5 Keys to Building a Successful Business: Part 2
If you want to build your dream life, chances are good that you will need to build a business of your own in order to do it. Building a successful business in the United States is not a difficult thing to accomplish, if you know the formula. Once you know that, all you are required to do is plan according to the formula, work hard, and persevere. While I can’t do much to help you with the work itself, I do have the formula to share.
I came up with this winning formula about 5 years ago, after having researched the richest men in US History and their business models. Each of them had the same 5 distinct elements within their business models, more matter the industry, product line, or service. Since implementing these 5 key principals into my plan, my businesses, and my personal wealth, have continued to grow exponentially for me, and incorporating these keys into your business will do the same for you as well.
There are the five key principles to keep in mind as you work towards achieving your entrepreneurial dreams. In this 5 part series, I’ll detail out one of these principals for you each week for the next 5 weeks. Be sure to subscribe to my blog so that you don’t miss anything as it is released.
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See Part 1 Here
See Part 3 Here
2. The Law of Multiplied Effort:
The law of multiplied effort is a powerful concept that can help you achieve greater success in your business and personal life by allowing you to allocate additional resources toward a task in order to get more done with time you have available. This law states that when you focus your efforts on a specific task or goal, and then apply additional resources to that task, your results will be multiplied. In layman’s terms, 2 people can accomplish a task quicker than one can when they divide up the workload and each do their part of the overall task objective.
There are 2 Simple ways to Implement the Law of Multiplied Effort into your Business Strategy and Culture.
Multiplied Effort Option #1
One way is to hire more staff. When you have a team of people working together, each with their own set of skills and expertise, you can accomplish much more than you could on your own. This allows you to take on more clients, complete projects faster, and ultimately grow your business. Another way to look at it is doubling or cloning yourself and your output. For example, if you bust your rump all week but the very best you can ever seem to accomplish is 3 new sales per week, the answer isn’t to work additional hours or to work more days. The answer could be to hire 2 more workers and train them to do the same tasks you do each week. Now you are bringing in 9 sales per week, a 300% increase in revenue production, and you are doing it with the same amount of time that it takes you to bring in 3 sales on your own.
Traditionally, many starting entrepreneurs shrink away form hiring others because they worry about creating competitors by training someone how to do what they are doing, or they worry about paying them. The answer to creating a competitor is simple enough to solve by having the staff member sign a Non-Compete Agreement with an NDA rider attached to it. If you are worried about having to pay them you probably aren’t ready to hire yet. However, another option might be to hire them as an independent contractor.
My personal choice has always been to hire independent contractors, although I have had some W-2 employees over the years here and there. As the saying goes, “you eat what you kill”, and contractors understand that. As a result, I have found them to be hungrier and more eager in reaching for their targets so they can earn that paycheck.
Multiplied Effort Option #2
Another way to utilize the law of multiplied effort is by employing automation tools. By automating routine tasks such as email marketing, social media management, and customer service, you can free up your time to focus on more important tasks. This not only helps you accomplish more, but it also allows you to provide better service to your customers and grow your business more quickly. This direction is definitely the most difficult of the two options because it requires you to take additional time to learn and to build these automated systems so that you can put them to work for your business. Those whom are crunched for time, or for whom technology adoption is not a simple undertaking might want to avoid this in the beginning or hire someone who has both the time and technological skillset to accomplish it for you while you focus on your business.
If you would like to learn more about how to incorporate some tools into your business model that will help you automate and add multiplied effort without hiring more workers, check out Rocket Business Tools website. I use these tools for all of my businesses and they work really well together.
In addition to these strategies, there is a 3rd way to apply the law of multiplied effort to your business.
Partnering with other businesses to offer complementary services or products is a great way to boost your business, drive sales, and do less work for your time spent. Become an affiliate for a product or service that you know will benefit your customers and promote their product for a small piece of the pie, but without the time, or additional workload needed for fulfilling the order that you would normally incur.
As an example, I use this method all of the time when it comes to qualifying my new leads. As they move through my sales process, they are making a determination about whether my service offer is right for them. If it is not, I refer them to a competitor which is similar in nature to what they are looking for, and whos program might be a better match for them than my own. I’ll make a couple of bucks for sending them over there, but I have no skin in the game, and I earn more without increasing my work load or time at all. Ultimately, the key to success with the law of multiplied effort is to figure out which of these methods, or combination of these methods are right for your business, and then putting them into operation within your business as quickly as possible.
One of my recent students took this advice and ran with it just 3 months ago, taking his business from an annual revenue of around $30K to more than $400K projected by the end of this year. That’s an AMAZING INCREASE of 1,333%. With the right mindset and approach, you can accomplish more, grow your business, and build wealth more quickly and efficiently than ever before by incorporating the Law of Multiplied Effort into your business model.
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Check out our other business tool explainer posts from this series so far:
