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Most businesses hustle to create revenue, pay out their various expenses, and with any luck, there’s a little profit left over for the owners. Here’s what you’re probably learning in business school: Revenue minus expenses equals profits. Sounds sensible, right?” He paused for the group of nodding heads. “Well, it’s not! It is completely backwards. It should be taught: Revenue minus PROFITS equal expenses.” Our chaperoning professors did their best to hide their cloudy faces, but it was clear Mr. X didn’t mind offending them. “Don’t wait to see if there’s anything left over for a profit. By carving out a margin before you address expenses, you create a constraint on the resources available. This constraint unlocks your creativity to meet customers’ needs, streamline operations, and only spend money on that which truly generates value. There’s no room left for fluff and bloat. Difficult decisions on how you should run your business become obvious. No longer fat, dumb and happy, maybe you make that extra sales call or hold off on that unnecessary expense. Business is very competitive, and the difference between the Hall of Fame and the graveyard can be remarkably thin. Everyone says they want to run a tight ship, but the best way to harness your entrepreneurial verve is to tie your own hands to the yarak mast. It will turn all of your business SHOULDS into business MUSTS. I’ve spent a lot of time finding different places to apply the idea of yarak, and it never ceases to amaze me how helpful it is. So that’s my eighty-twenty secret. Shh… don’t tell anyone,” he whispered.
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