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| Best Business Tips for 2020 |
Entrepreneurship is the backbone of this country sorry of
any nation. And yet people fail in business all day long. According to fundera, in the first decade, 70% of all
businesses will fail. And it's because they're missing some of the most
fundamental training and aspects of how to succeed.
I've been in mini business for last 15 years. And you know
what? I've lost alot of dollars but I've also made a lot more than that. And
today, for 2020, I'm going to share the top 3 things most important for every
business to have must don't. It's that,
just by Reading this article, some of
you should decide to close shop and some of you going to hunt somewhere else,
so you can have the level of success that you deserve. If the business doesn't
have at least a 50% margin, I usually don't look at. If you don't have that,
then who cares about your business?
Ultimately businesses are going to succeed or fail based on
their understanding of 3 fundamental principles. Margin, leads and difficulty. And today in this Post, I want to
dive deep into them because you may have a business that is destined to be
broken and you don't know it. Because a broken business ultimately leads to you
being broke financially.
We're going to actually evaluate this theme park, Harry
Potter world. We're going to talk about how it's doing in these 3 categories.
And at the end of this post I'm actually
going to share with you my favorite business model that I've used to make more
money than anything else and how you can copycat it.
Alright, let's talk about these 3 components of a successful business.
The first one is margin, okay? So, your typical average business
operates on a 10% margin. And a good business might have a 20% margin. And the
poor business might have a 5% margin. Now, one of my rules is if a business
doesn't have at least a 50% margin, I usually don't look at. Why? Because if I
have a lot more money, it means a lot of good things come into my world. One, I
don't have to take a position with the organization. There's enough money that
I can actually focus on being an owner business versus an operator that's getting
tired working inside of the business. So, if you take a look at Universal Studios
in Orlando, Florida, right now in 2018 after they launched Harry Potter world,
they brought in revenues of 1.25 billion dollars. They saw a 15% increase from
just the year before. But more importantly, their profit was right around 500
million dollars. Now 500 million dollars and 1.25 billion of revenue means that
they're sitting at a 40% margin. That is 4 times more margin than the average
business. So, guess what? As far as that goes, they've got a fantastic business
model.
The second one is Leads.
A business that doesn't have a predictable
set of qualified leads is always going to struggle. You know how many people I
know they're like, "I've got the most amazing product. My product is so
amazing." But bottom line, they don't have enough lead flow which means prospects,
people, customers, clients. If you don't have that then who cares about your
business? People make the mistake all the time of supporting businesses that
have amazing products but they have no way of marketing. So, take a look at
where we're at again. They have movies coming out. In fact, they've got all
these movies that drive people into the park and as a result, they have really
good margins but only because they have lots of customers. Over 10 million
visitors a year flock to Universal Studios Orlando. And you know what? Harry
Potter has only increased that number. So, guess what? They've got leads. And
that's why they have margin and that's why it works.
The third thing that you need for your business
to thrive, best advice that I can give you is you have to evaluate the difficulty of business. One of my
mentors, Tony Robbins says that the
enemy of execution is complexity. So
bottom line, is when something
becomes harder then the more
difficult it is. There's opportunity
for errors and for things to break
down. And you know what? When you actually
look at Universal Studios, it is a
crazy complicated business. That doesn't
mean it's bad. It doesn't mean it's
not worth it. They're clearing a
half a billion dollars a year in
this park alone. But for you and
your business, one of the things
that you need to ask yourself is how
difficult is my business? Because the more
difficult it is, the harder it is to duplicate.
The harder it is to actually grow or
the harder it may be to actually systematize.
Doesn't mean it's not worth it but
it does mean that you might have a
problem.
Now, as you evaluate your business and take a look at these
3 aspects, ask yourself number one: Do you have a normal margin, a low margin,
a high margin or an extraordinary margin? If your margin is normal like 10%,
then I think that you have a problem. Look at how successful you have to be to
get that business to produce something. And you might spend years building it.
But what if you started right now with the business that had like a 30, 40, 50
or a 60 percent margin. If it existed and if it was out there, you'd have to
work way less hard to way more money.
The second thing that would happen is that you'd find
yourself be more of a business owner versus an operator. Because when you have
a 10% margin, the problem is that you actually need to insert yourself in the
business and work the business to actually justify the little bit of money that
you actually make. The second thing I would evaluate is leads. If you don't
have a dependable, consistent flow of leads in your business, you might be in
the wrong business. Because you're going to spend all of your time hustling
diluted by the fact that you think your products are great but you don't know
how to put it in people's hands.
And thirdly,
difficulty. If your business is super difficult, is super complicated, you
might be able to pick a different idea this year and zoom around a decade of
results in your old business. Sometimes we find ourselves comparing ourselves
to some of the biggest names of business, some of the most successful iconic
people. JK Rowling has the most amazing story. Think about it for just a
moment. I mean, A woman submitted her manuscript of Harry Potter to 12
publishing houses. All of them rejected her. And finally, one of them went with
it. And then in like a 20-year spans created a 25 billion net result of that
franchise. But you know what? Not all of us are going to be what I call the
Lucky Sperm Club. Not all of us are going to be the people out there out there
crushing it with like these mega businesses. But that doesn't mean that there's
not a piece of the pile with your name on it where you can absolutely kill it.
This is what I've learned in all my years of business. If your business has low
margins, you're in trouble. If your business doesn't have a good lead source,
you have problems. And more importantly, if your business is difficult, you
have more problems. How do those problems you currently have in business? But I
want to do right now is I want to share with you a perfect business. And this
is just an example
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