You fell victim to the most disastrous assumption anyone can make about going into business.
It is an assumption made by all “do-ers”; “executors”; “technicians”; and “mechanics”; also known as “Labor”; who go into business for themselves, and went from Grand Opening to Insolvency, from Excitement to Exasperation, from bank to bankruptcy.
The Fatal Assumption is: Since you knew the “technical” work of the business, you then would know how to understand and run a business that happens to do that technical work. It’s fatally incorrect. In fact, it’s the root cause of most small business failures!
The technical work of a business and a business that does that technical work are two totally different things!
But the mechanic or technician who starts a business never sees this until it is painful and expensive.
To most business owners, a business is not a business but a place to go to work. So the carpenter, or the electrician, or the plumber becomes a (sub)contractor. The hair stylist opens up a salon. The engineer starts a pool design and construction business.
The coder goes into the I.T. business. The musician opens up a music store. It is almost on par as hearing children say they wanna grow up and design video games because they spend 14 hours a day playing them!
All of them believing that by understanding the technical work of the business, they are instantly and exceptionally qualified to run a business that does that kind of work. In fact, rather than knowing the technical work of their business being their greatest single asset, it has become their greatest single disadvantage sometimes.
For if the technician didn’t know how to do the technical work of the business, he would have to learn how to get it done. He would be forced to learn how to make the business work, rather than to do the work himself.
The real tragedy is that when the business owner has fallen for the Fatal Assumption, the business that was supposed to free him from the limitations of working for somebody else actually enslaves him and He / She Become the business.
Suddenly the job he knew how to do so well becomes one job he knows how to do plus a dozen others he doesn’t know how to do, doesn’t want to do and isn’t good at.
92% of all businesses that fail, do not do so because the plumber didn’t know how to plumb or because the interior designer didn’t know how to design a stunning kitchen and bath. They failed because they:
1. Didn’t understand or appreciate the accounting aspects and basic skills required for financial stability, forecasting and anticipation
2. Had little or no clear effective strategy on how to market their business and generate leads on a consistent basis.
It is our goal, MY goal, to help my clients fill in that knowledge gap, and understand that they do not have to be slaves to their businesses. That they do not have to wear all hats, inefficiently, and that profit is not a dirty word and that it is much easier to obtain than they realized or have been led to believe. It’s a bit like the first sailors who learned how to operate a compass. But up to then, and without training or knowledge of what to look for, they sailed quite at their own peril. It is the same with your business. Without your “compass”, your tools and data, you are sailing blind. Sailing blind at night in rough seas! That only gets your boat sunken eventually.