For this week, I offer another championship class in the field of business for this week. It is my fourth this year, after the episodes of hiring, branding and building profit.
My goal is to help existing and future entrepreneurs based on Beardbrand, my direct consumer company, for decades. This installment is still my most important main class. It is about setting priorities for business and life.
The sound mind is inserted below. The transcript is modified for clarity and length.
Purposes
A joint business mistake is to build a business without intention or purposes. There are many ways to approach business, but I focus on creating a society that gives me freedom – to do what I want when I want to, with the people I have fun with, with whom I enjoy. This is my northern star and it affects every decision.
Your North Star may be different, but it is important to define it early. For me, I lean to a smaller drama and more personal freedom. Larger companies with rapid growth often have more lawsuits, employees and general chaos. I keep things easier to avoid unnecessary headaches.
If you want to build a massive, highly growing company and sell it for millions as quickly as possible, this approach is not for you. But if you value sustainable business that supports your lifestyle and corresponds to your values, that’s what I share here about.
Profit equals freedom
A common mistake for entrepreneurs is the persecution of income instead of profit on the bottom line. They are obsessed with a big sale, but the key is what you can maintain, your net profit. High returned with slender edges, you will not give you freedom.
Money has never been important to me. My first job paid 11 years per hour at Dell Call Center. My parents are going on a higher medium and support class, but the Beardbrand investors were not outside the purchase of a product and encouraged me.
What kept me above the water was simple mathematics: spending less than you earn. When revenue drops, reduce the expenses. When revenue, saves aggressively. This live cycle under my means created financial stability over time.
Remember that freedom comes from strong margins.
Improvement of margin means lower costs (mostly for products and customer acquisition), higher prices for customers or both. Entrepreneurs tend to focus on marketing, such as Facebook and Google ads and search engine optimization. However, these channels can be more expensive over time and erode margins.
It is equally important for the low cost of goods and at the same time improves the end, so customers will pay more. Effective supplier chains and improvement of nonstop products are critical.
The common trap adheres to products with low quantities because they generate the returned upper line. If the product does not contribute to your lower line, it is not worth keeping – working for free. But give leaving the product too fast. Ways to reduce costs, increase prices or get customers more affordable. If this effort fails, the discontinuous item.
External funds
Entrepreneurs often accept loans or look for investors, but the goal should always be to build a company without external debt or equity.
Traditional route – bank loans, risk capital or friends and family financing – means taking debt or resign. A better option is to finance customers. Crowdfunding platforms, such as Kickstarter, sell your product to consumers before they exist, provide money for initial and real feedback while reducing the risk and maintaining ownership. No debt payments. No investors will tell you how to run your business.
Before you borrow money, ask if there is another company that will first build, maybe starting the product in small doses. To start Beardbrand, I made 100 beard shoes in my kitchen. Small beginnings can still lead to freedom.
Remember why you started. Is it for freedom, wealth or ego? For those who chase freedom, avoid debt if possible. Fund your business in a way that keeps you under control.
Long -term
Too many business owners have short -term thinking. We are all bombarded with stories of entrepreneurs selling their businesses for millions. The narration that beats in our heads: Become quickly, get out quickly, earn millions. Long -term thinking. Not only five or 10 years, but 50 or 100 years-multure-generation business.
To happen, you have to love every day. And that starts in rectification by being profitable. Loss of money is not fun. Carve the Aproftable products, reduced sizes or humble your lifestyle to correct cash flow.
In addition to finance, entrepreneurs choose who they are working with. That’s a gift.
Finally think about your children. Wow, do they want to take your business? If so, integrate them in a way they enjoy, not out of duty. This now requires investing time with your family, far from business, so they will want to be part of it later.
Self -investment
Long -term vision does not mean a neglect of other aspects of life. I invest in my health and thinking – I ensure that my body and mind are ready for my children, grandchildren and society, as I age.
I practice six days at the weekend – three lifting and three rowing. I built a garage gym for comfort.
For my mental health we travel with my family every summer to Denmark. It’s not a holiday – I still work – but be in the new place Sparks Adventure. It’s been traveling for me. Others can appreciate hobbies, gardening or anything that keeps their lives interesting.
Preference
How we spend time is a key decision in life. It starts by knowing our priorities – serving our body, mind, business, spouse, children and friends.
I write in the Moleskine notebook, what is important to me. Then it is shifting. No ties, no straight. For me, the family ranks over business.
But in all, I prefer my health and thinking. I cannot show up for my wife, children or society if I am physically, mentally or emotionally absent. You can out of an empty cup. Remove your list.
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