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

44 replies
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
  • Profile picture of the author Aviator Joe
    definitely great insights
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    • Profile picture of the author jvjoe
      Great, all Noted, thanks for the post.
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  • Profile picture of the author sandrax
    Great share and very inspiring

    I only have one thing in common with this Millionaire... glued to my Blackberry LOL
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    • Profile picture of the author Sonny Am
      Originally Posted by sandrax View Post

      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.
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      • Profile picture of the author Aussie_Al
        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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        • Profile picture of the author JRemington
          Originally Posted by Aussie_Al View Post

          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
          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.
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  • Profile picture of the author dcristo
    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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  • Profile picture of the author JohnMcCabe
    Sonny, your friend's relative sounds like a very smart man indeed...

    Originally Posted by Sonny Am View Post

    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.
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    • Profile picture of the author ryanmilligan
      Banned
      Originally Posted by JohnMcCabe View Post

      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.
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    • Profile picture of the author nik0
      Banned
      Originally Posted by JohnMcCabe View Post

      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!
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      • Profile picture of the author AlphaWarrior
        Originally Posted by nik0 View Post

        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!
        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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  • Profile picture of the author Chri5123
    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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  • Profile picture of the author Toniy
    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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  • Profile picture of the author Scott W
    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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  • Profile picture of the author ozzmandan
    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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    • Profile picture of the author Randy Engler
      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.
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  • Profile picture of the author aaronblevins
    Thanks for sharing Sonny - those are great words of wisdom for anyone wanting to venture out on their own!
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  • Profile picture of the author Haris Tahic
    Sonny, thank you for your time
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  • Profile picture of the author nicolas simpson
    interesting post, learning more is always good.

    best regards
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  • Profile picture of the author travlinguy
    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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  • Profile picture of the author freestufffinder
    Great post. It's always good meeting people that have already made their way in business - very motivational.
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    • 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
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      • Profile picture of the author harrydog
        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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  • Profile picture of the author tbtb123
    very true, the basic of every good business should be profitable and financially.
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  • Profile picture of the author MaryKathan
    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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    • 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 -
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      • Profile picture of the author crew03
        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!!
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  • Profile picture of the author MarketingChad
    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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  • Profile picture of the author Marhelper
    Scalability is something that is often missed in the planning stage. Thanks for the share. Lots of wisdom.
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  • Profile picture of the author maxrezn
    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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  • Profile picture of the author sarconi
    thanks for the insight good advice to!
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  • Profile picture of the author paul_1
    Definitely a great insight...
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  • Profile picture of the author WittyT
    All of this remind me of this book:
    Amazon.com: The E-Myth Revisited: Why Most Small...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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  • Profile picture of the author Steven Miranda
    Great advice, I think that is a huge factor. Scale it up and the money will come in....
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  • Profile picture of the author Mike Ogbin
    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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  • Profile picture of the author daria19
    Originally Posted by Sonny Am View Post

    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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    • Profile picture of the author Michael Franklin
      Originally Posted by Darren Cooper View Post

      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).
      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.
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  • Good advice from the Millionaire guy. Of course hes absolutely right!
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    • Profile picture of the author larry65
      Good info to think about and always keep in the bank of my mind. Appreciate the sharing of it.
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  • Profile picture of the author John Romaine
    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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  • Profile picture of the author Asher
    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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  • Profile picture of the author Michael Ten
    Scalable! This is quite useful to think about...
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