What to think about in business

I look at businesses because people ask me too. They say, why is my business not working? People have to understand what they are asking for. Invariably they are looking for improvement.

Answer – Rules are Rules

• Number #1 rule: the definition of improvement is ‘a change for the better’ and therefore without change there can be no improvement
• We live in a meritocracy – winners win; losers don’t
• The money system is a provision within that meritocracy and really creates it.
• There is only so much money in the system and if you have more of it than the person next to you then you are richer than them
• To get more money means you have to get the money from someone else. In practice you have to involve sales to that.
• The richer you are the poorer the rest are.
• Nothing happens until someone sells something
• Businesses have to have the three things below to enable sales:
  • opportunities to do business – if they have no opportunity then they have nothing.
  • a conversion rate – if the conversion rate is low then the business has challenges. If for instance the business only converts 15% of its opportunities to sales then the business knows more about failure than success. 85 times more.
  • profit – if you aren’t making enough margin on the sales then you are waiting the waiting the end on the business. It is true that ‘cash is king’ – but not forever. If you can improve anything in points above then that’s what you should do

The only way to get rich is not to be poor… now that’s a thought to be unpicked