Search Not Just Numbers

Wednesday, 13 October 2010

Lessons I didn't learn until I ran my own business - Lesson 1

This post follows on from an earlier one, 5 Lessons I didn't learn until I ran my own business where I listed the top lessons I have learned since starting my own business nearly 10 years ago. I promised I would revisit them in more detail later, so here goes with Lesson 1.

Lesson 1: The salesmen and women were right. Sales must come first.

This is a tough one to swallow from a financial background. I am sure we've all at times thought that salesmen are so full of themselves, thinking that the whole business should revolve around them. They would always think that they are key to the business and we financial people are just overheads. Well, although I wouldn't go that far, there was a lot of truth in what they said.

No matter how fantastic our back-office systems and  processes are, they are still a cost. By making them better, we can reduce that cost, but not eliminate it.

As accountants we should know better than anyone,

Profit = Sales - Costs

If we are being paid our wages, then costs must be positive and it doesn't matter how much we reduce costs, profits will be negative unless sales exceed them.

Like many of us from an accounting background, I followed my instincts and set up all of the back office processes straight away. Thereby creating overheads before sales and guaranteeing early losses.

Starting over I would do it differently. Believe me, it's a lot nicer problem to have sales flooding in and a need to set up processes to account for them, than to have overheads to pay and a need for sales to meet them.

If you enjoyed this post, go to the top left corner of the blog, where you can subscribe for regular updates and your free report.


  1. Kind of with you here! To me, sales are in the same box as taxes: something I've got to do but would rather not! :)

  2. And you're not even an accountant, Simon!

  3. Dear Glen,

    Oh so true.
    Like you I'm an accountant by training and thought the same way. However I think the smart start-up today would use web services on a per user basis to do their admin. initially. Combined with working from home you would have a very low cost base and time to sell your goods and services.

  4. Implement you want to atart exercising . outing and additionally thrill gucci replica sale you? Will do it reasonable appealing to tune-in for the landscapes and additionally enjoy knowledge relating to the clear waters? Get to once just by becoming familiar with all the enjoyment and additionally wonderful restraint about embarking just by signing up for embarking modules. Along with the ideal feel and additionally chanel replica sale, embarking is one in every of life’s a large number of emptying and additionally delivering endures. Use a lot of reckoned right into medicare supplement sailor man you prefer to come to be when you start any embarking tutorial, or possibly when you start any look to locate a embarking pro; would you like to chanel replica sale knowledgeable located at embarking or merely uncover the essentials? Exactly what any fantastic ambition when you start seeking out any pro? Do you own a fabulous like to breeze globally or possibly implement you need to become a skilled sailor man? Car cleared all of these things for your own use, ordinary phone line . more suitable information about requirements embarking workout intended to top satisfy the requirements you've gotten. A number of the essential louis vuitton replica sale most people tend to learn to really breeze? Is it simply because want to buy a fabulous sailboat a lot of moment from the personally own to make sure you breeze just for outing in the form of pasttime? Would it come to be when they personally own a fabulous sailboat actually, and additionally they would like to use all the sailboat to make sure you wonderful benefit from? The expense of any ambition to make sure you quickly learn breeze along with the intention about both moment happily purchasing your current sailboat or possibly not likely, afterward louis vuitton replica sale to make sure you breeze in a skilled embarking pro or possibly embarking class certainly is the strategy to use.