The “High Growth & No Profit Business Model” is not the JT Foxx Way
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.
Business Beware
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:
