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Scaling

The Art of War: How Business Strategy Resembles Military Strategy?

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Have you ever wondered how business strategy resembles military strategy? You may have heard that there a lot of parallels between business and war, right?

In fact, there are several books that have illustrated that parallel. However, amidst all, the Art of War remains a prime template for business owners to borrow powerful business lessons from.

The Art of War was written by Sun Tzu, a Chinese general, over 2500 years ago. It is believed to be one of the best books ever written on war strategies. In today’s times, it’s considered a must-read for business owners.

You see, Sun Tzu wrote this book to illustrate in detail how wars should be fought. He wanted to bring forth the elite war strategies that brought him victory. In fact, you can think of The Art of War as the world’s first self-help book.

Over the years, people have come to see similarities between war and business. In essence, between Sun Tzu’s military advice and contemporary business practice.

Sun Tzu divided his book into 13 chapters. Basically, elaborating on 13 unique concepts and tactics that are integral to a winning military strategy. If you wish to refer, here is a visual representation of this book.

Now, we have read and re-read this book several times. Every time we read it, there’s a new business lesson to learn from it.

Today, we want to share some of the best business lessons we have learned from The Art Of War. But first, we have to adapt his words to current times, to understand how business strategy resembles military strategy.

 

How Business Strategy Resembles Military Strategy: The Context

First and foremost, we suggest not taking Sun Tzu’s words too literally. Instead, we have to take his advice to generate relevant thoughts that apply to today’s world.

To do this effectively, you will have to think of business as a modern form of war. We can equate war and business, as a group of people pursuing a common goal in the face of competition.

As a business owner, you war with your competitors, right? You fight for market share and ultimately, domination in your industry.

Your competitor is like your enemy and you strive to dominate them on the battlefield of commerce. In this parallel, your enemy is also the challenge you face in day to day business. Furthermore, as a business owner, you are the commander of your army or the leader of your business.

Over the years, we’ve read several books on business strategy. We consider Sun Tzu’s The Art of War as one of the greatest books ever written on business. Every chapter could be applied to closing deals and increasing sales.

The best part about his concepts is that they can be applied to life in general, too. This book is not just for lessons in business.

As we mentioned earlier, we have read this book many times and have implemented many learnings from this book. We want to help you, as an ambitious business owner, apply these to your business and even to your life.

Here we list out 7 powerful business lessons and life principles from The Art Of War.

 

How Does Business Strategy Resemble Military Strategy - Knowledge is Power

1. Knowledge Is Power

Know the enemy and know yourself, and you can fight a hundred battles with no danger of defeat. If ignorant both of your enemy and yourself, you are sure to be defeated in every battle.

This is one of the most important lessons we have learned from The Art Of War. Let’s look at how business strategy resembles military strategy, in this thought.

The above quotation by Sun Tzu highlights the importance of two things:

  • Self-knowledge
  • Knowledge of your competition

This means that an accurate self-perception is the golden key to success. Also, knowing who you are fighting against, goes hand in hand with it. Let’s look at each point in further detail.

Self-knowledge

Sun Tzu says that it’s important to accurately understand our real strengths and weaknesses. If we can do that, we will be able to become more effective in business. In essence, the more we know about the reasons for our preferences and actions, the better we will understand others.

You see, every decision you make reveals something about yourself. This process of self-analysis will help you identify your strengths and weaknesses.

You know that for success, you have to work on improving your weaknesses. But at the same time, you have to focus on your strengths by taking them to the next level. If you are at a certain level of skill, upgrading it is something to strive for.

Hence, it is important to keep the constant pursuit of self-improvement going. In fact, this pursuit is one of the most powerful habits of self-made millionaires. If you are someone who wants to build upon your success, you should always look to grow your skills.

Have you noticed the behavior of a child? They learn about the world by being curious about every little thing around them. But, as we grow older, this natural curiosity fades. We become rigid in our thinking. Keeping your childlike curiosity, alive, at all times, will go a long way in helping you succeed.

Here are two powerful ways for self-development:

  • Reading books: The focus should be on self-improvement books, biographies, and books about successful people. This will give you the opportunity to learn and expand your horizons.
  • Finding a mentor: Speaking from our own experience, if you can find the right person to guide you, your life will change. You see, almost all successful business owners have had mentors. In fact, 93% of them claim their mentors were responsible for their wealth.

Knowledge of Your Competition

When you know yourself but not the enemy, your chances of winning and losing are equal.

Sun Tzu says our chances of winning are reduced by half if we do not know our enemy. Let’s look at how business strategy resembles military strategy, in this case.

What this means is that in order to succeed, you have to know what your competition is doing. Also, you should be aware of your competitor’s strengths and weaknesses. Why is that important?

Well, so you can strategically apply that information to benefit your business. Now, the application of that knowledge could mean taking a step back. It could also mean moving forward.

You see, learning what your competitors are doing can give you valuable insights into your plans. If you can predict your opponent’s action, you have the possibility of generating a mismatch that works in your favor.

So, it is important to learn to spot loopholes and weaknesses in your business environment. This singular factor can be a big competitive advantage for you.

 

Build the right team

2. Build The Right Team

When the troops are united, the brave cannot advance alone, nor can the cowardly retreat.

If you want to succeed in business, you can’t operate alone. This is an important team-building lesson we learn from The Art Of War. Let’s look at how business strategy resembles military strategy, in this thought.

As a business owner, you have to lead by example. But it’s only the capabilities of your team and employees that can take your business to the next level, right?

So you have to focus on hiring the right people who are a fit for your business. These are the people who can align with your goals and purpose.

Also, it is important that your team is unified with a common purpose. This will help them commit their hearts to your business. It will energize them towards achieving the goals you have assigned.

This spirit of common purpose builds team consistency. A team will work better when people know and trust each other.

It takes time to build productive interaction and mutual trust in a team. So you must give the members the chance to spend some time together in team-building activities. Successful businesses are made up of people who have shared experiences working towards a common goal.

Sun Tzu further says:

When one treats people with benevolence, justice and righteousness, and repose confidence in them, the army will be united in mind and all will be happy to serve their leaders.

As a business owner, it’s your responsibility to keep your team happy and motivated so they keep giving their best. You see, we all know that as a business leader, you are required to have a sound mind. However, if you want to be a great one, you need to have a solid character, too.

 

how does business strategy resemble military strategy - Create a plan

3. Create A Solid Yet Flexible Plan

The commander who gets many scores during the calculations in the temple before the war will have more likelihood of winning.

Sun Tzu says a leader with a better plan, wins the war. So, let’s look at how business strategy resembles military strategy, in this thought.

We know planning is integral to success in business. But it is important to remember that no single plan works well for everyone and everywhere. Moreover, there are several factors that can influence the success or failure of a plan. 

So first, you have to create a solid plan of action. A plan that will get you started. However, in business, there will always be situations where you may have to change your plans. 

So you have to be ready and willing to adapt it according to changing needs. You have to consider all the alternatives available. Hence, your plan must be flexible and adaptable to circumstances.

Planning is a process of understanding what is happening in constantly changing situations and adapting with energy and determination. Click To Tweet

You see, your plan can either be like a tree or a pole. If you want it to bear fruit like a tree, it needs to have branches. But, if your plans are too rigid, you will not be able to adjust to circumstances and fail.

It doesn’t mean that your plan has to be complicated. A simple plan is easier to turn into action.

So, here’s what we suggest:

  • Set a clearly defined goal and give yourself a schedule to achieve it.
  • Start working towards your goal. Every plan needs to be followed by action.
  • Every step is a teacher. If you succeed, take it to the next level. If not, then be willing to adapt and learn.

 

Grow your network

4. Grow Your Network

Foreknowledge must be obtained from men who know the enemy situation.

Sun Tzu says that spies can help you win wars. So, let’s look at how business strategy resembles military strategy, in this thought.

You see, the foundation of your business growth is the size and strength of your network. We know networking requires an investment of time and energy. However, it gets you the results.

As a business owner, you have to choose your network wisely. On a closer level, you should surround yourself with people who are positive and add value to your life.

At the same time, you also need to build a network professionally. When you go to events, you should focus on developing relationships with people.

Moreover, you will never have a strong network unless you actively manage your contacts. Good networking involves both meeting new acquaintances and actively moving those relationships to a closer friendship.

If you’re an introvert, follow this blueprint to develop interpersonal skills, as it will be very useful to effectively network. You see, knowing the right people can literally take your business to the next level. Or help in knowing your competitor’s situation.

This is a very powerful lesson from Sun Tzu. To rightly understand how business strategy resembles military strategy in this case, you have to utilize networking to your benefit. So on your next business trip, we suggest you call and schedule a meet with some people in your network.

Remember to be personal in your approach to maximize the benefit of networking. Your contacts will be flattered by your interest. Whether or not you do meet, the offer breeds a stronger relationship.

You never know what you may get to learn about your competition. Furthermore, an amazing opportunity could come your way, too.

 

Build on your success

5. Build On Your Success

To win battles and capture lands and cities, but to fail to consolidate these achievements is ominous and may be described as a waste of time and resources.

Sun Tzu is talking about maximizing your victories in battle. So, let’s look at how business strategy resembles military strategy, in this thought.

Essentially, when you achieve some success in business, always strive to take it to the next level. You see, success breeds success. The key to any successful business is getting the first success and then leveraging additional success from each new victory.

Sometimes with success, people tend to stop doing the things that made them successful. When they stop putting in the effort, the competition will be ready to seize the opportunity.

Hence, when you are already in an advantageous position, you need to change your gears and go full throttle.

So, ask yourself:

  • What do you want to accomplish in the long term with your business?
  • How do you want to take your short term success to long term success?

Sun Tzu also says:

A skilled commander sets great store by using the situation to the best advantage.

As a business owner, you must train your eyes to see opportunities that others can’t see. You have to always be on the lookout. When you find a suitable opportunity, leverage your strengths and your network, to grab it.

 

how does business strategy resemble military strategy - Avoid the avoidable

6. Avoid The Avoidable

By taking into account the unfavorable factors, he may avoid possible disasters.

Sun Tzu talks about considering factors that can cause problems, before advancing in any situation, to avoid defeat. So, let’s look at how business strategy resembles military strategy, in this thought.

As a business owner, you have to anticipate problems before they arise and strive to avoid making mistakes. Yes, many mistakes are often visible only in hindsight. However, what you can do is strive to take measures for things you have control over.

Let’s say you have faced an obstacle in the past. Identify those obstacles for which specific measures can be taken.

As a business owner, you have control over:

  • The quality of your product
  • Your service
  • Your delivery time

Since you can control it, you can plan to avoid any errors, right? In fact, that should be an integral part of your overall business strategy.

Anything big or small, that is under your control should be planned meticulously to avoid any future errors. Even small decisions in business can affect the grand scheme of things. 

There will always be some mistakes because the human element is unpredictable. What you have to do is take as much advance action as you can, to avoid future errors.

 

Timing is everything

7. Timing Is Everything

When the strike of the hawk breaks the body of its prey, it is because of timing. The timing is similar to the release of the trigger.

Sun Tzu is talking about the importance of timing when pulling the trigger on an enemy, in battle. So, let’s look at how business strategy resembles military strategy, in this thought.

We know in business, timing is of great importance if you want to take full advantage of opportunities. As a simple rule, often the earlier the better, right?

Essentially, you make a decision and implement it. The longer it takes to take action, the more catching up will be required later.

However, sometimes, it is important to wait for the opportune moments to make full use of the chances. It could be beneficial to take a step back and slow down and learn from competitor’s mistakes. Remember, even if your competition seems to have every advantage, a well-timed attack can uncover weaknesses.

Let’s take a look at a relatively recent example here. The launch of the 1st Android smartphone was delayed because of the iPhone’s launch. Would Android have the same success, had they launched as per their original plan? Most likely, not.

They went back and polished their product by seeing their competition. They learned from the success of iOS on how a touch-based software is supposed to be.

You see, timing is crucial to everything you do in business. As a business owner, it is up to you to judge the right time for every step you take.

 

Forge Your 8-Figure Dynasty

We encourage all business owners to read The Art Of War. If you read it thoroughly and you will see how business strategy resembles military strategy, in every paragraph. You will be surprised to see it’s relevance in both business and in life, today.

However, these military lessons are just the initial steps you can take to take your business to the next level. For the extremely ambitious business owners, Dan Lok has created the world’s most exclusive business advisory board: Dragon 100™.

Dragon 100™ is designed for those who are committed to turning into 8-figure business owners. People who are committed to living life at a level few may ever attain. It is limited to an exclusive group of only 100 serious business owners worldwide.

Dragon 100™ provides an unprecedented opportunity to network with other elite entrepreneurs and learn from Dan Lok himself. For the first time ever, Dan will be taking you behind the scenes of his business.

In this program, he will share his hard-won business experience that has established his global empire. This experience is the most exclusive opportunity for select business owners to transform into the world’s elite.

Do you have what it takes to create a massive, worldwide empire of your own? If yes, then apply for Dragon 100™ and earn the chance to learn from The King of Closing, himself.

Would You Like To Forge Your 8-Figure Dynasty?

The Competitive Advantages Of A High Ticket Business System

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One of the most profitable and effective business models is a high ticket business system.

The problem is that most business owners believe that low ticket is the way to go. They don’t understand how high ticket business systems work. When they run into the inevitable obstacles that hinder business growth, only then do they realize they made the wrong decision.

The Biggest Problem With Low Ticket Business Systems

Low ticket business systems focus on high volume and low prices. This is the most common type of system used in business and is driven by price. Low ticket business systems cater to the ‘discount’ shoppers, that value price over quality and features.

Image credit: ZDL / Shutterstock.com

The problem is that this kind of system is very saturated. Because their target audience caters to people who are most concerned with price, businesses use this motivation to steal customers from their competitors by pricing their products lower. This is why you sometimes see price wars between two businesses that sell similar products – constantly offering sales, discounts and BUY ONE GET ONE FREE special offers, because they are forced to do so in order to stay relevant to what everyone else is offering. 

Low ticket business systems often have a lot of competition and many even go on to fail. The last one left standing is the business that can afford to price their products lower than everyone else, and must constantly be on the lookout for any competitors looking to offer their products at an even cheaper price.

Low ticket business systems win by pricing themselves cheaper than everyone else. Click To Tweet

An In-Depth Look At High Ticket Business Systems

Low ticket business systems focus on high volume and low prices, whereas high ticket business systems do the exact opposite. Instead of having price wars every month with their competitors, high ticket business systems focus on branding, positioning, quality and expanding their following.

Image credit: joyfull / Shutterstock.com

High ticket business systems sacrifice volume for higher prices. While high ticket business systems may sell less products, their higher costs make up for the difference in volume and allow them to stay relevant to their competitors. Their target audience leans towards more affluent and wealthy customers, who are less concerned with getting the best deal and more concerned with quality and wearing something that is reputable and famous.

Low vs. High Ticket – Who Wins?

At a glance it may seem that low and high ticket are equally matched. One systems sells more volume at lower prices, and the other at low volume and high prices. The differences in revenue should be roughly equal.

However, when you compare a low ticket to a high ticket business system, the difference is shocking. Take Walmart for example – they use a low ticket business system and can be found all over the world, focusing on delivering the lowest price possible to their consumers. Their net worth: $514.405 billion.

Compare this to a company like Apple which uses a high ticket business system. Their branding and focus on producing innovative, top of the line products has made them famous international. Many of their products are over $500 and their net worth: $1 trillion.

Apple uses a high ticket business system, and has a net worth almost double of that of Walmart. This is because there is more going on behind the scenes than just price, sales and revenue.

Why I Believe In High Ticket Business Systems

I personally believe Apple has a much greater net worth than Walmart due to their business system. 

The major benefit of having a high ticket business system is that you are able to sell less volume. In order for Walmart to generate $1,000 in revenue, they would need to sell $10 worth of items 100 times. For Apple, they simply need to sell one iPhone 11 to generate that same kind of revenue. 

High ticket business systems require less sales to be made but generate the same revenue as a low ticket business system. Click To Tweet

The other benefit of a high ticket business system, is that you are not influenced by the competition. As I mentioned earlier, low ticket business systems are constantly at war with one another when it comes to price. They are constantly forced to lower their prices and offer discounts, to cater to their audience and beat the competition.

However, high ticket business systems do not have to worry about price. Customers expect to pay those prices in order to obtain quality. A few dollars worth of discounts from a rival technology company, will not influence anyone in an Apple store line up to give up their spot on the launch day of the newest iPhone.

The Long Term Benefits Of A High Ticket Business System

Starting a business with a high ticket business system allows you to position yourself on a better level. High ticket systems allows you to maintain your prices or increase them without customer backlash as economic times change. 

High ticket items rely on less volume of sales and more on what item is being bought. By doing so, they can reduce overhead expenses. That is why you see jewelry stores with small shops still operating even after many years. Their focus on selling high ticket items means they don’t need a large store size in order to operate. Whereas low ticket systems like a grocery store requires much more space.

The ability to be flexible with your price, expenses, target audience, and business location is invaluable in business. You are not restricted by any external factors, and have the freedom to run your business the way you want.

HTC Platinum – The Closing Methodology For High Ticket Items

Because high ticket items target a different kind of customer, a different approach when it comes to sales is required. Where aggressive and pushy sales tactics would be involved when it comes to selling low ticket items, influence and persuasion is used with high ticket items.

The key to selling high ticket items, is being able to lead the customer to a close. Most often the customer is already ready to buy, and is simply looking for reassurance about their decision. They need someone who knows how to ask deep questions, reinforce their desires, and lead them to the sale. The kind of personality and mindset necessary to succeed in high ticket sales is a high ticket closer.

HTC Platinum teaches entrepreneurs how to become high ticket closers and master the B2B sales processes. Applicants also learn inbound and outbound techniques, advanced business acumen, and connects them to the highest caliber coaches that will raise their performance in both life and business. What they develop is the same skill sets that the “elite” learn to become high performers. They receive a holistic, synergistic, and foundational training to become a well-rounded person, leader, salesperson, business owner and closer.

High Ticket Closing Is Only For The Elite

However, not everyone is cut out to be a high ticket closer. Just as some businesses opt to use a low ticket business system because there is a lower barrier to entry, high ticket closing is reserved for people who are able to tolerate a higher degree of failure.

The true nature of life is that only a few people will become successful. Only those that are absolutely committed to achieving success in their life and business, and are willing to do anything it takes to get there will make it happen. If you are someone who does not invest in themselves but buys luxury items without hesitation, believes that you should succeed because you “paid” for it, or does not have the resolve to endure failure, high ticket closing is not a good fit.

However, if you are someone who knows success is a result of hard work, who knows the value of investing in their own skills and has an unshakable drive to make your dream lifestyle a reality, you just might be able to become a high ticket closer. For those that are looking to use their newfound skills to secure deals and business agreements to set themselves up for life, HTC Platinum provides a community of high performers who can help you get there.

Become A High Ticket Closer Today

A high ticket business system focuses on low volume and higher priced items. They cater to more affluent and wealthy customers, and have much more leeway when it comes to doing business. By focusing on quality over quantity, businesses can use superior positioning and branding to maintain their prices even during times of economic change without lowering the values that govern their business.

If you are interested in learning how to become a high ticket closer, to learn how the high ticket sales process works and how you can transform your life into that of a high ticker closer that uses their skills and status to become successful, click here to watch the video.

10 Common Mistakes That Business Owners Make When Scaling

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There are many common mistakes that small business owners can make when their business starts growing.

Because when things are looking good, business is taking off and the revenue is coming in steadily every month, you’re going to be tempted to start expanding.

But if you’ve never scaled a business before you may be wondering just what you need to take into consideration, or you’ll risk finding out the hard way when everything begins to crumble.

If you’re a small business owner and you’re ready to start scaling, here’s 10 Common Mistakes Business Owners make, and how you can avoid them.

1. Not planning ahead

Most people – not just business owners, fail to plan in life. They take things as they come, and live in the moment.

In business, this is one of the quickest ways to go bankrupt and one of the greatest mistakes business owners make. Things around you are constantly changing, events around the world impact how business will go and it’s your responsibility as the captain to steer your ship in the right direction.

You need to constantly be planning ahead, looking out for anything that is a potential danger to your business. Are there rumors that a recession is about to hit? Is the President making some poor choices that may impact the cost of your goods? These are all factors you need to put into consideration, so you can anticipate and ready yourself for the approaching storm that may be coming.

2. No Goals, No Commitment

You cannot hit a target you cannot see. And when you’re aiming in the dark and firing wildly, you are going to miss your target 99% of the time. 

Without a clear goal in mind, you will not have the motivation to continuously improve your business. You will drift along, taking things as they come and hoping for the best. And eventually, your business will fail because you aren’t putting in the time, energy and focus into helping it grow. 

Set clear goals and commit to making them happen. Be very specific with your goals, instead of promising something that is generalized. Don’t say “I will improve next month’s revenue”, say “I will increase sales by at least 200% next quarter”. 

Be specific and know where you want to go. You’ll have a much clearer image in mind of how to get there.

3. Ignoring technology

Technology is rapidly growing and changing, making things that were almost impossible before a reality today. As a business owner, if you are not making use of technology in your business, you are falling behind.

Tasks like data entry, generating leads and posting updates on your website are all things that can be done with technology. Technology is a useful tool that can save you countless hours on trivial tasks, giving you the time and freedom to handle what’s important in your business. 

For business owners that are stubborn and refuse to learn how to leverage technology, my advice to them is to adapt and get with the times, before your competition uses it to run you out of business. Don’t have an old school, traditional mindset – one of the deadliest mistakes business owners make.

4. Not investing in marketing

You’re doing well already, why would you need to spend money on marketing?

That’s the mindset of most business owners who are already successful. But what they fail to realize is that they won’t be successful forever. 

If you aren’t bringing in new business, you are going to slowly lag behind the competition. Your competitors are always looking for new ways to get more market share and take away your customers. If you aren’t finding ways to make your customers choose you over everyone else, pretty soon you’ll find them doing exactly that.

Don’t make the same mistake business owners make – thinking they’re ahead when they’re not.

5.‘One Man Business Army’ Syndrome

“I’ve gotten this far all by myself, why would I need anyone else?!”

This is especially true with business owners who have had to endure a lot of tough times. For them, they believe they can handle everything by themselves, because that’s how they got to where they currently are. There’s no need to hire people or create a team – they’ll only add more expenses onto the business.

There is an African proverb:
“If you want to go fast, go alone. If you want to go far, go together”.

In business, having a team that you can delegate tasks to is extremely advantageous. Instead of handling everything yourself, you can delegate tasks to your team, which allows you to handle the more important aspects of your business, such as seeking partnerships and negotiating deals.

That’s why you see billion dollar companies like Google and Microsoft with staff from all around the world. They understand that in order to build something great, you need a great team behind you to make it happen.

6. Not Knowing Your Worth

Are you undercutting yourself and you don’t know it? Do you panic when your competition lowers their prices, and you feel inclined to do the same to stay relevant?

When you don’t know your worth, you are going to get pushed around. For example, let’s say you sell soap, and your competitor is having a 20% discount. If a customer walks into your store and complains that your prices are too expensive compared to the competition, someone who doesn’t know their worth will be inclined to match the price.

However, if you have something that you know is valuable, you won’t be afraid to stand your ground. You know your soap is made with organic ingredients that don’t irritate skin the way your competitors does. You also know that there’s no other soap store in the city that offers what you do. And if your customer doesn’t see the value in being able to shower without an itching marathon afterward, that’s on them for not knowing the value of a product.

7. Not Researching Your Market

How well do you know your market? Are you catering to young adults, or are you catering to 18 year old high school graduates, who are looking to enter college but are unsure what path to pursue?

If you aren’t researching your market, you are simply targeting a general demographic. With more and more ads being shown today on social media and popular web browsing sites like Youtube, if your offer does not stand out from the rest, your product will be ignored along with the other countless distractions your customers encounter every single day.

Get very specific with who you are targeting, and know your market inside and out. When you know them that well, you will know how to cater your product perfectly to their desires.

8. Spending Way Too Much Money

Your business is doing well and you’ve got a bit of extra cash at the end of every month. Having that money just sit around doing nothing doesn’t help… so you make a few purchases to help with your future scaling: New software, doubling your ad spend, automated sliding doors, bathroom sensors and even a newly designed company logo.

But when next month’s projected revenue is much less than what you thought it’d be, now all of a sudden you find yourself in debt, surrounded by unnecessary expensive purchases that you now realize you bought too early.

Spending too much money too quickly on unnecessary things can turn your business profits into additional business expenses that have no use or reason for being there as you are not in a position to utilize them yet. If you find yourself tempted to spend money on additional features for your business, ask yourself if it’s going to be used immediately to grow your business, or if you can wait a bit longer before it is needed.

9. Spending Way Too Little Money

Spending too little money can also be a problem.

For example, if business picks up, customers are pouring in but you only have two employees on the floor, you are going to have a problem. Your staff are going to be overwhelmed and overworked, and your customers are going to get agitated at the long wait times and lack of customer service.

In this scenario, the mistake this business owner is making is being hesitant on hiring additional employees. By hiring extra employees, you can process customer requests faster, allowing more of them to be serviced and as a result increase the amount of sales that are made.

You should always be looking for ways to invest money into your business to help it thrive and grow even faster. Just make sure it’s a smart investment.

10. Having a bad team

A bad team is worse than no team. If you are not carefully selecting who you’re bringing on board, you could be closer to failure than you know it. Having a bad team harms your business reputation, and destroys it from the inside out. 

If you are going to bring people on board, you need to think about what this person is like. Find out their mindset, their goals, beliefs, their ethics, morals and if they align with yours and the business. 

For example I know in many companies when they hire salespeople, they look only at how much revenue their sales team can generate for them. They don’t look at things such as their integrity, or morals. What ends up happening is that the salespeople are able to bring in more revenue as expected, but subsequent quarters their sales go down. 

This is because the salespeople are not properly trained, and resort to pushy sales tactics to get the sale. Instead of building a long term relationship with the customer, they go for “one time buys” that make customers lose trust in the company and go somewhere else.

For business owners looking to increase their sales by hiring more salespeople, my advice to them is to make sure you know what kind of salesperson you are bringing onto your team. Learn from the deadly mistakes business owners make, when all they care about is increasing sales.

Summary

When it comes to scaling, there are many mistakes business owners make. Some mistakes have clear implications of what can occur, while others’ mistakes can be hidden and unseen until it’s too late.

For business owners looking for the most effective way to scale, my belief is that they should increase their sales. The more sales they can make, the more revenue is produced and as a result the faster they can scale.

High ticket closing is a skill that allows business owners to scale much more effectively. The ability to connect with people and make them trust you, allows for many more deals to be closed and establishes a relationship with them for potential long term business. 

High Ticket Closing Is Not For Everyone

However, while high ticket closing can be very beneficial to any business owner in any industry, it is not for everyone.

People who do not invest in themselves, who believe that success is paid for and not earned, or gives up easily under pressure is not fit for high ticket closing. Like any skill, high ticket closing must be practiced and mastered for it’s full potential to be seen. If you are someone who would eagerly spend a large amount of money on a new car, but hesitate to spend the same amount on improving your business skills, it may not be for you.

But if you are someone who is willing to do whatever it takes to become successful, that understands hard work eventually pays off in great sums in life and business, then you might be a good fit for our newest high ticket closing program – HTC Platinum.

HTC Platinum provides the same type of community and training that develops great leaders and high performers – the same kind of people that use their newfound skills and influence to become celebrities and secure contracts and prestigious business agreements to set themselves up for life. If you’re ready to get access to business coaching and high-ticket closing to help your business scale at the highest caliber, apply here today.

How To Scale Your Business in 7 Powerful Steps

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Should you scale your business if you’re ready to increase your profits and revenue stream? Many entrepreneurs and new business owners desire to be the next fast-growing business. They’re ready to get more clients or sell more offers. But too often they don’t have the capacity or the know-how to move to the next level. To move to the next level, first, we need to talk about why you want to scale it.

Table of Contents

  • What To Consider Before You Scale
  • 1. Sell High-Ticket Offers
  • 2. Sell An Offer That Is Infinite
  • 3. Invest In More Lead Flow
  • 4. Hire Skilled High-Ticket Closers
  • 5. Hire Rainmakers That Are Hungry
  • 6. Hire Qualified Closers
  • 7. Have an Offer, a Flow, and an Army of Closers

Some business owners think, “If I want to make more money, I need to scale.” This may or may not be the case. A company can make over 50 million a year, yet have a net that’s less than 100 thousand dollars a year. So bigger is not always better. Better is better.

The point of scaling is to make more profit, but not every business is meant to scale.

What To Consider Before You Scale

Whether you scale your business depends on your goal. You might be happy with a laptop lifestyle, being a digital nomad making a couple hundred thousand a year to be able to travel. If that’s all you want, there’s no need to grow your business.

If you’re scaling just to make more money, that’s not a good enough reason. A better reason is you need more capital so you can have better infrastructure. Or, you want to reach more people and serve more people. Or you need to scale in order to invest in better technology. Those are all good reasons to scale.

If you’re ready to scale, ask yourself these questions. Does there need to be a margin?  How many more employees would you need to hire? Would you need a new office? Would you still have the same margin?

If your business is making 50 million and nets 100 thousand a year, and you double that to 100 million, that’s great. Now you’re making 200 thousand net a year. But to get to this next level, how many employees would you need? Would you need more inventory or equipment?  

You want gradual growth for your business. The Startup Genome Report’s coverage of premature scaling found that “70 percent of startups scaled too soon in some aspect of their business, directly contributing to their eventual failure.”

70 percent of startups scaled too soon in some aspect of their business, directly contributing to their eventual failure. - Genome Report Click To Tweet

Think about what your margin would be. Your ideal profit margin depends on the type of industry you are in. For example, if you’re in the food service business, you could have a profit margin of 3.8%. If you are an accountant, you could have a profit margin of 19.8%. It doesn’t necessarily mean one business is doing better than the other. One has less overhead, while another may need to rent space and equipment and invest in raw materials.

Watch this video about the steps to scale your business.

 

To scale your business, you will need three things: a high-ticket offer that is infinite, a steady lead flow, and a team of high-ticket closers.

1. Sell High-Ticket Offers

Most businesses are what I call a one product pony, which limits their ability to scale. They have only got one product that they’re selling for $30. If the product cost the business $5, they’re making a $25 profit per unit. Or, if that’s a $30 product they’re selling through e-commerce, the most that they could invest to acquire a customer is $25 because that’s their profit margin. For each sale that they make, they can spend no more than $25 to acquire a customer because $5 is their cost.

You can only go to so many channels or use so many ways to acquire that particular customer if you’ve only got one product. The customer buys it once and they don’t have to buy it again. That means you have to constantly market and get new customers.

Now let’s take a look at a different scenario. Let’s say you’ve got not one product but a product line or back end products that you sell to the same customer. And instead of selling low ticket, you’re selling high-ticket.

If you’re selling high-ticket items, you’re first selling a $2,000 product, then a $5,000 product and then a $10,000 product to the same customer. In that case, the annual value of a customer is not $25 for a one time sale. It is $10,000. You have a percentage of customers that will first buy the $2,000 product. Later, they buy the $5,000 product, and then the $10,000 product. Hypothetically let’s say that’s the case. Now it’s a very different game.

Instead of spending $25 to acquire a customer, you can spend $500 to $5,000 depending on the lifetime value of the customer. Maybe the lifetime value of a customer who stays with you is 2 to 20 years. The first year I could spend up to $10,000. That gives the business owner an edge over someone who can only spend $25.

2. Sell An Offer That Is Infinite

Another aspect to consider is how easily you can scale your offer. I call that the fulfillment aspect. If you’re selling something that takes a long time to make, like a sofa, or something handmade,  it’s going to be difficult to scale. If you’re selling software, it doesn’t matter if you’re selling 1, or 500 or 50,000 of the same product. You can scale the business just like that. I’ll need more customer support and more infrastructure, but the product itself is basically infinite.

Businesses or Offers That Scale

Tech companies using a software-as-a-service (SaaS) model of producing goods and services. With the lack of physical inventory, low operating overhead, and little need for infrastructure, these companies can scale quickly.

Other offers that scale quickly include eBooks, online courses, and paid subscriptions. You do the work once, and have the potential to reach hundreds, thousands, even millions of people.

Rental property is another type of scalable business. It requires more capital, but you receive payments for years after the property is paid for. Downsides include difficult tenants and repair overhead.

Short term rentals such as Airbnb are growing in popularity as a source of income.

Software as a service, eBooks, courses, rental, and Airbnb are scalable. Click To Tweet

Businesses or Offers That Don’t Scale

Businesses which have operating costs tied to an increase in sales are not ideal to scale. For example, a dry cleaning business has natural limitations: location, size of equipment, and proximity of customers. If you want to scale, you will need to open a new location and incur a new set of risks: hiring new employees, hiring a manager (since you can’t be there), investing in new equipment and a new location. And you will never be able to serve over a million people at any given location.

3. Invest In More Lead Flow

One key step to scaling that many entrepreneurs and business owners underestimate is ad spend for marketing. Many of these owners want to go cheap. They want to spend the least amount of money to acquire the customer.

Identify Your Ideal Buyer

That kind of mentality is not effective for a business growth strategy. In order to scale, you need to outspend your competitors. First, identify your ideal buyer and their needs. How do they learn more about what they want to buy? Do they conduct consumer research by reading consumer reviews? Do they read blogs and industry publications? Build a company presence where your buyer does their research.

If my competitors can only spend $200 to acquire a customer and I can spend $2,000, I could go to so many more channels and test so many more traffic sources in order to scale. I could go to Facebook, YouTube, Instagram, and many more.

That gives me way more options to scale fast. If my competitor cannot afford to go offline or do any offline marketing when I can, the lifetime value of my customer is high.

How much should you spend to acquire your leads?

The amount you spend depends on your industry. According to a recent benchmarks report, “The media and publishing industries report the lowest cost per lead at $11 to $25. Software, information technology and services, marketing agencies, and financial services companies all report the highest average cost per lead at $51 to $100.”

A company’s ability to reach their revenue goals depends on the number of leads it can generate. In the same survey, “over 70% of companies not achieving their revenue goals generate fewer than 100 leads per month, and only 5% generate more than 2,500 leads per month.”

Your company could be running ads on Facebook, Instagram, and Google to bring in the leads. Then your marketing campaigns and the traffic generate a steady stream of leads. At that point, you are ready to scale up to the next level, to take your focus from marketing to sales. At that point, the next bottleneck to scaling your business will be having enough closers. 

 

 To scale your business, invest in leads on social media and other sources.scale your business

4. Hire Skilled High-Ticket Closers

At what point when you are scaling your business do you need closers? It depends on the value of your offer. When you’re selling products or services that cost more than $5,000, it’s very difficult to make a sale through a webpage or video. You need someone to get on the phone one-on-one and close that particular prospect. What you’ll need is a high-ticket closer, a salesperson who closes premium value offers.

At this level, sales are consultative, not transactional. With transactional sales, the business is more focused on selling the product, so it could become just a one time purchase for the customer. With consultative sales, the business is more focused on a long term relationship with the customer.

The Role of The Closer

When the prospect is ready to invest in a $5000 offer, they book a call with a closer. The closer builds rapport with the prospect and asks questions to find the prospect’s pain points and challenges, budget and timeline. It is the job of the closer to find out if the offer is the solution to the prospect’s pain points. If the offer is not the solution the prospect needs, then there is no sale.

The closer also asks questions to learn more about the prospect’s budget and timeline. Some prospects may think that a $5000 or $10,000 program is a huge investment. The closer handles the prospect’s objections and answers questions the prospect may have. For example, a $10,000 program may seem like a big investment, but if the prospect can 10x their revenue from $100,000 to $1,000,000 as a result of the program, then they will see the value of the investment.

Most entrepreneurs realize they need closers when they’re scaling their marketing. Click To TweetTheir ad doesn’t increase sales, so they bring someone on to close the sale. If the closer isn’t trained to close high ticket offers, they will struggle to close the deal.

Having a Closing Team

The way to scale quickly is to have access to a group of trained closers who are ready to talk with prospects as soon as you ramp up your marketing and have the leads. If you have enough closers to follow up with the increased lead flow, you don’t have to lower your marketing budget or pause your ad.

You always want to have more than one closer even though you might just need one to scale. This way if one leaves, you have a replacement.

At my company, we have over 100 closers to close our own programs and products, so if one leaves, there are 99 to replace that particular person. That’s how we are able to scale quickly. We have enough skilled closers to close prospects on the phone after they’ve seen our ad or watched our masterclass.

5. Hire Rainmakers That Are Hungry

You’re not going to find good salespeople the traditional way. I’ve gone to sites that run ads. The problem is any salespeople that are looking for a job are not good salespeople. If they were good salespeople they won’t be looking for a job. The best salespeople are already making good money and commissions.

The best salespeople are also hungry. If you hire a salesperson and pay them a base salary and even some kind of bonus, they can’t even close. A good salesperson is like a hunter. They believe that, “You eat what you kill.” A bad salesperson is not hungry. Most of them want safety and security. They become the typical salaried person that isn’t motivated to bring in sales. A good closer needs to be commission based, not on a salary. The more they close, the more sales they make, the more money they make. The sky is the limit for their income. They are even able to sell at a higher price point. If you do find that superstar that is producing a lot of sales, that person becomes your rainmaker.

scale your business

 

6. Hire Qualified Closers

After you find closers, how do you know if they are good? One way is to role play with them. Play the prospect and ask them to sell you your product or service. Give the closer different objections and listen to how they handle those objections. Do they sell like a typical salesperson? For consultative sales, they need to sell more like an enrollment coach and not push the sale.

Find out more about their closing philosophy. Do you want them to have a Wolf of Wall Street angle? Do you want them to just get the money? Or do you want them to sell to the customer only if it’s a good fit? You don’t want customers who never want to hear from you again.

Also, while they are closing for you, pay close attention to the sales that they don’t make. Are they pissing off the customers or forcing them to buy something? You don’t want a salesperson who could ruin your reputation and relationship with your customers without your knowing it.

7. Have an Offer, a Flow, and an Army of Closers

If you’re thinking of scaling your business, think of a triangle, because you’ll need three things.

First, you need a scalable offer, an offer you can deliver to massive numbers of people without more infrastructure. Maybe it’s software. Maybe it’s a digital product. It’s something that you can sell to one person or 10,000 people while your work is essentially the same.

Second, you need consistent lead flow. It can be through social media, pay per click or even an infomercial.

Third, you need closers that can close. If you have a scalable offer and steady lead flow, you can add more closers and have 100 to 400 thousand dollars more to your revenue. Next, you can take your profit and reinvest into that lead source so you can scale and get more leads. And then you hire more closers, get more leads, hire more closers. Before you know it, you’ve got a pretty decent sized business.

Summary

Should you scale your business? Some business owners make the mistake of scaling their business as soon as they can to try to maximize their revenue. However, there are many factors to consider before you scale, such as your profit margin.

Businesses that have a high ticket offer that is infinite have a higher chance of scaling successfully. They also invest more into their lead flow.

Once a business has a steady stream of leads, they can hire a team of trained high ticket closers to close deals for them. These highly trained salespeople are like enrollment coaches. They will close the sale only if the prospect is the right fit for the offer.

They are paid by commission only, so everyone wins when an offer is closed. This means the prospect invests in an offer answers their needs, the closer has made a commission, and the business has a sale.

Are you making six figures and you want to take your business to seven figures and beyond? Do you want to take your business to the next level and generate predictable and sustainable ROI every month? Click on this link to find out more.

How I Built A Powerful Team Of Independent Entrepreneurs

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Business is a team sport. If your team doesn’t work well together then it will be like a soccer team with half the players trying to kick the ball to one side of the field, and the other half trying to kick the ball to the opposite side. That kind of thinking doesn’t work.

If you’re a business owner trying to build a successful team, you must think of it like a team sport. The people you hire must work together and share your passion for what you are doing.

Most organizations hire employees who work set hours and quit if they aren’t paid what they’re worth. You cannot build a powerful team with this kind of employee.

I hire entrepreneur-minded people who work together to reach the same goal. My organization grows quickly and moves quickly, adapting to change within hours.

Finding the right people for your team is not easy. As your business grows, you’ll notice you cannot do everything yourself. You need to start building a team of people around you. The problem with a lot of entrepreneurs is that they are control freaks. So as an entrepreneur, you must learn to let go of some control. Then you can start building a team.

To start building a powerful team, you need to have four key elements: vision, mission, culture, and talent.

Watch this video about building a powerful team.

 

1. Share Your Vision With Your Team

You want to have a very clear vision of what you want your business to look like. Your vision will be your greatest asset when it comes to leadership. You cannot inspire anybody without a vision.

Historically, when someone wanted to conquer a country, or start a movement, there was always a very clear vision of what they were going to do. They were clear about what the outcome would look like when they won.

Having that vision is extremely critical. As a leader you need to sell your team on the vision every single day.

You then get them excited because people go through ups and downs so you can’t tell them the vision once. You have to keep selling and selling it.

Sometimes as a leader, even you aren’t sure if you can actually achieve what you say. But you had better not share that doubt or show it.  You need to have unstoppable, unshakeable confidence. You have to inspire them with words like, “Let’s do it together as a team.”

That vision is extremely powerful once you have it. You want to be able to tell your team, this is what we’re going to do. We’re going to dominate the real estate industry. We’re going to change the energy sector. Or we’re going to help the people of this community.

2. Sell Your Team On Your Mission

Once you have the vision, the big picture, then the next thing you need is the mission. The mission can’t be that you’re building a business so you can get rich. That doesn’t inspire anybody. Why should they help you get rich? You have to have a mission that inspires people beyond your self gain.

People want to belong to something bigger than themselves. They want to know what they do matters and makes a difference.

Lifestyle entrepreneurs have trouble building a team because they lack a sharable mission. They just want to make enough money to work from home or work so many hours per week. It’s just about me, me, me. That kind of mentality doesn’t attract talent because it’s too small.

Bill Gates’s dream was, “We’re gonna put a personal computer in every household in North America.” Steve Jobs wanted to put a computer in the hands of everyday people. Elon Musk had dreams of making space travel for everyone.

These big dreams are what get people inspired. There’s a purpose. You’ll have a more driven organization with a mission that goes 10 to 20 years into the future.

3. Develop a Team Culture

What do you stand for as a leader? What makes up your culture are your values as a company and as a leader? There are usually four to five key ideas. Everything else builds around those four to five things.

In my company, culture is very important. People don’t think about what is or isn’t their department. Everyone helps each other and is very supportive. We learn, argue, fight, and then get back to work the next day and focus. We are focused on growth and excellence.

Having a strong team culture is important when building a team.

4. Find Talented Entrepreneurs

When you’re interviewing somebody for your team, tell them what you stand for, the vision, and where you’re going.

Potential employees who are looking for a 9 to 5  job are not a fit for my organization. They just want a pay cheque.

Anyone who works for me or works with me knows it’s very intense: long hours, hard work, and a high standard. I don’t tolerate excuses. I don’t tolerate bad performance. Those kinds of 9 to 5 people don’t last in my company, and I’m upfront about it. If a candidate is willing to accept those conditions, and they can thrive under pressure, then I want to get to know them.

That’s my management secret. I want to know their personal goals. It’s not a good sign when they ask me about the salary or how many hours of work are required. I don’t want to hear that. I want to hear what motivates them. If their dream is to buy a car, I want to know what car and why.

When you tie personal goals with company goals, you and your team are aligned. You get loyalty.

Most employers play just enough so their employees don’t quit. In my organization, I don’t dictate how much each person gets paid. If someone’s income goal is $100,000, they need to find a way to add value. Then I’ll increase their compensation to get closer and closer to their income goal.

Strong Leadership

You are who you attract. So look within yourself if you want to lead a team like mine. Leadership always starts from top to bottom.

Final Thoughts On Building A Powerful Team Of Entrepreneurs

Today I’ve given you a glimpse of the mindset to build a powerful team. If you want to build a team of entrepreneurs, not employees, first, have a vision and a mission that your team can be a part of.

Then develop the team culture. Look for good talent. Ideally, you want to find people who are willing to put in hours of hard work because they love what they do, not because they want a pay cheque.  Work on becoming a strong leader, because if you are strong, you won’t have any problems attracting talent. Strong leaders are the foundation of powerful teams.

What is your mission statement? Comment below.

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Words of Wisdom From a Self-Made Billionaire

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A billionaire once said to me, “Dan, if your goal is to make a billion dollars, chances are, you’ll never make a billion dollars.”

Those were his words of wisdom, which were discouraging and confusing at the same time. What was he really trying to tell me? That I was going to fail?

I was hungry for answers from the local billionaire who was sitting next to me. He’d made a fortune in the real estate and financing business, and I wanted a role model. I was a young guy at the time and we were at the Vancouver Club. The people at this exclusive club are shareholder and families of generational wealth, so I didn’t feel like I belonged.

As one of the youngest members of the Vancouver Club, I found it was a fascinating place to meet a lot of powerful and influential leaders.

I met real estate developers, powerful politicians, tycoons, and tech entrepreneurs. The place was a gold mine of possible business mentors for someone like me who was still struggling to achieve my dreams.

I felt very privileged to have the chance to sit with this successful billionaire and learn from him. I asked him, “How does one become a billionaire like you? What advice do you have for a young man like me who is building my companies? If you were to do it all over again, what would you do differently?”

The advice he gave me wasn’t just about money or how to make it. Surprisingly, he told me that if I just focused on the money, I wasn’t going to get as far. Here is what he shared with me about how to reach his level of success in business and in life.

Watch this video for words of wisdom from a billionaire.

 

Don’t Set Out To Be A Millionaire Or Billionaire

Now before you start wondering if he was telling me to stop focusing on money, let me share what he said. It wasn’t what I expected.

He told me, “You know what, Dan, at first, that wasn’t my goal. I didn’t set out to be a billionaire and put that on my goal list or anything like that. Now when I was young, I had a wife and kids, and all I wanted to do was provide a nice environment for them. I wanted to provide a good education for my kids. I wanted a nice home for them to grow up in.”

He also wanted to become a millionaire. He worked hard at it and eventually, he hit a million dollars.

But he realized nothing changes that much. He still went to work. He still ate the same breakfast and he still provided for his wife and kids. The difference was, his house was now a nice house and he had a couple cars. Life was good.

But he realized that didn’t fulfil him. That old life didn’t get him excited anymore. He realized that being a millionaire wasn’t the end goal.

Grow Your Business One Step At A Time

At the time, he had good employees that he treated like family. He got to know their spouse, their kids, and before you knew it, they were a pretty big company with 100 employees. But to expand the business, he needed to acquire another company.

So that’s what he did – he expanded and then he had two companies. So I asked him how he managed all these different companies.

He said it was like having a baby – you just have one at a time. You acquire a company, and then you let it grow. Step by step, you help it, nurture it, and grow it. And then you have another company, and you nurture it and grow it.

After decades of doing that, he ended up with tens of thousands of employees and this group of companies.

Then I asked him, “How do I grow my business the way you did?”

He had grown his fortune one company at a time, but the key is he didn’t focus on the money. He didn’t focus on making a billion dollars. What he said was, “If your goal is to make a billion dollars, chances are, you’re not going to make a billion dollars.”

I asked him what he meant by that. Wasn’t the purpose of growing companies to make a billion dollars?

Love What You Do, Value Your Customers

He said, “If you love what you do, and you love your customers, your people, and your team, and you’re willing to make a difference and establish a reputation of being fair in business dealings and working with people…people will want to come back to you and do business with you.”

It’s easier to do business when people come to you, instead of you chasing them. You want people to come to you because you have a good reputation. You want to show them you care about them.

So people – your customers and your team – are what will get you to your goal of becoming a millionaire or billionaire. You can’t just focus on the money goal. You need to love the people who are your customers and your team so they will want to come back to you.

I took the advice of that billionaire and I’ve grown my organization to a global level. If a young guy were to sit down with me and ask the same questions I did as a young man, I would give him the same advice on how to become rich.

If you are interested in more advice from successful entrepreneurs, tune in to my podcast called The Dan Lok Show. Every single week, I interview successful entrepreneurs, heavy hitters, millionaires and billionaires, to bring you their wisdom and insights.

 

I hope you enjoy reading this blog post.

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