Running your own business is hard. Ask anyone who has made it past the first 5 years. My long-time friend, Gordon West, owner of Strongbar Industries attests to that. Over his 30+ years as the second generation owner/operator of the family business he has seen more than his share of crazy: From banks making irrational demands, through multiple recessions to COVID. Through it all he has continued looking forward.
Gordon has spoken to students in my class at George Brown College a few times. These students are learning how to start their own small business. Hearing from successful business owners such as Gordon really helps put the 'real' into 'reality'. He gave his OK with me sharing them and so today, here are Gordon's 12 tips for running your own business:
- Know your numbers. Cashflow is the heart of every business. Keep your eye on these metrics:
- Money in/Money out
- Inventory balance and Turn: You need to know what sells and how many times you turn over your inventory
- Profitability: Are you making a profit or are you discounting yourself to death
- Profit margins: Are you making enough to cover all your costs with something left over for yourself
Thanks Gordon for sharing these with my students. They are richer for it!
Until next time...