Good morning and welcome to another episode of always up to date. I’m Denise and this is YALI and we are co-owners of always bookkeeping. Um, today again, we are going to be looking at entrepreneurial myths. Um, our topic today is I can do everything. Um, so we are um, Oh, sorry. The quote for today is from Jim Collins who is the author of six books and the quote is those who build great companies understand that the ultimate throttle on growth for any great company is not markets or technology or competition or products. It is one thing above all others, the ability to get and keep enough of the right people. So we’re looking at building our team and who can, who should work in your, your business basically. Um, so the statistic that we have is from CB insights, uh, who reviewed it, essays from failed entrepreneurs that should have used Edmonton Bookkeeping.
Uh, so most of the entrepreneurs listed multiple reasons for failure. Again, 42% of entrepreneurs who failed report, no market for their services or products as one of the reasons for failure. 29% of entrepreneurs who failed report running out of cash as one of the reasons for failure. And 23% of entrepreneurs who failed, reported not having the right team as one of the reasons for failure. The, these were the three most common reasons reported. Um, all of the other reasons were reported less frequently. Uh, those were reasons like, uh, pricing and cost and timing and the location of the business, things like that. Um, so y’all way, um, at our business we see lots of small business owners who start their business and they just feel that they can do everything. Um, I think the biggest one is that, uh, well there’s two things I think that are our major, um, things that they believe that they feel that they have a business degree so they’re ready to start a business. And second, they are a specialist in their fields and so they think they can run a business. Yeah. So does business degree prepare you to own a small business? No. Um, you know, you, you have the textbooks, uh, you’ve studied, you might know the market industry, you might have a really good idea. Um, but lots of people who come out of school with a, a business degree, they don’t even know how to open QuickBooks, you know, they don’t know how to, to do their taxes with Edmonton Bookkeeping. They don’t know.
No. Um, [inaudible]
what needs to be done for bookkeeping, for example. Um, they don’t know how to hire employees. They don’t know how to keep their employees, they don’t know labor standard laws, things like that. Like there’s a lot that goes into running a business. They don’t understand the, the administrative part of it. Uh, how many things there are that needs to be done. Just, just because you have a degree doesn’t mean you have all of the skills needed to run a business. Yeah, absolutely. I mean, um, when, when I took my degree, uh, McEwen, um, they really prepare you for, um, a lot of stuff, but it’s mostly about, um, being part of a bigger company. It’s, it’s about being an employee at someone else’s company. Um, it’s about, um, running things for someone else and not necessarily, um, you know, um, preparing you to own your, uh, your own business or to have your own business and, you know, hire your own employees, what to look for and stuff like that.
They give you a lot of tools that you can use. Um, but to own a small business out of think they prepare you for the mindset and you know, like, yeah. Actual, um, yeah, actual work that comes into owning a small business is not, it’s, it’s barely there. Yeah. Even like we talked about in one of our other videos, like how many hours you need to put in and um, you know, where you can work from and like what it really takes to run a business. Yeah. You’re right. This being, especially as a specialist in your fields qualify you to run a business in that field. Yeah. Again, the answer to that is no, there’s so much more that goes into a business than just knowing how to sell, you know, do a service or sell a product. Um, just because you’re a plumber, you can be the best plumber in town.
Do you know that your employees need to get paid at a certain time and that you have to remit source deductions, that your taxes need to be, be paid when they need to be paid. You know, how about your bookkeeping? Do you know how to read your numbers on your financial statements so that you know how much money that you actually have? How much is the business making? How much is it spending? Where can you cut back on expenses? Is it time to hire an employee? Is it time to fire an employee? You know, all of those things. Do plumbers know that? Not all of them. Yeah, absolutely. And it’s, it’s different to provide a service than run a business, right? Where, um, you have to generate your own leads and be responsible for another likelihood of your employees. Um, yeah, so I don’t think it qualifies you to run a business that needs Edmonton Bookkeeping.
Um, you’ll be ahead for, you know, the products that you want to do or the service that you want to provide. But at the end of the day, um, there’s a lot more to goes into earning a business than just providing a product or service. That’s right. Yeah. Um, as the number one consideration in your customer’s buying, Oh, sorry. It’s price, the number one consideration in your customer’s buying decision. Yeah. It’s not always, um, I think sometimes we think that that people are gonna want the cheapest, but sometimes price isn’t the number one consideration in your customer’s buying decisions. Sometimes it’s quality. Uh, sometimes it’s where you’re located. Um, you know, sometimes it’s, it’s who you are and your branding and um, you know, if they see your face and they can put you, um, to your business and your, your values, that might be more important than the price.
And yeah, again, you need to be able to know how to judge that and to figure out what your, you know, who you’re selling to and, and what it is that is more important to them. Is it the price or is it something more? Yeah. And especially for small business owners, we can’t really compete on price or on the lowest price too much because most of the time we’re not big enough to cover, you know, like the, you know, their costs that goes into making our products. So we can’t really spread it out to a lot of, uh, a lot of the units that we sell or a lot of the hours that we provide. So we ended up being burdened by the costs. So, um, that’s really hard. And also, um, if you look, if you look at it, you as a cause our customer, if everyone’s looking at price, we should be wearing the cheapest clothes, you know, like the cheapest, but we volume more things than prices what I’m trying to get top Edmonton Bookkeeping.
Right. Yeah. Um, will, minimizing expenses help you in at business? Yeah. Not always. Um, again, you need to be able to know how to read your financial statements to know where it is that your, um, what’s your most, your largest expense. Um, lots of times, um, business owners don’t understand their financial statements and they will, um, you know, pick at interest in bank charges. I need to call the bank and see if I can get rid of those $50 bank fees. And yet you’re paying way too much for rent or you have too many employees that you can’t afford to pay them all. Um, and yet you don’t know how to read those financial statements. So even though you have a business degree or you’re a specialist in your field, you need to be able to know how to read those expenses so that you, you know, that um, these are the expenses that I need to cut down on to win at business.
Yeah. The easiest one to control. Um, and also you can look at it this way. You might not have an expense issue. You might have a revenue issue, right? So think about, um, again, the time that you have within the week, it’s all, it’s, it’s the, the most limited resources we have is time. So would you rather spend that time growing more revenue to cover day expenses or minimizing those expenses that may or may not be, you know, um, as valuable for your businesses, success and longevity. Right. So, uh, that’s one of the things that you want to think about. Um, well perfectionist when a business not always, um, perfectionist actually maybe have a little bit of a harder time cause they’re trying to get their, their product or their service just perfect before they’ll start selling it. And while you’re trying to perfect it, you’re losing customers.
Like they, they don’t want to wait around for your, your product to become perfect. Um, same with your employees. If you’re trying to get your employees to be perfect, you’re not going to get them to that point and so you’re going to lose out a lot. Yeah. And, um, again, lots of time get getting, uh, getting used to perfection ING, uh, things that might not necessarily have the larger impact on your business. That’s right. That’s not the most value. ERs the most, um, the most strategic way to use your time. And, um, yeah, that’s it’s, um, it might hinder you from progress if anything. Yeah. Until you sell to LA. If you look at Apple, how many, how many times the uh, they changed their operating systems in your phone or even a Samsung. It doesn’t have to be perfect. You just have to sell.
Yeah, yeah, that’s right. Um, can you build a sustainable business or make a major change in, in one year? Um, we wouldn’t recommend doing that in one year, um, in, in some circumstances maybe. Um, but usually it takes more than a year to kind of establish your business and just find out who your customers are. Sort of get an idea of who you are and what it is that your values are and what your mission is. Just kind of who you are. We want you to take a year for sure, um, to kind of establish that get established in the community, um, just to, to figure out where you’re going after that first year. Then that’s when you might make a change in, um, you know, who you are or what it is that you want to see your business do, how you wanna see your business grow with Edmonton Bookkeeping.
And especially on the first couple of years is not necessarily that you will see profit, uh, unless you have a really strong customer base that drained, um, started with, then it’s, um, it’s going to be a lot, um, harder to meet major changes within a year, especially if the resources are very scars. Yeah. Um, yeah, especially with cash and um, yeah, just and just, you know, employees. Yeah. Um, can you only tackle the type of projects you like? Yeah. As a small business owner, sometimes again, like we’ve said before, you’re the only one and uh, even though you might not be ever able to do everything, you really are going to have to do everything when you’re, you know, you’re the only one. Um, so you’re going to have to tackle projects that you don’t like. Um, there’s lots of things in businesses that, you know, even in our business y’all way in, I don’t necessarily like doing them, but we have to do them to grow our business with Edmonton Bookkeeping.
And so you are gonna have to do stuff that you don’t like doing. Um, like accounting. You might not like your County yet, but you have to understand your financial statements are able to make the right decision. So, uh, yeah. Do customers, suppliers or employees value your time? Yeah. Not as much as you do. Um, so again, um, the customers, suppliers and employees, they don’t always value your time. And so, um, you’re going to have to work with that and try to, to kind of schedule that in, uh, do what you need to do to get that, that organized. Yeah. Um, as a business owner, can I do everything? Yeah. You can’t do everything as a business owner. Um, again, if you have the skills to be a construction worker or a plumber or even a dentist, um, you may not know how to do the bookkeeping, for example you need top Edmonton Bookkeeping.
Um, we’ve talked about it before. If you hire yourself a good bookkeeper that’s going to take care of one less thing. And, and you may think, well, I can’t really afford a bookkeeper, but in the long run it may actually cost you less to have a bookkeeper that can keep your books in, in line and, um, you know, be able to help you understand your financial statements so that when you have major decisions to make, they can help you make those decisions. You know, um, what your financials look like. Can you afford to, to do this where if you just do the bookkeeping yourself and you don’t really know what you’re doing, um, you could make a major decision that could cost you a lot in the long run. Yeah. And let’s say you can do everything. Sure. Like, you know, all the, uh, let’s say you’ve run a business before with your family or something like that are looking for amazing Edmonton Bookkeeping.
Why, why would you, um, why would you focused on this, killed your malls, um, strong with and focus on that and get the other, um, the other main stuff or any other small items, uh, than by another person. Um, again, the only limited resources we have are the most limited resource we have is time. So even if you can do everything, it’s, it’s more, it’s more likely that you don’t want to do everything just cause you, um, you want to win a business and you want to focus on your strengths and building your business rather than the other stuff that can be done in on the person. Right? Yeah. Yeah. So I think that’s all we have for, uh, for today. Hope you guys liked the video and if you have any questions, please write down to comments below. Please like, and subscribe to our episodes and we’ll see you guys next time.