#Small Biz Chat podcast live is a monthly video interview show where you can answer questions from small business owners.
The focus of #Smallbizchat is to end the failure of small businesses by helping participants succeed as their own bosses.
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Nick Ron is the founder and CEO of House Buyers of America (HBOA). He is an industry veteran with over 20 years of experience as a real estate investor. He founded his HBOA in 2001 to sell homes through a hybrid real estate model that balances technology and human on-site expertise. Nick grew House Buyers of America to his $50 million mark in his first three years of operation. Nick is an Ernst & Young Entrepreneur of the Year Award winner and has been featured on USA Today, Wall Street Journal, US News & World Report, CBS News, ABC, NBC and FOX. For more information: www.housebuyersofAmerica.com
SmallBizLady: What was the biggest challenge you had to overcome?
Nick Ron: When I first started House Buyers of America, my first challenge was a lack of experience, which often led to mistakes. Errors were painful and sometimes costly, but we saw them as opportunities for growth. Every time we made a mistake, we built a system to keep it from being repeated. I don’t want to repeat the same mistake twice. His second action we took to overcome our inexperience included hiring industry experts in areas where we lacked knowledge.
The second challenge we faced was the 2008 global recession. This period has never been so bad for real estate. Challenges included everything from housing inventory to overall financial constraints. We literally went through his two years of hell, but learned as much as we could from this experience and developed sound principles that will help us get through future downturns.
One of the biggest lessons I learned during this period is to be conservative. There is no crystal ball to predict a market crash, and no crystal ball to predict the next one. You need to keep your debt low and have a healthy reserve of cash to weather any storm. Do not go into debt or invest large sums of money in unproven businesses. The second lesson learned is to continuously improve your business. If you don’t improve your technology, your system will become obsolete and you will lose customers and employees. They will find your company is not evolving for the future.
SmallBizLady: What are the top 3 mistakes entrepreneurs make?
Nick Ron: Stay humble and don’t ask for advice
Pride comes before it falls. Know your limits and recognize that you have blind spots that can only be corrected with advice from those around you or an outside attorney.
Not running low-cost tests
In my first few years in business, I over-invested in unproven ideas. This was a waste of money that could have been avoided if lower cost testing had been done. Entrepreneurs are inherently creatively optimistic. Before investing in a new idea, test it on a small scale until the concept is proven. I remain an idea maker today, just like an entrepreneur should be, but I now have the wisdom to know that not all my ideas are home runs.
Lack of tenacity and adaptability
When the market crashed in 2008, some of our peers returned to IT sales or turned to commercial real estate. They had to start over with new careers and pursue a completely different customer base. The grass next door often looks greener. These people had the mindset that if difficulties persisted, it was time to quit. This never made sense to me. Real estate is a promising industry in the long term if it adapts. I knew that one day I would recover.
With the recession looming, what are the top three problems entrepreneurs will need to navigate and overcome in the year ahead?
It is more important than ever for entrepreneurs to:
- Hire top talent. To be the best company, you need to hire the best people who specialize in areas you aren’t in charge of. I’ve seen a lot of managers get overloaded by trying to do it all. Core business functions are so distributed that they never perform well. Recognize your weaknesses and hire people to fill them.
- Building a network of advisors is also an important factor. Your trusted advisor will be the person you turn to for advice in areas where you lack experience. Visibility can be secured even in areas with blind spots. They will save you from pitfalls and help you get through the inevitable difficult times. Don’t try to reinvent the wheel by getting wisdom from someone who has been on the same path.
- Always maintain healthy margins. You can’t survive a recession if you’re operating on tight margins in a healthy market. So operate extremely efficiently and maintain healthy margins at all times.
achieve sales success
Carole Mahoney is the author of Buyer First: Grow Your Business with Collaborative Selling. Carol is changing the way the entire sales industry looks, and changing the way buyers look. She is called a “Sales Therapist” at her Harvard Business School and directs sales for her entrepreneurial MBA program. She is also the chairman of the AA-ISP Boston chapter, named a top sales influencer by LinkedIn and Sales Hacker, and a top sales coach by Ambition. With her teacher’s heart and coaching spirit, she is ready to share how you can achieve sales success that was previously thought impossible. For more information: www.carolemahoney.com
Sales tax 101
Chanel Christophe Davis is the founding partner and CEO of Davis, Davis & Harmon LLC, an award-winning firm of sales tax professionals known as (DDH). Founded in 2001, her DDH is the nation’s largest women- and minority-owned sales tax advisory firm. DDH serves businesses by providing innovative tax solutions that put money back into our clients’ bottom line. Ms. Davis has over 20 years of experience managing customer relationships and the company’s day-to-day operational decisions. For more information: www.ddhtax.com
SmallBizLady: Chanel, what inspired you to become an entrepreneur?
Chanel Christophe Davis: An entrepreneurial spirit is in my DNA. I love building teams, hiring and retaining people, creating business strategies to grow companies, and solving complex problems every day. My firm serves Fortune 15 clients and our work is very rewarding. As a child, I never imagined that I would grow up and start the world’s largest sales and use tax advisory practice, run by a female minority.
SmallBizLady: Do sales taxes vary by state?
Chanel Christophe Davis: Sales tax laws vary from state to state. Only 45 states in the Union have enacted state sales tax laws. 5 states are not: Delaware, Alaska, Montana, New Hampshire, Oregon. Sales taxes are the most diverse and complex of all US taxes.
SmallBizLady: What is the biggest challenge in running your company?
Chanel Christophe Davis: Our greatest reward is providing career opportunities and training for the next generation of diverse sales tax professionals. I wish I could have worked for Davis Davis & Harmon LLC when I graduated with an accounting degree. It would have changed my view of the world as a young professional.
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