One bit of HUGE advice for exploding profits I was given by a millionaire yesterday.

by Sonny Am

Posted: 14 years ago 44 replies

INTERNET MARKETING

Hi,

I have been a member of this forum for a short while and in that time I have learnt a tremendous amount from warriors that just keep on giving. So i thought id share something.

One of my friends is related to a multi-millionaire. This guy has a string of offline businesses that make him a substantial amount of money. He has the lifestyle to back up his revenue and profit claims

I was invited over to my friends house for dinner and this millionaire was there...albiet glued to his blackberry...but he was still there.

I did manage to get his attention for two minutes and used this to my advantage. I asked him straight up without any hesitation what is the biggest piece of advice he can give me for business success. He laughed for a few seconds and then said.

I know you have probably heard all the stuff about perseverance, working hard and taking lots of action, he said that is all well. And then he went on to say that that all means little or less if your idea is not clearly SCALABLE. And that was the key word he kept using. He went on to explain that the real money is made when you strike success with an idea or concept and thats great. But whats greater and where the real money lies is if you can replicate that idea and grow it.

He said that he knew someone who owned a corner shop about 10 years a go. His family were in big business and laughed at him and his lack of ambition and success. However little did he know that he had a bigger picture in mind. Within 5 years he had scaled up and owned 22 corner shops all across the UK. All under his name.

Lets say for arguments sake one corner shop makes him $1,000 profit a month, which may seem measly to most for a real shop....however multiply that by 22....and you get a much different picture.

The millionaire I was having this conversation with also went on to say that another key important skill is TASK AND PROJECT MANAGEMENT. He mentioned how this is not stressed enough but how it is absolutely crucial if the scaling up is going to be successful. If you can manage all the businesses and don't have a clear plan on how they are going to be maintained and managed then before long you will be burnt out and will end up failing.

So the key things I took from the conversation were.

1. find a concept that really works and more importantly that you are sure you can scale up and roll out

2. roll the concept out however make sure you manage the project ie. the business, effectively.

I think this very directly correlates to online business success. If you find a great concept thats great. However if you can scale it up and replicate it to different areas and markets then you are making the big money.

I hope this post helps someone, feel free to thank me if you got something from it

....

#advice #bit #exploding #huge #millionaire #profits #yesterday

Aviator Joe 14 years ago

definitely great insights
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- jvjoe 14 years ago
  
  Great, all Noted, thanks for the post.
  
  Thanks
  
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sandrax

14 years ago

Great share and very inspiring

I only have one thing in common with this Millionaire... glued to my Blackberry LOL

Thanks
1 reply

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Sonny Am

14 years ago

Originally Posted by sandrax

Great share and very inspiring

I only have one thing in common with this Millionaire... glued to my Blackberry LOL

I can so relate to this. I think the reason why I'm constantly glued to it is push email. Sometimes I don't what id do if it didnt exist.

Logging into my various email account regularly the old fashioned way is a scary thought.

Thanks
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Aussie_Al

14 years ago

Thanks for sharing - its always good to pick the brains of successful people.

One I heard recently was "a good business will buy you a house, a good house will not buy you a business"

Meaning too many Joe Public's think if I just get a house I will be doing well , since "that's an asset right?"

Where as most peoples houses end up becoming liabilities for them - where if they invested in a successful business that will buy them a house

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JRemington

14 years ago

Originally Posted by Aussie_Al

Yes but there are a few conditions that it depends on. Spending a fortune your house can be a liability. But if you buy well you can look for the potential to rent it when you move. Then it becomes a part of your business and brings in cash and builds wealth.

As long as you keep the house/apartments to rent out afterwards you live in and don't just sell them because you're getting a new place, then they can be a business.

Thanks

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dcristo 14 years ago

I think point 2 is the most important point. When you scale up you need to manage it effectively or you risk losing everything due to sacrificing quality/reputation. I'd rather have 1 quality site then 100 crappy sites that have been mismanaged.
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JohnMcCabe

14 years ago

Sonny, your friend's relative sounds like a very smart man indeed...

Originally Posted by Sonny Am

So the key things I took from the conversation were.

1. find a concept that really works and more importantly that you are sure you can scale up and roll out

2. roll the concept out however make sure you manage the project ie. the business, effectively.

These two have to be linked. Absolutely essential.

I was having coffee with a man who volunteers with SCORE, a group of retired executives who advise small business owners under the auspices of the SBA.

He was telling me that, while lack of capital/revenue was the biggest cause of failure, another big one was too much success, too fast. Young companies catch a tiger by the tail, and pretty soon they don't have the cash flow to make payments or pay wages. Everything is tied up in receivables.

I saw this a lot during my mlm years. A new company would burst onto the scene, skyrocket their distributor base, look like the next Amway. Fast forward a few months, and product deliveries are behind. Bonuses and commissions are not getting paid. Vendors want payments for materials. Within weeks, the company implodes. But the receviables look outstanding in bankruptcy hearings...

You even see it in the WSO forum (and this is NOT a 'bash WSOs' comment).

How many times has a Warrior offered a service package or coaching program, then failed because they took on too much and weren't able to live up to their promises? I'm not talking about the out and out cheats, I'm talking about otherwise good people who simply bit off more than they could chew - and choked on it.

[ 5 ] Thanks
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ryanmilligan

Banned 13 years ago

Originally Posted by JohnMcCabe

Sonny, your friend's relative sounds like a very smart man indeed...

These two have to be linked. Absolutely essential.

I was having coffee with a man who volunteers with SCORE, a group of retired executives who advise small business owners under the auspices of the SBA.

He was telling me that, while lack of capital/revenue was the biggest cause of failure, another big one was too much success, too fast. Young companies catch a tiger by the tail, and pretty soon they don't have the cash flow to make payments or pay wages. Everything is tied up in receivables.

I saw this a lot during my mlm years. A new company would burst onto the scene, skyrocket their distributor base, look like the next Amway. Fast forward a few months, and product deliveries are behind. Bonuses and commissions are not getting paid. Vendors want payments for materials. Within weeks, the company implodes. But the receviables look outstanding in bankruptcy hearings...

You even see it in the WSO forum (and this is NOT a 'bash WSOs' comment).

How many times has a Warrior offered a service package or coaching program, then failed because they took on too much and weren't able to live up to their promises? I'm not talking about the out and out cheats, I'm talking about otherwise good people who simply bit off more than they could chew - and choked on it.

Couldn't agree more John. Hit the nail right on the head there.

Thanks

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nik0

Banned 13 years ago

Originally Posted by JohnMcCabe

I saw this a lot during my mlm years. A new company would burst onto the scene, skyrocket their distributor base, look like the next Amway. Fast forward a few months, and product deliveries are behind. Bonuses and commissions are not getting paid. Vendors want payments for materials. Within weeks, the company implodes. But the receviables look outstanding in bankruptcy hearings...

lol under what stone have you've been sitting?? The reason for bankruptcy isn't that they couldn't keep up with the payments, the reason is that they filed bankruptcy on purpose cause they set it up in such way that they weren't privately responsible and could take a run with the money from the people inside the pyramid layers. Man oh man, you got a lot to learn!

Thanks
1 reply

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AlphaWarrior

13 years ago

Originally Posted by nik0

nik), you have a lot to learn.

Not everyone is a crook! A lot of good honest people get caught up in giving credit and end up having a large accounts receivable, but have little current income with which to pay bills. They may be short sighted, but they are necessarily crooks.

Also, a lot of good honest people are able to attract a lot of business before they are ready to handle it. Again, they may be short sighted, but not necessarily crooks.

Of course, some people are crooks, but not everyone is.

On the subject of this thread, I believe that the millionaire gave some good advice. Seldom do business people (except here with IM) mention scalability as a key factor when looking at success.

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Chri5123 14 years ago

Awesome post and it makes sense!

The other cool thing is that almost all 'info product' online businesses are scalable.

Build on what IS working and leave what is not.

Chris
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Toniy 14 years ago

Hey thanks for that man...

Actually reminds me of the fella who runs the shop (on the corner) about 30 metres away from my house.

I spoke to him one day, he looks pretty pissed off at stuff generally but then gets a surge of enthusiasm and you can't shut him up

He told me about how he was running the shop as a bet.

"My friend and I were talking and he owned a shop and told me I'd never be able to do it... so we made a gentleman's wager and I bought this place and I've been doing it for two years now".

They guy owns about 3 or 4 Indian Restaurants as well.

He seems to hate working in that shop but since he's got enough money coming in to make a bet for pride, concerning 2-3 years of his life... he's gotta be doing something right
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Scott W 14 years ago

Very good advice, and certainly if the idea or concept is scalable it makes it it much easier to grow ones profits, as building and expanding on that success is better and faster than starting over from scratch.

Goes along the lines of why re-invent the wheel when one can just replicate it...
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ozzmandan 13 years ago

Thanks for the advise! Very valuable and insightful. If we can find a way to make $100 per month with one site; replicate that out to 100 sites = $10k per month.

Not too shabby!
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- Randy Engler 13 years ago
  
  Good advice... I think task and project management is often overlooked in the offline world too. The most successful people are usually the best at prioritizing what needs to be done, and getting it done quickly and well.
  
  Thanks
  
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aaronblevins 13 years ago

Thanks for sharing Sonny - those are great words of wisdom for anyone wanting to venture out on their own!
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simpleleveraging 13 years ago

Great advice and not always adhered to, thanks
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Haris Tahic 13 years ago

Sonny, thank you for your time
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nicolas simpson 13 years ago

interesting post, learning more is always good.

best regards
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travlinguy 13 years ago

Here's another huge bit of advice on this very topic. The E-Myth Revisited - Michael E. Gerber. It's a really user-friendly book on designing a business to be scalable. It's been around a while but the info is timeless. And you can get it cheap here:
Amazon.com: e myth revisited

Not an affiliate link.
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freestufffinder 13 years ago

Great post. It's always good meeting people that have already made their way in business - very motivational.
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- fluffythewondercat 13 years ago
  
  You'd be surprised how many tradespeople are willing to talk business with you if you're friendly and non-intrusive. Sometimes, a simple "How's business?" is all it takes.
  
  An Indian guy had a Papa Murphy's franchise a few blocks from our house. I've always wondered about that business model so we got to talking one day. He told us quite frankly that he'd assumed by now (3 years in) the store would be staffed with high school kids and part-timers and he wouldn't be making pizzas every day. But high schoolers, while cheap, are a poor source of labor. They're not reliable. You spend too much time interviewing. He went out of business a few years after we had that discussion.
  
  Another Papa Murphy's franchise is about 6 miles away. That one is staffed by a family: Mom, Dad and the kids. Everybody works there, and they've been in business over 20 years.
  
  Everybody's got something to teach you.
  
  fLufF
  --
  
  Thanks
  
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  harrydog 13 years ago
  
  Great bit of advice.
  I have an offline business that was solely set up to be scalable. I am in the Will writing business (have been for 10 years in various guises) I realised that I could only earn so much money as I could only see so many clients and there are only so many hours in the day. I knew I was very good at what I did and did not want to employ other people so I thought How can I leverage my skills and knowledge to replicate what I did?
  So I created a training, support and Will writing documentation company. I then looked for pools of people that were already seeing clients that needed our services and trained these people to provide our services - the perfect fit was Financial advisers. I recruited them as agents and trained them to take the clients instructions. We offer a fixed fee service for the IFAs so they set the levels of commissions they make. They pay upfront for the services we provide so we never have to wait for invoices to be paid.
  Now I never see a customer and have an army of people selling our products and services. Yes I have to employ a few people now but in ratio to the number of customers we now get on a monthly basis its minimal.
  So the business model is:-
  
  1) Scalable - we just keep recruiting IFAS ( we currently have 50 and we will grow this to 200+ this year)
  
  2) Marketing costs are extremely low as we just need to acquire the agents and not the actual customers
  
  3) Our Agents are just like affiliates - they do the selling
  
  4) We have agents that we can instantly introduce new products to to sell
  
  5) We have a built in recurring revenue stream as we store clients documents and charge a yearly fee
  
  6) Running costs are kept to a minimum as we don't have to have too many staff
  
  7) We don't buy any stock
  
  8) We always have positive cash flow
  
  Scalability is key to any business model unless you want to get to a certain level and never progress from this. Whatever you do look at how you can replicate it and scale it up and then you can start to make some serious money. Internet marketing is no different. Whats the point of working 12 hours a day for a 9-5 wage? and if you stop the money stops.
  
  Now I spend my time building my business not doing my business. It took me a very long time to realise that scalability is the only way that I would ever make any serious money and since the light cam on I haven't looked back.
  
  I dabble in Internet marketing because I like it and I know that I will probably not make serious money at it for some time as I just don't focus on it at the moment, but what I learn here helps me in my offline business ( email marketing, websites, linkedin, blogging etc)
  
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tbtb123 13 years ago

very true, the basic of every good business should be profitable and financially.
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MaryKathan 13 years ago

Looks like you used your two minutes very wisely. It is amazing what you can learn in a short period when you hang around successful people!
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- MoneyMagnetMagnate 13 years ago
  
  My skin is getting scalable, from sitting in front of my computer for so long...does that count? :rolleyes:
  
  Great tips...your 2 mins. were well spent -
  
  Thanks
  
  1 reply
  
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  crew03 13 years ago
  
  Great advice and definitely makes sense. Especially scaling something without the proper project management. In your example, imagine having those 22 stores without a system in place to manage them all. There wouldn't be enough hours in a day to get it all done. Food for thought for managing an IM "empire" too!!
  
  Thanks
  
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MarketingChad 13 years ago

Great insight, thank you!

I totally agree with this...so many people come here looking for all the answers, how can I make some money online. This forum (and other places on the net) are FILLED with things that have worked. But you need to realize to get the big bucks, you need to scale that up exponentially. Most people don't have a plan for this and that's where they hit road blocks.
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Marhelper 13 years ago

Scalability is something that is often missed in the planning stage. Thanks for the share. Lots of wisdom.
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maxrezn 13 years ago

Problems come and problems go with business. It's all about knowing where you want to be in 10 years..and figuring out the steps you have to take to make sure your business can move from A to B. The biggest mistake I see successful business owners make is when they grow a business with no clear objective. They make decisions not based on long term goals...their business gets off track...and one day they wake up realizing they've driven their business into a corner when they can't remove themselves out of the equation. If they disappear, then the business disappears.

The solution is in the system- ATT
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sarconi 13 years ago

thanks for the insight good advice to!
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paul_1 13 years ago

Definitely a great insight...
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WittyT 13 years ago

All of this remind me of this book:
Amazon.com: The E-Myth Revisited: Why Most Small...
For those who haven't read it yet, do it! It's one of the best business books ever.
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Steven Miranda 13 years ago

Great advice, I think that is a huge factor. Scale it up and the money will come in....
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Mike Ogbin 13 years ago

Thank you so much for these wonderful and inspiring advices that I am sure are the core of the business success.

If you are not managing your business very well you end up failing and losing anything
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daria19

13 years ago

Originally Posted by Sonny Am

I think this very directly correlates to online business success. If you find a great concept thats great. However if you can scale it up and replicate it to different areas and markets then you are making the big money.

MJ DeMarco suggests in The Millionaire Fastlane that there are 5 key components if you want to create a great business. I aim to measure any internet business I create, against these.

Need
Create/do something that solves the needs of lots of people (To make millions, impact millions).

Entry barriers
Pick a business that is not easily copied by others. Brand yourself.

Control
Ensure you have 100% control (ownership)

Time
Ensure the business can run without you

Scale
Scalability as described above or Magnitude (charging much higher prices to fewer people).

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Michael Franklin

13 years ago

Originally Posted by Darren Cooper

Darren...

Excellent quote! Fastlane Milionaire has become my favorite entrepreneurial book because it has lots of great pearls of wisdom. I've found it to be the best compilation of money making advice among all books. It's like interviewing a successful entrepreneur about every important aspect of business.

Thanks

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CashGiftingExpert 13 years ago

Good advice from the Millionaire guy. Of course hes absolutely right!
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- larry65 13 years ago
  
  Good info to think about and always keep in the bank of my mind. Appreciate the sharing of it.
  
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John Romaine 13 years ago

I recall John Reese, when talking to Tony Robbins, he said "I'd already proven that it works, all I had to do was scale it up"

Thanks for sharing
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Usmile 13 years ago

Thank you for stressing it out. It is very worthy to read. Your insights are very general, online business newbies must-read this.
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Asher 13 years ago

Great tips and awesome job on extracting that bit of
valuable advice from him!

And I just got the Millionaire Fastlane since a couple of
Warriors here seem to "swear" by it. Gonna check it
out =)

Asher
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Michael Ten 13 years ago

Scalable! This is quite useful to think about...
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One bit of HUGE advice for exploding profits I was given by a millionaire yesterday.

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