I have seen this this example use by many people. This is simple explanation of how to become millionaire. This explanation come from video by Steve Harvey talk about the principle of scaling. While this principle is simple like I have said before simple does not mean easy to do.
“So when people try to figure out how to make a million dollars they have no idea how daunting that is good you know how to make a million dollars you go make it tomorrow position can’t figure out a million-dollar do you go somewhere so now that’s the wrong approach if you apply your gift your God-given gift that he gave you have millions already at your disposal if you break it down inch by inch anything that’s it for the ten by ten theory which is very simple you don’t need a million-dollar do you need ten dollar idea you need something that you do your gift that God gave you to make ten dollars that’s all you got to be a know if it’s cutting hair cut somebody’s grass watching somebody’s car”
I don’t care if it’s more than somebody I don’t care if is the driving people to their destinations I don’t care if he’s babysitting I don’t care if it’s baking cookies up I you have some brain somebody hair you have something that you can do so well that someone will give you ten dollars for write my paper for me do this for me somebody give you ten dollars for once they give you ten dollars all you got to do is whatever you did to get that team to a 10 more times you know my friend at one hundred dollars you have one down and one hundred dollars simply because you took a ten-dollar idea and you did it ten times well guess what if you take that one hundred dollars that you made since you’ve done it 10 times and you do it 10 more times I got news for you my friend you now have one thousand dollars $1,000 you make a thousand dollars guess what are you got to do you got to multiply that effort again- whatever you did to do a thousand dollars do it two more times my friend you now have ten thousand dollars you got ten thousand dollars now imagine if you was making the extra two thousand a month just imagine if you was making an extra ten thousand dollars a month that’s a hundred twenty thousand dollars a year but I got news for you my friend whatever you did whatever you did what every two to make yourself ten thousand dollars all you got to do is do a 10 more times two more times my friend you now have one hundred thousand dollars
I Got News for You not you can make a hundred thousand dollars you just a step away from being a million that man because not you have you more people to help you out that that you can do portions of what you do so you can duplicate that effort and one more time just one more time and do it tender man
that sounds hard it is our but what else you got to do what you gonna stop at 200,000 all you gotta do is duplicate your efforts by Tina you duplicate your office by ten times a hundred thousand
welcome to the club my friends you are now a million now
congratulations you became a millionaire with a ten-dollar idea and then do the 10 x TN theory
Real life example of scaling to show it important with Ben & Jerry ice cream. This business was started by childhood friends Ben Cohen and Jerry Greenfield. They had both graduated college and work various jobs and save a bit money. (Saving money from jobs was the first part of scaling). They had been talking about start bagel business but after some research they discover that equipment was too expensive. (this show the important of doing the numbers and researching). So, they came up with another idea of starting ice cream business (this show principle of the obstacle is the way look in life there always going be things in the way and will have find ways around them. Ben and jerry goal were start business together so by remembering what they set out to accomplish e.g. starting business come up with new idea). So, with that they both took correspondence course on ice cream making from Pennsylvania State University’s creamery for $5. A correspondence course is the equivalent to an online course. (this shows important of education yourself that good education can found relatively cheaply and to learn as need new information and doing something with that information.)
During the ice cream making course Ben Cohen who had severe anosmia which mean he can’t taste or smell to compensate this he relied on texture of ice cream to taste therefore he start making ice cream with chucks to be able feel texture of the ice cream which later became one of trade mark taste of their ice cream today all ice cream include chuck of food from cookies to cake. (this show principle yet again of obstacle is the way. Now ben should not be able to make ice cream as he lacks taste however by finding way around this obstacle by using texture of using chucks it made their ice cream stand out from crowd and also you need a bit of luck.)
Then with $12,000 investment from both them ($4,000 of it borrowed the rest was from there saving and 4000 from family), Ben and Jerry open their first ice cream scoop shop in a renovated gas station in Burlington, Vermont. opened for their first day of business on May 5, 1978. This location was not there first choice they had look other locations but they later said it would have been too expensive cutting into profit they would have been out of business within six months if they had of gotten there first choice. Plan B”: Burlington. Like Saratoga but plan b location was college town which one have great build in market for them and had cheaper rent. (there few lessons here save and good debt can be good. The important of market research and doing numbers and luck if they had of gotten there first choice by their own admission.)
On their first year of business anniversary, they gave out first ever free cone day event that is now an annual celebration at every Ben & Jerry’s store across the world. (this show important of marketing. As I have said before 10% of your profits are used for marketing and think outside box giving free food to customers can be part of that marketing budget. This is common in the common trade is part of their marketing budget such as free desert or giving some loyal customers or big party of people free drink or appetizer. This give great word of mouth people talk about it build up loyalty, it gives great goodwill in the community and by giving away free samples if you have good products you will have repeat business and people will tell their friends. And all this will be cheaper than running advertising campaign which one be less effective.)
In 1980 they came up with selling pint ice cream to local restaurants and bought location to pack their ice cream and then start selling these pints in local stores the same year. They sold ice cream pictures of face on it showing they were one who made it therefore making product tangible to customers that this was homemade ice cream. (look this shows important of scaling because no matter how good the ice cream is if they never did this there only so much money they can make and that marketing is not just advertising is in everything the packaging help to show who made ice cream and they also became in some ways their own logo.)
Then in 1981 they expanded ice cream pint making business by selling to more stores and having bigger location to make more ice cream. Soon they were building more stores they franchise the stores than they made small scoop shop for smaller franchise. Soon they expanded selling ice cream local area to state level than to national level than to the continental level and then to international level. As they gotten bigger and bigger, they delegate more and more work until they no longer were doing day to day activities. (this really shows the important of scaling yet again. Like this book everything is start with small steps start locally to start globally and with scaling you need to start business system on how run and then delegate. As the business become bigger than the managers can help create new business system such as franchise system etc. As I have talk about bigger business is less you will be doing as the end goal of scaling and delegate is that you will no longer be needed for day to day actives.)
They soon sold business in 2000 Ben & Jerry’s sold the company to Unilever for about $326 million in today’s money that’s about $484 million. They sold business as they no longer like run the business to but other words “When Jerry and I realized we were no longer ice cream men, but businessmen, our first reaction was to sell,” Cohen told People magazine. When they sold the business, they made sure that Unilever ran ben and jerry ice cream with their principles. There Ben & Jerry’s operates on a three-part mission that aims to create linked prosperity for everyone that’s connected to our business: suppliers, employees, farmers, franchisees, customers, and neighbours alike. What does this mean 7.5% of the company’s annual pre-tax profits each year are given to ben and jerry Foundation which in turn give to charity. Farmer a pay fair price for their goods. They help environment by use sustainable farming and use sustainable packaging. They mean treat employees fairly and paying good wage the company had in place until 1994 of what know as five-to-one-ratio policy that no employee’s rate of pay shall exceed five times that of entry-level employees. In 1995, entry-level employees were paid $12 hourly, and the highest paid employee was CEO Chuck Lacy, who earned $150,000 annually. (the above shows that if not happy with something can leave to something that your happy with. look there famous saying in America he who has the most toys wins but there as saying from Ireland and the UK There’s no point in being the richest man in the graveyard. Look having money is good but as I have talk about earlier life is about balance and being happy. Even if you have the most toys if you have no one to share with what’s the point and your toys are no use in the graveyard. All I am saying is to do things that make you happy and money is important but come on 100m by 1 billion really won’t change day to day life.
That you can operate business that pay social debt (gives back) and that can be good for business when Unilever took over business, they agreed to keep giving back as part of ben and jerry brand because good for business create goodwill and good for marketing. With marketing their lot to learn from ben and jerry you can be own brand by being spoken people for brand giving money charity, tell their story, giving free ice cream away doing many publicity stunts making the world’s largest ice cream sundae or driving cross country giving out free ice cream. Work better than any advertising campaign. To be balance they did use advertising but the other ways did get more publicity than any advertising campaign could of it by showing the founders were hippies at heart.)
Look and talking about principle of scalability every business you think of that big successful business start this way McDonald’s started with one restaurant, Amazon start by selling one item, Walmart start with one store and Nike start not by making their own shoes but by selling shoes for Japanese shoe maker Onitsuka Tiger on smaller scale than they making their own runners. In 1977, Onitsuka Tiger merged with GTO and JELENK to form ASICS name your probably more familiar with.
