During recessions and downturns, play offense by keeping operations open, retaining employees, and increasing advertising. This positions your company to capture market share during the recovery, as recessions are market share redistribution events.
In predicaments or when lost, do not trust your senses or act on impulse; instead, remove emotions, gather and analyze data, consult experts, and identify the root cause through rational thinking. The last thing you should do is often the first thing you feel you should do.
Avoid most legal trouble by treating employees, customers, and problems right, as over 80% of legal claims stem from a failure to deliver customer satisfaction. Fix customer problems immediately and personally, even offering to cover legal fees, to achieve amicable settlements and prevent costly lawsuits.
Build a vertically integrated system that controls every step of your product or service, from manufacturing to financing and after-sales support. This makes your business unkillable by creating your own supply chain and solving customer problems within your ecosystem.
Forgo momentary satisfaction and defer profits for something more substantial by reinvesting capital back into your business. This philosophy, like choosing seeds over a toy car, sets a tone for long-term growth and entrepreneurship.
When faced with difficult tasks or problems, tackle them without delay, especially the biggest ones first. Don’t spend time complaining about what happened, as that comes at the expense of making the situation better.
Institute rigorous quality control, measuring every detail and testing every system before shipping, even if competitors are casual. Building products with precision, like perfectly fitted mobile homes, generates customer recommendations and future sales.
When confronted by an adversary, admit ignorance, be humble, listen intently, and ask for their assistance. This approach can transform an opponent into a mentor and help you navigate difficult situations, like regulatory challenges.
Resist the temptation to loosen credit standards for growth, especially when competitors are doing so. Maintaining discipline protects your business from financial collapse and allows you to acquire assets from imploding competitors for pennies on the dollar.
Embrace a self-reinforcing cycle of positive action, which produces positive attitudes, leading to a positive atmosphere. Ensure your actions are positive and plentiful in all areas of life.
Cultivate self-discipline, willpower, and perseverance, understanding that disappointment is not defeat and problems often present opportunities. The human spirit can triumph over obstacles, and adversity breeds resilience and character.
Before advertising, managers must know the market, such as which radio stations people listen to, by observing details like car radio dials. Test advertising effectiveness with dedicated phone lines or unique numbers to measure direct response.
Gain expertise, like enrolling in law school, not necessarily to change professions, but to understand the rules better than anyone else and avoid future problems. Devour mountains of research to see around corners and be prepared.
When planning, make your strategy conform to the existing environment or ’land,’ rather than trying to force the land to conform to your plan. Either work with the natural flow or walk away from the endeavor.
Recognize that sometimes you don’t make money directly on a product or service, but on what that product or service makes possible. Use a ’loss leader’ to gain cachet and attract other, more profitable work.
Sometimes, not fully knowing the immense difficulty, heartache, and hard work involved in an entrepreneurial venture can be an advantage, allowing you to start and persist where full knowledge might deter you.
Even if legally only required to pay a fraction in bankruptcy, commit to paying back 100 cents on the dollar to every single creditor. This builds integrity and a lasting reputation.
Choose business locations strategically, such as directly across from competitors, to capture customers frustrated by their high-pressure tactics. Maximize visibility so passing traffic sees your inventory.
Look for products or services that solve multiple problems at once, even if they are currently overlooked or seen as temporary solutions. This allows you to identify and capitalize on untapped market potential.
Seek out and build relationships with experienced individuals who can serve as unofficial mentors. Their guidance, whether on licensing, education, or pricing, can provide invaluable coaching and accelerate your growth.
Before fully committing to a new business, test the waters with a small, low-risk experiment. This allows you to gain experience and validate the market with minimal investment, like flipping a single damaged mobile home.
Actively seek out and work every job you can find, even while pursuing other ventures. This provides income, diverse experience, and a deeper understanding of various industries.
Don’t sell your products or services too cheaply; understand their true worth and charge a little more. Your products are often worth more than you initially assume, and customers will pay for the value.
Utilize all available resources, including family members, for tasks like rebuilding or repairing products. This can reduce costs and expedite operations in the early stages of a business.
After going public or achieving significant growth, ignore external noise such as quarterly earnings calls and analysts who lack industry experience. Instead, stay focused on the fundamental operations and long-term strategy of your business.