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③
Test, Test, Test
Play simulation games and test
every major move before you invest in it. Test, test, test. Don't
plunge into a business. Move ahead carefully, one step at a time.
Expand on the basis of your
successes, out of
your profits, as you move along. In other words, only expand
your business on money that you've earned in the business, not on
borrowed capital.
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④ Pick Your
People Carefully
Carefully select the people to help you
grow and
expand. The biggest
mistakes you'll ever make will be in picking the wrong people to work with,
so be very, very careful in
picking the people you're going to work with in
your business. |
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⑤
Use
Financial Leverage
Financial leverage is business
borrowing, lines of credit from
the back, which are based on the
cash flow from your
successful
business.
You must develop a consistent,
predictable source of cash flow
in excess of cost and expenses
and then to hold to the money.
Banks will lend you all the
money that you can service as
debt with your cash flow.
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⑦
Learn What You Need To Learn
Remember this, though, most
businesses fail because of
managerial incompetence. So take the time
to learn what you need to know to
succeed. Be patient. The time you
invest before you start will pay off over and over again in the months and years
ahead.
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Here are two things you can do immediately to implement these formulas for
business success:
①
Be prepared. The number one
reason that people succeed in starting their own businesses is that they have
the knowledge and experience, in advance, that they need to succeed. Do your
homework.
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②
Start small. Some people think that they can be successful
faster by putting all their savings at risk at the very beginning.
The opposite is true. Start small and
grow out of your cash
flow from successful operations. |
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