It’s All About Your Assets & Liabilities

In business as in life it’s important to keep your assets and liabilities in check. You don’t want to operate from a position where you feel forced to make decisions based on an over extended balance sheet. If you’re operating too heavy on your liabilities and you fear that you have to take on certain clients or jobs that you don’t want to do and you forego new projects that you don’t have the energy and capacity for simply because you know your over exposed then I would strongly suggest you’re Liability heavy and a quick adjustment is needed.

In my view, I don’t want to be in a position where I do a job simply because it pays the bills. I want to be able to go into the market place in a relaxed state of ready awareness. I prefer to see opportunities as real choices and know that I can make the commitment to follow through with the idea or not. My decisions should not be made based purely on income.

I want to grow and maintain ample assets that can cover any outstanding liabilities.

Often as entrepreneurs we take overzealous chances in the market place and make assumptions about future values. When we get it right we get paid handsomely but some times  things don’t go exactly according to plan.

And when this happens, I don’t want to feel like I’m under undue pressure to make my next move. I want to be able to weather a down market or a bad storm and still be able to maintain my current lifestyle.

If you don’t think you’re in a good position at the moment don’t fret because you can start now by making new decisions and adjustments to your current situation that will make your balance sheet much more attractive and favourable in the coming years.

It’s all about the plan and the commitment to that plan and your relentless focus. It also helps if the markets continue to climb, your property values inflate and you resist the urge to borrow more money just because you can.

If the money you borrow doesn’t make you more money then the interest you’re paying then it’s not an efficient use of your capital. Be vigil with your personal borrowing and strive ardently to be mortgage free. Business wise it’s rarely a good idea to borrow money to pay your expenses. If you’re having to borrow just to pay expenses then your business is not growing and is probably shrinking.

You should be taking the scalpel to your expenses until you’re at least at break even point. If you can’t squeeze a profit after you’ve stripped your expenses then you should consider looking at a new opportunity. There’s always a new way forward.

Sometimes you might need a little help to find your new direction and as hard as things are, try to remember that there’s always someone who’s been in a similar position as you yet found a way out or a way through. Thankfully, some of these individuals are now working as coaches or consultants catering to businesses just like yours.

If your business is doing good and revenues are going up then it might be wise to get some advice in order to continue on your trajectory and take things to the next level, but if your business is on a downturn then there’s definitely no time to waste. Get on the phone and get the help you need to make the hard choices you’ve gotta make to set things right.

Dominic Kotarski – International Consultant | Author | Coach | Trainer | Speaker

Dominic KotarskiDominic writes, speaks, inspires, motivates and teaches on the most important aspects of your business including Sales, Coaching, Team building, People Management and Business Development and on some rare occasions, his political views. Get weekly access to his blog & training videos FREE by subscribing.  CLICK HERE

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Entrepreneurs Curse

A very common curse since the dawn of entrepreneurs is learning to ask for help. There’s many reasons for this and most of the reasons are good.

  • Entrepreneurs tend to have an over abundance of confidence in their abilities to solve problems and overcome obstacles.
  • Entrepreneurs like to go it alone.
  • Entrepreneurs more often than not think big and go big when building on a new business idea.
  • Entrepreneurs are willing to fight the good fight and are used to winning.

These are awesome attributes to call upon when your business is growing, you’re adding market share, building your team and taking on business challenges. However, where these attributes often play against you might be when your business model is slipping, your market is shifting or you’ve made some questionable decisions that are hurting your financials.

Taking on these challenges is often hard enough as it is and the last thing you want to do is admit that you’re in trouble or possibly made a questionable business assumption when you executed your growth plan.

Often we wrongly think that nobody would understand our unique situation, but that’s simply not true. One thing you can count on is the fact that there are countless entrepreneur’s out there that have been in similar situations and would completely understand your predicament. And if they were available for consultation they could for sure make some great recommendations or be able to give you some valuable advice that could turn your situation around for the better.

If you’ve approached your friends and immediate network and have failed to find someone to talk to then it might be a good idea to  seek out an entrepreneurs organization, a reputable business mentor or an experienced business coach & consultant.

Building a business is never an easy thing and most entrepreneurs will admit that it was a bumpy, wild ride to get where they are. They will also admit that they have no regrets and would do it all over again and again. What they won’t say is that they achieved their massive success all by themselves and did it without any help from anyone.

Be the smart entrepreneur and build a great network of experienced advisors to help smooth out your entrepreneurial journey and reach your balanced and profitable business life.

Dom Kotarski CMC

Dominic Kotarski is a Business Consultant and Master Coach. He is the author of the international best seller “The Making”. He writes, speaks, inspires, motivates and teaches on the most important aspects of your business including Sales, Coaching, Team building, People Management and Business Development. Get weekly access to his blog & training videos HERE