Tuesday, June 10, 2014

YOUR FIRST LOSS IS YOUR BEST LOSS

          The most difficult discipline in business to execute as an entrepreneur:  your first loss is your best loss.  An entrepreneur is determined and perseveres.  An entrepreneur encourages others to work their strengths within the vision and direction of the entrepreneur – the entrepreneur is a cheerleader of the business.

          A start up business, or a real estate opportunity an entrepreneur purchases, takes a lot of hard work.  An entrepreneur has lots of time into the project.  An entrepreneur begins looking at the project as his “baby”.

          A key to getting better at this discipline, when beginning a new venture, is to set out specific exit strategies.  The phrase “exit strategy” is not a bad word.  An entrepreneur simply preplans to try different courses of action.  However each exit strategy must have a detailed method of measuring so the entrepreneur knows one strategy has not worked thus he has to act towards the next strategy then do it.  Of course deadlines for each exit strategy is equally important to measurement.

Finally the last exit strategy is to shut the project down.  This is executing taking your first loss as your best loss.  Most likely the entrepreneur would have defined or measured the “first loss” in terms of money expended or lost.  There is always another opportunity in the future if the entrepreneur has not exhausted himself of all potential resources and emotionally zapped himself beyond recovery.

By the way, the second most difficult discipline in business is saying no.  If an entrepreneur learns to master this second discipline, the entrepreneur decreases the chance of having to complete the first most difficult discipline!

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