Title: Silver Bullet #3. You MUST be a millionaire by 60!
THE CLOCK’S TICKIN’
“Sure, I would like to grow my business, and maybe have an employee or two at some point. But this is a lot of work for little old me. I’m still at the starting gate.
Believe me when I say that if you plan to be a company of one, you will have a job, not a company. No one will buy or lease it for a lot of money or lease it from you later on because there is nothing to buy or lease.
One is the loneliest number … especially in business
You might be old enough to remember the hit song by the band Three Dog Night, “One is the loneliest number (that ya’ ever knew).” As single business owner you are probably doing all the marketing, selling, conducting all customer service and being sure that customers don’t leave you.
When you are not doing these things, you are creating products and designing services, dealing with suppliers, attending to operational responsibilities and doing bookkeeping.
The output of a business is in direct proportion to the number of managers available. In a company of two people, the workload is cut in half. What doesn’t go away are the eight equal and inseparable functions that are required for every company on earth:
product management, production, delivery, human resource development, marketing, sales, customer service, and customer care.
None of these functions can be ignored to avoid your business from being out of balance and crippled.
All best practices universally apply to any business size or type, whether you are a company of one, or a company of 100,000. The difference isn’t the size of the business, but the size of the owner’s desire to grow, and their willingness to make change.
A Balanced Budget does not require a business to be a certain size, nor to be in full bloom in order to realize the benefits.
The only requirement is that whoever is leading the company must have the desire to grow the business, be willing at any point to make the necessary changes and be diligent about managing money for at least two hours a week.
All that said… let’s do some math.
If you were to have $1,000,000 right now, in your savings a account right at this moment, what would you do with the money?
Invest it? It would be extremely generous to say that you coild possibly earn as much as 5% interest a year. This would be $50,000 a year to live on. Now, deduct no less than 20% for taxes and you have $40,000 a year to live on. Now, divide $40,000 by 12 months. You will enjoy retirement at $3,300 a month, plus your social security (add another $1,400 average). This might be ok for some… until the day you are faced with assisted living of $6,500 a month.
Here’s the worst part:
If you were to save $3,500 a month starting now, without skipping one month, it will take you 15 years to save $1,000,000.
Ready? Go!
Question: If you are a company of one person, how will you make all of this happen?
#1: Choose to Choose
Make a choice to grow your company. The amount of money that you will want or need every month X 6 = the required monthly margin for your business before adding your Cost of Goods Sold (while you still own it). You can do this. (We can help).
#2: Emerse Yourself
Commit to knowing and living the rules. They are available in written format on this site.
#3: Increase Your Awareness
There might be a few things that you can still learn.
#4: Add Some Tools To Your Toolbench
You will find no-cost many Kanketa tools to help, Just ask.
#5: Stay With The Basics
They always worked. Always will. Build your company’s margin to this level before you retire (see the free Marketing Video #4 in Learning Lab). This is entirely doable within 5 years no matter what kind of business you are in (even buggy whips!).
REBUILD YOUR BUSINESS.
Get It Safe. Keep It Safe.
REBUILD YOUR BUSINESS. Get It Safe. Keep It Safe.
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PROVEN “SILVER BULLET” HIGH SPEED LEARNING
BUSINESS IDEAS FOR IMMEDIATELY
INCREASING INCOME AND PROFIT
IN 2021
The National Business Education Council (NBEC) is made up of teams of small business subject matter experts, located in the US. and countries across the globe. Our sole purpose is to help small businesses rebuild, get safe and stay safe.
Twice each month, we conduct online 60 minute “Silver Bullet” learning forums, bringing ways to help our small business members increase their income and profitability.
SILVER BULLET INTERACTIVE SESSIONS are free on Zoom.
Bring all of your questions with you. Everyone’s questions and concerns are covered. If attendance is too large, another session will be rescheduled for the same topic.
Choose your topics of interest. Register below each time. The cutoff date for each session is FIVE business days prior to the date of the event.
“SILVER BULLET” HIGH SPEED LEARNING REGISTRATION
Any materials needed for the session will be forwarded to your registration email. For questions regarding this event, email: tguajardo@kanketa.com.
CLIMB ABOARD!
We’ve Got Your Ticket.
FRIDAY, JANUARY 15
Registration Cutoff: January 8
DON’T SELL YOUR BUSINESS. LEASE IT OUT FOR LONG TERM INCOME.
Answers the Question: “What do I do if I didn’t save enough for retirement?
ALL ABOARD
IN 2021
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TRACK 1: January Departure DON’T SELL YOUR BUSINESS. LEASE IT OUT FOR LONG TERM INCOME. Answers the Question: “What do I do if I didn’t save enough for retirement?” TRACK 2: January Departure STAY IN CONTROL OF YOUR BUSINESS Answers the Question: “Why can’t my accountant take care of everything?”
TRACK 3: February Departure YOU MUST BE A MILLIONAIRE BY AGE 60… OR ELSE! Answers the Question: “How much should I have in the bank at retirement?”
TRACK 4: February Departure MAKE YOUR CHECKBOOK MATCH YOUR P&L Answers the Question: “How much profit do I really make? Where is it right now?”
TRACK 5: March Departure MINIMIZE YOUR COST OF GOODS SOLD Answers the Question: “How much should my cost of goods sold be?”
TRACK 6: March Departure ONLY RISK WHAT YOU CAN AFFORD TO LOSE Answers the Question: “How much should I reinvest into my business?” TRACK 7: April Departure SET YOUR BUSINESS UP TO MAKE THE MOST PROFIT Answers the Question: “How Does This Apply To Me If I’m A Company of One Person?”
TRACK 8: April Departure PLAN TO HAVE 4 MANAGERS IN 60 MONTHS Answers the Question: “How Many Managers Do I Need?” TRACK 9: May Departure PAY YOURSELF WHAT IT COSTS TO REPLACE YOU Answers the Question: “How Much Should I Pay Myself As An Owner?”
TRACK 10: May Departure KNOW WHAT YOUR TIME IS WORTH Answers the Question: “How much time can I afford to give to my business?”
TRACK 11 June Departure KNOW THE GOOD WILL VALUE OF YOUR BUSINESS Answers the Question: “How much is my business worth right now?”
TRACK 12: June Departure PAY YOUR PEOPLE WHAT YOU CAN AFFORD Answers the Question: “Am I paying my people too much? Not enough?”
TRACK 13: July Departure ONLY GIVE RAISES BASED ON THE PREVIOUS YEAR Answers the Question: “How much can I afford to give for raises this year?” TRACK 14: July Departure PAY YOURSELF THE MOST FROM NET PROFIT Answers the Question: “How much money should I personally take out of the company? What’s reasonable?
TRACK 15: August Departure MAKE MARKETING A FIXED COST Answers the Question: “How much should I invest in marketing?
TRACK 16: August Departure DON’T OVERPAY FOR DEBT REDUCTION Answers the Question: “How much should I pay to retire back debts? TRACK 17: September Departure ONLY TAKE ON DEBT THAT YOU CAN AFFORD Answers the Question: “How much debt can I have before I am unsafe?”
TRACK 18: September Departure HOLD THE LINE ON ACCOUNTS RECEIVABLE Answers the Question: “How much should my accounts receivable be?”
TRACK 19: October Departure HAVE A SUFFICIENT LINE OF CREDIT Answers the Question: “How much should my line of credit be?”
TRACK 20: October Departure SAVE 25% OF YOUR NET PROFIT EVERY MONTH Answers the Question: “How much should I put into savings every month?
TRACK 21: November Departure CONTROL YOUR CUSTOMER CREDIT Answers the Question: “How much credit should I give to all my customers combined?”
TRACK 22: November Departure REDUCE CORPORATE TAXES BY ANOTHER 8.25% Answers the Question: “How much should I save for corporate taxes?”
TRACK 23: December Departure DON’T GET AN INVESTOR Answers the Question: “How much stock should I give to an investor?”
TRACK 24: December Departure BE YOUR OWN BANK Answers the Question: “How can I borrow if when the bank says “NO?” |
