Entrepreneurs Must Focus on Their Core Business

Entrepreneurs Must Focus on Their Core Business

Your core business

Now to get you through some concrete examples from the four business attempts mentioned in my previous post, Do What You Do.

It is important that all companies were started by guys who had at least five years experience in the waste management industry. These entrepreneurs all had a lot of experience in the sales and operating aspects of their employers and decided to go on their own in the same industry. Three of the employers were large waste management companies that had been around for many years and still do. They held contracts for waste management and removal of a variety of locations, including offices and business parks, restaurants and hotels, shopping malls, sports facilities and other places.

The first business. John went to a flying start and, by focusing on the sale of waste management agreements, he quickly kept his little truck occupied during all working hours. After about a year, he successfully bought another truck due to the increasing demand for his services. The business successfully served its customers and looked positive. A few months after the acquisition of his second truck, and with the green movement growing, he suggested that he include recycling on site in his services. He offered this additional service and soon found a sharp succession of shopping malls.

Johns small trucks were excellent for removing waste from dense waste areas in office buildings, residential areas and other hard-to-reach areas. The same small trucks were terribly ineffective in the transport of recyclable goods for resale, which is largely a volume-driven company. His trucks now spent all day transport of recyclables to restore a small discount on a small cargo and their availability to remove waste declined.

The other business

Derek worked for Johns business for two years and when it was shut down, he mainly went to John to get a vehicle, take over Johnsons customers, and make a blow to run his own waste disposal business. He largely founded his business quite curious on essentially Johns failed business. Years later, Dereks operations remain.

Johns customers waste areas had worsened to complete abuse by his business downturn. Derek could take them relatively easily, as customers needs were desperate. But to praise them for the disaster left by John, and the fact that they were now accustomed to reduced monthly charges for disposal of waste, he could only convince them to return to their original service by discounting the price. This price was somewhere between their original fee and the reduced fee after John reduced his billing only for the removal of non-recyclable waste.

His business model is different from Johns but more important, he has been consistent in continuing to apply what works for him. This does not suggest that any company should be stubborn and strictly opposed to exploring opportunities. I just suggest that many pitfalls and distractions from the foundation of a company are disguised as opportunities. Remember all the lost relatives who suddenly arise when a rich person goes away? And all the opportunities that appear when your business is successful? Do what you do and do not lose focus on your core business.

The third business. Bob was gone to a humble and turnkey start. He was realistic about where his personal abilities and strengths lay and decided at the outset to adapt his business with a small company to start waste management. The companies merged efficiently and became a unit, almost from the beginning, and agreed that he would get the service contract and the business partner would be able to cope with physical removal and operations. Bob was excellent at sales, while the Allied business owner was characterized by operations management.

As his success grew, he was presented with many opportunities, including one to remove and discard hospital waste. The contract was worth a huge amount of money, but at that time he slowed down, categorically retained his approach that he knew nothing about, and was not involved in, the highly specialized medical waste business. Slowly, but surely, his business grew for eight years, it was flourishing and Bob insists Im just a simple junk man.

His attempt to start his own business was disappointed by the dubious and unethical approach of many of his former employers customers. At the back of that customer base he made great progress in the beginning, in a rather karmic puddle of self-reliance, his business became flat.

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