If you want to build serious wealth, this is how
4 min read
Building a business is very difficult, never mind actually making decent profits. Over recent years my business has generated between £30-40million in revenue... but I'm still paying myself the same as I was 10 years ago.
Where is all the money going?!
It's actually very taxing to cash out of a business, especially as the business continues to grow and you need to reinvest the profits to continue employing people, buying companies, stay on top of cash flow etc etc. because as I always say - Keeping the cash flowing, keeps the business going.
But there is another way that allows people to build serious, generational wealth. (Legally and with low taxation.)
Sound too good to be true? That's because it's flipping hard work. This isn't side hustle mentally or get rich quick. This is hard graft.
This is a formula of how dedicated entrepreneurs can build serious wealth in a matter of 5 years and this article dives into the exact steps business owners need to make in order to reach that top 1%.
Right, let’s get to it!
1. Focus on generating cashflow
As I always say sales before operations! You need to be the salesperson in the business not operating the business.
How to do this effectively:
80% of your time getting sales. (working on the business)
20% of your time operating. (working in the business)
At the start you are not a CEO (Chief Executive Officer), reframe it to Sales Executive Officer.
2. Become a Master Marketeer
There are three essential things that you need to become a master marketeer.
Your copy is imperative! Think like top journalists do. When you market something you need to think about the headline (or thumbnail) it’s the first thing people see. You do not have much time to grab a customers attention so it has to be spot on to get them invested. Once you nail copy it will elevate all your other marketing.
The content production needs to be consistent and of good quality. Content marketing is a great engine to drive organic lead to the business. (just like my YouTube and Podcast does for me)
You need to get good with your presentational skills. The content marketing is not just to sell but to get talented people to watch and make them think “I’d like to work of this business.” It also shows banks and investors your intentions and business movements in a positive and professional way.
The philosophy for marketing is you’re the marketing company your company needs! People always say you should outsource your marketing but I do not think it is a smart idea, if your not doing it in house your not doing it enough.
3. You’re the deal maker
Entrepreneurs are deal makers for both getting contracts and tenders over the line but ultimately we want to be deal makers for buying businesses.
Buying businesses is the quickest way to grow your business in size creating economies of scale.
Example: Watch this video here to see how I buy businesses:
By buying businesses, you‘ll achieve more profits and better management much quicker than starting from scratch each time.
Get good at negotiating. Get good at networking. Get good at making deal happens.
4. You’re now the head of recruitment
The discipline of great businesses is building a commercially profitable enterprise that works without you in it so when someone wants to buy it they see value in the management.
Use recruitment agencies and your content to find people who are better than you. This might mean you have to pay them more than yourself but we are looking for wealth creation and this is the best investment you can make.
As I always say leaders east last.
(If you want to learn more about building a team and recruitment in detail we have included video modules inside The Entrepreneurs University)
5. Slow £ VS. Fast £
Know the difference between your slow pounds and your fast pounds.
Fast pounds = cash flow which gets spent on payroll, taxes etc.
Slow pounds = assets that grow over time
The slow pounds allow you to pay down loans so much that you’re creating paper wealth. An example would be buying the property your business operates in. Your slow pounds also act as an insurance policy so if your business does go through tough times (which it will) you should be able to borrow money off your slow pounds to put cash back into the business, regenerate and go again.
Remember trading pays wages, not wealth.
Liquidity day!
You made it and your business is ready for sale!
Not only is this a mark of achievement but it also holds massive tax efficiencies with asset business disposal relief and could bring forward many more opportunities with banks and financiers.
You have made it to being in the top 5% of the entrepreneurs pyramid becoming and INVESTOR-PRENEUR.
Watch the full video in detail on YouTube here: