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- May 9, 2016
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What is business? Here is my oversimplified answer to that question.
It is a machine. A machine you automate to work for you that prints money out. @MJ DeMarco talks about it in his book as well. He mentions a crane that an egyptian uses to build his pyramid faster. The other egyptian does not use a crane and decides to do the work himself. This is similar to trading time for money.
Personally, I like to call them money factories. The factory has assembly lines. Just about every business has the same assembly lines. The main ones are
-Marketing
-Sales
The objective is to go piece by piece and automate it.
Here is an oversimplified and stupid example just to illustrate my core points. Your ability to do these things is not my point here. I see many problems with starting a landscaping business. But that is not my point.
Let’s pretend I started a landscaping business.
Phase 1. Test the idea and secure needed equipment and personnel.
PHASE 2. Get your name out there.
This would be the “marketing” section of the assembly line. Just for the sake of my argument, let's pretend you had a bad a$$ website that was producing 100% of your leads. You’d pay a web guy to maintain it and voila, your marketing is now automated. Congratulations.
PHASE 3. Sell it
Your website is awesome and you MIRACULOUSLY have 15 calls a day coming in and you are #1 on search engines. Well, someone has to talk with the customers and close the sales right? At first it was you, but because you have been doing so well you can afford to hire other people to do it. You hire people to manage calls and do bids. You create sales scripts for them all to use and you train them on everything they need to know regarding your business operations.
Your sales are now automated. Congratulations.
PHASE 4. Project management
You trained some employees and you have assembled some crews. Once a sale is confirmed the customer is scheduled in. When the date arrives the crew goes out and completes the job. Let’s pretend you hire a manager to handle the logistics and you know...manage it. Your project management is now automated. Congratulations.
PHASE 5. Get money
Get money. lol
Website sends in leads.
Employees handle sales and completes job.
Money prints out of the factory.
Obviously A LOT goes into all of these things, and there are many, many details I left out. Once again, this example is just to illustrate my core points.
The goal is to create an automated money factory that prints you money. Then you take said money and use it to make more money. Rinse and repeat. Like everyone else, when I was younger I looked up to wealthy people. I was in awe like many other people. "Omg bro, you see that car? What does he do? Should I ask him?". Being in business myself now, I've learned there is nothing special about these people. They are not Gods. They are not incredibly brilliant. They are not incredibly "lucky" I despise that word. I have friends that treat me like I am some hot s*** now. But I am not. And neither are these other guys. All they did was create a money factory. A system that automatically generates money for them. I see these systems everywhere I go now. Everywhere I look there is a money system. You can create your own money system and be just like those people. Just about everyone can. But not everyone will.
It is a machine. A machine you automate to work for you that prints money out. @MJ DeMarco talks about it in his book as well. He mentions a crane that an egyptian uses to build his pyramid faster. The other egyptian does not use a crane and decides to do the work himself. This is similar to trading time for money.
Personally, I like to call them money factories. The factory has assembly lines. Just about every business has the same assembly lines. The main ones are
-Marketing
-Sales
The objective is to go piece by piece and automate it.
Here is an oversimplified and stupid example just to illustrate my core points. Your ability to do these things is not my point here. I see many problems with starting a landscaping business. But that is not my point.
Let’s pretend I started a landscaping business.
Phase 1. Test the idea and secure needed equipment and personnel.
- Obviously landscaping is a legitimate need people have. Check
- Secure needed equipment. Check
- Find employees. Check
PHASE 2. Get your name out there.
- Get marketing materials and place them out. Make a website with proper SEO. Network. Craiglist ads. Ect Ect. This all boils down to getting your name out there. Check
This would be the “marketing” section of the assembly line. Just for the sake of my argument, let's pretend you had a bad a$$ website that was producing 100% of your leads. You’d pay a web guy to maintain it and voila, your marketing is now automated. Congratulations.
PHASE 3. Sell it
Your website is awesome and you MIRACULOUSLY have 15 calls a day coming in and you are #1 on search engines. Well, someone has to talk with the customers and close the sales right? At first it was you, but because you have been doing so well you can afford to hire other people to do it. You hire people to manage calls and do bids. You create sales scripts for them all to use and you train them on everything they need to know regarding your business operations.
Your sales are now automated. Congratulations.
PHASE 4. Project management
You trained some employees and you have assembled some crews. Once a sale is confirmed the customer is scheduled in. When the date arrives the crew goes out and completes the job. Let’s pretend you hire a manager to handle the logistics and you know...manage it. Your project management is now automated. Congratulations.
PHASE 5. Get money
Get money. lol
Website sends in leads.
Employees handle sales and completes job.
Money prints out of the factory.
Obviously A LOT goes into all of these things, and there are many, many details I left out. Once again, this example is just to illustrate my core points.
The goal is to create an automated money factory that prints you money. Then you take said money and use it to make more money. Rinse and repeat. Like everyone else, when I was younger I looked up to wealthy people. I was in awe like many other people. "Omg bro, you see that car? What does he do? Should I ask him?". Being in business myself now, I've learned there is nothing special about these people. They are not Gods. They are not incredibly brilliant. They are not incredibly "lucky" I despise that word. I have friends that treat me like I am some hot s*** now. But I am not. And neither are these other guys. All they did was create a money factory. A system that automatically generates money for them. I see these systems everywhere I go now. Everywhere I look there is a money system. You can create your own money system and be just like those people. Just about everyone can. But not everyone will.
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