice” may sound negative—but it’s invaluable. Saying “don’t” helps you avoid costly mistakes and expand your options. When you hear “do this,” it can narrow your vision and lock you into ideas that might not work.

Partnerships Done Right

Equal (50/50) partnerships often fail because shared responsibility creates confusion. People’s priorities change, and conflicts arise. Instead of splitting responsibility, ensure clear accountability. Hire talent or offer small equity shares rather than entering into co-dependent relationships.

Building Resilience: Key Takeaways

1. Prepare for bad times: Every business faces challenges. Build to survive them.
2. Avoid single points of failure: Diversify income and test demand with prepayments.
3. Minimize liabilities: Keep fixed costs low to maintain long-term flexibility.
4. Rethink partnerships: Ensure clear roles and avoid equal splits.
5. Embrace “don’t advice”: It broadens your perspective and protects you from costly mistakes.

Check out my video: Good and Bad Signs While Running a Business?for more insights and examples.

Let’s build businesses that are smarter, stronger, and ready for anything.

Stay curious,

Kalin :)