By Merilee Kern
People are increasingly looking to monetize their use of Instagram, YouTube and other social media Platforms. Many seeking to start a money-making venture often take “stupid risks” with money and end up worse for the wear. This according to Master Sales Trainer Eric Lofholm, CEO for Eric Lofholm International, Inc. (www.saleschampion.com) —an organization that professionally trains achievement-minded individuals and employee groups on the art and science of selling. His advice about how executives can make more prudent decisions applies to all types of businesses, large and small.
“Most senseless money risks have to do with unawareness, not stupidity,” Lofholm says. “Spending the time to get some things right at the outset will save you multiple headaches and mounds of money down the road.” In his experience, some of the stupid risks people take with money have to do with a few conditions:
- Paying Poor Attention to Details: In the rush to close a deal, for example, people skip procedures and it winds up blowing up in their faces. Learn to be very detail oriented throughout the process.
- Spending Money Without a Plan: “For any money-making endeavor, the most valuable resource is capital, so big expenditures need to be initiated very carefully. Many people go into this blind without a cane, usually forgetting to do their homework. If the expense doesn’t clearly drive revenue, it’s probably a stupid risk.
- Not Strategizing Sales and Marketing Goals: Gallup’s annual Economy and Personal Finance survey for 2013 revealed that 70 percent of Americans do not prepare a detailed personal budget. Profit-seekers who handle their personal finances this way are prone to carry the same habits over into their money-making endeavors. When you consider that poor financial planning is one of the top causes of small business failure, it’s clear why creating a concerted sales and marketing strategy is key.
- Foregoing Expert Help: If you try to do everything on your own, particularly when you don’t have the expertise in a certain field, you’re going to make a stupid money mistake. For example, having an attorney help you with various components of your business is vital. Having a professional accountant manage the books will keep you out of IRS troubles. And hiring startup or other consultants to facilitate your way through your business can also be extremely beneficial.
Branding, business and entrepreneurship success pundit Merilee Kern is Chief PR & Communications Strategist for multiple agencies. She is the Executive Editor of “The Luxe List.” Reach Kern at: www.TheLuxeList.com.