Bootstrapping is a skill.  When you see people achieve unbelievable feets with little of no money that is bootstrapping.  It is easy to spend money to fix a problem however the true root of the problem may never be fixed.

Companies often throw money to fix a problem.  For example by hiring a new employee to perform work which should be systematized or overlook the issue that is draining cash from the business.

The skill of bootstrapping is using pure wisdom to figure it out and find money and opportunities using the issue as leverage.  When there is no exit door to solving a problem the problem often gets solved.

Doing more with less is a skill, once honed will reap many rewards.  Hang in there the skill is priceless.

Scalability is the essence of taking what you have and multiplying it.  How can you do more with less?  Technology companies are scalable because they can take one product built by a few and sell the same product time and again to many.

In building a company there are many resources including time, money and labor; the secret is using all resources efficiently to maximize the company’s value.

Next time you need to make a business decision think what is the best resource to use.  Then figure out how to repeat that — it is like a math.  If this resource gains this result, can I somehow find the factor that makes that resource multiply that result.  For example, many supermarkets have lines where customers wait to pay.  Putting various “small ticket” items in view of those lines increases the purchase total of  the same customer who was standing there, for many of them will toss some of those small-ticket items, things they had no intention of buying originally, into their basket.

Look around your business and see what can be added here or there that would use your current operations wisely, while still upping your profits.  This will help you scale your business.

This week, in a massive pileup on a Japanese highway, eight Ferraris, three Mercedes, a Lamborghini, along with some other cars ended up totaled.  At fault, the lead car, a high-speed Ferrari whose driver made a mistake when changing lanes on a wet road.

As the CEO or leader of your organization, are you careful how you change directions?  Do you think of what pileup might happen behind you, if you don’t lead your team responsibly?

Any time you need to “change lanes” in your business, plot it out carefully.  Make a plan which shows what changes are to be made, the length of time to execute the changes without any mishaps, and the parties responsible for helping make the change.  This way, changes won’t make your business spin out of control.

http://www.bbc.co.uk/news/world-asia-16027006

In the business world, we cannot be like the hare.  We might know our strengths like that hare, relying on our speed or other strong point.  However, to suceed in competition, you must factor in your competitors’ strengths.  Had the hare known how persistent the tortoise could be, he might have been persistent himself, and perhaps then, have won.

So how do you go about knowing more about your competition?  One good way  to find out is to talk to your customers to see why they chose you.  Talk to employees to see what it was like at other companies.  See which of  your competitors are being bought out and for how much.  Notice market trends and where you fit in to the market.

Always be aware where you’ve jockeyed a position for yourself in your world of competition.   At the same time lead and follow your mission and vision for  your company.  Awareness is priceless.

H- Home

A – Assets

P – Profit

P – Perpetual Revenue

Y – You

Perpetual is a very important word before revenues.  Perpetual means that those revenues will keep going indefinitely.  At the cemetery the perpetual care sticker means that the cemetery will take care of the burial plot forever.  Your revenues should hopefully be a systematic, recurring stream of income and take care of your business forever.

Without revenues you can’t pay your bills, your employees or yourself and there is no basis to whether your product has value because people are not willing to pay for it.  Once you ‘turn’ revenues and you bring your product to market and have successfully sustained and grown revenues, then you will be on the road towards perpetual revenue.

A sudden flurry of income is not good enough.  Ask yourself, your team and your customers, will this product/service still have demand a year down the line?  How about ten?  As you ask yourself these questions, you will be positioning yourself to ensure that revenue streams are perpetual, and that your business is not going to be here-today and gone-tomorrow.  

Perpetual revenue — that is what makes a business immortal.

It is only when you learn to use money as a tool, that money can become an enabler to fulfill your goals. It is only when you differentiate between “here today, gone tomorrow money” and actual permanent money can you aim to earn the right kind.

Your company looks great when it is making lots of money in revenues. However, lots of revenue doesn’t mean your company is profitable or that it has quality revenue streams. Your company is attractive when it is very profitable. Yet, that doesn’t necessarily translate into sustainable profitability or cash flow.

Cash flow defines how long your company can stay in business. If assets are not liquid and the company does not have working capital, no matter how much revenue the company has its survivability is questionable.

Your company is truly great when it is continuously profitable, with strong, sustainable revenues and solid assets.