How to Run A Business

Posted on January 10, 2014 by Dr Paul S Inselman, One of Thousands of Business Coaches on Noomii.

After coaching many many businesses over the years I have determined that many business owners will never reach financial independence because they do not know how to run a business.

Running a business is imperative to give you the highest probability of achieving financial independence. If you are not familiar with the following terms and know how to use them then it is imperative to your financial health that you learn and use them immediately.

They are:

1. Do you know how to read a P&L(profit and loss) statement, and do you know how to do a line by line analysis to make sure that your expense ratio is correct?

2. Do you know what an expense ratio is and how it can be lowered?

3. Do you know what a balance sheet is and how to read it?

4. Do you know how to calculate a ROI (return on investment)?

5. Do you know the difference between good debt and bad debt?

6. Do you know how to negotiate lower phone, insurance and Internet fees?

7. Do you know how to generate a cash disbursements journal and how to analyze it?

8. Do you understand the when to give a discount and when not to?

9. Do you understand how to monetize your efforts?

10. Do you understand the laws of money and the laws of compounding?

11. Do you know how to write and stick to a
budget?

12. Do you know when you should “cut your losses”?

13. Do you understand how to evaluate if a marketing idea is a good investment?
14. Do you understand how to monetize your staff?

15. Do you know how to evaluate if buying or leasing is the better way to go?

If you have not mastered or at least have an understanding of the above list, it will be very difficult if not impossible to achieve financial freedom because you will always be fighting the above principals instead of working in harmony with them. How can you possibly attract quality new clients, customers, or patients when you are worrying about paying the rent?

I know and I understand that most business owners just want to sell their goods or services and don’t care about the minute business details. Like it or not, this economy is unforgiving and you will serve your, customers, clients, patients and yourself better if you learn how to improve your business skills.