Building success and wealth is a process; it is not based on luck, or being in the right place at the right time. Individuals who become successful and wealthy and remain so do it with a plan, no matter what business they enter. We’ve all seen the person who has the Midas touch—every business he goes into rockets to the stratosphere. If you sat down with such a person and asked what were the most important things he did to make each of those businesses successful, here is what he would answer:
- Have a complete business plan. Know the numbers; expenses versus income, be sure the business has a real opportunity for success.
- Don’t follow the crowd. Select a niche that gives you an edge against your competition.
- Have a vision of the future, and how you’ll reach each plateau to the top.
- Evaluate, evaluate, evaluate. Have the facts and figures which support what you’re doing according to your plan. If it’s working, stay the course; if it’s not working, adjust if possible or scrap the portion which is not achieving its goals.
- Know your break-even point, the figure which changes every time any expense increases or decreases. It’s not the amount of incoming money (revenue) which covers your costs. It’s the point where losing money stops and profit begins.
- Be sure you’ve included in your break-even costs a salary for yourself, and anyone else who is performing tasks for your company. Any company owner who is waiting for the profits to pay his salary is doomed to working for someone else. Your profits are where your performance bonuses come from, not your salary.
- Never allow a product or service to be sold at a price which is below your break-even point.
- Base your business model on creating value in your services, not attempting to compete on price.
- “Don’t put all your eggs in one basket.” You shouldn’t let a single customer represent any more than 20% to 25% of your total revenue or accounts receivable.
- Customers are the core of your business, so continually farm for new business while taking care of your current customers.
- Have a system in place to control cash flow and augment it when necessary.
- Remember to invest in your company. Profits from your sales efforts need to be reinvested into the company to build value in your company’s worth.
- Engage experts to do what you either don’t have time to do or don’t have the skill or resources to do.
- Enlist expert advisors to provide direction and advice on how to maintain and grow your business.
Of these all-important skills, the one which will ensure your success and underwrite all the other requirements for success is your cash flow management and reinvestment system. Remember, cash is king in any business; without it, you cannot operate. In your business plan and your day-to-day strategic plan, you must have an accounts receivable management company in place. Keep in mind every start-up company and any company attempting to grow will experience a cash flow deficit. You need an organization which becomes your backbone.
You need an accounts receivable collection company that gives you flexible and effective programs for:
- assistance in building wealth,
- quick access to cash,
- guidance and direction to become self-capitalized ( a way of reinvesting your profits to a point where you no longer need a factoring company).
You need a partner in cash-flow management who doesn’t have:
- overnight delivery fees
- bank wire charges
- set-up fees
- long-term contracts
- termination penalties
- and high factoring costs.
You work hard for your money; be sure you work with someone who has your best interests in mind, who works with you every day to achieve your financial goals, and you’ll become a successful trucking company.
Timothy D. Brady is
• A 20 + year trucking veteran
• The Trucking Business Expert on Sirius/XM Road Dog Trucking Radio
• Heard in podcasts on http://AmericanRigRadio.com
• Author of best-selling trucking business books and columnist for top trucking industry publications.
Join Brady in the Trucking Business Community at www.truckersu.com for a continuing business learning experience. Be a part of the solution.
Contact him at tbrady@writeuptheroad.com or call (731) 749-8567.
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