When it comes to running a business, there is a lot of advice floating around. Walking into a bookstore or doing a quick search on the Internet, you will have tons of thoughts and ideas. Good advice from successful individuals with years of experience can sometimes get lost in the flood of information.
Fortunately, Ramit Sethi, a New York Times bestseller and entrepreneur, compiled various tips about running a business in a recent YouTube video. In it, he completed his 20 years of experience in running his own business without depending on any investors or raising any venture capital.
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Here are five of his top tips for running a successful business.
Also see why Sethi says it’s the “big wins” that matter when you’re building wealth.
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Discover Your Success
It’s easy to look at a business like Walmart and say it’s a success, but not every version of success is the same. When running a business, it is essential to define what success means to you. You won’t be able to chart a path to achieve it until you know exactly what it is.
Sethi said many people start businesses because they want some kind of freedom. This could be the freedom to work your own schedule or buy a bigger house. Taking the time to define your unique version of success and how you will get there will help when there are bumps in the road.
Sethi explained that being able to run a business the way he wanted to was his idea of success. When his business saw a 50% drop in revenue, he had to quit his job and had trouble sleeping most nights. However, because he knew what success meant to him, he used it to motivate him to continue his business.
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Change the way you think about money
When you start running a new business, money will be tight. You will need to plan and consider where your money will give your business every advantage to grow. This cautious approach to running a business makes sense at first. However, if you don’t change your mindset as the company scales, you’ll miss out on a lot of opportunities.
Sethi explained that the more success you have as a business owner, the more money you will spend. As your company expands, there will be more costs you’ll have to pay that won’t directly follow a return on investment.
One example Sethi gave is public relations (PR) pay. Businesses often measure money spent on PR through media placements and social media metrics. Determining how much return comes from your PR investment can be challenging. However, it can lead to brand loyalty, better market positioning and cost savings from fewer customer complaints, for example. Changing your perspective on money as your business expands is vital.
Say No
When Sethi started his business in his 20s, he said yes to almost everything. At first, it’s hard to say no without feeling like you’re missing out on an opportunity. Outside of business, people often feel uncomfortable saying the word. Many say yes to avoid confrontation, to engage, or to please others.
Leaders who learn to say no early in their careers will save themselves a lot of time. Being invited to go to a special conference or participate in a high-profile interview or podcast can seem like an automatic yes. However, this can cause you to overwork yourself or take your focus away from more important business matters.
Be honest with yourself
Sometimes when running a business, it’s easy to let your ego get in the way and assume you’re doing everything right. However, Sethi said many times, it’s easy to subdue flaws instead of highlighting them to make improvements. Whether it’s sending weekly newsletters to clients, appearing in interviews, or delivering a service, it’s good to step back and actually determine what the unattractive aspects are.
Seth asked himself a counterintuitive question: What do I want to do less of? The common mindset is to do more and work harder. Learning how to stop doing something can make you more effective. Discovering the skills you lack and working to improve them or delegating tasks to others who are more capable will help you succeed.
Don’t be afraid to make mistakes
While it may seem obvious, every business owner makes mistakes. Sethi has made his share of mistakes and used them as learning opportunities. A specific example was a time when he decided to interrupt a program. Customers had bought this program because it offered lifetime access, so they were very upset with Seth when he announced that he was pulling the plug. After some reflection, Sethi realized his mistake, apologized and continued the program to keep his promise.
When running a business, it’s essential to recognize when you’ve made a mistake, own up to it, and fix it. Mistakes are opportunities to learn and grow.
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This article originally appeared on GOBankingRates.com: 5 Tips for Running a Business from Money Expert Ramit Sethi