In sports, the coach gets to start over every season. Winning coaches look at their past records and make positive decisions of what they need to drastically change and achieve better results. If they continue to play the game the same as they did last several seasons, they won’t continue to build and win. They have to look at how they play the game, players, coaches, methods, offense and defense, training, strategy, and tactics.
Now imagine it’s your turn to start a new season. You are the coach of your business and want to keep your job and make a lot of money for the owners. What should you do differently to win the game of business? What tough decisions should you make? What new plays will you call? What players should you replace? Where should you play the game and how? Will you keep doing what you’ve always done or decide to do whatever it takes to grow your business and make a profit? Below is the list of the top “Do-Overs” I hear from the many business owners I have surveyed.
Do-Over # 1: Invest Sooner Than Later!
When your business was busy, you didn’t have enough time to stop and look for investments. And you were growing, so most all of your cash-flow went to fund your company’s growth. The snowball effect was keeping you excited as your business got bigger and bigger. It was like a shot of adrenaline as you did more and more work. The more you grew, the bigger you wanted to get. Volume is addictive, so you bid work too cheap and never missed an opportunity to grow or gain a customer. Everyone thought this gravy train would never end.
As you look back, did all that effort give you a long-term lasting return? Most business owners grew 50% or 100% or 200% in volume. But they didn’t make enough to set aside any real money to invest. They spent their extra cash on more trucks and equipment, bigger homes, faster boats, or generous bonuses. Some even lost large amounts of money by not making good decisions as listed above.
The best decisions business owners can make is to use their business to create opportunities to invest in long term wealth building assets. Wealth building assets include investment real estate or service businesses that produce passive income over the long haul. If you had invested as little as $10,000 a year over the past five years, you could own property today worth at least $250,000 cash-flowing $25,000 to $50,000 annually. A small investment over time returns much. No investment returns nothing.
The richest construction business owners I know, own lots of investment real estate or several service businesses that compliment their construction operations. If you were to do it over again, wouldn’t you start investing sooner than later?
So what’s the next Do-Over? Lets talk about Diversifying the market and how that effects our customers…. Please share your thoughts on how we can begin doing this as we start the New Year.