The Secret to Success

Building A Million Dollar Company- Three Steps

I once attended a lecture where a man who had started a very successful business that was now selling products all around the world gave us his three key points to success in business. These points may oppose conventional thinking, however, remember that he built a successful business using this formula. The following are his three key steps to success along with my thoughts:

1. <b>Those that put in the effort get the reward. </b> What an original thought! Typically, as soon as we start a business, we break up the stock and relax on our laurels! The man was in favor of seeing which individuals would bring the most value to the company and then divide up ownership based on that value.

Even though this tactic may be fine if you are self-funding your company, there could be dangers in this tactic that you should be aware of. You'll want to be certain you have a strong relationship with those whom you are in business with. There's nothing like someone else interpreting your worth. You may not be able to see eye-to-eye when it comes down to allocating equity. I prefer letting a business bring itself together prior to dividing ownership up. I've had way too many partners fall away prematurely or don't display the talents, contacts and drive they claimed to have.

2. <b>Keep everything in-house.</b> Usually, I advocate outsourcing everything you possibly can. It provides greater flexibility and allows entrepreneurs to scale rapidly both forward and backward. The business man's thinking was that you ought to make revenue as much as possible�especially in the early stages. Outsourcing means your outsourcing the profit as well.

I can see a lot of wisdom in his thinking. He illustrated the principle well. He had a smaller manufacturing plant and did everything down to screen printing his own T-shirts. He told our group that he was getting tired of his current company and wanted to do something else, but that the pay was good. And good it was�at $20,000 every month.

3. <b>Focus on the income.</b> This piece of advice is the true pearl. A large amount of budding businesses focus on the product development phase and completely forget about generating wealth and creating profitable transactions. The successful business man's idea was to develop the product, in your garage if you must, and then sell it for more than it cost you to build. efficiently ran his business out of his house for years before he moved to commercial facilities.

I have observied personally that the businesses that I have launched this way grew without risk to levels of profitability.

At the end of my meeting, I placed the paper in my pocket. I had concluded that this man's success formula, although I might not agree with the whole philosophy, was definitely working for him.

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