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From Entrepreneur to Millionaire: The right way to Construct a Extremely Worthwhile, Quick-Rising Enterprise and Get Embarrassingly Wealthy within the course of

March
19, 2021

15 min read

The opinions expressed by the entrepreneur's contributors are their own.

To kick off a speech to hundreds of entrepreneurs at a world summit in Montreal, Canada, I asked the exuberant attendees: "How many of you run companies that offer great products and services and offer exceptional value to your customers and customers?" All of them Hands shot up. "Perfect." Money – more sales, sales, and profits – and especially corporate wealth creation or personal wealth creation, must never be your sole focus, but rather the by-product of the value you and your company bring to your customers and the market.

Who has or does the following to grow their business:

Spend more money on marketing: advertising, SEO, social media, or digital marketing. Hire more people like salespeople. Spend more on training. Lower prices to attract new customers. Add more products and services

"How many of you spend every waking hour and dollar trying to grow your business? Do they all work harder and smarter? “Each question raised more hands. Soon each participant had raised an arm. Nobody wanted to be left out. Several entrepreneurs look around proudly to confirm their unanimity.

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I paused to lower my hands slowly.

"If you want to get embarrassingly rich from your business, can I ask you to stop all of these things right away?" I explained slowly and clearly.

Confusion and doubt overwhelmed the audience. Everyone tried to remember the questions they had just agreed on. Didn't we all agree, they asked? How can we all be wrong?

“Do you remember a few minutes ago when everyone raised their hand? That is, what they do – you do. You will never get radical results if you follow the same path as your competitors.

We – you and I – have all been lied to and taught to religiously implement those business growth strategies I just asked you about. It got hit in our head. To be successful, you had to aggressively market, sell, and promote your products and services and achieve business growth.

You were sold to do what it takes (just do it) and spend what it takes. I have founded and built businesses for over four decades and read this news when I started and I still hear it today. There are thousands of speakers, books, and websites designed to help you grow your business. I get around a dozen unsolicited emails a week from companies trying to help me with leads, marketing, social media, and digital endeavors.

Do you think I'll tell you that to be successful, you no longer have to focus on growing your business?

Yes. Transformation success requires radical changes in the way you think and act, ”I advised.

We all live myths about business success. I've worked in several thousand organizations, many of them overseas that are growing rapidly and slowly. Would you like to see the real behind-the-scenes performance of most companies? To grow or not?

The majority of companies barely make any real money.

You struggle with cash, cash flow, and working capital.

And 99.9% of entrepreneurs and small business owners make a living, sacrificing their lives, grinding out their employees, working nights and weekends and neglecting their health. They struggle against fear for years to decades and cling to the hope that one day they will get rich. Few will. Most won't. Entrepreneurs settle down, quit, get back to work for a large company, retire, or sell their business at a loss.

Why do most entrepreneurs live a life of silent desperation?

Because of this amazingly simple premise: Entrepreneurs spend too much time focusing on how to start, run, and grow a business. But they're not learning how to make serious money out of their business – huge sales, massive earnings, and ridiculous profits.

Billions are spent on training, coaching, consulting, and speakers convincing you to increase your spending and activities to grow faster. They are selling the perpetual myth that spending more money, especially with them, will increase your success. Let me share a secret: this is how they make their income by taking some of you. The lie persists because entrepreneurs mistakenly conflict with one another that a growing company makes more profit. The belief in growth and profitability go hand in hand. You don’t do it.

Fable: Business growth creates wealth

Where does the fairy tale "Business growth makes a lot of money for entrepreneurs" come from? It starts with an inaccurate measurement of business success. You have been taught and told that to achieve these goals you must have a successful business. Adding more clients and customers, adding more contracts, adding more employees, adding more products and services, adding more locations, adding more SKUs, adding more sellers and sales transactions. Add more of everything.

And that's the huge mistake. If you add a good thing, you will most likely add a bad thing. Adding all of the above means adding more cost, adding more overhead, adding more cost, adding more infrastructure, adding more administration, adding more time, adding more resources. Also, you will add more headaches, more problems with people, and more stress. What is the common denominator?

If you add a good thing to your business, you will likely add a bad thing to it.

I know what you could say "Well, that's just about understanding what it takes to run a growing business. You might as well say that's how you grow. Or, yes, it's the nature of business – you have to take the bad with the good." "Or maybe you've given yourself the lie that you may have to accept less profit to add to the top line.

Or do you

The first list above was about increasing sales and sales. The second list was also about adding costs, expenses, and headaches. When you add up and down movements to grow, you can experience "running the treadmill that never costs enough money". If your growth is increasing and all your costs and headaches are increasing, is your business really any better? Are you more successful?

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This paradox makes entrepreneurs and small business owners fearful of rapid or explosive growth. No matter how fast you run, you are still in the same financial straits as before. Except now, they have increased headaches, stress, frustration, and fewer hours in life. That is the failure of the attempt to survive with the corporate philosophy of "hope for profit". Eventually die from exhaustion or burn out your entrepreneurship.

More of more

The classic business model for success that I just discussed can be summed up in this sentence: More from more. This philosophy is good for incremental results. It's a universal practice dating back to the last century, but not a superior approach to making huge profits against current destructive market forces. Ninety-nine percent of companies and their executives hold onto this paradigm and unfortunately expect more business growth to make more money. However, optimized profit production can never be achieved with this approach.

Here is the counter. A larger company could generate more total profit, but at what cost? It's usually – incremental growth with incremental profits. Not nearly the maximum profit potential of a well-designed company.

If you are satisfied with slow to average growth and are making some income, then you can stop reading right now and stick to your current slow way to make money. However, when your competitors learn and implement my approach to sales growth, as I am going to explain, they will get tougher, more frustrating, and less profitable every day you are in business. Ironically, many entrepreneurs believe that their business is stable or growing when in reality their business is dying. Google the fable of the boiling frog to understand this point.

Why the focus on business growth is flawed

When you and your team have the voracious drive and ardent desire for rapid or even explosive growth with huge profits, you need to think and act differently. We need to destroy some common and classic paradigms and clichés that include you in the thinking and mediocre results of the last century. Have you ever heard this business say?

Do you have to spend money to make money?

That is why most entrepreneurs have money problems or their businesses collapse. They either justify wasting money trying to achieve growth or they unconsciously burn money – profits – in hopes of success. Listen to the argument – you cannot grow without spending money. I don't know about you, but I love it when someone tells me there is something I can't do.

For a split second, did you just start questioning your current business growth belief system? Or did you immediately experience an "aha" epiphany that may allow you to achieve a greater degree of success without spending more budget or increasing the number of employees? Congratulations. Your business transformation has begun.

More from less: superior concept misapplied

Now you know that the “more of more” business paradigm only leads to incremental success. With the fewest resources, it can never reach the highest growth. What's a smarter and superior way to maximize profits? To get embarrassingly rich from your business you need to follow a more modern philosophy.

More from less.

Have you heard this maxim before? "More from less"? The theory and thinking are not new. Most executives, however, misunderstand the “more from less” philosophy and understand it backwards. Entrepreneurs who misuse this concept can make short-term profits but cause long-term pain.

For example, I will never forget one of the frustrating years in my corporate life. The company I worked for was run by a CEO whose first name was Lester. The company was in cost-cutting mode because expenses were rising too quickly. I complained to my manager, after breaking my quotas for several years, about why my salary wasn't going up. His answer: "Don't forget that we all work for Les." That means the company has to keep more, so I had to accept less. Frustrating.

Being cheap or being a fiscal freak is just one way to miss the application of "more of less". Unfortunately, it happens every day in companies. As an excuse to be more successful, entrepreneurs and executives are fisted too tightly, lower costs or abuse relationships with employees and suppliers.

For example, employees who used to have jobs now have three roles to help reduce costs. In other situations, team members are burdened with old or outdated equipment to save money. Another way to apply this principle incorrectly is to consistently reduce compensation benefits or other perks for employees in order to reduce costs. The abuse of your employees harms everyone involved. It lowers morale, increases talent turnover, and drives off the top performers you need.

Another misuse is when business owners lower their vendors' prices or terms to increase their own margins. Or executives drag liabilities where suppliers are forced to use factoring to get a fraction of their money. The belief that "more from less" means that one is suffering couldn't be further from the positive intent and potential power of this idea.

More from less: Scaling sales growth

You have just learned two important points. First, it will take forever for "more of more" to get rich. Second, “more from less” is a superior approach, but it is usually misapplied. Then how do hungry entrepreneurs use “more from less” to create millions faster? And make your employees, suppliers and customers smile?

If you had to choose between growing faster or making more money, which one would you choose? Many entrepreneurs would say growth. To believe that profits will come of a larger size. You don’t do it. An extraordinarily successful company is measured not by revenue (unless valued by market share) but by the money it can keep. Are You Rich When You Can Pay Your Bills? Or are you rich when you have ten times more after you've covered your expenses?

I know what you are saying “We use our profits to“ spend more to earn more ”. Great. You have completely missed the principle of the principle. It also causes entrepreneurs to waste money and burn their profits. If you can do it, spend it. What if you could get explosive growth and still make embarrassing profits?

That way, you'll consistently get amazing top-line and ridiculous bottom-line results. Instead of focusing on business growth, you need to learn to focus on "sales growth." I don't just mean "growing return on sales". Too many business people mistakenly substitute the term business growth for sales growth. But this is exactly where the subtle and unique application of "more from less" turns your company, your employees and yourself into a fortune.

What if you noticed that my company name is not the business growth company? Instead, it is branded The Revenue Growth® Company, LLC. It is the subtle and counter-intuitive use of the term sales growth as a method of making so many business owners and employees rich. Let me explain.

Revenue growth – more from less – is when your company produces more of all the good things without adding the bad things. Revenue growth, as you must learn, master, and apply is when your business can generate more revenue with every business asset. For example,

More sales from everyone:

ContractClientEmployeeSales TrackingProduct or ServiceStore locationAsset

More income from everything …

Periodically, you'll need to review the results of your business areas to see how much revenue has increased. Have you spent more money, yes or no, to reach the top line?

Unless you're on a plane, you should be ready to jump out of your chair to measure your organization and sales growth across different categories. This shows whether your business is getting bigger and more profitable. But first a warning. The right way to apply this principle – more from less – poses enormous challenges.

First, it is culturally unacceptable as most business people have lived mentally for the past century. Second, it is not endorsed by any third party supporting you because you need to increase your spending with them. Third, it is rarely measured. I see this principle only a few times in retail locations that have "sales in the same store" year after year. However, SSS is just a measurement. The secret to getting more out of less success are strategies that increase profit while improving profit.

Here is a quick example of using "more from less". In one start-up situation, a team applying these principles helped a seller with a quarterly quota of $ 750,000 sign a new contract worth over $ 13 million. That's 18 times your sales target. Using the old “more of more” business growth paradigm, the company would have required seventeen additional salespeople to generate $ 13.5 million. Each of them work several additional sales cycles to win seventeen more sales contracts. However, this doesn't include the huge cost of all of those additional salespeople, distribution costs, support costs, etc.

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Across all industries around the world, the average revenue win rate is around 25 percent. That is, if a salesperson works four opportunities, he wins one. Which means that to generate $ 13 million, this group would have to multiply seventeen times four, which equates to sixty-eight unique sales cycles.

Do you know the cost of a typical, but complex and lengthy, sales follow-up? Do you know that every time you add a seller, you've added eight cost of profit categories to your business? Do you know how long it would have taken this organization to go through another sixty-eight sales cycles? An entrepreneur following the classic business growth approach would have spent millions to make millions with little profit. This company had over $ 13 million in revenue at the cost of a seller with a rapid four month sales cycle. That is "more from less".

Excerpt from Entrepreneur to Millionaire: How to Build a Highly Profitable, Fast-Growing Business and Get Embarrassingly Rich in the process Kent Kentingsley (McGraw-Hill Education, Feb.2, 2021).

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