Bankruptcy isn’t the end. Some businesses managed to grow out of it. They learned lessons that helped them grow better and bigger. One of the biggest lessons to learn from it is that the fundamentals matter – everything else is secondary.
We should learn from these examples to understand what helped them turn the tide. There is no magic formula involved. Below is an account of all the lessons you need to learn to make your business grow successfully. After reading this article, you’ll understand why we emphasize so much on business fundamentals.
Importance of Cash and Proper Bookkeeping
Cash is all that matters. It’s the most fundamental aspect of finance, and most businesses still neglect to remember its importance.
When speaking of businesses that went from bankruptcy to millions of dollars in sales, nothing they’ve achieved would’ve been possible without articulating every dollar they spent. If you want to uplift your company:
- Keep track of everything.
- Invest each penny you save, calculate returns on investment, and keep looking for other investment opportunities. Before investing, research properly and only invest in those assets you have confidence in.
- Remember, a penny saved is a penny earned!
Learn the Importance of Hiring
We don’t have enough words to emphasize the importance of hiring well. We’ve seen many organizations that overlook the hiring process. One rule you should keep in mind is hiring people who are looking to add value to your company and not waiting for just a paycheck. It’s simple. Hire self-motivated individuals. Otherwise, they will turn into a liability.
Liable hiring is a sponge – it will suck your organization’s profits without letting you know a thing before it’s too late. Poor hiring disturbs the whole organization, and what seems minor on the exterior is ultimately disastrous for the organization. Look for passionate employees who want to be entrepreneurs. Hire dreamers. Such passionate employees not only uplift themselves but also uplift your business in the process.
Don’t Take Negotiations Lightly
Take every negotiation as if your life depends on it. Before any negotiation, develop a war strategy – that includes identifying all the critical points and developing a proper plan. Your aim should be to get your hands on every piece of information that you can get about your potential client. Go to their websites, social media pages, press releases, etc. If you have prior information, you’ll know what to say and what not to say. Such tiny things matter greatly in sealing the deal, as do Negotiations to get out of bankruptcy.
Be a Leader
Your brilliance and skill set will only take you so far as you grow in your career. You might know already that the most important thing is the quality of your leadership.
Many mistake leadership for dictatorship. That’s not what leadership is. Leadership is about balance, as you should know when to speak and when to listen. You should know which of your employees is best suited for a particular job. A leader also knows their strengths and weaknesses; the most profound insight into your business surfaces when people from finance, HR, marketing, management, sales, and customers come together and freely share their opinions.
Investors don’t invest in your plans; they hardly ever dig into the details. They look at leadership. They invest in the business that they believe will make them money. Therefore, if you cannot lead, you should learn to lead or hire a leader. Nothing ever grows without a leader!
Conclusion
New ideas, philosophies, and management ideas keep coming year after year, all carrying their own unique importance. However, it’s the business fundamentals on which they are built. Most of them are just the revival of old ideas.
Business fundamentals will always remain the same no matter what shape a business occupies. Moreover, with ever-growing technology, people are drifting away from the fundamentals, which is terrifying.
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