Ten Things You Should Know Before Starting A Business!

There is no secret as to why self-made millionaire, entrepreneur, television personality, philanthropist and politician, Marcus Lemonis continues to make his mark on the business world – he leaves not just an impression, but an imprint on everyone he meets. Lemonis has that charisma, that few possess.

Being the chairman and CEO of multibillion-dollar corporation Camping World takes up a lot of Marcus’s time. But when he’s not running the company, he’s searching for struggling businesses in need of cash. Lemonis tries to help turn each company around by offering cash for a piece of the business and a percentage of the profits. The Profit is an American documentary-style reality television show broadcast on CNBC. In each episode, Marcus typically offers a capital investment and his expertise to struggling small businesses in exchange for an ownership stake in the company.

Marcus’s Top 10 Rules for Success in Business include:

  1. Create a Business Plan
  2. Have enough working capital
  3. Create a to do list for tomorrow
  4. Take care of your employees
  5. Have the knowledge
  6. Constantly reinvent yourself
  7. Always stay one step ahead
  8. Stick to the grind
  9. Push through the fear of failure
  10. Stand out

Create a Business Plan

There is this myth that people think: “I don’t need a business plan.”

Often business owners that have an idea miss out on the execution. They don’t go through the process of writing things down. You can either use a whiteboard or notes on your computer or a journal to write down your ideas, share them with people and get some feedback.

Here is my product or service: How I am

    • going to attack the market
    • going to beat the competition
    • going to learn from my competitors
    • going to take from my customers

Have enough working capital

Cash-flow is important, but working capital is also important. People come with projections of their business, with a brand new idea and they think they are going to make it in 6 months. If they don’t make money in 6 months and they don’t have a backup plan, a reserve or a line of credit – they will go out of business. The single biggest reason why small businesses close is not because their idea is terrible, or because they are bad people – they don’t have the sufficient amount of working capital.

Create a to do list for tomorrow

Make a list of things you need to do the next day. Try to do them before noon. The first part of the day is the time to “focus” with housekeeping duties and then you farm the fields for the rest of the day.

Manage your time smart and knock-out the things that you have to do:

    • Who do I have to talk to?
    • What do I have to review?
    • What do I have to do with the bank/employees or other business?

Take care of your employees

The reality is that the employees are number 1. If the employees are happy, ultimately the customers are going to be happy and they are going to take care of the customers and will put them first. If the employees are happy, they will have a pride of ownership and will stand side by side with you during tough times, as well as during the good times.

Have the knowledge

If you want to have a business you must start by working for someone else who have a good knowledge of the industry. If you have a passion for business you also need a knowledge of the type of business you want to enter in.  If you don’t have knowledge of the industry, you need to have a partner or manager in place who has a vested interest in the business, as well as the knowledge.

Constantly reinvent yourself

Entrepreneurs who offer a product or process that is not working today, have to make bold steps of reinventing themselves. People have to feel the product/service is relevant, they have to see the warning labels, they have to understand the content, it has to be appealing and it has to provide value to people. If the company is not evolving, it is dying. Not only entrepreneurs have to do it, but we need to do it for ourselves.

Always stay one step ahead

People often develop a fantastic product; it hits the market and sells well. If you sell a good product today, your customers are still going to expect a better product tomorrow. You have to worry about competitors who can mimic your offering, so always stay one step ahead of them. If your products don’t develop into something new, better, smarter and less expensive – then people are going to find alternatives.

Stick to the grind

An entrepreneur is always a business owner or a team member. Being a business owner is one of the hardest things to do. If you take your money and invest it in an idea, then you are investing in yourself. If you do it to solely make money, you are going to lose.

Push through the fear of failure

Entrepreneurs deep down have a fear of failure. “What will people say, what will they think.” It is a hard challenge, but keep pushing through, believe that you can, despite the challenges you might have.

    • Admit your vulnerability
    • Acknowledge your mistakes
    • Be realistic
    • Stand out

Is your product relevant in the marketplace? If the market is saturated, can you rise to the top of the list? Don’t run away from saturated markets, but run away if you don’t have the following in place:

    • Time
    • Resources
    • Energy
    • People
    • Process
    • Attention to detail

You want to be the best in your class.

If you decide on a business, make sure it is recession proof and study the trends.