The Ultimate Blueprint for an Insanely Successful Business

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Kieth Cunningham is one of the most influential people I've ever met. In fact, I owe my love for business to Kieth. He is truly a person who has been there and done it all, from ultra rich to bankrupt back to ultra rich; but his true creditability comes from his ability to think about, distill and practice good business. He is able to describe complicated scenarios in a simple manner, which is a true indication of someone who knows what they are talking about.

The Ultimate Blueprint for an Insanely Successful Business is a bible for good business. It gives the basics of financial analysis and business optics as a fundamental tool to make decisions, just as a doctor would use an x-ray or a pilot would use his instruments. Kieth's No Overhead Growth strategy is tool I regularly think about.

Key Takeaways:

The problem with being a great operator is you don’t get rich, you get tired

If you want to succeed in business you must learn how to measure your financial results, identify the activities that are sabotaging them, and then learn how to correct those mistakes so that the results you desire can be achieved

Measuring efficiency, effectiveness, productivity

Financial and business analysis is the process of converting the numbers on the accounting report cards back into activities. Fundamental to optimise before you grow.

Scaling a cancerous business simply means you'll have a bigger tumour

No Overhead Growth (NOG) Strategy

Let's take an example of 2 businesses who's goal is to increase sales revenue by 30%.

Let's take the example of two businesses taking different strategies for this goal. Both have:

  • Revenue: $100
  • Expenses: $90
  • Profits: $10

Business A's strategy is to grow the business to achieve this. They increase advertising, build new website, hire new sales team. They put their foot on the accelerator. Revenue increases by 25%, Profits increase 30%

  • Revenue: $125
  • Expenses: $112
  • Profits: $13

Business B's strategy was increase efficiency. They went through expenses line by line, vendor by vendor. Expenses were cut by 3.5%, profits increased 30%

  • Revenue: $100
  • Expenses: $87
  • Profits: $13

With a profit margin of 10% every dollar reduction in in expenses equates to a $10 increase in revenue without the need to find, close and work harder to deliver more sales.