How to increase your business

Questions to guide how you scale your business

For the next few weeks, we will be focusing on how to increase your business. Not just increase in one way but increase in every way. And there are a lot of things to be considered. Everything may not appeal to you but something should.

The worst position in business is to not understand the business you are in. What do I mean? McDonald’s sells burgers and fries. But they are not in the food business. What business is McDonald's in? McDonald’s is in the real estate business.

The business you are in is not necessarily what you sell. For example, let’s say you manufacture bags. That doesn’t mean you are in the manufacturing industry. You could be in the fashion industry instead. But if you play the manufacturing game, you will lose and keep losing.

And this leads me to the first question:

What business are you in? Why do your customers buy from you?

If you can’t answer this question articulately, then something is wrong somewhere. You are not doing something right. And if your business is having financial challenges, it is a sign that you are doing things wrong. If you are not making sales as you should, my first point for you is to question what you sell.

Stop selling what you know how to do! Sell what people buy! Think about this. Seriously consider it. Business is not the product or service you provide, business is the customers you serve. Ask yourself this question:

What can I sell that 90% of the world around me will be buying?

You can explore that question in several directions. Here is another variant:

What are the people around me buying?

Business is not about what you can do. Business is about what people are buying that you can give them a better offer on. Think about it.

For those who have a stream of customers already but you are unsure of how to scale what you do, this next question is for you. For those in Nigeria and other parts of Africa, take this as a rule of the thumb: SELL SERVICES! There is a limit to what you can do with products. Imported goods can paralyze your business at any time. There is Amazon, AliExpress and those platforms are getting bigger. But they can’t compete with you on services.

So, here is the question you need to answer to scale your business, especially if it is a product-based business:

What service can I render in addition to what I am selling that will separate me from the competition?

This is the food for thought for the week. I hope it turns into an action that will transform your business.

More to come next week. Cheers!

- David

Refuse to be Cheap

Nostalgic experience from a not-so-distant past

I dug up on some of my work in the past years. And in 2017 I was running a digital magazine (Rich Culture) just to share with friends and those willing to learn. Today I was reading some of what I wrote then and it is still powerful and instructive.

I will share with you the welcome note and the first article that is titled Refuse to be Cheap. This is a bit nostalgic for me and I believe you will learn from it.

***

Welcome Note

I don't like a hard life. I hate suffering. I utterly dislike the life of struggle and sweat. My question to you is, can you say the same? What you tolerate, you cannot change. What you can endure, you cannot remake. What you can put up with, you cannot stand up against.

Poverty is eliminated by the introduction of prosperity. Prosperity (in any community) is the recognition and celebration of value. Value is anything, system or process that makes life easier and better (meaning, anything that saves time, energy, costs or increases effectiveness). Where value is not recognized or where insignificant importance is placed on (true) value, poverty reigns.

This magazine is called Rich Culture for a reason. There is a certain culture that goes along with being rich. In this magazine, we do refer to people who have excess money as wealthy (generally). But we specifically define rich as people who have created value or who are (significantly) part of the creation of value. Hence the saying, to be rich is to be relevant.

The culture of the rich is what determines how wealthy the rich get. Yes, you have to create value or be (significantly) part of the creation of something of value. But also, you have to be educated to effectively control and sustain what you create. Rich Culture is about refining the mind to receive, maintain and sustain prosperity.

You don't have to decide to be poor but you have to deliberately decide to be rich

The words are simple and straightforward as always. You might want to read each section more than twice. Remember, life does not excuse you for what you don't know. The more you know, the better your advantage. I hope this inspires you to make better decisions for your life in the days and weeks ahead. Cheers

//

Refuse to be Cheap

There is a very interesting rule in negotiation. It says that whoever mentions price first loses. This is very true on flexible business deals. But in a lot of transactions today, the seller sets the price ahead of the buyer. The seller is expected to set the price based on the worth of the product. The worth of the product is greatly influenced by its use. The use of the product or what the product does determines who comes for it, or so people think.

Critical consumer behavior research shows that the price of a product determines its buyers. A car is just a machine that transports people and goods from one place to another, yet there are cars sold for $1,500 and those sold for $1.2M. The issue that one car will get you there faster is almost a mirage because of the reality of city life and the need to obey traffic rules. But definitely, the experience in and with the $1.2M car is very different from even a $25,000 car. The bottom line is:

Your price chooses your buyers in a very special way

Perhaps, you are a relevant person and you're part of a productive venture but the reality of the wealthy life still looks far away from you. And now you are wondering, 'what is wrong with me?' The problem is not with you on the level you are now, but it is with a decision you have made in the past. That decision has brought confusion to your focus in life. That decision is what you chose to do to be a responsible member of society.

If you believe you're doing what you should be doing, then the problem might just be the lack of knowledge of how to create wealth. If you are going to be wealthy in life, you have to be stubbornly unwilling to be cheap. The decision to be wealthy is a direct product of the stubborn unwillingness to be cheap.

All wealthy people have this in common; they are not cheap

Not everyone who is not cheap is wealthy, but everyone who is wealthy is not cheap. What does this mean? Does it mean you should increase the price of your product or service incessantly? No, that is not what this means. Firstly, if you do that, you can kill your market and market reputation in one day. And secondly, it may create a backlash that you are not ready to face.

Not to be cheap is to have a standard and keep to the standard no matter what happens. Your product or service must have a measurable standard of quality that never tilts. The reason is:

If you do cheap, cheap people will come to you

Cheap people are people who cannot grow bigger, wealthier. If they are your customers, your business will not move forward. This is different from selling a product designed for low-income earners. The products for low-income earners are specifically designed to the standard of low-income earners.

 There was a time in history when business was conducted with gold and silver coins. Whenever fake coins (that is, a cheap version of the original) starts to flood the market, the good coins go into hiding (meaning, they become rare). Before poverty becomes a reality, cheap became the new order.

If you are cheap, you cannot be wealthy. If you find yourself in some wealth one way or another and you choose to be cheap, you will descend into poverty. This is why it matters for you to maintain your quality. Cheap attracts cheap. And a community of cheap people will always be overwhelmed by poverty. Be stubbornly unwilling to be cheap.

The first benefit of the unwillingness to be cheap is that people who will patronize you will be of the same heart and mind. That alone is a long stride forward and just the beginning of a long list of benefits. Your customers will be people who can and will move forward even as your business grows. This doesn't mean you don't sell to low-income people but you sell something designed for them to them. Separate your products by consumer appeal.

Refuse to be cheap. Don't be unnecessarily expensive rather, have a standard you stick with. Name your price and let the world see why.

***

I am still amazed by how much richness is in those words.

Till next time,

- David.

Banks will delay or reject your loan application if you don't know this little secret

Dealing with banks can be a drag. They can be annoying. They can make you hate your life.

The most annoying part is not when they tell you NO. The most annoying is when they delay you for days and weeks, only to tell you NO in the end.

Most people think that protocols and due process is what make these things happen. However, they forget that the protocol and due process were designed and maintained by someone. I know people who got money out of banks where the bank staffs are the ones going to fill out all the forms for them and they will come back to sign it later.

Here is the big question:

Is the bank doing you a favour by giving you money or you are doing the bank a favour by taking their money?

As long as a bank has the notion that it is doing you a favour by giving you money, they will play games with you, delay and tell you NO as they wish. But the moment you give them the faintest idea that they are at your mercy, they chase after you.

This leads me to the big secret of dealing with banks. When you are going for a meeting with banks:

Always LOOK Rich

That is the big secret. Look rich. You don’t have to be rich, but you like to look rich. Bankers love to give money to people who look like they don’t need it. But the moment you look like you need it, they will shy away from you.

Dress like a rich person. Arrive at the bank in a good car. If possible, go with 1 or 2 high profile people. If not, you can go with people that look like they are high profile. Chin up. Talk like you own the bank (in your tone). And be ready to walk away if they don’t want to deal.

The moment you get a little sign that they may not be able to give you money, be ready to walk out. Reject them before they delay or tell you NO. All bankers are the same. They look at these things. The only exception is if you have an account in that bank. Then they will look at your account as a measure of how rich you are.

This is the first tip for 2020, year of the money. When you go to meet with the bank, look rich.

- David

My gift to you going into 2020

I am getting pumped up for the new year. I don’t know about you. I worked throughout the Christmas holidays and it is already paying off.

I can already see that 2020 is going to be a work-busy year for me. And it should be for you too. Not all hardworking people are successful, but all successful people are hardworking. Think about that.

I am not a fan of new year resolutions, but if you are a fan, you can add this to your plate:

Never invest time or energy in something a client or customer has not declared interest in

The reason for a lot of failures in business is that people keep trying to shoulder a dead weight. Just drop the weight! Sell what people are buying. Market to people what they want. Stop trying to shape the desires of the consumers.

Don’t let anybody tell you that you have to carry losses on your back for a long time before you attain success. Study the marketplace and give people an offer that they cannot refuse. That is how to do business.

If I can’t seem to change your mind, then maybe Steve Jobs would. Check this video of his from 1997.

This is my gift to you going into 2020.

- David

IMPORTANT: Changes for Year 2020

The Housekeeping

Let’s get the important notice out of the way first. I will be streamlining this email list for the new year 2020. What that means is that if you have not opened my emails for over 2 months, then it means it is just a nuisance to you. Even if you don’t want to admit that, I admit it.

If you continue to find my weekly musings interesting, I can see that from my own end. But after next week if you haven’t opened in over 2 months, I’ll remove you from the list. Of course, if you feel the need to get yourself plugged back in, you can join again. But by mid-2020, I will take on this exercise again.

It makes things better for both you and me.

Now to the week’s matter. Let’s get some perspectives about money.

Money! Money!! Money!!!

The school system was designed to keep poor people poor. They give us this erroneous idea that we have to work for money. This is the way slavery is structured in today’s world.

There is honor in work. Everybody should have work. But if you work to earn, you will always be behind the curve. The rich don’t work for money. So, what do the rich do?

  1. The rich ask for money

  2. The rich get money to start working for them

  3. The rich multiply money

Just in case you don’t know, the central banks can issue money out of thin air and credit the account of the top banks (of their respective countries). Now the banks are flush with cash, looking for who can multiply it in value-add.

In 2020, think differently about money. The money you want will not come and meet you where you are. You have to go to where it is. Every day, people that are not as smart as you walk into a bank and walk out with millions, tens of millions and hundreds of millions.

In 2020, you need to be proactive about the game of money. This is what we would be focusing on throughout the year.

For those who are occupied with the thought of starting a business or startup, calm your nerves down. This week I shared a piece on why startups fail. You should read it.

Business and money are two different games. But both enter into the world of the other. In 2020, get conscious about the money game.

For The Millionaire Pill,

2020: Year of the Money

- David

Loading more posts…