Business

From to Millionaire: How to Build a Fast Growing, Highly Profitable Business and Get Dirty in the process


If you start a speech before a few hundred At a world summit in Montreal, Canada, I asked the exuberant attendees: “How many of you run companies that offer great products and services and offer exceptional value to your consumers and customers?”. All hands went up. “Perfect”. Money (more sales, income and profits) and especially wealth creation for the company or your personal wealth should never be your only goal, but rather the result of the value that you and your company bring to your customers and the market.

Who has or does the following to grow their business:

  • Spend more money in marketing: Advertising, SEO, social networks or digital marketing
  • Rent more employees than salespeople
  • Spend more training
  • cut prices gain new clients
  • Add more products and services
From  to Millionaire: How to Build a Fast Growing, Highly Profitable Business and Get Dirty in the process
From to Millionaire: How to Build a Fast Growing, Highly Profitable Business and Get Dirty in the process

“How many of you are spending every hour and dollar trying to grow your business? Work all harder and to Smart? “. Each question raised more hands. Soon all participants had one arm up. Nobody wanted to be left out. Several businessmen looked around proudly to confirm their unanimity.

  • You might be interested in: The difference between growing a business and growing a brand

I paused to lower my hands slowly.

“If you are going to get dirty with your business, can I ask you to stop all of these things immediately?”I said slowly and clearly.

Confusion and doubt seized the audience. Anyone who tries to remember the questions they answered in the affirmative. Didn’t we all agree? They wondered. How can we all be wrong?

“Do you remember a few minutes ago when everyone raised their hands? It means you are doing the same thing as them. You will never get radical results if you follow the same path as your competitors.

“We, you and I, have been lied to and taught to do this religiously Growth strategies for companies what I just asked about. They have been embedded in our heads. To be successful, you had to aggressively market, sell, and promote your products and services and achieve business growth.

“They sold you to do whatever it takes (just do) and spend it all. I’ve started and built businesses for over four decades. I read this news when I started and I hear it Still Today There are thousands of speakers, books, and websites designed to help you grow your business, I get a dozen or so unsolicited emails every week from companies trying to help me potential customers, marketing, social media and digital endeavors.

“Do you think I’ll tell you that to be successful, you no longer have to focus on growing your business? Yes. Transformational success requires a radical change in the way you think and act“I guessed.

  • Also read: Here’s how to build your business strategy for 2021 in the face of uncertainties

We all lived that Myths About Business Success. I have worked in (physically in the offices and boardrooms) several thousand organizations, many abroad, which are growing both rapidly and slowly. Do you want to know the real behind the scenes performance of most companies, growing or not?

Most companies barely make any real money.

You struggle with cash, cash flow, and working capital.

And 99.9% of entrepreneurs and small business owners They barely make a living, they sacrifice their livesto break their employees working nights and weekends and They neglect their health. They struggle against fear for years or decades and cling to the hope that one day they will get rich. Few will. Most won’t. s adjust, quit, get back to work for a large company, retire, or sell their business at a loss.

Why do most entrepreneurs live a life of silent desperation?

Because of this amazingly simple premise: s spend too much time focusing on how to start, run, and grow a business. But They are not learning how to make a lot of money from their business– Big sales, massive earnings and ridiculous profits.

Billions are being spent on training, coaching, consulting, and speakers convincing them to increase their spending and activities to grow faster. They’re selling you the myth that more money, especially for them, will make you more successful. Let me share a secret with you: Here’s how to earn your income by taking some of you. The lie is perpetuated because entrepreneurs mistakenly make the mistake of growing business generating more profit. They believe that growth and profitability go hand in hand, but they don’t.

Photo credit: Deagreez | Getty Images

Fable: Business growth creates wealth

Where did the story come from? “The businessman makes a lot of money by growing his business.”? Well, it starts with an incorrect measurement of business success. You have been taught and told that in order to run a successful business, you must achieve these goals. Add more customers and consumers, to have more contracts, to get more employees, integrate more products and servicesopen more branches, Add more barcodesto integrate more sellers and Increase sales. Namely, add more of everything.

And that’s the big mistake. If you add something good, it will most likely lead to something bad. If you include all of the items listed above, then you’ll need to add them plus overhead, more cost, more infrastructure, more administration, more time and more resources. And you will have it too more headache, more problems and more stress. What is the common denominator? Add.

If you add something good to your business, you will likely add something bad.

I know you could say “Well, that’s just understanding what it takes to run a growing business.”, The “This is how you grow up” or “Yes, that’s in the nature of business: you have to take the bad with the good”. Or maybe you accepted the lie that in order to increase your income, you have to accept less income.

“Really?”

The first list had to do with adding: increasing sales and sales. The second list also tried to add up: costs, expenses, and headaches. As you add pros and cons to the growth, you can feel the effects of “Is never enough money”. If your growth is increasing and all your costs and headaches are increasing, is your business really any better? Are you more successful?

This paradox keeps entrepreneurs and small business owners away from rapid or explosive growth. No matter how fast you run, you are still in the same financial position as before. Except now they have more headaches, stress, and frustration fewer hours in their life. That is the failure to survive with the “waiting for profit” corporate growth philosophy. You will eventually die of exhaustion or burn up your entrepreneurship.

  • We Recommend: 10 Signs You Are “Burning” (And How To Stop It)

More for more

The classic business model for success that I just presented can be summed up in this sentence: “More for more”. This philosophy is good for getting incremental results. It’s a universal practice of the last century, but it’s not a superior approach to taking great advantage in the face of the destructive forces of today’s marketplace. 99.9% of companies and their executives follow this paradigm and unfortunately rely on higher business growth to make more money. However, optimized profit production is never achieved with this approach.

A larger company could generate more total profit, but at what cost? Usually it’s an incremental growth with incremental benefits. It doesn’t come close to the maximum profit potential of a well-designed company.

If you are content with slow to average growth and are making some income, then you can stop reading right away and continue your current slow path of making money. However, when your competitors learn and apply my approach to increasing sales as I am going to explain, each day you are in business they will get tougher, more frustrating, and less profitable. Ironically, many entrepreneurs believe that their businesses are stable or growing when in reality their business is dying. Google the fable of the boiling frog to understand this point.

  • See also: Customer-centric leadership is the new growth indicator: Zendesk and ESG

Why Focusing On Business Growth Is Wrong

If you and your team have the voracious drive and ardent desire for rapid or even explosive growth with big profits, then You have to think and act differently. We have to break some typical paradigms and clichés that you have caught in the thinking of the last century and in mediocre results.

Have you ever heard the business say “You have to spend money to make money”?

This is why most entrepreneurs have money problems or their businesses fail. You justify that Waste of money trying to grow or subconsciously They burn up their profits hoping to be successful. Listen to the argument: you cannot grow without spending money. I don’t know about you, but I love it when someone tells me there is something I can’t do.

For a split second, did you start questioning your current business growth belief system? Or did you have an immediate revelation that you might be able to achieve greater success without spending more budget or increasing your workforce? Congratulations. The transformation of your business to generate income has begun.

Image via Depositphotos.com

More for less: a poorly applied superior concept

Now you know that the “more for more” business paradigm is only incremental and that you can never achieve the highest growth with the least amount of resources. What’s the Smartest and Best Way to Maximize Profits? To get dirty with your business, you need to follow a more modern philosophy: ‘more for less’.

Have you heard this maxim before? Theory and thinking are not new. Most leaders, however Misunderstand the “more for less” philosophy and understand it backwards. s who misapplicate this concept They can make short term gains but cause long term problems.

For example, I will never forget one of the frustrating years of my corporate life. The company I worked for cut costs because expenses rose too quickly. I complained to my manager why my salary did not increase after exceeding my goals for several years. Your answer: “Don’t forget that we all work for less”. Frustrating.

Being stingy or overseeing everything is just one way of misusing “more for less”.. Unfortunately, companies do it every day. As an excuse to be more successful, entrepreneurs and executives they get too strict, reduce costs or Abusing employees and suppliers.

For example, employees who used to have a job now have three roles to reduce costs, or have to work with old or outdated equipment to save money. Another way to misapplicate this principle is to continually cut employee compensation or other benefits in order to keep costs down. Abusing your people hurts everyone involved. Decrease work morale, increase talent churn, and get rid of the high performing people you need.

Another misuse is with business owners Lower the prices or terms of their suppliers to increase their own margins. Or executives pull liabilities until suppliers are forced to receive a fraction of their money. The belief that “more for less” means that one is suffering couldn’t be further from the positive intent and potential power of this idea.

  • You might be interested in: Are you a startupero? 5 Lessons From Billionaires To Follow

More for less: scale sales growth

You have just learned two important points. First, With “more for more” it will take forever to get rich. Secondly, “More for less” is a superior approach, but it is misapplied mostly. How do hungry entrepreneurs use “more for less” to generate millions faster and to make their employees, suppliers and customers smile?

If you had to decide whether to grow faster or to make more money, what would you choose? Many entrepreneurs would say growth and believe that profits will be higher, but it isn’t. An extraordinarily successful company is measured not by the revenue it generates (unless it is valued on market share) but by the money it can keep. Are you rich when you can pay your bills or are you rich when you have ten times more after you cover the expenses?

I know what you are saying “We use our earnings to spend more to do more.”. Great, you completely missed the point at the beginning. And therefore also entrepreneurs They are wasting money and burning their profits. If you deserve it, spend it. What if you could get explosive growth and still make embarrassing profits?

This way you will always make amazing profits. Instead of focusing on business growth, learn to focus on sales growth.. I don’t just mean “earnings growth” by this. Too many entrepreneurs mistakenly trade the term business growth for income growth. But here, the subtle and unique use of “more for less” will mean a fortune for your company, your employees, and yourself.

If you notice, my company name is not Business Growth Company. Instead, it has the brand The Revenue Growth® Company, LLC (The Income Growth Company). It is the subtle and contradicting use of the term “income growth” as a method of enriching many business owners and employees. Let me explain.

The Sales growthMore for less is when your company produces more of all the good things without adding the bad ones. Income Growth How To Learn, Master And Apply In this case, your company can with everyone Company assets generate more revenue.

For example, more income from everyone:

  • contract
  • client
  • Employee
  • Sales hunt
  • product or service
  • Business location
  • active

More income from everyone …

Periodically, you should look at the results by business area to see how much sales have increased. Did you spend more money, yes or no?

You have to be prepared for it Measure your organization and the Sales growth in different categories. This shows whether your business is getting bigger and more profitable. But first a warning: the right way to apply this principle, ‘more for less’, poses enormous challenges.

First, it is not culturally accepted because the majority of entrepreneurs mentally live in the last century. Secondly, does not have the approval of third parties that they support you because they need you to increase your spending with them. In third place rarely measured. The few times I see this principle applied year after year are retailers, “sales in the same store”, but it’s only a measurement. That is the secret of the success of “more for less” Strategies that increase maximum income while improving profits.

  • We recommend: This is how CatMan or Category Management can increase your company’s sales

Here it comes An example Quickly, how to apply the “more for less”. In the case of a BeginningA team that applied these principles helped a seller sign a new contract valued at more than $ 13 million on a quarterly fee of $ 750,000. That’s 18 times your sales target. Using the old paradigm of growing more for more to generate $ 13.5 million, the company would have needed 17 more salespeople. Each works through multiple upsell cycles to close 17 more deals. However, this doesn’t include the huge cost of all of those additional salespeople, distribution costs, support costs, etc.

In all industries worldwide, the average graduation rate is around 25%. That is, if a salesperson works on four leads, you earn. To generate $ 13 million, this group would have to multiply seventeen times four, which equates to 68 unique sales cycles.

Do you know the cost of a typical long and complex sales search? Do you know that every time you add a salesperson, you add eight cost categories that are consuming your company’s profit? Do you know how long it would have taken this organization to go through another 68 sales cycles? An entrepreneur following the classic business growth approach would have spent millions to make millions with little profit. This company had more than $ 13 million in revenue at the expense of a seller with a rapid four month sales cycle. That is “more for less”.

Taken by “Millionaire : How to Build a Highly Profitable, Fast-Growing Business and Get Embarrassingly Rich”, of Kent Billingsley (McGraw-Hill Education, Feb.2, 2021).

  • We recommend: 3 strategies for startups to keep growing

Similar Posts