We’ve discovered the 10 most successful attributes of our most successful clients. More on that later, but first some alarming statistics –
Even without a pandemic, the statistics regarding business failures are alarming.
As of 2018, according to the SBA about 1/3 of small businesses make it past 10 years.
These are not great odds, we can probably agree.
Nonetheless, small businesses are essential to economic growth and therefore, their survival is paramount to the world’s economic success.
For that reason, we went on a mission to look at the clients we serve and identify 10 of the most important characteristics that have helped them to “defy the odds”.
This is what we found:
A list of the attitudes and attributes that have contributed to our client’s business and nonprofit success included the following:
- Action Oriented – Whether it’s tax planning tactics or financial management strategies, the best of the best take action on the advice that they receive. The secret of the ages is quite simple – think, consult, and
- Deliberately Defines What an Exceptional Business or Nonprofit Is – Are you doing $200,000, $300,000? Are you hitting 20% or 10% net profit? GET CLEAR. Clarity is power. This gives us an opportunity to MEASURE performance to make sure your strategies are in alignment with your vision.
- Implores Counsel in Important Decisions – Should you call your CPA before or after a large transaction? Do you finance or buy out-right? These are the kind of questions that you should be asking your CPA. There is rarely much we can do AFTER a big decision has been made. The value is in evaluating alternatives prior to a decision.
- Knows Their “ENOUGH IS ENOUGH” Number – The only way to know where you are in relation to TRUE FREEDOM, is to know what your enough is enough number is. This is the number that you need to never work again. This requires understanding what your business is worth, where you are now, and how you are tracking progress going forward.
- Has A Heathy Paranoia About Their Numbers and Progress – Have you ever seen a boat drift? It is never toward safety or shore. Business or non-profit success is paying attention to the smallest percentage change and seeking to understand WHY? ONE PERCENTAGE point in gross margin = 10% in net profit.(Most businesses run at a 10% net profit percentage, therefore a 1% change = a 10% net profit change). You should be reviewing your numbers frequently and with your CPA preferably.
- Keeps Their Money That Comes To Them – Most people work 10, 20, 30 years as a self-employed individual, making millions during that time, yet cannot explain where all of their money went. The best thing to do is begin allocating your money into assets that you can account for 10, 20, 30 years from now. Cash, businesses, and real estate are great places to preserve money that comes to you.
- Continuously Invests In Themselves – How do you remain competitive in an ever-changing business landscape? You keep your eyes and ears open. You continue to invest in yourself. You read our newsletters. You attend our webinars and special events. You make sure that you are continuously soaking up important information.
- Continuously Invests In Their Businesses or Nonprofits – At some point if you are not there already, you will enter the “black hole”. The “black hole” is the space in time where your presupposed laws of running a business or nonprofit are suspended and seem to no longer be effective. Here is what this is an indication of: You need a new process or person to get you out of this black hole. I will mention, it might be a good time to discuss an outsourced CFO with us at this point.
- Thinks About Their Next Act – What will the next 6 months look like for you? Do you know? Do you have a cash-flow forecast that far in advance? It’s important to always look beyond the now and into the future. A great “peace of mind” (forecast) schedule allows you to see what the next six months might look like considering all facts and circumstances. That way you can plan accordingly when it comes to finance and operations.
- Keeps Score – Why play a game that you don’t know the score of? Measurement automatically improves performance. It allows you to make adjustments. Financial Peformance reviews should be weekly, but NO later than monthly.
So, what’s the good news?
If you would sincerely like to have a better organization – with a lot less stress and strain – then request some of our resources.
There you’ll find resources such as our S.M.A.R.T. system which means you’ll –
- Learn how to be action oriented by taking simple action steps right now in your organization to increase peace of mind and profits.
- Know how to calculate your “ENOUGH IS ENOUGH” number
- The correct way to look at your numbers with healthy paranoia
- The foolproof way to keep the money that comes to you
- A better way to keep score in your organization
As a bonus, we’ll send you our “Best of the Best reports” immediately to your email, so you don’t have to wait for some of our greatest content.
Hope to see you on the inside!
ABOUT THE AUTHOR: Joe Gallegos has created tax strategies and operating systems for businesses that have saved taxes, increased cash flow, and profits. As the Managing Partner of Tax and Consulting for JAG + Argueta CPA Firm , Joe has taught hundreds of business owners his step-by-step strategies for creating their own success and obtaining more time and more profits. For more profit creating business tips, tactics and strategies, sign up up for our tips here.