Hello, everyone. Speaking from Melbourne. This is the end of Day Two of Business Mastery. It’s 1:22 in the morning. And I actually finished a lot earlier. We started the day at 10am, the first lunch break was at around 5pm, and the event actually finished at 10pm. But today, the main enjoyment I got out of the events is that I met a lot of people that I guess are going to become great friends, or I’ve already become great friends and connected with them, and some of them are going to be helping out with my business as well and taking it to great heights. So I’m really excited about some of these friendships and partnerships that I can carry on for the rest of my life.
Another exciting thing is that I’ve actually joined up with the Platinum Partnership. It’s an exclusive program that Tony Robbins offers. You get to go to all his events as his guest. More than that, he organized some three to four different special trips around the world, like to China, and to Mexico, and to Dubai, and the latest one is going to be in Canada Whistler where you’ll be sharing it with a group of very successful and like-minded individuals to bond as a group and learn.
Tony’s also bringing some masters and different leaders from different fields to come to share their insights and experience with us as well. So you’re going to learn. You’re going to bond. You get to spend more intimate time with Tony. Another benefit for me is since we’re going to a lot of exotic locations, I can actually bring my wife and my family to spend more time to play rather than just constantly focusing on work. By constantly challenging my own perspective and what I’ve experienced in life and the people I talk to, in return, it’s going to help my business grow a lot faster as well.
So today was meant to be a big day to learn about the specifics. Yesterday we learned a lot more on thinking about the why of business; why did we start a business in the first place. And how do we actually get there is what we’ve been covering a lot of today. Chet Holmes is normally the partner that goes through a lot of these details. And Chet is a great guy. I’ve seen his videos. I haven’t seen him in person, but I’ve read his book. He’s an inspiration. He’s a master when it comes to sales and marketing. It’s unfortunate he’s not well, and he’s in the hospital right now. So we wish him well, and hopefully I’ll get to see him back up and running, doing what he’s good at.
So just quickly, going through some of the key learnings I’ve learned today. Tony Robbins first went through Jay Abraham’s three easiest and quickest ways to grow a business. And I’m not going to go through this in a lot of detail because I know ActionCOACH and various other coaches all have covered this theory in one shape or form. So I’m going to go through my workbook to share with you what I’ve learned from today.
Firstly, Tony Robbins went through the Jay Abrahams three ways to grow businesses. Just going through it quickly, there’s three ways to grow a business. Number one is to increase the amount of your customers, number two is to increase the average value per sale, and number three is to increase the repeat purchases. And if your customer is not a repeat purchaser, you can increase the number of their referrals to your business. If you increase the three key areas of your business by 10 percent each, the actual growth of your business is not 10 percent. It’s actually 33.1 percent. So if you increase by 10 percent in customers, that’s not very difficult. Ten percent the average sales price is not that difficult as well. And referral, repeat purchases is not too hard to raise by only 10 percent.
So by looking at it from a scale that—that’s only 10 percent, but it will have a significant improvement in your business by 33.1 percent. For businesses that are already growing at that rate, they may look at it, instead of growing by 10 percent in each area, they can look at it by growing at 20 percent in each area or even like 50 or 100 percent. And by following this very simple formula the business is going to become a lot more successful. The other similar ways that I’ve looked at it, some people also incorporate the conversion rate as well. If you increase your conversion rate, you also increase the overall number that you going to get at the end; the overall growth of your business.
Another thing that I’ve learned is that one of the key ingredients for you to move your business forward is that you need to be constantly innovating. And not just innovating your products but innovating in every single part of your business, in terms of strategy and your marketing and everything that you do. So when it comes to innovation, it might be quite difficult for some to do. Like, “Oh geez. What should I do,” and just look around the office. Like, “What am I going to think of as the latest thing that I’m going to innovate?” But Tony gave us a really simple five key elements to a framework in how to create strategic innovation, and these are the five different elements.
The first one is by giving your business a new voice. If your business has always been having the same people around, by reading new books and things, you’re going to get some new ideas, and that’s probably one of the better ways of doing it. But it’s inevitable for every single new business, when you’re bringing someone from the outside in, you’re always going to get a new perspective. That is bound to happen as… I guess the condition is if that person is strong enough in their opinion and not just being a follower but being a leader in sharing their ideas, you’re going to have a new voice. And from that, new voice will get you to think things in a new way, and that’s where a lot of the new strategy and innovation is going to come through.
The second part is ask new questions. So when we’re stuck on ideas on, “Okay. How are we going to grow it?”, we can ask ourselves, like, “Okay. What does the client really want?” Or we can ask, “What are the pains and inconveniences our client is currently experiencing?” Or maybe some of the pains that our client is feeling, they may not even be aware of it. Is there an area that we’ve missed? Look at the Apple iPhone—or the iPod as well—before it’s created, you ask a customer, “What’s the pain with the current phone?” They could not tell you that, “We want a smart phone.” But if you ask, “What are the areas where we can improve a customer’s life and make life easy for them?” Like these are the questions, that by asking better questions, you can get better answers and come with a better innovation.
The third point is, have new perspective. So, for example, like, the example Tony Robbins used is Nokia. They, once, they were very successful and one of the world’s most successful phone company, but now it seems like their latest models are more and more complex. And their adoption rate went slower and slower, and competitors such as Sony Ericsson and other companies started catching up. So since the way the head office is actually located—it’s all the way in Finland, and not a lot of people are there since it’s not the central part of the world, it actually sent its key people to around the world. One of its locations is in Sydney, Kings Cross, another one is in the UK, and I forgot where is the third location, but essentially, it sent people around the world, the programmers, the developers to try to understand what is the market really saying. So they get them to stay in that for a minimum of a few weeks but ideally a minimum of three months for them to really stay and get immersed in how the people are using the phone. And ask questions, like what would they like the phones to be? And ultimately, a lot of people come back to them and say, “Well, we just wanted different colours for our phone.” So that’s what they found, and having different colours has really increased the sales similar to Apple when the iMac came out. The concept wasn’t that revolutionary, but just by having pink colour computers or green or blue colour computers, they significantly increased the growth of the company.
So I’m just going to go through some of the other things that I’ve learned quickly. Okay. Knowledge without action is worthless. A lot of people learn stuff from seminars, from books, from audio tapes, from listening to their friends, their cultures, but they don’t implement anything. They say, “Oh, I know it. I know it.” So as a simple example that I recently wrote a blog post about goal setting. And one of the key success of goal setting is you have to write down what your goals are, and you have to stick it out on the mirror and constantly review it and read it out with a passion. A lot of people have heard of this idea, but I would say less than one percent – I’d be surprised if more than 0.1 percent of the population even implement this. By writing down your goals, and reviewing them all the time, it just makes it so much more powerful. And people know it and say, “Oh, yeah. I know that. It’s too easy. It’s in my head. I know what it is,” but they don’t do it, then that’s the difference between success and failure.
And the other point, to grow a company, you have to let go of your control and your insecurity. A lot of people say they’re perfectionist or they’re complaining that their staff cannot do the work at the level they expect. Yes, it may be true, but if you don’t let go of controlling every single aspect, people are not going to grow. As an entrepreneur, you’ve had so much experience, and this is your business. Is it so surprising that you care about this business more than most people? It’s not that surprising. But to grow a business, that’s not the key.
Look at Bill Gates. Imagine Bill Gates had to create every single process, make every single sales call, or clean every single toilet in order to grow the company. It would not be sustainable. So the key is not actually to be going after your standard in everything but inspiring, empowering people to do at a good level that is able to satisfy your customers and create raving fans. And maybe you’ll be surprised in some areas, you’ll find people that can do things that you cannot so it goes beyond your expectation. It has definitely happened at my work at E-Web Marketing that when I started to let go of the control of the company, so many people have surprised me with how much they’ve grown and how they’ve been able to take their department or their business unit to the next level, and I’m so proud of them.
Some people actually have an inner conflict where they don’t want to let go of control of the company or a lot of the things they do, and that conflict is probably due to a certain upbringing or certain feelings that they have, and they need to resolve that internally. If they don’t resolve that, the business will continue to get stuck at that certain stage, and eventually, it can even drive the business to bankruptcy as well. So make sure that you don’t have any inner conflict and if you do, recognise that something within you that is the reason that you’re scared to let go. For example, “Oh, my people are not at the level. I guess I have to shoulder a lot of the burden.” Yes, that may be true for a business at a young stage, but if you have like 5, 10 , 15 people, you should be able to work less in the business now, and if you’re not, that means that there’s a lot more delegating that you need to get down before you can really consider you’ve become a business owner.
When you can’t let go, essentially you’re still a business operator. And what we’ve learned as well is if you become a business operator with good management and empowering your team, you can pretty much grow it to a very successful company to maybe around $1 million in turnover, and if you work really, really hard, you may be able to grow it to, like, $2 million in company revenues. But for you to be able to grow it to more than that, it’s pretty difficult, and, in most cases, it’s impossible. To grow it to $3 million, you have to start to trust others and release some of the control and empower your team to take your business to new heights.
A key point to removing your inner conflict: you need to control your state and if you’re feeling weak, and you’re feeling fear in your own ability, you need to be able to release your inner gladiator. Business is the toughest sport out there and to play this game is brutal. Like, you can’t afford to be soft. And if you’re, “Oh, you know, I’m scared. Oh, you know I’m feeling a bit sad about telling this person about how they’re performing. They might be upset. They might not like me.” You know what? As I was saying yesterday, if a leader needs to be liked and loved, that person is not a leader. A leader has to apply tough love, and sometimes or in a lot of the cases, that person may not appreciate it, but this is what you need to do to run a successful business.
And there’s no time for fear and feeling like self-pity. The business has to keep moving. And as the leader, if you slow down, the business is going to slow down. So you have to—like a muscle, you’re emotions, you have to train them. That inner gladiator that you have, you have to make it strong. Like you have to mentally discipline and train your emotions every single day, whether it’s listening to mp3 self-affirmation tape that is going to give you the confidence you need, or subliminal tapes right before you go to sleep each night, or you read an autobiography by people that are inspirational to you. Or you could be just running in the gym and just saying a positive affirmation statement in your head or while you’re listening to your iPod. You need to be doing something to mentally condition your emotion to be strong because when times are good, it’s easy to stay positive and healthy and keep a strong energy and keep yourself in a good state. But when times are tough, when the biggest challenge comes through, that’s when you need to be at your best state in order for you to overcome those challenges, and if you’re not up to the task, the business will go down very quickly in the times of crises. So condition your emotions to become very fit. If you don’t use your emotional muscles, you’re going to lose them eventually.
So on this point, a lot of people that when they come to a business challenge where emotionally it’s quite a struggle, the path of least resistance tends to be the path they end up taking. So it could be, “Wow, like, this is so hard, and I need to get rid of the people or maybe I’m just not up for it,” and they quit. Or some people, they may tell a story, “You know what? The GFC or the team that I have is just impossible to work with, so I’m just going to not grow the business or just keep it stagnant, and if we lose a big client, okay. Well, there’s not much we can do right now.” Because you know what? To be able to overcome difficult situations, you need to grow your emotions. You have to keep them fit.
And a lot of people, the path of least resistance is the one that they are going to go to. If you want to be the 0.1 percent of the population that is successful, you have to train your mind, let nothing stop you. Like, “Any challenges that come across, I’m going to do what I can to go through this challenge and have that tenacity, that passion, that determination, that self-confidence that I can overcome whatever challenges that come my way. And I’m resourceful enough to find a solution to every single problem.”
Another of the great points I’ve learned from today: leaders are readers, and in terms of what are the other similar things that I’ve heard before – “If you want to earn more than me, you have to learn more than me.” To train your emotion, at the same time, you have to train your body as well. You should have congruency between your body experiencing physical improvement and your emotion improving at the same time. You should find role model. A good role model will help guide you to the path that you want to go down a lot quicker rather than trial and errors. They can help you anticipate a lot of the challenges that can come up. And one of the big things that on why I’ve decided to join the Platinum Partnership is Tony Robbins talks about being in proximity. If I want to take my game to the next level, I need to be associating myself with people like Tony Robbins and other very, very successful people and learn from them, like billionaires. Like how do I learn from billionaires and what made them very successful and apply it back into my business as well.
So it’s 1:45, I think I’m going to take a break for now and have an earlier night than last night, but I’m having a blast at Business Mastery. Feeling a bit tired, but I’m having a lot of fun, and I’m really enjoying sharing this journey with you guys. So hopefully, you guys are learning a lot from this, and I get to hear some of your feedback on what you’ve gained from my videos as well. So until Day Three. Bye for now!