Entrepreneurship is the backbone of this
country. And yet people fail in business
all day long.
According to fundera, in the first
decade, 70% of all businesses will fail.
And it's because they're missing some of
the most fundamental training and
aspects of how to succeed. My name is
Kris Krohn. I've been in business for
last 15 years. And you know what?
I've lost millions of dollars but I've
also made a lot more than that. And today,
for 2020, I'm going to share the top 3
things most important for every business
to have most don't. It's that just by
watching this video, some of you should
decide to close shop and some of you
going to hunt somewhere else so you can
have the level of success that you
deserve. If the business doesn't have at
least a 50% margin,
I usually don't look at.
If you don't have that, then who cares
about your business?
Ultimately businesses are going to succeed
or fail based on their understanding of
3 fundamental principles. Margin,
leads and difficulty. And today in this
video, I want to dive deep into them
because you may have a business that is
destined to be broken and you don't know
it. Because a broken business ultimately
leads to you being broke financially.
We're going to actually evaluate this theme
park, Harry Potter world. We're going to talk
about how it's doing in these 3
categories. And at the end of this video
as a bonus, I'm actually going to share with
you my favorite business model that I've
used to make more money than anything
else and how you can copycat it. Alright,
let's talk about these 3 components
of a successful business. The first one
is margin, okay? So, your typical average
business operates on a 10% margin. And a
good business might have a 20% margin.
And the poor business might have a 5%
margin. Now, one of my rules is if a
business doesn't have at least a 50%
margin,
I usually don't look at. Why? Because if
I have a lot more money, it means a lot
of good things come into my world. One, I
don't have to take a position with the
company. There's enough money that I can
actually focus on being an owner
business versus an operator that's
getting tired working inside of the
business. So, if you take a look at
Universal Studios here in Orlando,
Florida, right now in 2018 after they
launched Harry Potter world, they brought
in revenues of 1.25 billion dollars. They
saw a 15% increase from just the year
before. But more importantly, their profit
was right around 500 million
dollars. Now 500 million dollars
and 1.25 billion of revenue means that
they're sitting at a 40%
margin. That is 4 times more margin
than the average business. So, guess what?
As far as that goes, they've got a
fantastic business model. Number 2 is
leads. A business that doesn't have a
predictable set of qualified leads is
always going to struggle. You know how
many people I know they're like, "I've got
the most amazing product. My product is
so amazing." But bottom line, they don't
have enough lead flow which means
prospects, people, customers, clients. If
you don't have that then who cares about
your business? People make the mistake
all the time
of supporting businesses that have
amazing products but they have no way
of marketing. So, take a look at where
we're at again. They have movies coming
out. In fact, they've got all these movies
that drive people into the park and as a
result, they have really good margins but
only because they have lots of customers.
Over 10 million visitors a year flock to
Universal Studios Orlando. And you know
what? Harry Potter has only increased that
number. So, guess what?
They've got leads. And that's why they
have margin and that's why it works. The
third thing that you need for your
business to thrive, best advice that I
can give you is you have to evaluate the
difficulty of business. One of my mentors,
Tony Robbins says that the enemy of
execution is complexity. So bottom line,
is when something becomes harder then
the more difficult it is. There's
opportunity for errors and for things to
break down. And you know what? When you
actually look at Universal Studios,
it is a crazy complicated business. That
doesn't mean it's bad. It doesn't mean
it's not worth it.
They're clearing a half a billion
dollars a year in this park alone. But
for you and your business, one of the
things that you need to ask yourself is
how difficult is my business? Because the
more difficult it is, the harder it is to
duplicate. The harder it is to actually
grow or the harder it may be to actually
systematize. Doesn't mean it's not worth
it but it does mean that you might have
a problem.
Now, as you evaluate your business and
take a look at these 3 aspects, ask
yourself number one: Do you have a normal
margin, a low margin, a high margin or an
extraordinary margin? If your margin is
normal like 10%, then I think that you
have a problem. Look at how successful
you have to be to get that business to
produce something. And you might spend
years building it. But what if you
started right now with the business that
had like a 30, 40, 50 or a 60
percent margin. If it existed and if it
was out there, you'd have to work way
less hard to way more money. The
second thing that would happen is that
you'd find yourself be more of a
business owner versus an operator.
Because when you have a 10% margin, the
problem is that you actually need to
insert yourself in the business and work
the business to actually justify the
little bit of money that you actually
make. The second thing I would evaluate
is leads. If you don't have a dependable,
consistent flow of leads in your
business, you might be in the wrong
business. Because you're going to spend all
of your time hustling diluted by the
fact that you think your products are
great but you don't know how to put it
in people's hands. And thirdly, difficulty.
If your business is super difficult, is
super complicated, you might be able to
pick a different idea this year and zoom
around a decade of results in your old
business. Sometimes we find ourselves
comparing ourselves to some of the
biggest names of business, some of the
most successful iconic people.
JK Rowling has the most amazing story.
Think about it for just a moment. I mean,
this woman submitted her manuscript of
Harry Potter to 12 publishing houses. All
of them rejected her. And finally, one of
them went with it. And then in like a
20-year spans created a 25 billion net
result of that franchise. But you know
what? Not all of us are going to be what I
call the Lucky Sperm Club. Not all of us
are going to be the people out there out
there crushing it with like these mega
businesses. But that doesn't mean that
there's not a piece of the pile with
your name on it where you can absolutely
kill it. This is what I've learned in all
my years of business. If your business
has low margins, you're in trouble. If
your business doesn't have a good lead
source, you have problems. And
more importantly, if your business is
difficult, you have more problems. How do
those problems you currently have in
business? But I want to do right now is I
want to share with you a perfect
business. And this is just an example. In
the link below is an example of one of
my businesses that doesn't just meet the
3 rules I've shared with you.
It meets five rules. And you can watch a
video in the link below. And I will show
you what all five of those rules are for
business. But I found a business that
ultimately has on average a 50% margin.
And 50% means I don't have to work the
business. I can hire someone to work it
for me. Number 2, it has an abundance of
leads. I can pretty much order as many
leads as I want and then I can make a
lot more money and I can pretty much
print money according to how hard I want
my team working. But number 3, it's a
simple business. In less than a week,
everyone is trained on exactly what to
do. And trust me, take it from someone
who's lost millions in business. There
are hard ways and there are easy ways.
And sometimes, we're on the wrong path
because we're spinning all of this time
barking up the wrong tree. Right now, if
you want to see what a perfect business
looks like that meets these 3 rules
and some of my bonus rules, click the
link below, watch that video. And what I
hope that it will do is inspire you to
get wiser about the business that you're
in, should you be in it or should you hop
over to something different? Or is it
time to expand into something different?
So you have a more realistic shot of
being successful. Because hey, 500 million dollars, they're not
messing around and you shouldn't either.
Alright, my boys are giving me this.
Bertie Botts, every flavor bean.
Boogers, I'm sure. I think it's boogers.
Let me see if some pumpkin juice can
wash it down. Nope. It's way too...
Butter beer. Yeah, it's just rotten. It's
nasty.
Hey, guys, thank you so much for watching
today. Make sure that you subscribe. Like
the video. If you did like it, share it
with somebody. Bottom line, this is your
year. This is the start of the decade. Its
2020, how do you crush this year? How do
you crush it for the next decade? And
don't forget, below, I'm sharing my 5
secrets on how to kill it in business
with the best business advice. So, check
out the video, check out the business.
Learn and grow.
