Looking to start or revamp your business?
Then, you just landed at the right place. Here I'm going to share the most important business lesson I've learned over the past few years.
This single understanding of a fundamental concept will change the way you do business.
Imagine you've lost all your savings & left with only $ 100 cash. And, you want to start a business with that $ 100.
Hey, Vishal, have you lost it? What on earth can I do for a $ 100? And, you're saying to start a business with that money? You must be kidding, right?
No, I'm not.
I was exactly in the same position a couple of years ago & I started a new business that's now clocking $ 25,000 a month in sales. Click here to read my story.
Here's what I want you to do with that $ 100:
Step 1: Go to your nearest wholesale market & buy bulk pens at the cheapest rate possible. Let's say you got a pen at $ 0.80 & 125 pens with that $ 100 ($ 100/ $ 0.80 = 125)
Step 2: Go to your nearest retail stores, mall, supermarkets & pitch your pen for $ 1.20. Your aim should be to sell those 125 pens on a single day. At the end of the day, you've $ 150 (125 pens * 1.20) in your pocket. You've made a cool $ 50 in profit.
Step 3: Repeat step #1 the next day. Buy 188 pens ($ 150/$0.80) & try selling them the same day(your town or nearby other towns). The best part is that when you increase your quantity, you may get further discount from the wholesaler or the manufacturer.
Step 4: Repeat step #2. At the end of the second day, you've $ 225 in your pocket. And, you've a cool $ 75 in profit
Step 5: Repeat these steps(#1 to #4) again & again till you've covered almost all your nearby town.
Here's what you'll have after 10 days: $ 5792
$ 100 got ethically converted into $ 5792. That's the magic of compounding.
I'm not kidding. Do your maths. OK, may be you had some off days & some days your sale didn't fare well. Let's reduce the number by 50% or even 90%. You'll still make $ 1200 in 10 days. Isn't that crazy?
The best part? This magic works in almost any sector, business or industry.
It's this same magic that helped Josh's Rainbow Eggs, based in Australia scale sales from 3 Dozens eggs per week to 9000 Dozen eggs per week.
Josh, a 9-year-old boy, started selling eggs from his farm (of 40 hens) to his neighbourhood in 2009. Then, scaled up by selling to his local farmers market & then eventually went on to sell to major super markets across Melbourne.
And, did you know Warren Buffett, one of the World's richest investors, gives the credit of his success to this compounding rule? Have a look at the following video:
So, what're you waiting for? Follow this compounding principle & change the game for your business. Share your results with me at firstname.lastname@example.org