Are You Running Your Business Like The Bush and Kerry Presidential Campaigns
As a frequent newspaper reader and infrequent TV news viewer, I find the current Bush and Kerry presidential campaigns very frustrating. The candidates and the press seem completely wrapped up with what happened 20 years ago. They seem to have little interest in creating a vision of what might happen in the next 4 years.
Do you run your personal life and your business always looking at the past? If so you need to turn your head around and start looking in front of you.
Needless to say we have all made mistakes. Most of the very successful people we know have made more misstates than many less successful people. They just happened to try more things and push on until they won.
As Napoleon Hill said “You are only defeated when you think you are.”
Learn from your mistakes. Learn from those instances that have hurt you. But, do not dwell upon it. Move on to the future. Act in the present and move to the future. Leave your past behind.
Hopefully before election day the candidates will leave the past behind and give us a vision of the future. A future we Americans will be proud to share together.
And while you are thinking of the future, think about buying, selling or improving a closely held business with www.successfulexits.com
Tuesday, September 21, 2004
Tuesday, September 14, 2004
What is the Difference Between Price and Cost?
Brian Tracy stated, "The price is what it takes to purchase the item. The cost is the amount the customer eventually pays. They are not the same."
Do you really investigate the cost of what you are buying?
A screaming example of this is used boats. The price of the boat is nothing compared to the total cost to run and maintain the boat. The cost includes docking it, maintaining the engine, painting the bottom, etc. The total cost to use the boat all summer is often several times the initial price of the boat.
This certainly applies to business. It is fairly easy to apply this principal to equipment and asset purchases. Trucks, machinery, and other fixed assets are routinely purchased based on both the initial price and the cost to operate. When you combine initial price and the cost to operate you have calculated Brian Tracy's cost.
Why does this analysis seem to fall apart when services are being purchased?
For instance you hire an attorney because he costs $175 an hour instead of $250. Certainly a prudent move if they are of equal talent. You have an offer to settle a lawsuit before litigating for $30,000. Based on your attorney's opinion you litigate. You loose the case and receive a $150,000 judgment which you settle for $90,000. What did that attorney cost you?
Granted it can be very difficult to figure out the true cost of services in advance. Business owners are optimists. That is why you have the courage to take business risks.
Yet all owners must spend some time focusing on the downside. Errors by professional service providers will cost you many times their fees. If you run this risk then you must carefully select your providers. Always keep in mind how small their fees are compared to the damage they can do.
Brian Tracy stated, "The price is what it takes to purchase the item. The cost is the amount the customer eventually pays. They are not the same."
Do you really investigate the cost of what you are buying?
A screaming example of this is used boats. The price of the boat is nothing compared to the total cost to run and maintain the boat. The cost includes docking it, maintaining the engine, painting the bottom, etc. The total cost to use the boat all summer is often several times the initial price of the boat.
This certainly applies to business. It is fairly easy to apply this principal to equipment and asset purchases. Trucks, machinery, and other fixed assets are routinely purchased based on both the initial price and the cost to operate. When you combine initial price and the cost to operate you have calculated Brian Tracy's cost.
Why does this analysis seem to fall apart when services are being purchased?
For instance you hire an attorney because he costs $175 an hour instead of $250. Certainly a prudent move if they are of equal talent. You have an offer to settle a lawsuit before litigating for $30,000. Based on your attorney's opinion you litigate. You loose the case and receive a $150,000 judgment which you settle for $90,000. What did that attorney cost you?
Granted it can be very difficult to figure out the true cost of services in advance. Business owners are optimists. That is why you have the courage to take business risks.
Yet all owners must spend some time focusing on the downside. Errors by professional service providers will cost you many times their fees. If you run this risk then you must carefully select your providers. Always keep in mind how small their fees are compared to the damage they can do.
Friday, September 03, 2004
Grow like a Tree
Trees are an amazing form of life. They relentlessly grow upward into the air. They do not make noise. They are quite. They do not hunt. They do not roam. They know that they start with everything that they need to succeed.
Trees just focus on one thing, growing up to the light. They build a root system to keep them attached to the ground, to suck up the nutrients and water needed to grow even higher. Grounded, never forgetting their source.
Because of this focus, they grow tall. They grow large. An oak tree in a field is a powerful sight. Standing tall, perhaps shading close to an acre of ground with its wide limbs that slowly and methodically branch into soft green leaves.
A tree without focus is a bush. Bushes are small and low to the ground. They branch out every which way. They do not try to grow up. Their limbs do not have an apparent plan or goal. Here, there, everywhere.
Be a tree. Find your source. Find your light. Grow to it.
Trees are an amazing form of life. They relentlessly grow upward into the air. They do not make noise. They are quite. They do not hunt. They do not roam. They know that they start with everything that they need to succeed.
Trees just focus on one thing, growing up to the light. They build a root system to keep them attached to the ground, to suck up the nutrients and water needed to grow even higher. Grounded, never forgetting their source.
Because of this focus, they grow tall. They grow large. An oak tree in a field is a powerful sight. Standing tall, perhaps shading close to an acre of ground with its wide limbs that slowly and methodically branch into soft green leaves.
A tree without focus is a bush. Bushes are small and low to the ground. They branch out every which way. They do not try to grow up. Their limbs do not have an apparent plan or goal. Here, there, everywhere.
Be a tree. Find your source. Find your light. Grow to it.
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