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In this episode, we discuss the challenges of entrepreneurship and how to stay focused during difficult moments. They emphasize the importance of looking ahead to the progress to be made and knowing your numbers. The conversation transitions to the tough reality of business statistics, including the alarming fact that 50% of small businesses close their doors within the first year. The hosts delve into the mindset of persevering despite the odds and touch on the detrimental impact of cutting expenses, especially in areas like hiring, marketing, and employee perks. The episode concludes with a personal account of the struggles with bookkeeping and taxes, highlighting the importance of prioritizing financial responsibilities.
Key Points:
Staying Focused in Difficult Moments:
- Focus on progress and the next "mountaintop" to overcome challenges.
- Embrace the difficulties and keep moving forward.
The Reality of Business Statistics:
- 50% of small businesses close doors within the first year.
- 25% of spending cuts happen in hiring, marketing, and traveling.
The Pitfalls of Expense Cutting:
- Cutting expenses blindly can lead to terrible financial decisions.
- Saving money is not equivalent to making money; awareness around spending is crucial.
The Dread of Bookkeeping and Taxes:
- 40% of small business owners find bookkeeping and taxes the worst part of owning a business.
- Ignoring financial responsibilities can lead to overwhelming debt and serious consequences.
Quotable Moments:
“In the difficult moments, how do you stay focused on moving forward and making progress? I think it is the looking ahead to the progress to be made that keeps me moving forward in the difficult moments.”
“50% of small businesses will close doors within the first year. And that's a real statistic, too.”
“Saving money is not making money. While saving money could put you in a position to have better cash flow…I think saving money is a short term solution.”
