Growing a successful business is not that hard. It is people that make it difficult!
After growing 5 multi million dollar companies, speaking and helping thousands of business owners it starts to become apparent that there are simple rules to success in business, that if followed, give you a very high chance of growing a multi million dollar business.
The problem is that these rules are so simple, many business owners overlook them.
5 Rules to a Profitable, Scaleable, Saleable Business!
Rule 1 – Make Sure You Have A Valid Business Model!
Nobody likes to be told that their baby is ugly,but in this fast moving world, sometimes you just have to face the truth.
I would like to share a recent situation with a client/friend of mine.
About four years ago We helped him grow a very successful limousine business, to the point where he had so much business he did not have enough time to sleep.
At this high point I pulled the person aside and said, “It is time to sell your business!”
The reason I had said this was because I could see the writing on the wall with the pressure of UBER and other industry disrupters.
Regrettably, he did not heed my advice when there was still blue sky in the business and now it will prove very difficult to sell his business.
This is a very common story, I am sure many of you have known owners of Video Stores, Photography, Offset printers to name a few, where for a period of time they were valid business models, but due to technology advances they became redundant business models.
I do not blame my friend for not wanting to sell his business, as we all fall in love with our companies and they become a part of us in many ways. However, putting blinkers on can prove to be very hazardous to our wealth.
So make sure you have a valid business model.
Here is a simple formula I use:
Is there good maths in the product or service I am offering?
This means do you have good margins?
I see many online entrepreneurs bragging about how they do $2,000,000.0 in turnover in their business, only to find that they are only putting 15% on their products.
That would give them $300,000.00 gross profit.
By the time they take away shipping, marketing, salaries, many are lucky to make $80,000-$100,000.00 p.a
Inconvenient Truth: It is not about turnover, it is all about profit!
# Then, if you have good margins, is there a hungry crowd wanting what you have?
What many entrepreneurs do is create a product or service and then try to sell it to the market place.
Streetsmart Business Owners will observe the market, look for what they want need and desire, and then create it!
In other words you want a lot of people to want what you have to offer.
Rule 2 – Create A Reliable, Predictable, Affordable lead generation system!
If I were to ask you how many leads you will generate this week, or this month, could you tell me give or take 10%?
If the answer is NO, this means that you have not created a lead generation system for your business.
The TWO most important skills for any business owner to have is Sales and Marketing.
For you to build a saleable business, it must be process driven. In other words, there is a proven, documented method for generating leads in your business that can generate a predictable result. What if you had a lead generation system that you could turn on and of like a tap that generates prospects in a mathematical way so you can determine your income levels?
Sound pretty cool?
Well, why don’t you build it?
The answer is because most business owners have never been taught how to acquire a client. They simply know how to do what they do. eg Accountants know accounting, not marketing.
So the main reason most businesses do not have a lead generation system is that they were never told they needed one, AND they have no idea how to create one.
If you would like to know how to create a lead generation system then I have a gift for you if you click the picture below.
Grab your Streetsmart Business Acceleration System while I still have them in stock.
Rule 3 – Create a Reliable, Predictable Affordable Sales System
Time for another Inconvenient Truth about your Business Success.
Can you tell me your Sales Conversion Rates and how much it costs you to acquire a client?
I kid you not, when I first start working with clients, this is one of the first questions I ask them and the answer is nearly always “Umm, around 80%!”
We then set to work and analyse all their leads and sales over the last three months and 9 times out of 10 we discover it is around 25-30%.
The owner is genuinely shocked when they discover the real number and many get discouraged.
I on the other hand get really excited, because it makes my job so much easier. You see, when I help them create an actual sales system, rather than wing it that 25% conversion quite often rises to 40% 50% and even higher.
Can you imagine what that does to the profits of a company? Doubling their profits without spending a fortune on more marketing.
This is one of the EASIEST ways to quickly improve profits in your business. Create an Effective Sales System.
If you would like to learn additional sales skills then get the Streetsmart Business Acceleration System by clicking the picture below!
Rule 4 – Create Strong Administration Systems.
If any of you know my story, you know that I had a Ten Million Dollar Education. Sadly, I had mastered the art of Sales and Marketing, but had ignored the importance of strong accountability systems for my stock, my staff and my accounts.
As a result of not knowing the importance (and in many cases deliberately ignoring ) the need for strong systems, I went from having one of the most successful airconditioning companies in Australia doing $12,000,000.0 a year, to losing it all due to my ignorance, stupidity and massive theft from my staff.
I want to say for the record, It was not my staff that caused me to go bankrupt many years ago (2005) even though they stole from me. It was mine as the leader of the organisation for letting it happen.
And although I would never wish the pain of this experience on anyone, it was the best learning experience I could have had.
Luckily I went on to build four more large companies many of which I sold, but the pain still remains.
So Please Listen To Me!
Build strong systems in your company so that it can largely run without you, but, you ALWAYS know what is going on.
Rule 5 – Build A Great Team
One of the biggest complaints I hear from business owners is that they do not have enough time. What this tells me is that they do not have the right Team!
If you are serious about creating a business and not a job, then you need a team to provide leverage for you.
You need to break out of the mindset that you do everything yourself.
Be slow to hire and fast to fire, but you MUST get the Best Team to help you carry out your vision.
This was one of the biggest catalysts to my success in my companies was to hire great people that held the same vision I did