Many people have this misinformed idea that you can run a successful business, by putting in money and letting it run by itself. There is no successful boss in the world who is sitting at home, and is oblivious to what is going on in their company.
Even when making investments in other companies or the stock market, we have to understand what the company does and how the market works. By understanding these details and keeping watch, you will be able to take advantage of any opportunity and make any decisions if there are any problems.
It may seem that after many years, the higher level management do not do much work, but the truth would be very far from that. I personally can vouch for many directors and CEO’s who oversee the daily running of their businesses. I am not talking about micromanaging, but they are fully aware of what is going on. Also because many of them have built their businesses from the ground, so they understand every function in the company well.
By being on top of things, they will be able to capitalize on any opportunity that will come their way. Also they will be able to react better to any problems along the way. In other words, because they have to make the decisions, they need to know exactly what is happening. Most managers have certain pulses which they measure to have a feel of what is going on in the company, to know when things start to go wrong and when their intervention is needed.
There are 2 very important lessons that you need to know and understand very well.
Before you start your business or make any investments, it is important to understand it thoroughly. Understand the subject matter, the market, the customers and the running of the business in close details. Such knowledge will give you great advantage over other competitors and will also cut down your risk tremendously. When you are well informed, you will be able to make decisions better. This will help you in building your business better, by taking advantage of any opportunity you get along the way.
As the business stabilizes and it starts to grow, we should not get too complacent, even if it is doing very well. We need to keep track of how the business is running and how it is growing. There will be many things along the way, which could be easily improved and problems that need to be fixed. This will require a strong person and who knows the business inside out to make the right decisions that would help the business sail through choppy waters. Similarly with stock investments, we need to keep on top of the markets and the companies we invested in so that we know when to buy more or sell.
By being in control of the situation, we will be able to cut down our risks and our losses. On the other hand we could take advantage of certain opportunities that could be very profitable.
Always be aware of what is going on with your work and your investments. It may take a lot of work to get a business started and successful, but it will also take lots of work to keep it that way.