Here are six things that most billion dollar companies
have in common:
Vast exposure- Martha Stewart's opportunity arrived when Kmart
started pumping millions of dollars into making her a household name.
Hillary Duff leveraged her fame acquired through Lizy McGuire and being a
Disney Kid. It takes millions and millions of dollars to become a household
name. How are you going to utilize enough marketing power to get you in the
faces of your prospect regularly? Limit your exposure only to markets that
you can strike seriously with consistently reoccurring messages.
Leadership- It is necessary for you to be an influential leader. If
you aren't able to communicate your vision clearly, make intelligent
decisions, and manage your time effectively, then get out of your own way.
Brand & Line Extensions- Do not get "line" extension confused with
"brand" extension. "Line" extension mean increasing the amount of products
in the same category. "Brand" extension involves utilizing the strength of
your name to sell products in multiple categories. A billion dollar company
has the ability to do both.
High Demand, Consumable and Unique Products- High demand shortens the
sales cycle which increases profitability. Consumable means that the same
customers repurchase the same products multiple times. Repeat purchases
raise your profitability each time they purchase. Uniqueness raises
profitability because it can significantly strengthen the value of your
product and diminish the points of comparison that control the price.
Hire Professional Management- For the most part, entrepreneurs avoid
employing professional management because they don't feel they have the
resources. People with plenty of experience can really shoot you forward.
Did you know that Elvis Presley's estate was worth less than $1 million upon
his death? Pricilla got the estate and hired professional management and
turned the assets of the estate into nearly $500 million. A business I owned
doubled its capital acquisition rate in a single day because we brought in a
skilled CEO that was formerly an executive at Microsoft. One may discover
that refusing to hire professionals could cost you your financial freedom.
Cross Selling through Circular Promotion- Jump at every opportunity
you have to advertise your products. All your products ought to compliment
the others and encourage your customers to buy them. Hillary Duff is fast
out pacing Britney Spears in per title record sales and is merchandising
through Target. However, she will outgrow her market.
Leading your company to its first billion dollars is no minor task. It is
crucial that you have the vision, the enthusiasm, the desire, and the
essential leadership skills. Aiming for the stars puts you on an upward
trajectory. Hitting the moon in the process is not a bad result, even
hitting the tree tops is better than the mediocrity that most experience in
their entrepreneurial activities.
NOTE: Use of this article requires links to be intact.
About the Author: Rod Alan Richardson has dedicated his
life to teaching people to succeed in free enterprise through his free
Business Training Newsletter. To
read the full version of this article go to
Billion Dollar Idea.
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