Mark Victor Hansen, author of ‘The One Minute Millionaire’ says there are 5 types of leverage: Other people’s
Money, Experience, Ideas, Time and Effort
He says that ‘when the combined forces of mentoring, teamwork, networking, tools and systems are applied to a long, strong lever, miracles can happen in minutes.’
Other People’s Experience: Very few people achieve success without effective mentoring;
A Mentor shares with you his business experience/expertise and gives you advice on the most effective way he has found to achieve success. They also model how they think you should run your business, give you advice on business development strategies, how to get the most out of your effort, and how to negotiate challenges. Basically a qualified ‘sounding board’ that you can turn to for anything business related.
The time and effort of other people: success is not an individual project, it must be shared. A team is part of your lever; makes success faster and easier. People who work together can achieve much more than separately. 1 + 1 = 11 instead of 2;
Imagine the challenge of completely remodeling your backyard! The quickest way to get the job done is to organize a ‘worker bee’. You would invite a group of friends (preferably those who don’t mind flexing their muscles) to help you with ‘big’ tasks that would have taken you a lot of time alone. The advantage of this is not only to benefit from the extra ‘effort’, but also to feed off the momentum and ‘energy’ that is created by a group of people who share a common goal which, in this case, has a significant benefit for you.
The members of the commercial team do not have to work for you in exchange for an ‘income’, but they can also be more like ‘business partners’ and benefit in other ways, such as cross references or if they are long-term colleagues, they can help you due to your relationship – just like your ‘worker bee’ friends!
Other people’s contacts: the more connections you have, the more influence you have; It has been said that by the age of 20 the average person has met over 2000 people. When starting any business, you should maximize your exposure by alerting as many contacts as possible so that they can in turn contact anyone of interest in their circle of contacts.
Running a successful business used to depend on what you knew. So who you knew became important. In today’s economy, how well you know someone is much more critical. So it’s not what you know or who you know, but how well you know them that really determines how much business a lead can generate.
All successful entrepreneurs build networks. Networking is the process of meeting people (also known as contacts), either through a contact you initiate or through an introduction from a third party. Networking allows you to meet and build a relationship with people who may not have heard of your business in any other way. Networking is critical to the success of any business.
Does your company take advantage of the efforts and contacts of other people?
All successful business owners look for successful systems before launching their money-making vehicles; having the right system gives you a huge advantage.
Gerber says that a fatal assumption business owners make is that they think they need to understand the technical work of the business when instead what they need to understand is a business system that does technical work: Successful people look for other people or systems that do technical work. They understand technical work. complexities they don’t need to understand.
McDonalds is the perfect example of a business system. In all parts of the world, all McDonalds stores operate in exactly the same way. The greeting, the uniform, the preparation of the food.
Gerber says that anyone can make a better burger, but not everyone can build an efficient system. the true product of a business is the business itself. It’s not the burger; It’s the McDonald’s system!
The concept of working ‘on’ your business and not ‘in’ it involves developing or adopting a system that anyone can follow, duplicates the same success, and works independently of YOU.
Imagine that your business will be the prototype of 5,000 others that need to function in exactly the same way. Does it meet the test?
Think of your business as a product: what are the individual components and how can they be built so that they can be replicated over and over again?
If your business has easily replicable steps, once established, you can spend your time doing what you want to do!
Kiyosaki says, in the ‘Cash Flow Quadrant’, that there are 3 types of business systems:
1. Traditional Corporations – where you develop your own system
2. Franchises: where you buy an existing system
3. Direct Selling/Marketing – When you buy or become part of an existing system
Within every business there are three key areas: sales, marketing and operations.
Does your company have bulletproof systems for all three?
1. Marketing – Does your business have a system that will generate leads on a regular basis? All businesses depend on building a long-term customer base, so what are the systems your business will use to generate leads?
2. Sales: Does your company recognize the importance of prospecting? What is the system that will be used to provide a consistent approach? Depending on your business, you, or the people who work for you, will need to allocate a reasonable portion of time to contact potential customers every day, so this is a critical area to implement a system.
3. Operations – Does your business provide a seamless and positive customer/consumer experience? Make sure that with any business you start or buy, the operational processes maximize excellent customer service from the moment they decide to become your customer to any after-sales service they may require.
With any business there is overhead, but do yourself a favor and make sure overhead is kept to a minimum and the system minimizes your involvement in inventory, warehousing, and distribution. Your time when setting up your business is better spent building your customer base, not chasing down lost orders or finding space to stock products!
Mark Victor Hansen states:
“94% of failures are caused by the system, not the people, and all rich people have systems.”