Do As Expected and You Will Soon Be Out of Business

By Adam Khoo

As an entrepreneur today, you must do a lot more than expected in order to run a successful business and create wealth! In the past, economies were a lot less competitive.

In the past, when a business performed below customer's expectations, they would be struggling to break even.

If a business met their customer's expectations, they would make good profits. If a business exceeded their customer's expectations, they would become a market leader and would earn huge profits!

Why do over 90% of businesses fail today? It's because markets have become so much more competitive. If you start a retail store, you are competing with hundreds of others, both locally and internationally!

Today, if you perform below customer's expectations, customers will never come back and you will go bust! Today, if you meet customer expectations, you will still be struggling to survive! Why?

This is because hundreds of other businesses can also meet your client's expectations, and some of them do so at half your cost.

You will find that you will be competing on price most of the time and will earn so little that it is hardly worth your while.

I have seen so many business owners struggling to break even simply because what they offer is the same as every other business in their industry.

In today's marketplace, if you exceed your client's expectations, you will only earn nominal profits because many businesses already do their best to add more value to their clients.

So how do you make huge profits and become a millionaire in business today?

The answer is that you have to go way beyond your client's expectations. You have to give them an unbelievable experience where they will keep coming back to your business and tell all their friends about you.

You must set your standards so high that they will never go to anyone else for that particular product or service.

When you highly exceed your client's expectations, you can charge a premium and make huge profits. This has been my secret of success for all my businesses and I want you to learn this same secret right now!

How to Double Your Company's Profits in Less than Six Months

By Adam Khoo

Many have people have asked me, 'what can I do to increase my company's sales and profits?'

Whether you are an entrepreneur or an employee, I am going to share with you a formula that you can use to double the profits of your department or company within less than six months. I call this the Profit Multiplication Formula.

In any kind of business, profits are only determined by five variables: Leads generated, conversion rate, average dollar purchase, average repeat business and net profit margins.

Leads represent the number of potential customers or prospects that the company generates through walk-ins, inquiries, cold calls & recommendations.

Let's say that out of every ten prospects, two eventually end up buying, this means that the company's average conversion rate is 20%.

So, if you multiply the number of leads generated a year (also known as prospects) by the average conversion rate, it will determine the number of customers. This is illustrated below.

Leads X Conversion Rate = Number of Customers

Now, some customers may spend more money and others may spend less, but there is always an average dollar purchase per customer.

At the same time, some customers may only buy once while others may return to buy several times a year. This is known as the average repeat business per customer.

If you multiply the number of customers by the average dollar purchase and by the number of repeat business, you will get the annual sales revenue of the company.

Leads X Conversion Rate
= Number of Customers X Average Dollar Purchase X No. of Repeat Business
= Sales Revenue

Now, assume that your company's sales revenue is $100,000 a year and the total cost of production & overheads are $80,000 a year.

This means that the company's Net Profit Margins are 20%. If you multiply the Sales Revenue by the Net Profit Margins, you will get the company's net profits for the year.

Leads X Conversion Rate
= Number of Customers X Average Dollar Purchase X No. of Repeat Business
= Sales Revenue X Net Profit Margins
= Net Profits

In order to create value to your company and increase its profits, you must either increase leads, conversion rate, average dollar purchase, number of repeat businesses and/or net profit margins.

Now, the number of variables you can influence will depend very much on the role you have in the company.

If you are the owner or are a department manager, chances are you can take action to increase all five variables and massively create value. If you are a salesperson, then you can influence leads, conversion rate, repeat business and dollar purchase.

If you are in operations, you can directly influence conversion rate, number of repeat businesses and net profit margins.

If you do your job really well and exceed client's expectations, they will keep coming back and spending more.

If you can work more efficiently and come up with strategies to improve the operational efficiency, margins will increase!

To what extent can you increase your department's/company's profits? Let's take a look.

Do you think it is possible to increase each variable by 10%? Of course! It is only a question of testing out different strategies and taking action!

Do you know that just by increasing each variable by 10%, profits jump 61%! This is the power of compounding. Small consistent increases in each variable create huge effects to the bottom line!

But this is not challenging enough. Now, think what can happen if, through innovation and hard work, you can help increase each of your company's variables by 20%.

When you increase each variable by 20%, profits more than double (149% increase)! Excited yet? You should be.

A small increase in each variable will more than double your profits. If you're serious about doing that, take action and apply this right now!

The Power of a Wealth Builder Group

By Adam Khoo

In the classic best-selling book 'Think & Grow Rich', Napoleon Hill found through intensive research that the five hundred richest men in the world all had one thing in common.

They all belonged to a strong support group of like-minded individuals where they received the knowledge, advice, resources, contacts and emotional support to succeed in their creation of massive wealth.

Yes. It has been proven time and again that behind every successful individual is a successful team. They are either made up of a team of friends, colleagues or business partners.

Why must you always have a strong support group in order to reach your financial goals?

This is because it takes a great deal of knowledge, talent, resources, contacts and ideas to make a million dollars, and it is difficult for a single individual acting alone to do it all within a short period of time.

Having a Wealth builder Group allows you to leverage on the collective experience of others...and leverage is the key to wealth.

Remember... People are your greatest resource to wealth!

a. Exponential Creative Power Unleashed

When you generate wealth creation ideas alone, there is a limited amount of knowledge, experience and inspiration you can tap on. When a team of people generates ideas, the creative & knowledge power increases exponentially.

This is known as the power of synergy. Five people working together will create the creative power of fifty minds! All the best ideas in the world were the result of combining great ideas from more than one person.

For example, let's say you are a great cook and would like to start a food business that could give you massive cash flow.

You may be a specialist at cooking, but may lack the knowledge and resources in locating a retail space, knowing how to find the right suppliers, getting financing, hiring and training staff, marketing and the creation of a business process.

With the right group, your friends could provide you with the knowledge about areas in which you have little experience in, and valuable contacts that would accelerate your business.

You will get ideas, solutions and contacts that you would never have if you were to do it alone.

b. The Power of Contacts

Have you heard of the saying, 'It is not just WHAT you know but WHO you know?' How true this is. Having a powerful network of contacts will get you the best employees, business partners, suppliers and most important of all... customers!

Alone, you probably only know about 300 people or less who you can give a call to. In a group of eight individuals, your contact base becomes 2400 immediately!

I can tell you personally that it is because of the right contacts, that I have had so many doors open to me every single time.

c. Fellowship & Support

Let's face it, walking the path of a millionaire can be a narrow and lonely one. Most old friends and family members will think you're crazy, let alone understand and provide you the fellowship & support that we need.

With the right support group, you will have a strong group of friends who have the same mindset, goals and values as you do, providing you the continued encouragement and fellowship you will need to reach your goals.

Yes. It has been proven time and again that behind every successful individual is a successful team. They are either made up of a team of friends, colleagues or business partners.

Why must you always have a strong support group in order to reach your financial goals?

This is because it takes a great deal of knowledge, talent, resources, contacts and ideas to make a million dollars, and it is difficult for a single individual acting alone to do it all within a short period of time.

Having a Wealth builder Group allows you to leverage on the collective experience of others... and leverage is the key to wealth. Remember... People are your greatest resource to wealth!

Top ten geek business myths

Since I've started my new career as a venture capitalist I have become keenly aware of some of the classic mistakes that geeks make when trying to raise money for a new business. Instead of writing the same comments over and over again I thought I'd try to summarize some of the mistakes that people -- especially smart people -- make when they decide to try to turn their bright ideas into money. Here then is my top-ten list of geek business myths:

Myth #1: A brilliant idea will make you rich.

Myth #2: If you build it they will come.

Myth #3: Someone will steal your idea if you don't protect it.

Myth #4: What you think matters.

Myth #5: Financial models are bogus.

Myth #6: What you know matters more than who you know.

Myth #7: A Ph.D. means something.

Myth #8: I need $5 million to start my business

Myth #9: The idea is the most important part of my business plan.

Myth #10: Having no competition is a good thing.

Special bonus myth (free with your paid subscription): After the IPO I'll be happy.

If you don't enjoy the process of starting a business then you will probably not succeed. It's just too much work, and it will suck you dry if you're not having fun doing it. Even if you get filthy stinking rich you will just have more time to look back across the years you wasted being miserable and nursing your acid reflux. The charm of expensive cars and whatnot wears off quickly. There's only one kind of happiness that money can buy, and that is the opportunity to be on the other side of the table when some bright kid comes along with a brilliant idea for a business.

All these myths can be neatly summarized in a pithy slogan: it's the customer, stupid. Success in business is not about having a brilliant idea. Bright ideas are a dime a dozen. Business is about taking a bright idea and assembling a team that can turn that idea into a product and bring that product to customers who want to buy it. It's that simple. And that complicated.

Good luck.