Yes, I hear you, loud and clear. You’re saying I want a BIG business, let’s get started now. Much depends on you and your finances but that’s not the only consideration. Obviously, the Government counts 500 employees as a small business which we think is kinda a warped or misunderstood number for any business.
It makes us question how anyone can arrive at such an assessment of size. Anyway, none of us can begin and call our firm BIG if that’s the case. All firms begin small and the majority will remain in the “small” category for the lifetime of the enterprise.
Assuming we can all agree, the most important “size” is your “net” income, not the number of employees on your payroll or the size of your sales figures. How much you have left over after all expenses is the key we call successful in all businesses.
IF you’re thinking about starting a new business or already have one then please understand that it doesn’t take a rocket scientist to know better than to borrow yourself into bankruptcy. Don’t chance putting your personal assets at risk trying to save your business. Reduce your size, cut employees or forget family and friends as an easy source for funds. You have to pay back your borrowed debt. There’s no free cash.
Never run your business based on “cash” in the bank. It’s important to understand that inventory has to be replaced continually to keep operating your business. Years ago, I remember someone opening a new gas station, filling up all the gas tanks and began selling immediately. About 30 days in the tanks were getting empty but the “owner” had bought himself a new boat and a new car with his new found cash drawer. Stupidity has no excuses or cash replacement resources. As you might imagine, this business was short lived.
Unfortunately, these stories are everywhere. We all live as if none of these things can happy to us, we’re too smart for shortsighted or just dumb decisions. Truth is, most business owners have made plenty of tough decisions in running their business and fortunately survived. There are no guarantees either way.
The majority of small businesses are ONE person services across America. Look around and you’ll see them in your neighborhood wherever you live. Many owners of these businesses have no desire to add employees and remain the same forever. Most have a particular skill or talent in demand and like being their own boss.
Adding employees is an upside or downside piece of the puzzle for the business owners. It’s understandable for most small business owners that big changes, new challenges come with adding employees. Sometimes it works out and a new employee turns into a tremendous asset to the business. Let’s assume that’s always in your future. However, if you’re willing to manage and oversee the income and expenses with diligence, you’re on the right track for success in your business.