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?I once attended a lecture where a man who had created a very successful business that sold products to countries all over the world gave us his three key points to success in business. These points may oppose conventional thinking, however, remember that he was successful by living this formula. Here are his 3 key steps to success along with my thoughts: 1. Those that do the work receive the reward. What a unique thought! When nearly all of us create a new business, we split up the stock and relax on our laurels! This man was in favor of seeing who the players were going to be and measure the ownership based on the amount of value the individuals contributed. Though this tactic may work well if you're self-funding your company, there are dangers in this tactic that you'll want to be aware of. You'll want to make sure you have a good relationship with those whom you're in business with. There is nothing like somebody else establishing your value. You run a large risk of not seeing eye-to-eye when it comes down to assigning equity. I like to let a business come together before ownership is divided up. I've had too many partners fall by the wayside prematurely or don't display the talents, contacts and drive they professed to have. 2. Keep everything in-house. Usually, I suggest outsourcing everything you possibly can. It allows for greater flexibility and allows entrepreneurs to scale rapidly both forward and backward. This man's believed that you ought to create revenue as much as possible'particularly in the beginning stages. If you outsource, you are outsourcing the profit. I can see plenty of wisdom in his thinking. He demonstrated this idea well. He owned a smaller manufacturing plant and even screen printed his own T-shirts. His pay was $20,000 personal income each month. 3. Concentrate on the income. This counsel is the real gem. The majority of rising businesses focus on the product development phase and completely forget about generating money and creating profitable transactions. This man's idea was to develop your merchandise, in your garage if you must, and then sell it for more than it cost you to build. efficiently ran his business out of his garage for years before he moved to commercial facilities. I've observied that the businesses that I've started this way grew without risk to levels of profitability. By the end of the lecture, I placed the paper in my pocket. I came to the conclusion that this man's recipe for success, although I may not agree with the whole philosophy, was certainly working for him. NOTE: Use of this article requires links to be intact. Rod Alan Richardson is dedicated to teaching people how to succeed in free enterprise through his Business Training Course. He also offers a free ManagementTraining Newsletter.
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