The secret Formula that (every) BILLION-DOLLAR Business use!
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| This Formula will bring BILLIONS! |
The formula is.....
CENTS
Well, The CENTS formula stands for
C - Control
E - Entry
N - Need (Most Important)
T - Time
S - Scalability
You will definitely found that every 9/10 successful business use this Formula and the business that doesn't follow this FORMULA have 80% chance of failure. So, I'll explain these points one-by-one and please pay attention to the Need, I'll later tell why it is most important. So, Read the full article if you are really serious about your business.
Control
You need to have control upon your business or startup because if you get dependent on just one thing and platform/medium and if something unpredictable happens, then it could cost you millions or maybe billions. That's why you should have control upon your business as well as on your life too. For Example, If a seller sells things only on Amazon and gets dependent on it then it is not good for his business because in that case he gets dependent on Amazon and losing control over his business, but if he sells things in his own E-Commerce store or on different online stores then his business is upon his control and he will not cost him very damage if something unpredictable happens. Well, that's just an example and I think that you understand what I mean by that. This Commandment of Control teaches us that business if having control upon your business is more likely to grow than others and is more stable. Just don't get dependent on one thing because it could kill your business and then you'll have restart all over again which is totally annoying and frustrating. This rule applies to your life too because if you get dependent on just one man and a thing of your reputation, trust, believe etc and if something unpredictable happens then you are going to lose all of it in just one day! Many businesses just can't escape the Commandment of Control because they rely on something like Web Hosting, Investment, Domain which is not absolutely wrong because you can't buy Expensive servers for your website and can't run a business/startup without investors but you can diversify the control by giving small controls to others by diversifying them and not getting dependent on just one thing which is really good in many cases because it helps in Scalability of business by giving small controls to others and doing the main work by yourself! Many Big companies follow the Commandment of Control like Amazon don't get dependent on just one thing, it creates a Business Eco-System and Everyone in that system gets dependent on Amazon. Eco-system gives you control of your business and on others too...like in Amazon Sellers gets dependent on Customers and Customers gets dependent on Amazon and that's why creating systems are so powerful by creating your competitor your collaborator and gaining control over it by collaborating with your competitor by creating an Eco-system. Business control also means controlling your employees by using the stick in the right way which means that you should not be too hard or too soft to your employees because if you're too hard then they will get scared for involving in a project which gives bad outcome and if you become too soft then they will start to do stupid things and procrastinating work which also gives bad outcome, that's the reason why you should use the stick in a right way according to Chanakya who was a Great philosopher and a royal court advisor of ancient times and was very clever and he knows very important rules of business which also includes the Commandment of Control and I will make a blog upon his teaching on business soon.
Entry
This commandment says that how hard is it to others to replicate/copy your business. Are you creating Entry Barriers in your business? If not then you must! because by creating Barriers for your opponent makes it more difficult to copy and creates Barriers which reduces your competition and the lesser the competition the higher the rate of success. Monopolizing an Industry also creates a huge Barrier for others and in a monopoly, the only competition in the Industry is no one except you! That's the power of Monopoly and you should also need to monopolize a whole industry to make a very successful business like the Rockefeller who alone has a net worth of $336 Billion which makes him the second-richest man in the modern history and he also owns Trillion-Dollar Company! Yeah, not Billion it's Trillion! but later his company got divided into many BILLION-DOLLAR companies like ExxonMobil, Chevron and many more which are generating Billions in revenue nowadays. Rockefeller got this much success because he monopolized the whole oil industry and many big companies today got big by creating Entry Barriers and monopolizing a whole industry like Microsoft monopolized the Software industry, Google monopolized the search engine industry, Disney monopolized the film industry and many more...So, you'll need to create a Monopoly by putting Entry Barrier but remember that it's easy to build a monopoly but hard to stay on it! The more Barriers is for others, the better is for you because most of the people will not put a high amount of effort. You can do this by solving big problems which are very hard for others to copy like SpaceX solves big problems by landing rockets vertically and solving a big problem which is really very, very, very hard for others to copy! So, what do you think will be the next industry best to build a monopoly? Well, I think that it's the Space industry because of an outer Space rock worth $200 Billion alone! Yeah, and there are Quadrillions Trillions of Rocks in the space or maybe count it as Infinite! It means that the monopoly in space would be so powerful and strong that it can control the whole world! Well, if you want to know on about how to build a monopoly then you should watch this video because it's very helpful!
Need
Need is the most important commandment and that's why N is in the centre because this single reason is responsible for the failure for most of the startups and also responsible for the success for most of the startups! This commandment says that if you are solving burning problems of others by making their transportation, telecommunication, providing better service to others and many more...then your business is more likely to grow because many startups fail because they make things which no one actually needed, and if no one actually needed it then no one will want to buy the product but if you solve their problem then they will definitely use your product without any hesitation. Google solves your problem of confusion because whenever you get confused then you will go to Google just as like other big companies also do the same. Facebook ends loneliness, Youtube ends boringness, Microsoft makes it easy to use a computer because in old times computers were used only by Big corporations which were built by IBM but Microsoft made it possible for an average person to use computer also and solve the problem of Billions of people and that's why 99% of PC's runs windows(RIP mac!) but hey the fun part here is that people don't know that they even have a problem because after all people were still living happily without cars and that's the trick they don't even know that they are facing so many problems. Well, catch a huge mankind problem and make a solution of it and execute it as fast as possible because if you don't execute it fast then someone else will do it before you! But if you are doing Innovation then you should vertically not horizontally which means do something different like you need to create an industry which is needed also like for example when Travis found no cab at the right time when he sees that a very large number of people waits for TAXI and didn't find it at the right time and then he sees an opportunity and created UBER which has a valuation of $120 Billion which is very HUGE! Well, you see that in Uber's case people have a problem which they don't know about and is also needed but the problem is that every year people are bombarded with different types of problems and your business should put the problem at the highest and should be on the right time! Your innovation needs to move from 0 to 1 not 0 to N "What the frick is that?" Don't get confused 0 to 1 means that you offer something new and creative innovation like the invention of bulb but in 0 to N it's only about improvement and this type of success don't last for long because you know that Edison made the first light bulb and you know that Wright Brothers made the first flight because these people move from 0 to 1 but did you know who created tube light? or Fighter plane? because these people move from 0 to N which means improving something not creating something! Being first in the industry is a great opportunity because you know that Neil Armstrong was the Man to land on the moon but did you know who's the second? Well's that's the power of being to be the first to solve the problem of Millions of people!
Time
This commandment says that you shouldn't sell your time for the MONEY! because if you do then you are not following this commandment which could affect your business very badly because as I said earlier that all commandments are very, very, very important and even one of the commandment can make or destroy your business! If you do sell your time for money then it will affect you in the long run because if something unpredictable happens and you are not able to give time to your business then you will start to lose money because you are selling yours for money which would not let you scale your business. Make your business System dependent not people dependent because people dependent business don't become huge brands. For example, that there is a boy named BOB and he is a very good chef who makes burgers and he makes burgers even more delicious than big brands and decided to make his own restaurant and BOB's restaurant is profitable, he is earning a lot of bucks but his business is not scalable. BOB's business is dependent on BOB and he could not open another store because there is no other man which cooks more delicious burger than BOB and he could not work in two restaurants and he is so good at burger making that his hands have magic but he couldn't teach others to make the same quality of burgers he makes and that's why BOB's store got limited in just one store and didn't become a huge brand or franchisee like McDonald's because McDonald's is system dependent not people dependent and in BOB's case his business is people dependent and BOB is known for making the best burgers but McDonald's is known for selling over 100 Billion burgers worldwide not for making the best burgers because McDonald's knew that it can't get big by just burgers but by creating a system and you will find McDonald burger same taste everywhere because it is system dependent. I am not saying that McDonald's make bad burgers, they make awesome burgers in just 3 minutes which is outstanding and value for money also but they are big because of system, not because of some people. I think that you probably don't know who created McDonald's, his name is Ray Kroc and he always knew that you can't big by just burgers only! You get big by creating systems and he doesn't sell his time for money because he can't make 100 Billion Burgers! This shows us the power of commandment of Time. So, don't sell your TIME! Your time is precious so don't waste it, use it smartly by creating a system or process! Use your Time creatively because always remember that TIME is more valuable than money because you can earn money as much as you can but can't earn time. Time is limited!
Scalability
The last commandment but not least is about Business Expansion and scalability which is a very important topic for every business. As I mentioned above the story of BOB that his business is profitable but not scalable. Scalability means to replicate/copy and to sell it which is very easy for software companies because once their software is done then they could produce infinite copies of it but very hard for Restaurant because building another restaurant requires more capital, manpower, employees, Transportation, location etc which is really hard. Scalability is upon Business Orientation and many other things too...but creating a system is very important in business. Toyota which is the sixth biggest company by revenue once one of his brakes supplier factories got destroyed and do you know how much days did it take them to recover? Just 5 days because of their huge network which is scalable. Always scale your business when you retain customers and have Stability.
Scalability = Agility + Stability
Always scale your business whenever you have created stability and don't get stable for too long always show agility with stability makes scalability. Scalability is not by 10% to 20% where ever it is by 100% to 1000%, it is exponential, not additional. If you have only stability then you are going to fail and if you only have Agility without stability then also you are going to fail. You need to balance them both! Scalability is not profitability, these both are different topics, you need your business to be scalable and profitable!
Hey Guys, Share this to those your friends who want to do business also and don't forget to sub to keep getting notified of valuable knowledge.
Wish you Success!
Hey Guys, Share this to those your friends who want to do business also and don't forget to sub to keep getting notified of valuable knowledge.
Wish you Success!
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