Thursday, April 17, 2014

Things That Will Make You Money - Number 4 - Be Prepared

Successful people do things others will not do. One of the things others don't do is preparing to succeed.  You have probably heard the expression "failing to prepare is preparing to fail".  Yes, it takes work, planning and preparation followed by action to succeed. You may be brilliant and you may have a brilliant idea and capital but if you do not properly prepare you are bound to fail.  

When Starting a business to be prepared you need enough capital, resources, and experience.  It is OK to start a business in an industry in which you personally have no experience but it is best to hire someone that does and thoroughly discuss the plan with them.  They should help you modify the plan based on their knowledge of how things really work. 

An alternative to hiring someone with experience in that industry is to get the experience yourself. To do that requires time and effort on your part. This is where the line between success and failure is drawn.  It is like the two airline pilots that bought a bar but their own experience with bars was limited to drinking in one. They were bound to fail before they even began. Why did the previous owners of the bar fail?  What will make your plan succeed?  I know you want to save a buck and do things the easy way but that is not a recipe for success.

Wouldn't it be a good idea to know about the cost structure of a business, to have a marketing plan in place, and to know about the details of the day to day operations in addition to having sufficient capital and enthusiasm for the idea?  Although your personality, excitement and cash will help you succeed, preparation is also an important key. 

Do this, ask yourself if you were being asked to invest it this business, and you took the emotion out of the equation, would you be interested?  What reasons do you have for believing it will succeed?  Having experience or someone with experience who can clearly explain how things work and how the plan will work is a huge factor for achieving success.

The CPA Superhero wants you to succeed. If you want the CPA Superhero to help you feel free to contact me using my information below. New potential clients can have a free half hour initial consultation.  Tax planning for your retirement involves a consultation fee.

Jeff Haywood, CPA
The CPA Superhero

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These posts contain general information that does not fit every situation, they are not all inclusive, and as always for your tax situation everything "depends on facts and circumstances."  In addition, the world and IRS requirements are always subject to change.  So call me to talk about your specific facts and circumstances and what you want to accomplish.