Breaking business rules to succeed

4th December 2015 by KLokk Accounting.

break business rules - KL

There are all types of self- help books on starting or running your own business. Just as if you are cooking a new recipe, you should follow it pretty much exactly. But there comes a time when it may be all right to throw out the book. In this blog, we bring to you a list of 6 business rules worth breaking while you inch your way to success.

1. Making a business plan

Starting or growing a business without direction is similar to an army without a leader. A business without a business plan will not be able to achieve a measurable level of success.
But it does not have to be that comprehensive and should be flexible enough to adapt to a changing economy. Obviously you need objective and sales goals but spending weeks or months procrastinating starting your business trying to formulate a perfect business plan is a waste of time. Keep it simple.

2. Working with family and friends

People will tell you to avoid hiring your family or close friends as it would result in either disagreements or unnecessary personal talks during work hours. You will also be obligated to agree to their inputs.
But in the beginning you need loyalty and people with whom you can communicate and rely. Do not hire them just to help them out of a jam, but add them to your staff if they are qualified to help you in a particular area of the business. Just remember they are employees until you make them partners. Blood will always be thicker than water, but when you begin adding other employees you will not want to show favouritism. The bottom line is treat everyone equal.

3. Working for free

This is not highly recommended, but in the beginning it may be necessary in order to help establish creditability and a brand or reputation. Pick and choose which clients may be worthy of some freebies that will pay off in the long run, although you may not always get the return you wanted. You still need to keep the lights on so do not become too magnanimous with your time.

4. Saving money

There are many ways to save money in your business, and it is important not to let minor and short – term cost savings have a negative impact on the long – term growth of your business.
For instance, you need to consider the pros and cons of getting the work done yourself or outsourcing. If you do everything in your business yourself, you would not have much time left to focus on critical areas of your business and would give up valuable time of enjoyment with your family and friends. You can save money by hiring people with average intelligence and degrees, but this would only make you deliver, no innovation would happen in your business.

5. Qualification

It is great to have one but it really is not necessary to make you a successful entrepreneur. If you are motivated and keen to learn new things, your education will come from on the job training. There are plenty of groups and professional organizations out there to help you through the rough patches.
Jim Rohn, an inspirational speaker said that we are the average of the five people we spend the most time with. Passion, motivation and surrounding yourself with others who have advanced degrees and extensive experience can be just as fruitful.

6. Getting customers

Increasing your customer base will help in the rapid growth of your business. If a particular customer sees a slump, your business will not suffer as you can continue working with other customers.
But it is not always good to take on all customers and spread yourself too thin. If you have a small number of loyal customers who are medium – large companies, pay you on time and respect mutually, stick with them while slowly adding new customers to your portfolio. This approach works more effectively in the long run rather than to get as many customers as possible regardless of their quality and then end up with those who always pay you late or turn out to be bad debts.

Conclusion

There is nothing wrong with following rules laid out by others who have been successful. In addition to the desire to succeed and a headstrong dedication towards the business, the entrepreneur needs to be creative as there is no ‘one size fits all’ rule in the business world.