FCB #020: 10 Major Lessons I Learned In Business

Introduction

I was in business for myself for 20 years, but only had what I would call a real business the last 10 years.

If I had to transmit the Top-10 Lessons I learned in business to someone starting out, the following are what I would share.

1. Hire Early

I waited 10 years too long to hire my first employee. I was scared. I admit it.

If I hired someone, they would see my weaknesses: who I really am.

Get over it. Hire as soon as you can. They will help you become a better you.

2. Fire Quick

I hung onto some toxic employees WAY too long.

I was weak, and scared. I didn’t want to confront.

After two warnings, fire them! Don’t wait!

Tolerating toxic or under-performing staff was my biggest mistake.

3. Document Key Tasks

If it’s a recurring task and important, document it.

Your process documentation does NOT need to be perfect.

But if it’s a recurring task, and important, it needs to be documented.

You don’t have a real company, if your recurring processes aren’t documented.

4. Delegate Tactical Tasks

Your role as owner is vision, strategy, and management.

If the task is tactical, you need to delegate it … FAST!

STOP WORKING IN YOUR BUSINESS!!!

This is the absolute worst thing you can do!

I don’t care how you go about changing your spots.

START WORKING ON YOUR BUSINESS. Just Do It! 

5. Outsource Non-Core Tasks

If it’s not your primary business function, outsource it.

• Bookkeeping/Accounting
• IT Managed Services
• Payroll & Benefits
• HR Administration (think PEO company)
• Legal
• Insurance

You’ve got enough to do just to be great at your core business.

Don’t try and be something you’re not.

Focus on your core business function, and outsource the rest!

6. Database Key Processes

So, what are these and what do these “databases” look like you ask?

• Marketing/Sales – CRM software (LinkedIn-ers, think Folk CRM!)
• Operations – Custom Production/Assignment Management System
• Bookkeeping/Accounting – QuickBooks Online
• HR Administration – Bamboo HR (or the like)
• Company Dashboards/Scorecards – SmartSuite (or the like)

Run and manage your business by the numbers.

Make a short list of KPIs for each department and major role.

Track and review them weekly, monthly, and annually.

Review them with your leadership/management team.

Review in your regular one-on-ones with your direct reports.

7. Brand Like A Crazy Fox

One of the keys to my success was Valbridge Property Advisors.

You may not be successful in being able to co-found and grow a franchise.

But you can learn important branding lessons from national franchisors.

Beg, borrow, and steal with your eyes. Implement what you can.

Growing your brand is one of the most important things you can do.

If you’re not already leveraging LinkedIn, get started. Like yesterday!

8. Diversify Client Base

First, work towards no one client being more than 10% of your revenues.

Next, work towards no one industry vertical being more than 25% of Revs.

Finally, work towards having recurring revenue greater than 70% of Revs.

Achieve these three and you’ve probably doubled or tripled your biz value.

9. Build Redundancy

Only have one Operations Director that runs your firm?

Hire an Administrative Assistant and get them cross trained!

Only have one MAI-designated appraiser? Same idea: get 2-3 more.

Create redundancy for every important role or process in your business.

10. Plan Your Exit

Buy a few good books on exit and succession planning.

Go to my new website and get my free Ultimate Business Growth Books.

You'll find it at www[dot]CalvinCummings[dot]com/Guides.

You need to plan for your business exit or succession, regardless.

Start by having a good business valuer appraise your enterprise value.

Have this repeated every year like clockwork. Trust me on this. Just do it!

Ultimately, your enterprise value is your "report card" on how well you’re doing.

Conclusion

If I was starting out, and could do it all over again, I would take action on all these 10 items as quickly and professionally as possible:

1. Hire Early
2. Fire Quick
3. Document Key Tasks
4. Delegate Tactical Tasks
5. Outsource Non-Core Tasks
6. Database Key Processes
7. Brand Like A Crazy Fox
8. Diversify Client Base
9. Build Redundancy
10. Plan Your Exit

If I had done these early on in my business building career, I would have been 4X to 6X my exit size and value at the end. More importantly, I would have been able to sell for 4-6 times as much at age 60 instead of at age 70.

I don’t know if you can learn from my mistakes or hard-earned wisdom or not. I hope so, and I hope these weekly newsletters are helping some of you founders, owners, and CEOs that are subscribers.

I would sure appreciate it if you would leave your feedback in the comments below, please.

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