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To be a good business man, a good business owner, well, you simply need to know a bit of statistical stuff, right? If you’re like me, the stats you use to help your business are pretty much in your head too. I’m sure you’ve heard the phrase “six seconds to market” a million times, or maybe “a three-second response time”.
Like I said, these days our business methods are pretty much in our heads, so we often end up making our decisions based on the statistics in our heads rather than based on reality. Which is exactly what a good business man does. You look at the stats, you make a decision, and then you execute based on that. But this isn’t one of those decisions where you just go “Hey, that was a bad decision.
In this case, a good business man looks at the stats and makes a decision to execute based on the stats. In this case, the stats are that a million people are going to book into your space at a specific time of day.
Of course, a million people is a lot of people. It’s hard to make a decision like that on the fly. So our business man tries to make a decision based on the statistics.
The thing is that by executing based on these statistics, you are not able to actually take into account your time, the resources, and the money that you have available for your execution. How will you manage the execution? How will you manage the resources? How will you manage the money? The business decisions are all based on the execution of these numbers, or the execution of your staff and the resources you have.
So basically, the way you think is the way you execute.
The thing about executing based on these statistics is that it is virtually impossible to execute based on these numbers.
If you’re thinking about starting a business, you don’t have to measure and compare. You just do it. Execute based on what you have to work with, what you have to make, and what you have to pay people. You don’t have to worry about the efficiency of your employees, or the cost of your inputs. And it’s pretty easy to make money if you’re using those resources.
You don’t want to start a business or run a business that is not very profitable. But if youre planning to use your business to make money, then the first thing you need to do is to execute your business plan as well as possible. You cant go about it the other way, and that is to have a good idea of what you have to spend money on. The more you have to spend money on, the better your business idea will be.
The problem is that many business plans are made in the first place based on the notion that one or two inputs are a lot cheaper than lots of inputs are. But that is a mistake. Some inputs can be cheaper than others, but it is the overall cost of the inputs that determines their cost per unit of output. If you really want to put your business on the map, then you need to decide if you should make your inputs cheaper or more expensive. That is easier said than done.
