Sue: Everybody dreams of becoming a millionaire one day.
Sue: So we asked Arthur Knowles who made his millions in the plumbing business to give the budding entrepreneurs among you a few tips on how to make your first million.
Sue: Arthur, welcome to the program.
Arthur: Thanks Sue.
Sue: So Arthur, what advice do you have for our listeners?
Arthur: Well, one thing I've heard people say is that when you're starting up a business you can't afford to make mistakes.
Arthur: Well, I believe in the old saying a person who never made a mistake never made anything.
Arthur: 1You can't really predict when you'll make mistakes and you have to look at them as a positive experience and one that means you won't make the same mistake again.
Arthur: You need to be able to cope with the world of business.
Arthur: But according to recent American business school studies believing in yourself isn't enough by itself to guarantee success.
Arthur: 2Confidence can be a good thing but a person can have too much confidence.
Arthur: And people who try to learn to be confident by buying those how-to-succeed books are just wasting their time.
Arthur: The advice given in these American studies was that being a successful entrepreneur comes down to having the right attitude.
Arthur: 3It's no good getting depressed every time something goes wrong.
Arthur: 3Always keep your goals in mind and never give up and don't listen to all the people around you who say, oh, this will never work.
Arthur: One thing I've learned in business is that you don't have to be an expert in everything like marketing, for example.
Arthur: 4When I started my business I tried to do it all myself but I soon realised that although I knew everything there was to know about plumbing I didn't have much idea about how to sell my ideas.
Arthur: 4So I got someone who knew more about this to take care of the marketing side of things for me.
Arthur: And as for leadership well, 5you've got to be someone your workers look up to because you've been seen to make the right decisions.
Arthur: You have to be able to control people but listen to them at the same time.
Arthur: Some people are driven to make their companies successful but that too often leads to a ruthless approach.
Arthur: Then there's the question of taking risks even calculated ones.
Arthur: 6I personally feel it's actually better to tread carefully when it comes to taking short-term risks.
Arthur: You need a degree of vision certainly but it's easy to get a carried away by your desire to increase profits.
Arthur: And if things go wrong you can end up losing more than you gain.
Sue: So if you have a great idea for a business what should you do next?
Arthur: Well the first thing to ask yourself is whether there's a need for your product or service.
Arthur: 7Can you cater for people's needs better than existing companies?
Arthur: You don't need to worry about whether it's original or not because there isn't always enough of a demand for completely new ideas.
Arthur: 8And the second thing to ask yourself is not what colour should the packet be or how much should it cost but do I care enough about this idea to dedicate the next 10 years of my life to it because realistically that's how long it will take.
Sue: Tell us how you got started, Arthur.
Sue: How do you explain your early success?
Arthur: Well I started my business just as the economy was going into a recession which wasn't the best time and I was lucky to survive especially as the banks weren't being particularly supportive to small businesses at that time.
Arthur: If I'd listened to the business advice I was given back then I'd never have got started.
Arthur: 10My strengths were that I knew I could provide a better service than my competitors who really hadn't spotted the opportunities that were out there 9and that my wife had a good job and was able to pay the household bills while I was getting the company on its feet.
Arthur: The first couple of years were very tough but I knew I would make it eventually.
Sue: Okay, now we're going to take some calls from listeners...
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