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Posts Tagged ‘Money’

Use Some Common Cents And Your Dollars Will Look After Themselves

Money, everyone wants it but most people have no idea what to do with it except to spend it but is “spending” the point of money or is it something more?

Money is a tool, something to be used to achieve a goal, just like a hammer is the tool of choice when the goal is hammering a nail but you will need money (or something of value besides money but that is for another blog). For example, your goal is to nail together two pieces of wood; what do you do? Viciously assault some nails with a $20 note?! No, of course not, you buy a hammer, which for arguments sake costs $20, and then use that hammer to bang away at those nails, resulting in the achievement of your ultimate goal.

Now lets have a closer look at this hammer situation. We know what the goal is, we have the materials required except for the hammer and we know we can buy the hammer for $20 but is this best use of the $20 we have to achieve our ultimate goal? What other options are there have available to us? Is there someone you know with a hammer that is prepared to hire out their hammer to you, for say $5, alternately are they willing to do the job for you for $7.50, or is there even a possibility that you have a different tool or skill that you can exchange with them to do the job?

Assume that you have all these options available to you, now you have to consider the long term implications of your immediate hammer crisis! Is this likely to be the only time you will need a hammer? Could you become the person that has a hammer for hire in town thus making more money for an investment of $20. Maybe you need to use a hammer on a regular basis but its not the best use of your time or you just don’t like using hammers, therefore it would be better to hire someone with a hammer when the need arises.

Once you have thought all these different options through then you can decide how best to use the $20, not spend, spending is too limited, but use the money. And you thought you were just going to buy a hammer …

How Much Money Did That Cost Me?

July 23, 2011 1 comment

Recently I made a decision that cost me $140000+! Yep, you heard right. I deliberately walked away from $140000, the easiest money I would have ever made. I hear you asking ‘what did you do?!’ Well I walked away from my business. The business that I’ve worked 80 hour weeks for, spending over three years building. The business that I’ve lost sleep over, even costing me my health a couple of occasions. The business that finally worked. That had loyal customers, that produced raving fans! The business that I had shed tears over, even bled over. The business that had finally become profitable for the first time since the mid 90’s (although I have only owned it for 3 and a half years). The business that was finally a saleable commodity, valued at least $140000. All I had to do was sign a new lease

Before I explain my decision, let me tell you about Island View Takeaway, my baby. I spent two years doing whatever necessary to get this business; I worked almost as hard to get it as I have to keep it! I made horrible mistakes in the first year. I was naive and even plain stupid on occasion. I wanted to be a ‘successful’ businessman so bad that I even allowed myself to believe I could run two businesses at the same time when I was struggling to run IVT! The mistakes of the first year nearly cost me the business, and they still haunt me now. Then I got smart, which is to say that I realised that I didn’t have a clue what I was doing, and I had better learn quick! I cut my losses at the second business, got business coaching and put my head down, working hard.

The second year of business was a period of rapid learning coupled with the realisation that I was doing it all wrong. I swallowed my pride, changing my attitude towards nearly every aspect of how I thought a business should run. The biggest decision during this period was removing newspapers from sale. As a business decision it was smart, saving the business a significant cost that yielded a loss. Profits went up from the first week! However, I had not learnt about loving your customers at this point, so, in typical fashion, I totally stuffed it by not including the customers in the decision. They simply woke up one day to discover I had removed the papers with no warning! I should have given them a few weeks warning to explain why the decision had to be made.

The third year was my, and IVT’s, best year! I learnt that I needed to love my Team first, customers second, suppliers third and myself last. It was during this time I realised my biggest and best success, my Team! I have built the best Team in town by genuinely caring about them and their lives while not being intrusive. I have been sympathetic and caring towards them, showering them with just praise and justly earned rewards! I have loved them to the best of my ability and the reward has been their loyalty. They have all expressed the desire to back me, waiting for me to get another business and continue to work for me. Nicole, Kelly, Rhys, Steph, Jayden and Dom, thank you from the bottom of my heart!

Lastly, but definitely not least, my customers. Let’s face it; customers are what we are in business for! A basic principle in business is creating ‘raving fans’.  People who love your business and everything it does. People that tell anyone that’s listening – even those who aren’t – about you, your product, your service, everything about you. In a world where the statistics tell you that, on average, an upset customer will tell 19 people, but only 3 if you impress them. Having raving fans is invaluable! In the 24 hours since we announced our decision to close IVT the outpouring of genuine sadness, together with comments of praise towards my Team, products and the business in general has been overwhelming! I didn’t recognise that I had also successfully created raving fans. I will miss my very special customers. Thank you so much for your support and patronage; it means an unmeasurable amount to me!

What do you value?

Now to my decision to close IVT instead of sign a new lease. Simply put, the lease proposed was unfair and greedy. More importantly I realised that I could not sell the business, as good as it is now, to someone, having to tell them it’s a good lease, not to mention the Landlord (and I won’t!). It came down to integrity, which choice could help me sleep at night? Money is not everything; it’s not even in my top five. My decision to leave IVT satisfied my top five; my families respect, integrity, peace of mind, fairness and my friends respect. These things are way more valuable and important than money. I know I can create wealth with successful businesses somewhere else, but my top five I can’t afford to lose, not even for a day!

So thank you to everyone that has loved and supported me through the last three and half years. Truly thank you, thank you, THANK YOU, and stay tuned for our next adventure, with an invitation to join us.