5 Tips on Running a Business From Money Expert Ramit Sethi

When it comes to running a business, there’s a lot of advice floating around. Walking into a bookstore or doing a quick online search will net you thousands of opinions and ideas. Good advice from successful individuals with years of experience can sometimes get lost in the flood of information.

Luckily, Ramit Sethi, a New York Times bestseller and entrepreneur, compiled various tips about running a business in a recent YouTube video. In it, he broke down his 20 years of experience running his own business without depending on any investors or raising any venture capital.

Read Next: 7 Most Profitable Small Business Ideas for 2024

Find Out: 7 Reasons a Financial Advisor Can Grow Your Wealth in 2024

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.

Earning passive income doesn’t need to be difficult. You can start this week.

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’s crucial to determine what success means to you. You won’t be able to map out a path to achieve it until you know exactly what it is.

Sethi said many people start businesses because they want some sort of freedom. This may be the freedom to work your own hours or buy a bigger house. Taking the time to determine 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% revenue decline, he had to lay off employees, and he had trouble sleeping most nights. However, because he knew what success meant to him, he used it to motivate him to continue his business.

Check Out: I’m a Self-Made Millionaire: I Followed These 7 Grant Cardone Tips To Get Rich

Change How You Think About Money

When you start running a new business, money will be tight. You’ll need to plan and consider where your money will give your business every advantage to grow. This careful approach to running a business makes sense in the beginning. However, if you don’t shift your mindset as the company scales, you’ll lose out on a lot of opportunities.

Sethi explained that the more success you have as a business owner, the more money you will waste. As your company expands, there will be more costs that you’ll need to pay that won’t directly track to a return on investment.

An example that Sethi provided is paying for public relations (PR). Businesses often measure money put into PR through media placements and social media metrics. Determining how much profit comes from investing in PR may be challenging. Still, 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.

Story continues

Say No

When Sethi started his business in his 20s, he said yes to almost everything. In the beginning, it’s hard to say no without feeling like you’re passing up an opportunity. Outside of business, people often feel uncomfortable saying the word. Many say yes to avoid confrontation, be included or please others.

Leaders who learn to say no earlier in their careers will save themselves a lot of time. Getting invited to go to a special conference or participate in a high-profile interview or podcast may seem like an automatic yes. However, it may cause you to overburden 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 gloss over flaws instead of honing in on them to make improvements. In terms of sending out weekly newsletters to customers, appearing in interviews or providing a service, it’s good to step back and actually determine what the unappealing aspects are.

Sethi asked himself a counterintuitive question: What do I want to do less? The usual mindset is to do more and work harder. Learning how to stop doing something can make you more effective. Figuring out what skills you lack and working to improve them or delegating the tasks to others who are more skilled will help you succeed.

Don’t Be Afraid To Make Mistakes

While it may sound obvious, every business owner makes mistakes. Sethi has made his share of mistakes and used them as learning opportunities. One specific example was a time when he decided to discontinue a program. Customers had purchased this program because it offered lifetime access, so they were very upset with Sethi when he notified them 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 realize when you’ve made a mistake, own up to it and make it right. Mistakes are opportunities to learn and grow.

More From GOBankingRates

This article originally appeared on GOBankingRates.com: 5 Tips on Running a Business From Money Expert Ramit Sethi