business stuff, podcasts

Technically right but practically wrong

Listen to the podcast here:

There are times when a decision or an idea seems to be right. Technically right that is. As life goes on and the decision or idea plays out you can be caught off guard when the results are not what you expected because there were some practical problems that you didn’t consider.

I have experienced this first hand and continue to experience this on a regular basis with www.mlenow.ca. I launched this web platform a few years ago and when I first launched it I was convinced I had built it properly and that people would love it. Technically it did everything I wanted it to do for users but I forgot one very important piece of information – anyone using it had to have my knowledge and experience to understand it. That was a major miss on part and over the past few years I have gotten better at understanding that keeping things simple is best but making something simple is an art.

In chatting with entrepreneurs and business owners over the years I can’t tell you how many times I have heard the statement “if we just had $XXXXX of money everything would be fine” only to discover that the amount of money they thought they needed only delayed the inevitable. This is a classic case of being technically right but practically wrong. Technically you may need $X amount of money to solve an immediate problem but practically your business may not be able to afford it. You might technically need cash to meet payroll for the end of the month but practically what will you do to meet next month’s cash crises?

Cash is rarely the answer to fixing problems. In my experience cash will facilitate an answer but it is not the answer itself. An entrepreneur needs to know the basic math associated with their products or services. Said another way, if you think your business needs money take out a blank sheet of paper and figure out how long it will take your business to repay it using your net margin (sales less costs) or how you can leverage the cash into a greater top line number. Surprisingly few entrepreneurs and business owners do this (including myself historically) but if they did they might learn something new about their business that not only solves their problem(s) but helps them get to the next level.

My goal is to get up every day and contribute to the lives of business owners and entrepreneurs who need someone that understands what they are going through. Let’s chat if you (or someone you know) needs some help with their business.

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