To build a million dollar business [Part one]

Sep 16 06:49 2008 Dan Cavalli Print This Article

 

Even though i had the right mindset more was required. When i started as a self employed businessman i used to

look at successful business people and envy their million-dollar

lifestyles.

In the early days I’d ask myself,Guest Posting "why isn’t my business as profitable as

theirs?" It took me a long time to realise the truth in Al (chain saw)

Dunlap’s expression: "business is easy."

It basically comes down to behaving like a CFO (chief financial officer)

with a difference. That difference should include adopting million-dollar

business owner thinking. If a CFO isn’t generating profitable outcomes

they don’t have a job.

Once you make an investment in a project, if the return is insufficient,

find a way to make that project profitable or ditch it. Get rid of the

unprofitable and push hard on the profitable and think big while doing it,

no matter what the size of your business is now.

CFO’s expect a payoff for every project sooner rather than later. On the

other hand, a million dollar business operator focuses on the business

practices that create the biggest results. They invest their time, money

and resources expecting a big payoff.

Let’s Incorporate the CFO and the million-dollar operator’s ideas and call

you a "million dollar chief financial officer" or MDO for short.

MDO’s use seven strategies to guarantee the big payoff.

1. Everything Is Marketing. The success of a company is based more on the

marketing of the product than on the product itself. Everything is

marketing, first second and third.

Realize that not all marketing opportunities are created equal. I started

off sticking business cards under windshield wipers in parking lots. That

wasn’t as effective as speaking to people at a seminar. I soon found that

wasn’t as effective as speaking at a national convention attended by

thousands.

Realise your existing customers are your best prospects. It costs more to

get a new customer than it does to increase the profits from an existing

customer. The best customer is a loyal one.

Never stop marketing, no matter how well you are doing. When you get busy,

you may be tempted to cut down on marketing but that’s the time you should

do more. If you have 3 sales people, hire twenty more. If your sales are

up by 10% on last month call on 100 more new prospects to increase sales

further.

Bring next year’s targets forward to now. If you plan to have 200 more new

sales per month by this time next year, plan to do the work now to produce

those results now. Hire the extra sales people, make the extra contacts

and start looking at prices for more office space in anticipation of

expanding your business. Most of all, seek financing to fund the expansion

now when you don’t need it.

Your partner in business,

Dan

To get your personalised FREE ebook on building businesses fast go to my site at:

http://www.howtogrowasmallbusiness.com. If you like this information help me

spread the word. Go to my blog at http://www.startingabusinessnow.com and

tell me how I can help you.

To build a million dollar business [Part two]

By Dan Cavalli

How to build a million dollar business is not rocket science. There are

specific steps and strategies to follow. This article is the continuance

of the series that explain how and what you can do to make it to the

million dollar club.

2. Never Discard an Idea from Anyone. Not many business owners ask

employees for their opinions. I’ve received some of my best ideas from my

employees and paid them for it when I received the pay off. Brilliant

ideas are generated by the most unlikely people. That’s why you as an MDO

[A CFO with the million-dollar operator’s ideas, a "million dollar chief

financial officer" or MDO for short] should take the time to talk to

everyone who asks you for your time.

3. Build your Rolodex. MDO’s are selective about relationship building.

The people you really need to be building relationships with should be

above your level. Get out there and visit other successful business

people. Take note of those who are featured in the newspapers or

documentaries. Get to know your local successful business owner and join

associations for businesses.

Don’t confuse building up contacts with socializing and don’t give

credence to anyone just because they show up at a group event. Ideas can

come from anyone however you do need to be selective about whose advice

you take. Always assess the value of the advice offered and don’t take

advice from a bricklayer to value your diamond ring.

4. Don’t Undervalue Yourself. MDO’s are smart buyers. They understand that

anything cheap can be expensive in the long term. But there is a

difference between anything cheap and buying cheaply. I used to purchase

from my local retailer/wholesaler until I asked for a better discount one

day and he said, "No, we have to make money too, Dan" I then asked him if

I could get it a $1 discount off a $3000 order. He said no.

It took me two days to start my own import business and buy my products

directly from China. My supplier is probably still wondering why I haven’t

placed another order with him. He’s lost about $3000 a month for the next

3 years.

If you do not want to experience the above from the side of the supplier,

remember to always show willingness to offer a discount even if you can’t

and make sure the excuse is sold not told.

Never be afraid to give someone a dollar discount. It won’t hurt you. It’s

not much but the reward is in the feeling you get when you do it the right

way. Don’t get this mixed up with making a profit. People who say, "I love

this so much I’d do it for free," this is not the MDO attitude.

MDO’s aren’t in business as volunteers. A business must be profitable,

otherwise it’s not an enterprise, it’s a charity. The word profit stems

from the Latin word profectus, which means advancement or improvement.

Some people may be happy to start small and grow slowly, but MDO’s build

businesses fast, to last and they fully intend to make money.

Your partner in business,

Dan

To get your personalised FREE ebook on building businesses fast go to my site at:

http://www.howtogrowasmallbusiness.com. If you like this information help me

spread the word. Go to my blog at http://www.startingabusinessnow.com and

tell me how I can help you.

To build a million dollar business [Part three]

By Dan Cavalli

How to build a million dollar business is not hard. There are techniques

you can use to ensure this happens. This article is the third in the

series that explain how and what you can build a million dollar business

in record time.

5. Expect and Plan for Failure. MDO’s [A CFO with the million-dollar

operator’s ideas, a "million dollar chief financial officer" or MDO for

short] know that no matter how successful they are, no business is

unsinkable. Nothing is infallible. The Titanic sank on its maiden voyage,

but if you’re prepared, even enormous icebergs won’t sink you.

I am criticised all the time because I look at what could happen in the

future. Once identified, I put a strategy in place to side step the

potential mishap, should it raise its ugly head. I’ve missed a few times

and was badly hit but I’ve learned from the experience.

6. Keep Your Team Small But Great. Al Dunlap says in his book "Mean

Business", keep your management team small and close to you and that they

had better be great in their job and dependable. When I started out in

business I took these words of wisdom at face value, applied them to my

business and found them to be true.

People have burnt me when I have let my guard down. Never trust a person

who doesn’t keep their word. It identifies a weak character and that is

poison in a business.

Never be reliant on a person who doesn’t have a good character. It is the

death knell of a good management team and business if you let any such

person into your midst.

7. Top Things to Do To Grow Your Business Big • Always think big and

implement strategies that will grow your business • Set financing in place

before you need it • Develop a strategic plan emphasizing marketing. •

Choose a name that tells what you do and not who you are • Build contacts

with professionals and other business people • Prepare a backup plan for

survival in case of potential failure • Start, continue and never stop

building your customer database • Don’t quit your day job until you’re

making real money. • Don’t take advice from bricklayers • Don’t invest in

unnecessary bells and whistles • Don’t try to do it all yourself. Develop

a great team of managers • Don’t cut corners on image • Don’t get addicted

to time-stealers like e-mail and voice mail. • Don’t let stress wear you

down. Remember stress makes a MESS.

Your partner in business,

Dan

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About Article Author

Dan Cavalli
Dan Cavalli

To get your personalised FREE ebook on building businesses fast go to my site at:

http://www.howtogrowasmallbusiness.com. If you like this information help me

spread the word. Go to my blog at http://www.startingabusinessnow.com and

tell me how I can help you.

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