Building A Million Dollar Company- Three Steps

Building A Million Dollar Company- Three Steps

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I once attended a meeting where a man who had started a very successful business that was now selling goods to countries all over the world shared with us his 3 key steps to success. His points may challenge traditional thinking; however, I had to remember that he was successful by living this formula. These are his three key steps to success along with my thoughts:

1. The people who put in the effort receive the reward. What an original theory! When most of us create a business, we split up the stock and rest on our laurels! The successful business man was in favor of seeing who the players were going to be and measure the ownership based on the amount of value the individuals contributed.

While this approach may work well if you're self-funding your company, there are dangers in this tactic that you will want to be conscious of. You'll want to make sure you have a strong relationship with those whom you're in business with. There's nothing like somebody else deciding your worth. You run a large risk of not seeing eye-to-eye when it comes down to assigning equity. I like to let a business come together before ownership is divided up. I have had way too many partners fall away prematurely or don't display the skills, contacts and drive they professed to have.

2. Keep everything in-house. Typically, I advocate outsourcing everything you possibly can. It allows for added flexibility and lets business owners scale quickly both forward and backward. This man's thought that you ought to make revenue on as many points as possible�especially in the early stages. If you outsource, you are outsourcing the profit.

I can see plenty of insight in his ideas. He exemplified the principle well. He had a smaller manufacturing plant and even screen printed 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. Concentrate on accruing income. This counsel is the true pearl. A large amount of budding businesses get lost in product development and completely forget about generating money and making profitable transactions. The man's view was to create your merchandise, in your basement if you have to, and sell it at a high enough price that you can cover your expenses and have a surplus. efficiently ran his business out of his garage for years before he moved to commercial facilities.

I have observied personally that the businesses that I have started this way grew risk-free to levels of profitable income.

By the end of the lecture, I placed the paper in my pocket. I had concluded that this guy's success formula, even though I may not agree with the whole philosophy, was surely working for him.

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About the Author:
Rod Alan Richardson has dedicated his life to teaching people how to succeed in free enterprise through his Business Training Course. He also offers a free ManagementTraining Newsletter.



Article Originally Published On: http://www.articlesnatch.com


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