134. Luck is the last thing you need

Hi Erik,

Luck is what you need if you buy a lottery ticket. Because the probability of making a profit is clear: you will only lose money. And if the operating income of your company depends on luck, you better stop today. I have never seen a business plan with a luck factor prognosis. Erik, I think luck is the last thing you want to build the foundations of a good business on.

Building a successful business is not rocket science. If you do in a logically way what has to be done, your business will be successful. A few years ago, our CEO in Slovakia had a disappointing year and the company made a small loss. During one of our discussions, she expressed her concerns about the results, and she also spoke about her doubts as to whether she could get things back on track again and if she had the right strategy, etc. I asked her the following questions:

‘Do you know where the problems are?’ ‘Yes’
‘Do you know how to solve them?’ ‘Yes’
‘Do you know where the opportunities are?’ ‘Yes’
‘Do you have a plan in place?’ ‘Yes’
‘Are you acting on this plan?’ ‘Yes’
‘Good, then you have everything under control and you will soon turn the results around. I have every confidence in you and you cannot fail to succeed in this way’.

Last month, she achieved the highest profit ever. Since her first loss she made one improvement after another. She constantly makes the company run better and better. Does luck play a role in its continual successes over the years? No. She just knows very well what needs to be done for a good result.

She knows where the problem areas lie within the company. She is a master in the analysis of everything that happens within the company. She knows exactly what needs to be done and does it. Many entrepreneurs see what is not going well. Even more know what needs to be done. But few show preparedness and take real action.

This is perhaps where we can find the luck factor. Dana has the ‘luck’ that she is prepared to take action. She does not stop until she has achieved her goal. And entrepreneurs who know everything but don’t take action; they must just have bad luck that their business is not flourishing.

You can make a great dish great each time by applying exactly the same ingredients and preparing it exactly the same way. So it is with a company. Do the things that create success and avoid everything that prevents success. So simple. And luck? Buy a lottery ticket!

Regards,

Gerard