Stephen Gibson is one of my entrepreneurship heroes. He is a man that could make millions selling air to people who need it. Literally. He has spent many years helping young entrepreneurs to learn how to be successful in business, whether at Brigham Young University’s Marriott School of Management or The Academy for Creating Enterprise in Cebu, the Philippines. His 25 Rules of Thumb are invaluable to anyone who wants to build the best business possible.

25 Rules of Thumb for Microenterprise Success, v2.0

By Stephen W. Gibson (used with permission)

1. Sell What the Market Will Buy - Solving a critical, recurring problem is the best way to create a business.
2. Practice Separate Entities - Keep personal and business money separate.
3. Start Small, Think Big - Learn basics when small and less costly. Then grow.
4. Be Nice Later - Don’t give your product or business capital away to friends and relatives.
5. Keep Good Records - Success comes from beating yesterday’s sales and profit records.
6. Pay Yourself A Salary - This eliminates taking cash out of the business for living expenses.
7. Buy Low, Sell High - The bigger the difference, the greater the potential profit.
8. Don’t Eat Your Inventory - Consuming inventory or seed capital will kill your business fast.
9. Use Multiple Suppliers - Negotiating with several suppliers for the best price is critical to success.
10. Buy on Credit, Sell for Cash - Selling product before payment is due increases cash flow.
11. Purchase in Bulk - Suppliers usually sell products cheaper if purchased in volume.
12. Use Suggestive Selling - Suggest to each customer other items they might like or need.
13. Increase Sales, Decrease Costs - As the gap grows bigger, net profits also grow bigger.
14. Turn Your Inventory Often - Profit is made every time inventory is priced right and sold.
15. Value Your Customers - Keeping them coming back and buying more is a key to success.
16. Differentiate Your Business - Give customers a reason to return; better, cheaper, faster.
17. Hire Slow, Fire Fast - Screen potential employees carefully. Terminate bad hires quickly.
18. Inspect More, Expect Less - Consistent performance comes from inspecting not expecting.
19. Have Written Agreements with partners, suppliers, landlords and employees.
20. Work on your business 10 hours a day, five and a half days a week. Anything less is a hobby.
21. Practice Kaizen - Kaizen means continual improvement. This is vital to income growth.
22. Make Profit Every Day - If a work days goes by without profit, it’s a loss
23. Work on Your Business, Not Just in Your Business - Stand back and watch, then fix.
24. Write Daily/Weekly Business Goals - Stretching for more will move business forward faster.
25. Focus, Focus, Focus - A concentrated effort in one venture pays huge returns.

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