In reviewing your business the most important thing is to be realistic about your situation – to face up to reality.


Reality is that you’re not deceiving yourself as to your values, what your future is, or how good you are, or how good the future may be. It comes down to very simple things: what is the stock worth, how good is the debtors’ list, how good are the staff, the quotes and the prospects? What’s the real, genuine, serious value, the actual truth?


There is a certain cost or a certain cutting back any element of pride, when you have to face up to what the truth is – the actual situation. Not what you expect it to be, hope it to be, would like it to be – what it is!


It takes courage, it takes a certain amount of intelligence, and it takes a rational, sensible, simple approach to look at your affairs and be realistic about them.


Think of the analogy with a medical condition. You go to a good physician – he’s had a look at you, he looks at the scans and the readings: heart, sugar, and all the blood tests. If he gives you advice, and you don’t go by his advice, you’ve only got one person to blame – yourself.


So take a reality check.


Don’t take a gamble in business and say, ‘I can take a risk.’ It’s absolutely foolish, utterly foolish to take risks. Be realistic about your situation. If it’s deteriorating and not turning around, then the time to act is now. There are people that can help.


 

Source: Sydney Business Seminar 11 July 2012