Secrets Of
Male
Entrepreneurs
Exposed!
Featuring written material by * Jim Penman * Siimon Reynolds * Justin Herald * Joseph Chou * Brad Sugars * and many more
Dale Beaumont
With Brenton Tong & Foreword By Glenn Kiddel
Disclaimer
All the information, techniques, skills and concepts contained within this publication are of the nature of general comment only, and are not in any way recommended as individual advice. The intent is to offer a variety of information to provide a wider range of choices now and in the future, recognising that we all have widely diverse circumstances and viewpoints. Should any reader choose to make use of the information contained herein, this is their decision, and the contributors (and their companies), authors and publishers do not assume any responsibilities whatsoever under any conditions or circumstances. It is recommended that the reader obtain their own independent advice.
First Edition 2005
Reprinted 2006 (twice), 2007
Copyright © 2005 Dream Express International Pty Ltd
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission from the publisher.
National Library of Australia
Cataloguing-in-Publication entry:
Beaumont, Dale Tong, Brenton
Secrets of Male Entrepreneurs Exposed
ISBN 0-9757974-0-9
1. Business 2. Interviews – Australia 3. Beaumont, Dale I. Title
Published by Dream Express Publishing
A division of Dream Express International Pty Ltd
PO Box 567, Crows Nest, NSW 1585 Australia
Email: info@SecretsExposed.com.au
Website: www.SecretsExposed.com.au
Distributed in Australia by Gary Allen
For further information about orders:
Phone:+61 2 9725 2933
Email: customerservice@garyallen.com.au
Editing by Simone Tregeagle [simone@inkcommunications.com.au]
Cover design by Jay Beaumont [www.thecreativehouse.com]
Illustrations by Grant Tulloch [info@secretsexposed.com.au]
Smashwords Edition, License Notes
This ebook is licensed for your personal enjoyment only. This ebook may not be re-sold or given away to other people. If you would like to share this book with another person, please purchase an additional copy for each person you share it with. If you're reading this book and did not purchase it, or it was not purchased for your use only, then you should return to Smashwords.com and purchase your own copy. Thank you for respecting the hard work of this author.
To my amazing dad, for teaching me the value of hard work and showing me how to have a heart for people.
Dale Beaumont
To Amy for being there every step of the way, and to my parents for helping me to be all that I am.
Brenton Tong
Acknowledgments
As with any major project, there are a number of very special people who contributed to making this book happen, so we’d like to take a short moment to say ‘Thank You’.
First, to our fifteen amazing entrepreneurs featured in this book, the biggest THANK YOU for accepting our invitation to be a part of this exciting project. It has been a real honour and privilege to work with every one of you. We have learnt so much from you and we are certain that thousands more will be influenced by the stories and insights that you have shared.
Next, thanks to Jay Beaumont (Dale’s brother) for all your help with designing to book covers and to Craig Eve and Adam Davis for your support in building the ‘Secrets Exposed’ website. To Simone Tregeagle (from Ink Communications) our wonderful editor – thanks for your absolute belief in the vision for these books, and to Cheryl Jenkins and Armina Soemino for your many hours of proofreading.
Now to our great friends who helped us write the hundreds of different questions for each of the people featured in this book, and gave us feedback on how things could be improved. Brent Williams, Ryan Butler, Matthew Dillon, Bianca Costigan, Colin Fragar, Grant Lewers, Matti Brooks and Stuart Zadel – you guys are awesome!
And finally, to the unsung heroes of this book – the totally fantastic assistants of the entrepreneurs featured – Jodie Shaw, Dolores Diez, Leonie McNeil, Russell Hill, Lisa Shaw, Debbie Spellman, Ynez Ng, Billie Browning, Chantal Forsaith-Hams and Stan Jordon. A sincere thanks to each and every one of you for answering our many phone calls, replying to the dozens of emails and bringing it all together. Without your support this book would not have happened.
Praise for Secrets of Male Entrepreneurs Exposed
“I would have paid over a thousand dollars for the knowledge in this book. A great read!”
Peter Hedley – CEO Standford Management Institute
“This book should be read by everyone because it not only reveals the individual characteristics and personality types of highly successful entrepreneurs, but also shows the philosophies common to all: passion and persistence, courage and commitment. I have read many books in the entrepreneurial genre but this one stands out as one of the best!”
Tony Melvin – Managing Director Chan & Naylor Australia Pty Ltd
“This book captures the essence of what the entrepreneurial spirit is all about. Plus, it doesn’t just tell you what to do – it shows you through example, providing the motivation you need to take action.”
Louise Loveday – National Sales Manager, Café Culture Magazine
“As a former owner of a failed business, I found this book very practical and simple to understand. Thanks to this book, I know exactly what I’ll be doing differently next time.”
Paul Matulin – Audio Visual Technician
“I am totally in awe of what Dale has done to bring this book together. What I like most is that it really shows the human side of all the individual entrepreneurs and what, precisely, drove them to such great heights.”
Brent Williams – Managing Director, Tomorrow’s Youth International
Author and Youth Motivation Speaker
“Fantastic! I have read many of the books these entrepreneurs have written, but I have to say that reading Secrets of Male Entrepreneurs Exposed has answered some of the questions that I wished I could have asked them myself. Thank you Dale and Brenton for asking the questions you did.”
Daniel Turner – Multiple Business Owner
“This is a must-read for any aspiring entrepreneur. The real life stories are presented in a simple to read format that is both inspirational and educational.”
Terence Young – Director of Surprise In A Box Pty Ltd
“Secrets of Male Entrepreneurs Exposed is not only jam-packed with numerous practical ‘how to’ business tips, but it also reveals real insight into the phycology and inner workings of some of the greatest business builders.”
David Colella – IT Analyst
“I used to think that successful entrepreneurs were super-human. However, through reading this book I’ve discovered they are just ordinary people who made some simple decisions and stuck to them long enough to realise their dreams. A brilliant read, when’s the sequel?”
Adam Davis – Internet Marketing Consultant
“I can’t help but think how many years of ‘trial and error’ I’ve saved by reading this book. It is informative, insightful and inspirational. Everyone should make this part of their library.”
Aaron Artery – Business Owner
“A lot of books give you a whole lot of ‘what’! This book delivers a whole lot of ‘how’! In addition, I particularly liked the ideas on how to expand your business globally, as that is relevant to our business right now.”
Owen Matheson – National Sales Manager & Shareholder of IWT Pty Ltd
Contents
Preface
If I were in your position right now I’d be wondering if I really needed to read this section. However, if I could ask you to resist the temptation to skip ahead for just a few minutes, I’d like to share with you a few of the reasons why this book has been created and how you can use it to impact your life.
When I was growing up I heard somewhere that there are two ways to live your life: the first is through ‘trial and error’ and the second is through ‘other people’s experience’. At the time I dismissed it as just another one of those sayings that sounds good, but doesn’t make much sense. Then, like most teenagers I finished school with stars in my eyes thinking, ‘This is great! My education is over – no more books, no more lectures, no more people telling me what to do’. How wrong I was. After a few months of bouncing around, not quite sure of what to do next, I stumbled across the idea of personal development and started to hear concepts such as:
• Formal education will earn you a living, but self-education will make you a fortune.
• Work harder on yourself than you do on your job.
• You will be the same person five years from now, except for the people you meet and the books you read.
• Don’t wish that your job were easier, wish that you were better.
• You are your own greatest asset, so you must invest in yourself.
Since November 2000, I have been totally committed to becoming my own most valuable asset. After attending hundreds of seminars, listening to thousands of hours of CDs and reading shelves of books, I have discovered that the people who truly succeed aren’t any smarter, better looking or harder working than anyone else – they just think differently and have learnt to incorporate different values into their lives.
I am now in the very fortunate position of being able to travel internationally to present personal development seminars to teenagers and I am often asked, ‘What is the one thing you need to know to be successful?’ My answer is always the same: ‘The one thing that you need to know is that there is not one thing that you need to know to be successful’. I’ve learnt that success is multifaceted and that mastering one principle of success or area of your life isn’t going to take you to the top – the more you master, the more successful you will become. But if I did have to identify one of the most important success strategies, it would be this: ‘Find out what successful people do and do the same thing until you get the same results’.
That’s what this book is all about. The only difference is, instead of you going out and finding successful people, we’ve brought them to you.
You see, whatever you want in life, whatever you are shooting for, chances are that someone else is already living it. They have already invested years of their life and probably hundreds of thousands of dollars, they’ve made lots of mistakes, learnt from them and eventually succeeded. So why would you want to waste your own time, money and effort through ‘trial and error’ when you can fast-track your success by learning from ‘someone else’s experience’? As Sir Isaac Newton said, ‘If I have seen further it is because I have been standing on the shoulders of giants’.
Every time you pick up a book, attend a seminar or interview a successful person, you are compressing years of life experience into a few hours. With any of the ‘Secrets Exposed’ books, you can multiply that by between twelve and sixteen people and you’re looking at around 250+ years of experience and wisdom ready and waiting for you. It won’t prevent you from making mistakes of your own, far from it, but it will help you to make more calculated and purposeful decisions, rather than big, misguided and ignorant ones.
There is no shortage of information about how to achieve proficiency or even greatness in any area of life these days. Go to any bookstore or library and you’ll find the shelves sagging with titles from experts, all with their own theories and ways of doing things. But what I have discovered is lacking in almost all of these books is INSPIRATION. What’s missing is role models and mentors – the stories of people we can all look up to. People who started out exactly like you – with a dream in their hearts and with all the same fears and insecurities. Given the choice between reading a textbook or a dozen success stories about people who have actually done something, I’d take the success stories any day of the week. I’m not saying that theoretical information isn’t important, of course it is, but having presented hundreds of talks to all different types of audiences, I can confidently say that it’s always the stories that move people. It’s the whole, “If he or she did it, then so can I” that gets inside people’s hearts. When we’re inspired we get motivated and then we take positive action which leads to results.
The ‘Secrets Exposed’ books are not intended to be a one-stop-shop. They are an introduction to the wealth of knowledge available to you and to some of the real success stories of people who have reached the top in their chosen field of endeavour. That’s why at the back of each book you will find most of the contributors’ contact details and some of their other products and services that are available to help you continue your journey.
So, how did the whole idea for the ‘Secrets Exposed’ books come about?
Well, in 1998, when I was around seventeen, my nan gave me a copy of a book titled Collective Wisdom, by Brett Kelly. In it were transcripts of face-to-face interviews with a whole lot of prominent Australian personalities. And it was a fantastic read. Since then I have seen a handful of random ‘success story’ books, but the challenge I find with most of them is that they are either transcripts of interviews, that never really make complete sense in the printed form, or they are written by writers who paraphrase someone else’s story. The result tends to be a diluted message that doesn’t really allow you to get a sense of the individual’s personality or character.
In around 2001 I read my first Chicken Soup for the Soul book and realised that there were dozens and dozens of related titles designed to meet the needs of different people’s areas of interest. I thought that was pretty neat.
It wasn’t until January 2004 that the ‘Secrets Exposed’ idea boiled over. I was in my hotel room in Singapore relaxing after six straight days of presenting to hundreds of teenagers. I was reflecting on the ideas that had been shared with them. One of the most important was to seek out those who have already achieved what you want and ask them lots of questions. I was plagued by the thought that only a small percentage would act on that very valuable advice and that most would never take the step due to a lack of confidence, fear of rejection or an inability to contact the people they needed.
That’s when it hit me... ‘What if I could find the people and put together a number of books covering a range of different areas?’ I knew it would take a lot of effort, so for the next three days, I sat in my hotel room and developed the basis of an entire system to make it happen.
Based on my experience with other books, I decided that these books had to be non-time specific and be written (not spoken) by the people themselves. This way the answers would be planned and well thought-out, providing richer content and more interesting reading. I also wanted to make sure that there was an even balance between practical ‘how to’ information and inspirational stories that gave an insight into the highs and lows of people’s real journeys. I also wanted to ensure that a percentage of every book sold was donated to a charity relating to the nature of that particular book.
When I arrived home I got into action. However, between working out of a tiny one-bedroom flat and trying to manage two other demanding businesses, my plans were a little slow in the beginning and I had to be resourceful. So I bought a plastic tub and turned the boot of my car into a mobile office! Anytime I could find a spare hour or two, I’d park myself at the gym or a nearby coffee shop and make calls from my mobile phone.
Putting these books together has been both time-consuming and demanding, but it has also been a real privilege for me to have the opportunity to work with each of the people involved in the various books. Thank you, to each of you, for making it possible!
Well, I think you’ve heard enough from me. Now it’s time for you to discover for yourself the wonderful wisdom contained in these pages. I hope that you enjoy the read as much as we’ve enjoyed putting it together. And who knows, maybe one day we will be reading your story?
Dream Big!
Dale Beaumont
Creator of the ‘Secrets Exposed’ Series
Sydney, Australia
DOWNLOAD YOUR FREE AUDIO GIFT
Exclusive to readers of the ‘Secrets Exposed’ series...
In this 1 hour 43 minute recorded interview, author Dale Beaumont intimately shares the inner workings of the ‘Secrets Exposed’ series. Discover in greater details how he came up with the idea, how he managed to secure personal interviews with over 200 of the countries most successful people and what he believes are some of the most important business and life principles from each of the books in the series.
Simply visit the web page below and follow the directions to listen to or download the entire interview direct to your Notebook or PC.
Foreword
I was both honoured and humbled when asked to write the foreword for this book; I only wish it had been available when I first started out seven years ago.
By reading about each entrepreneur’s personal journey and becoming absorbed in their unique successes, failures, obstacles and problem-solving techniques you could (or should) be saying to yourself, ‘That’s me’, and picturing yourself in their situation and wondering how you would respond.
Secrets of Male Entrepreneurs Exposed is an ‘open window’ into successful entrepreneurs’ thoughts and experiences. It contains advice from which all budding entrepreneurs (regardless of age, education or gender) can source inspiration and motivation.
Some of the entrepreneurs profiled, including myself, are still growing, learning and making mistakes, as well as finding new and bigger challenges. There will always be new ground to cover and conquer no matter how successful you become!
Who better to lead you on your own journey than people who have already taken the path and can show you the short cuts, potholes and right and wrong turns at every crossroad?
Regardless of where you are on your journey, indeed you may not have even started yet, this book is highly informative, enjoyable and is a fascinating read. It is not always about the end result and how much money is made or success achieved, it is also about the journey itself and the people we become en route through the lessons we learn and the friends we make.
Is this book for you? Are you a future successful entrepreneur? Are you always thinking of ideas, solutions, business opportunities, inventions, wanting to make a difference, to be your own boss, to be in control of your own destiny, seeking freedom of choice, embracing your creativity, daring to dream, with a burning desire to succeed?
If you answered ‘yes’, then this is the book for you!
Glenn Kiddell
Co-Founder and owner VitaMan
Introduction
A number of recent surveys have revealed that more people desire to own their own businesses than their own homes! In a country such as Australia, where home ownership is such a large part of the cultural dream, this is an amazing finding.
What’s behind this phenomenon? Perhaps people are becoming more concerned with decreasing security in the job market. Maybe it’s the feeling of satisfaction that comes from being in direct control of your destiny and knowing that ‘what you get back’ is directly proportional to what you put in. Or, perhaps it is the desire to make more money. Business remains the only way to rapidly generate ultra-wealth, and with globalisation and the new economy, it is not uncommon to see young entrepreneurs go from a start-up to multi-million dollar market capitalisation within months – not years or decades! Whatever is behind this phenomenon, it’s a growing trend!
However, the high failure rate of new business ventures means that many start up business owners will not be around long enough to experience the benefits their business brings. That’s where this book can help.
But before we get there, consider this. A major Australian financial institution conducted a study a few years ago which showed that business owners who attend just one seminar or training course per year significantly increase their chances of business success. So significantly in fact, that just one seminar or course in a twelve-month period equates to a 70 per cent improvement in the likelihood of business success! The catch is that most new business owners are far too busy building their businesses to spend valuable time attending seminars or courses.
Which brings us back to this book!
The same amazing results can be achieved by reading business books which examine and analyse the philosophies, attitudes and practices of highly successful business people.
Now that you know you’re on the right path, let’s take a look at what the wealthiest business people all have in common – and we’re not talking about those lucky enough to have had their business empires handed to them through inheritance. We’re talking about those people who have built their business wealth themselves.
What these people have in common is that they have all devoted time and energy to learning the secrets and skills of other successful entrepreneurs. Despite the fact that there are a handful of universities and private institutions that offer classes in business, and even degrees in ‘entrepreneurship’, the overwhelming majority of business leaders attribute their success to what they have learnt from other business leaders!
That’s why we decided to write this book. To examine Australasian entrepreneurs, up-close and personal, and discover what they are really like, how they think and what specific behaviours bred their success.
By reading this book you will discover what’s behind the success of fifteen male entrepreneurs, representing a cross-section of ages, cultural backgrounds, education, industries and business size – our entrepreneurs run businesses ranging from $1.5 million annual turnover right up to $200 million. We discuss their different business philosophies and approaches to business planning, product creation, capital raising, sales and marketing, finance, branding, leadership, franchising, licensing, international expansion, public listing and much, much more.
This unique package of fifteen entrepreneurial viewpoints represents a true reflection of the multifaceted mindset of today’s entrepreneur, and it is information that will not only empower you, but also equip you to shape your own personal and professional goals and develop your business ‘game plan’. Whether you’re a multi-millionaire looking to achieve more, or the new kid on the block just getting started, you’ll find hundreds of great insights and concepts.
As good as the insights in this book are though, it is by no means a one-stop-shop. We all know that lasting success, in any area of life, needs consistent commitment and we encourage you to seek further knowledge and insight. That’s why at the back of the book we have included the websites of every contributor, where you will discover many have their own books and educational materials. We strongly endorse these and encourage you to investigate further.
A number of contributors have also very generously offered valuable gifts to all of our readers. To receive them, all you need to do is visit our website, follow the steps and download the bonus gifts – absolutely free.
It’s what you do after you read this book that is going to determine its real value to you. So, go out there, apply what you’ve learnt and when you reach a goal – no matter how big or small – let us know so we can share your success story.
Enjoy!
Dale Beaumont and Brenton Tong
Email: info@SecretsExposed.com.au
PS. Ten per cent of the profits from this book will be donated to The Fred Hollows Foundation, a non-profit, community-based aid organisation that is dedicated to restoring sight and preventing blindness. The Fred Hollows Foundation has already helped one million people across Asia, Africa and the Pacific to see again, but there is still a long way to go and every dollar donated is another life saved. For more information or to donate directly, please visit www.hollows.org.
Get Into Action
Brad Sugars
“I have had partners take my money, senior employees hold us to ransom, legal fights and people slinging mud at me in the media... if you can overcome the challenges that are thrown at you, then you are going to be a success.”
Profile
Brad Sugars
Brad Sugars was born in Brisbane in 1971 and has lived all over Australia and in the USA. He obtained a Bachelor of Business degree (majoring in accounting) from the Queensland University of Technology, but according to Brad, it is his life experience rather than his academic qualifications that has led him to become a successful entrepreneur.
Brad has been in business for himself almost all of his working life – he has either owned, or been involved in, more than 30 different businesses, including magazine publishing, pizza manufacturing and dog food. He is the founder of Action International Business Coaching – the 39th top global franchise, number one business services franchise and the world’s sixteenth fastest growing franchise. Action operates in nineteen countries and has business coaches in more than 700 offices.
Brad is the author of fifteen business books, including four international best-sellers, he has taught more than 480,000 people how to create business, property and financial success, appeared in dozens of magazines and on radio shows all around the world and was voted the ninth most respected entrepreneur in the world by readers of Espy Magazine – The Entrepreneur’s Bible. Brad was also featured on the ABC TV special Selling Success which followed the progress of some of his students over twelve months and proved his abilities as a business coach.
Brad is also a major philanthropist; he is chairman of the Queensland Tent of the Variety Club and donates hundreds of thousands of dollars to charities each year, including Father Chris Riley’s Youth Off The Streets program.
Brad is a proud husband and father of two and is in his own words, ‘a very average golfer’.
When did you and your family first realise that you had an entrepreneurial flair?
When I was seven, my dad caught me selling my Christmas presents to my brothers, so I guess he knew around about then that I was going to be different! By the time I was eight years old, I had worked out that you shouldn’t sell anything that you can rent – that way you get to keep the present and also get paid over and over again. Apart from that I was a fairly normal kid. Money was never really the focus for me but having fun was. I played a lot of team sports including rugby league, Aussie rules and cricket.
Is it true that after leaving school you had more than 30 different part-time and full-time jobs within a three-year period? Why did you choose to do this and what did you learn from the experience?
Yes, that’s basically true. I was at university studying accounting, which only took twenty hours or so a week, so I worked. I went through 30 different jobs in order to find out what I liked and what I didn’t like. One of the most important things about work is to have a passion for what you do. Too many people have no passion for life simply because of their jobs, it’s important to be able to look forward to going to work.
What I learnt over the years is that I am ultimately unemployable, which sparked my entrepreneurial interests and gave me the incentive to start my own business. Every job and every boss taught me something. The lessons weren’t always about the right things to do in business, I also learnt a lot about what not to do, or what doesn’t work well. If you’re a learner and you look for the lessons in life, then every situation offers you something to grow from.
“Sometimes the biggest threats or challenges can turn into blessings.”
The best thing that ever happened to me was that no accounting firm wanted to employ me straight out of university because my grades were average. If they had, I might still be an accountant today.
In the beginning, what were some of the business skills you were lacking, and what did you do about it?
Early on I had the attitude but lacked just about all of the skills needed to be successful in business; I made up for it with hard work and ‘street smarts’. To fill my knowledge gap, I decided to read everything that I could. I have read about 928 books and I definitely won’t stop there. I also went to every business seminar I could find and I bought tapes and listened to people who were successful in their fields. I found this easy to do because I was young, but what I have observed is that as people get older they assume they should know what to do and are too embarrassed to ask questions. In the long run it is more embarrassing to try and do something that you can’t do; people need to learn to ask questions. Books are probably my highest recommendation. I believe you should visit a bookstore every week, something will always jump out at you, so read it.
The number one investment you can make in life is education – both your own and your family’s. It will pay you back for the rest of time.
What made you decide to start your current business?
In 1993, after consulting with one of his local promoters, I was asked by Robert Kiyosaki to teach marketing at his business school for entrepreneurs in Hawaii. From this experience I discovered a love of teaching and went on to build my own seminar company teaching business courses. Soon enough, we wanted to continue our overseas expansion and we found that we needed to overcome distance, language and cultural differences; the answer to achieving this was franchising.
Franchising also helped me to overcome one of the biggest challenges I was facing in my business. When I first started in business coaching I employed all of the coaches myself, and of course several left and went into competition with me. With the laws being the way they are, I was unable to stop them. Sometimes the biggest threats or challenges can turn into blessings. This experience led me to go into franchising rather than become bitter about the fact that I was losing my employees.
Why did you call your company Action International and what does it do?
‘Action’ is what it’s all about. Many people know what to do but the successful people are the ones who are actually doing it. ‘International’ because I had faith from day one that we would eventually be global. Today Action International is essentially a business coaching company. My coaches work one-on-one with business owners teaching them how to improve their sales, marketing, team building, systems and management. We do this through a simple six-step formula, using a tool box of 282 profit building strategies and much more.
I started in 1993 and today Action International is still number one, with more than 620 coaches in eighteen countries and climbing rapidly. For the past two years we have been listed in the world’s top 100 franchises and we are ranked number one among business consulting franchises. We have about 200 offices in Australasia and more than 700 offices in the 20 countries we operate in.
For the first four years, Action was a seminar company but there was no leverage in that because I had to be on stage all of the time and I was on the road for more than 200 days a year. For intellectual property protection and international growth we chose franchising and it’s been the best decision I ever made. I think the other very important factor in franchising is profit margin, and that’s where a service business stands head and shoulders above the rest.
Why would someone consider using a business coach?
The top three reasons why someone would use a business coach are:
1. Team problems – If you have staffing problems a business coach can assist you in finding solutions to recruit, train and keep good people.
2. Time problems – If you work too many hours or if the business would collapse without you in it, a business coach can help you to find ways to leverage yourself out of your business and to implement systems so that it can run like clockwork without you.
3. Financial problems – If you need to find ways to boost your revenues, raise capital for projects and/or increase your bottom line, then a business coach can help to find cost-saving or profit-increasing solutions to integrate into your business’s financial plan.
Most business owners realise pretty quickly that because they don’t have anyone pushing them they tend to slack off a bit, so with an Action International coach, two things happen – they finally have someone to hold them accountable and they have someone with the knowledge base to help them grow in the areas they need to grow.
You say that there are only five ways to grow a business. What are they?
That’s right. Most people who come to one of our Action coaches generally want three things – more customers, increased turnover and higher profits. However, you can’t change those things on their own because they are simply the result of other factors in the formula.
So here are the five ways to grow a business:
1. LEADS
(prospects or potential customers)
×
2. CONVERSION RATES
(the difference between those that could have bought and those that did)
=
CUSTOMERS
(the number of different customers you deal with)
×
3. NUMBER OF TRANSACTIONS
(the average number of times each customer bought from you that year)
×
4. AVERAGE DOLLAR SALE PRICE
(the average price of the item you sell)
=
TOTAL REVENUE
(the total sales of the business)
×
5. MARGINS
(the percentage of each sale that is profit)
=
PROFIT
(something every business owner wants more of)
It’s important that you work at improving each of these five areas simultaneously. If you don’t, it’s a bit like going to the gym and only working the muscles in your right arm for one month, then the muscles in your left leg for the next month. It doesn’t make any sense.
“Go on, apply the above formula with a few basic numbers and see for yourself!”
In my book Instant Cashflow, I share a whole bunch of ways to dramatically increase each of the five areas mentioned. The exciting thing to realise is, because of the multiplier factor, by simply achieving a ten per cent increase in each of the five variables, we get a 46 per cent increase in the total revenues and a whopping 61 per cent increase in profit. Go on, apply the above formula with a few basic numbers and see for yourself!
At one point in time you had one of the fastest growing franchises in the world. What were the key ingredients to making that business grow so rapidly?
This year we were ranked as the sixteenth fastest growing franchise on the planet by Entrepreneur Magazine. I believe this is due to four factors:
1. In handling growth, we were decisive and had strong leadership.
2. There are good people on the team, especially the sales and marketing teams.
3. We have a great product or service to sell.
4. We have created ‘raving fans’, so our customers and our franchisees do our selling for us.
On top of that, it’s about realising that there are more people in other parts of the world, so don’t restrict yourself by geography. Too many companies, particularly in Australia, restrict themselves geographically. We have a firm policy of global expansion and aim to add four countries a year to our trading region. This alone allows for massive growth and with franchising, the working capital comes with the new franchisees.
We also have very strong viral or organic growth within the regions that we already trade. We had strong growth in the first three years, with twenty to 40 per cent growth each year after that in our existing regions. When you couple this with international expansion, you quickly see how the two multiply to give years of solid growth both now and into the future.
What do you think are some of the major benefits of having your own business?
I am so passionate about business that I could easily write a whole book on this question alone. These are some of what I consider to be the most important benefits of business ownership.
• It’s the only vehicle to create serious cash flow. How much money would you need invested in the share market (at say ten per cent growth) to cover all of your family’s lifestyle expenses? At least one or two million, right! How long would it take you to save that amount of money? Even with real estate, you would need to own a dozen or so properties outright, which will probably take ten to twenty years to build up. However, with business, provided that you have a strong desire and some street smarts, it is possible to create an asset which produces ten to fifteen thousand per month in cash flow, in a year or two. Then you can leverage yourself out of that operation and repeat it again with another business. To me that’s accelerated wealth.
• With your own business you are in the driver’s seat. You are the one that is in control of decision making and the leadership of your team, which gives you the satisfaction and peace of mind of knowing that whatever you put into the business, is whatever you are going to get out of it. Plus, you are working every day to make yourself rich, rather than to make the boss rich.
• Business gives you the ability to buy back your most valuable asset: time. A wise friend once said, ‘Once you’ve spent your money you can just keep making more, but once you’ve spent your time it’s gone forever’. Business allows you to put together systems and then employ and train a team to do the work for you. That way you don’t have to physically show up in order to keep the business running, instead you can spend time travelling or with your family. Of course if you love showing up you can, but it’s good to have the choice.
• A little bit of knowledge in business goes a long way. I’ve found that it doesn’t take much to out-perform your competition in business. Like it or not, most business owners do a poor job of running their businesses, so you only need to do some basic common sense things to totally win in the minds of your customers.
• Where else can you get all of the tax benefits that business ownership brings? Of course tax systems vary around the world, but in general they’re selfishly structured in such a way as to favour the people that have their own businesses. From the government’s perspective, why would you want to deter the goose that lays the golden eggs?
• Most importantly to me, it’s fun. I love playing the game. I love the challenge of marketing, team building, sales, accounting and cash flow management. I love the fact that I get to deal with so many different things. If you haven’t already, you’ll fall in love with it too when you see the results it can get for you.
You made a lot of money in your early twenties but lost it all shortly thereafter. What went wrong and what did you do to make it back again?
The biggest mistake that I ever made was taking on partners who enjoyed my money more than I did. I lost money through poor judgement and by allowing others to manage and control my finances. That’s life, and we move on. I still had the knowledge of how I made it the first time, so I went back into business with a strong conviction to avoid making the same mistakes again. What I learnt is that partnerships don’t work long term, but also that tight monetary controls are paramount to success.
To make a distinction here, shareholders are different to partners. It’s okay to have people who fund the business and retain equity, they provide capital because they want a return on their investment but they don’t work in the business like partners generally do. Shareholders understand their place and are less likely to do damage to the success of your business.
Why do you say that the key to business success is laziness?
Understand that business isn’t about working hard, it’s about employing people who work hard for you. Yes, you have to work hard to initially set it up, but the aim of business is to have the work done profitably by someone else and as the owner of the business your aim should be to do yourself out of a job. This is known as ‘leverage’. Your job is to think – to search out new opportunities and add value to the company. Your team’s job is to run the business and grow it.
My definition of a real business is a ‘commercial, profitable enterprise that works without me.’ It’s funny how when I teach people this definition they are usually taken aback for a few seconds and then it’s like, well yes, I guess you’re right.
There are several elements within this definition. A ‘commercial enterprise’ comes first, that’s one in which you can reliably and productively deliver what you sell. Most companies we coach have to go back and start at this level to remove customer complaints, bottlenecks and so on, so that the basics of the company are running right. It still amazes me how many companies don’t even know what their break-even is on a day-to-day basis. We also put a very big focus on making sure that profit margins are solid right up front in coaching.
The next element to add is the ‘profitable’ part. That’s where you learn to market and sell what you deliver. Here we find that most business owners use only two or three ways of getting new customers and even fewer ways of getting them back or having existing customers spend more money. Getting business owners to focus on their conversion rate from prospect to sale is a massive area for growth.
“It still amazes me how many companies don’t even know what their break-even is on a day-to-day basis.”
Then, it’s about systems to make it all work, a system is simply a documented way of doing something. Systemising everything from employment to customer service is all about having it recorded and documented. You can write it down, film it, photograph it, or record it any way that you like, what’s important is that you have a documented way of doing things.
The last stage is the team building to make it work without the owner. Team building and leadership go hand-in-hand, but teaching it to business owners is often a challenge. On the surface it’s pretty simple, but as you get into it, you begin to realise the complexities.
At the age of 26 you were in a position where you could retire financially, why did you choose to go back into the world of business?
In short, I failed at retirement. I was bored, I became irritable and I realised that the reason I had worked so hard before wasn’t the money, it was because I enjoyed it. I love the game of business. Business is about people and systems working together, and keeping the balance between the two is always a challenge. Too much systems orientation and you lose customers because they feel you don’t care about them. Too much people orientation and you lose customers because you can’t deliver on what they order. Business is one of the most creative and challenging games you can play. However, you must remember that it is just a game, so learn the rules, play hard and have fun.
What I love now is the fact that I have choices. For example, I have the choice of going to work or not, the choice of working with my IT team one day, in marketing the next or with my CEO making the big deals. That’s why I went back into the world of business initially. Nowadays, with my wife and two young kids, I have more important things to do so I work very little.
Why do you think so many small businesses fail in this country?
Put plainly and simply, it’s a lack of knowledge. Just because you’re a good hairdresser, accountant or florist doesn’t mean that you have any idea about how to run a business that does or sells those things. The ‘official’ reasons for business failures are often red tape or a lack of capital, but in my experience, after working with hundreds of thousands of business owners, it’s simply a lack of knowledge. The problem is that most people find an excuse or someone else to blame for their lack of success. It’s easier to blame economic conditions or the government than it is to truly take responsibility for the fact that you failed. It’s my belief that you never fail – unless you fail to learn the lesson.
The other most common mistake that new business owners make is starting a business from scratch doing the work they know how to do. For example, a plumber starts a plumbing business and fixes pipes all day but never actually tries to build the business. Most people buy themselves a job rather than viewing a business as an investment where it’s not only the income but also the capital value that you want to build. The salary you can pay yourself is important, but ultimately you’ve got to remember that you’re building a business with one purpose only – that is, to eventually sell it or leverage yourself out of it while the profit still comes in.
What do you think are some of the essential characteristics of a successful entrepreneur?
In short, I believe the most essential quality of a successful entrepreneur is to have ‘balls’. In other words, they have to have the confidence to take a leap into the world of risk in order to achieve their dreams. While I’m thinking about it, here are a few other points I think will be useful:
“Business is one of the most creative and challenging games you can play.”
The great idea – The great idea doesn’t have to be a great product or service, just a great way to deliver it. You could be selling black socks, you just need to do it better and in a different way to everyone else. Differentiation is the key to a successful business because people take notice when things are done in a unique way to what the rest of the market is currently doing.
The great people – This is by far the most important ingredient. A great jockey can get an average horse to win, but an average jockey can stop even a great horse from having any chance of success. The people you surround yourself with are a reflection of the amount of success you will have. And the last thing you need is...
A little bit of money – If you can’t run at a profit from day one, then things are going to be tough later on. The only reason you should need extra capital is for fast expansion. So make informed decisions and borrow from people whom you trust, if need be.
I have had plenty of challenges in dealing with all of these things. I have suffered a lack of cash, a lack of good people and a lack of knowledge. I have had partners take my money, senior employees hold us to ransom, legal fights and people slinging mud at me in the media. But when it all comes down to it, I can go home and my family is there waiting for me. At that point, I realise that it’s all worth it. At the end of the day, if you can overcome the challenges that are thrown at you, then you are going to be a success.
If anyone can succeed in business no matter what their background or circumstances, what do you think holds people back from becoming successful entrepreneurs?
I think that what holds people back is fear, lack of desire and lack of knowledge. Most often, people have no big reason to be a success, only a big reason to stay safe. What sets successful entrepreneurs apart is that they feel the fear, and do it anyway. Business can be a scary world to be playing in and there were lots of times when I wanted to give up. The fact that you just have to keep going gets you through. For me, there’s no allowing myself to throw in the towel, it’s just not who I am.
Also tenacity with flexibility is key to success. Some people use the saying, ‘If at first you don’t succeed try and try again’. But remember that you need to try it a different way, not just the same way over and over again.
The best time to begin is today. The longer you wait the harder it will get – not because it’s too late but because you’re too safe in your old ways and you feel comfortable. Only your lack of knowledge holds you back, so start learning.
What are the most important things you have learnt about succeeding in business?
An important thing about business is that those who say it can’t be done will never try, but those who at least try will learn something new. People overestimate what they can achieve in a year but underestimate what they can achieve in ten. They need to stop wishing that their lives were easier and start wishing that they were better. Those who keep learning and growing have businesses that keep growing with them.
Essentially in today’s business world everything is about handling change – it will either happen to you, or preferably, you will make it happen. Too many people live reactive lives and they often live in fear because they don’t know what’s going to happen to them next. Be proactive and know what’s going to happen because you’re the one making it happen.
You say that everyone is ultimately in the business of marketing and selling’, how can aspiring entrepreneurs learn to become better at sales?
To me marketing is maths. If it boosts the bottom line, it’s great marketing. I became a great marketer through understanding, testing and measuring.
“You run an ad, count the responses, see if it made a profit and if it did, run it again.”
You run an ad, count the responses, see if it made a profit and if it did, run it again. There is no mystery to it just a basic science behind it. Marketing is about buying clients for the cheapest possible price (decreasing their acquisition cost) and then working with them to get them buying more from you over a long period of time (increasing their lifetime value). Too many companies look to make a profit on the products or services they provide whereas I look to make a profit on every customer I deal with. People talk about being customer-centric, but most companies are not, they’re product or service centric.
You can become better at sales and marketing in the same way that you learn anything – find someone who’s better at it than you and copy them. That could be from a book, a seminar, a colleague, or wherever. Always remember that sales is a numbers game, the more numbers you do, the more customers that buy. Remember, business is about making money, not making products or services, and the only way we make money is by selling something.
What advice would you give to an aspiring entrepreneur who wants to get started in a business of his or her own?
Tap into any knowledge that you can. Read my books, read other people’s books, listen to tapes and CDs, go to seminars and invest as much as you can in yourself before you invest in your own business. This shouldn’t go on for too long though, your apprenticeship for your own business (which is having a job) shouldn’t last for more than five years or so. If you treat your first few jobs as an apprenticeship for running your own business in the future, you’ll realise that it’s important to have several different jobs and to choose jobs based not on what you will earn but on what you will learn.
When it comes time to start your own business, you shouldn’t think of your first business as needing to be something that you want to do for the rest of your life – start looking for a business in which you can learn. Your first one, two or even five companies will be training for when you ultimately find a great opportunity, one that you can take to a global level. Don’t try to make the first one perfect, just start somewhere.
As a suggestion, look in the ‘Business for Sale’ section and find someone who is desperate to get out. Don’t decide on your first deal let your first deal decide on you. Negotiate hard, buy yourself a great deal, then fix the business. You need to learn the lessons while you are doing it, so your first business can be the scene of many mistakes. But when you know that you can survive the first, you’ll have the knowledge and experience to survive many more.
What are your top tips for becoming a great entrepreneur?
1. Your jobs should be an apprenticeship for having your own business. You should endeavour to learn as much as you can from each job that you undertake in order to fuel the knowledge that you can use in your own business. By viewing your jobs in this way, you won’t get stuck in the rat-race rut like everyone else.
2. Knowledge growth equals profit growth. The more you invest in yourself and in seminars, books, tapes and CDs, the more you will know about producing positive cash flow in your business.
3. You must have a good business coach. When you have the advice of people who have already made the mistakes and proven successful, then you have a blueprint to help you avoid those mistakes.
4. Do the work once and get paid for it forever; that’s leverage.
5. Work harder, faster and longer than anyone else you know, do more, be more and make bigger opportunities for yourself. In other words, bite off more than you can chew and chew like crazy.
6. Test and measure everything. You cannot manage what you do not measure. When you measure things, make sure you have certain quality control levers in order to accurately see if you are staying on track.
7. There is a lot of advice in my books for aspiring entrepreneurs and I would recommend them to anyone who is serious.
If you had to start again with nothing, what would you do?
When I started I was young and naïve. In some ways that punished me, but in others it was a blessing. I would try things that others thought couldn’t be done and I would make things happen. Unfortunately, I also made a lot of mistakes and several times I did have to start over again with nothing. However, this gave me the benefit of learning and if there’s ever a good time in your business life to lose a lot of money, it’s at the beginning.
If I had to start again with nothing, I would first learn everything I could from my mistakes so that I didn’t repeat them, and then I’d move on, it’s important to not dwell on the past. Even if you lose your money and do have to start again, you still have your knowledge and that’s the important part. Perhaps even more importantly, you’d also have more contacts. Understand this, everyone starts with nothing – no money, no knowledge, no contacts. If you only lose the money, you still have the other two to rely on. Most people believe that money is the be-all and end-all of business. It’s not. If you started a business with money but no skills or people to support you, you would have a very slim chance of success.
What do you see as the major business opportunities over the next ten to twenty years?
Major opportunities will be there, the same as always; find the gold rush and sell pans. With that said, intellectual property is my specialty, so I guess I would have to look there. Leisure is getting bigger and bigger, there is always going to be a big need for distribution. Health is, and will continue to be huge, and of course there will always be a high demand for the fundamentals, that is all the day-to-day necessities. The fact is that there are opportunities in everything we do. This is because successful businesses are about more than just the product or service, in fact you could almost say that it doesn’t matter what you’re selling, it’s the business model that’s important.