For my morning reading this morning, I read: ‘The Richest Man In Babylon’ by George Clason.
‘The Richest Man In Babylon’ is one of those classic books up there with the likes of ‘Think and Grow Rich’ that has stood the test of time.
Those are probably the two books that every successful person has read. There is a saying that success leave clues. Maybe the secrets to the success of successful people lies in those books.
So if you intend on succeeding in your small business, you might want to read those books, they might contain the keys to your success.
On page 71 of ‘The Richest Man In Babylon’ in a section entitled ‘The fourth law of gold’, the author cautioned against investing in businesses that we know nothing about.
This is how he put it “Gold slippeth away from the man who invest it in business or purpose with which he is not familiar or which are not approved by those skilled in tis keep”
As a small business consultant, I see this mistake manifested all the time by small business owners.
Firstly, many small business owners just open business because they want to have their own business. Either because they have been laid off work, they cannot find a job or they have the capital.
This is particularly prevalent amongst professionals who feel to themselves that simply because they are professionals in certain fields, they can run a business in those fields.
The doctor feels because he is a medical doctor, he has the ability to run a private medical practice.
The lawyer feels having a law degree automatically qualifies him to run a law firm.
The accountant thinks that running a business is about number crunching.
Then there is the dentist who feels he can perform complicated cosmetic surgery how difficult will running a business be compare to cosmetic surgery.
What those professionals don’t realise is there is a difference between their professions and the business of their professions.
Another common example of what I call ignorant investing is retail. Many big retail chains go into administration three or four times in their life time before they finally cease to exist.
The reason retailers call in the administrators multiple times is after the initiate trouble, they are either purchased or they manage to raise capital from people who have no idea about the retail market.
They have loads of cash to invest so they invest on the basic of hope.
Opening a business or investing in a business you know nothing about and have not taken the time to research is treasonous.
When Warren Buffet, arguably the smartest investor who ever grace the planet earth wants to invest in a business, he spends months studying the company and its management before making the decision to invest in that company.
He read ‘The Richest Man In Babylon’. You will do well to study his strategy before considering investing in any business.
# # # # #
NOTE: In today’s fiercely competitive business landscape, your business cannot survive without effective marketing and business growth strategies. If your business is stagnated or you want to take your business to the next level through effective marketing, please call 44 (0)78 6504 9508 or email: email@example.com
Meanwhile, please click on the below link to download your free business growth blueprint: www.theprofitexperts.co.uk/Small_Business_Marketing_Report.pdf