Theo Paphitis’ life has been a true rags-to-riches story. Much of his success can be attributed to his twelve business success rules.
- Reduce the risk
When weighing up the risk-reward ratio on a business proposition, reduce the risk by stacking the cards in your favour. Make sure you get all the information on a business so that you know more than the next guy. Doing more research and knowing more than anyone else will make you money.
- Don’t fool yourself
People delude themselves by letting their heart rule over their business brain. Does everyone think your business idea is great? Is it commercial enough? Honesty is important with a business idea.
- Learn to let go
There is always a right time to sell a business because they all have ups and downs.
- Know that cash is king
You can live without profit for a certain period of time but not cash. No cash could mean you can’t pay the rent or the wages and then it’s all over.
- Embrace change
For Paphitis, the retail environment has suffered a major change with the advent of the internet and online purchasing. If you don’t adapt, your business will perish.
- Use common sense
Business is 90% common sense, but common sense is not that common.
- Make decisions
Never be frightened to make a decision. If you make more right than wrong, you’ll be doing ok in business, but make sure you identify the wrong ones and deal with them quickly.
- Weigh up the opposition – and yourself
Don’t underestimate your opponents. Make sure internal communication in your own business is strong. Involving people in processes and giving them the information can lead to great insights and ideas coming from those individuals.
- Start small
As soon as you hire somebody, you’re managing people as well as the business and dealing with other problems that can arise as a result. Man-management skills need to be learnt fast as your business evolves to keep staff happy and motivated.
- Get your staff on board
Make your staff’s working environment as stress-free as possible. Make them feel listened to and valued. Rewards and incentives help staff focus on their work. Achieving this will guarantee the customer receiving the best service.
- Capitalise on other people’s ideas
Modify, work on and adapt other people’s ideas to make them work for you. Consider if you can turn the idea into a money-making scheme. Sometimes good ideas aren’t necessarily profitable.
- Turn your dreams into reality
You have to have passion for your dream and it has to be something you enjoy or it is unlikely you will reach your goal. You have to really believe in it and be determined to make it work. Ultimately, if you don’t attempt it, it will never happen.