As a serial entrepreneur and the world’s #1 wealth coach, I have come to see a disturbing trend. I do business and speak in over 40 countries all over the world, and I often find many businesses succumb to trying to model themselves after other successful companies; such as an Uber, or an AirB&B. They are comfortable with the thought of “as long as I grow, it doesn’t matter if I make money”. They think growth will one day equate to dollars. Amazon lost money for over 10 years before finally turning a profit and now they are worth billions. In fact, many of them were worth billions before they even made 1 cent. Silicon valley dubs them as “unicorns”. The definition of a unicorn company is one that is relatively young and new yet worth at least 1 billion and not one of them is making any money.
The problem for every Uber, and SnapChat out there, there are hundreds of thousands of other businesses that fail with this type of business model, and they are pretty much worthless.
I own many companies and brands and my philosophy is quite simple, I find ways to make money from day 1 when I start any company. Profits are more important than growth. In order for a business to survive today’s ever challenging economic times it must have sustainability, predictability, and consistency. I made the mistake a couple of years ago by growing too fast too quick and before I knew it, my profit margin went from 32.7% to 8.4%. In fact, I had to change my entire business model to stop the bleeding. So you if you want to succeed in business, here are my 3 best tips:
- Ask yourself, “How do I make money from day 1”. Actually have a plan on how you will be profitable from day 1
- Set projections before the start of the year. For example, if you set your goals at $100,000 and you make $70,000. Don’t make the excuse of saying you only made $70,000 because it was the first year. Look at it as a loss of $30,000. If you are an existing business, employ the zero base budgeting concept done by 3G…every year they press the reset button and don’t base themselves on previous years numbers.
- How you succeed is related directly to how comfortable you are with change. Every 3-4 months re-evaluate your business model. What is working / what is not working.
Yes business is about going big or going home but let ask you this one question. Would you rather make 10 million for sure, or be evaluated at 1 billion with a risk of going 100% bust? Elizabeth Holmes went from 4.5 billion to zero just last week. I think once you have that secured nest egg, whatever that number is, you can afford to take on companies that are high risk that will have a huge payoff or reward. You also know that if it fails you start over with 10 million rather than broke.
My job is to make you see the light and to make you successful, but lately I have seen just too many people lose it all and have seen their whole worlds turn upside down. Yes, I have been labeled by the media as the next Billionaire, but I’ll get there knowing I have a strong sustainable business. It’s not sexy but it wins the race every time. I am a big believer that history always repeats itself in some way shape or form. Look at the last dot-com bust where people were counting their billions before they were made.
If you want to meet the people whom have helped develop those strong fundamentals in me, and increase your net worth, click here
World’s #1 Wealth Coach
P.S. To discover all my investing and business building principles you can watch the biography of my life as well as get my new book whom many are calling it one of the best business books they have ever read. www.MillionaireUnderdog.com