are most concerned with - Generating Revenue.
Everything has a price. There is no such possibility as "something
for nothing." And so, to earn money, you got to spend money.
Well... are all assets spelled in dollars anyway?
Not necessarily, but in business at least, that is the bottomline.
"In the end, all business can be reduced to three words:
people, product, and profits." - Lee Iacocca
If we examine the words of a successful leader in Lee Iacocca...
Wealth is found in these three factors. People. Product. Profits.
Hence, it now boils down to how we squeeze the juice out of these.
PEOPLE. If to this date you are still skeptical on the value of
investing in talents THEN how could businesses thrive?
Understand that businesses make money from people. People
are producers, therefore, people are assets. They are there to
help you in your objectives.
"Coke was a little like the Wizard of Oz - so powerful was its
image that few foresaw that the company was vulnerable to
attack by new ideas." - John Sculley
Look, even for an established product like Coke, market share
could be eaten and has been eaten by alternative colas because
of those "new ideas."
Yes, Coke may still be a powerhouse but didn't some of those
who dared thrived?
And so... may I ask you where do we get those "ideas"?
From people. From the "fertile" minds of Real Talents.
Now, if you do not invest on talents for whatever reason you may
have, how will you get "new ideas"? How can you create wealth?
If you believe that you are creative yourself, don't you think
"two heads are better than one"? As we know, time is gold
so invest on talents... Leaders or Creative Thinkers.
PRODUCT. Without a product, what will you sell? Of course,
there's still service but it's still classified as a product. Well,
altho there may be many categories, I say there are just really
two basic product categories: quality, high-priced products and
the alternative, low-priced products.
For whatever category, a product is a product and it is there for
the "big bucks" if you know how to do it. For quality, high-priced
products, positioning is key; while for alternative, low-priced
products, economies of scale would be crucial.
Still, if you do not know what product to produce - look at a child
at play. Observe the child's behaviour, likes and dislikes. And
more importantly, look if the parents will give in. More often than
not, they would, right?
See, that's a fact in consumer behaviour, the heart is more
powerful than the mind. Thus, if you know how to love then
that emotion could bring you the tangibles in business as well.
"No great marketing decisions have either been made on
quantitative data." - John Sculley
So when you decide to produce something, try to touch the heart
to strengthen the 4 P's. Make your imagination work first, don't
just think of the cost yet. Consider yourself or a loved one as the
consumer; and look at possibilities before checking your pocket.
"The surest foundation of a manufacturing concern is Quality.
After that, and a long way, comes cost." - Andrew Carnegie
PROFITS. In the long run, a business can not afford to go by on
break-even, it really has to create wealth. For whatever the vision
of the organization is, it has to gain profits to continue operations.
Ok, we already know of optimizing profits and minimizing costs.
And I am sure as Leaders, you know how to do it, too; and there
are many ways on how to. Great customer service is a given.
It results in loyalty consequently contributing to profits. And so,
I would like to give particular attention to process improvement.
We know that if we make our manufacturing and work methods
more efficient, it would naturally save on time and capital; and
increase in productivity and even quality. Nevertheless, we don't
just cut here and cut there, a thorough study is definitely the
sensible thing to do.
Another area would be logistics, or the availability of products and
services anywhere, anytime... of course, with consideration to
costs and labor.
Process improvement and Logistics are just basics. So, master
the basics and we step on solid ground at least in an ideal
business environment. Here, flexibility is central.
"I am the world's worst salesman, therefore, I must make it
easy for people to buy." - Frank Woolworth
To have constant flow of water, we need a spring, a stream.
We need to gain customer loyalty and build on it to have greater
market share. For Frank Woolworth, customer loyalty came in the
form of items at very affordable prices; and in all sites he deemed
Learn from plants. All we need is to plant a tomato and in time,
with its seeds and proper care, we can then grow a plantation of it.
See, once people, product and profits have been established -
we can then think of mergers, acquisitions, diversification, and
expansion to name a few. Again, these are just "basics."
The bigger you are, the more space you occupy.
With that in mind, we should keep our eyes and ears open for
opportunities to grow, to exploit, and to watch out for.
"I don't look to jump over 7-foot bars. I look around for 1-foot
bars that I can step over." - Warren Buffet
Realize that while Warren Buffet refers to the obvious, we should
also be careful of subtle landmines. And in opportunity seeking,
more than trends or crises, Intuition and Negotiating Skills are vital.
TO CLOSE A DEAL, be guided by the following:
- What opportunity or need does my deal address?
- What qualifies my prospect(s) or target buyer(s)?
- Who and what are the gut values of the gatekeepers?
- Who and how can I help those who helped me?
- When on the negotiating table, ask critical and relevant questions to control the conversation. Consider the prospect's need at that time, budget, experience or knowledge, constraints, decision-making responsibility, information needed by the committee, and the next committee meeting among others. Write down all data gathered and listen for keys.
- Use a third-party Endorsement.
- Do follow-ups.
building; and remember, clarity and timing are critical to closings.
When you master the art of negotiating, you will create more wealth
than you thought possible. Bet you have heard of Donald Trump.
"The trick is to make sure you don't be waiting for prosperity
to come." - Lee Iacocca
Survey the field. Weigh possibilities. And altho timing is crucial,
do not procrastinate. What you plant is what you will harvest.
Remember... "To Create Wealth...
Focus on People, Product and Profits while sharpening your Negotiating Skills."