A lot of people have the interest to make you believe that making money and running a business are very complicated things. If you want to be successful in business in this competitive world, you surely need an MBA! You cannot start a business; you don’t even know anything about marketing, accounting, and business strategies!
Shure, it is a great plus if you read plenty of books on the subject, but in reality, if you have strong basics you can be very successful without that extra.
Leonardo Da-Vinci once said that simplicity is the ultimate sophistication, and this is very true in many things.
When you truly understand how something works, you can explain it in a very simple way.
That is because you understand the fundamental principle that is behind all the layers of complexity.
Let me tell you about a very simple concept that alone, if understood and applied properly, will just propel your business in the sky in just a few years.
Just a little detail, that seems too simple to worth presenting in most academic books, a detail, which will multiply your opportunities, increase the number of clients and allow you to eventually charge more for the same product/service.
A little detail that will bring you to a level where there is no more competition.
What I’m talking about here is a simple mindset, a way of being.
I could just write it, here in one sentence, but it would probably not allow you to internalize the understanding deeply enough.
It would appear too simple, too basic.
So, let me tell you first, a short story about my wife’s little business, as she only has a high-school diploma and never read anything about business.
It will make it very easy to understand.
The little Asian chick home day-care story.
When my son was young, my wife had the idea to start a home day-care. That way she could take care of him at home while making money and that without any commute to the city.
A nice win-win dream life.
We live a little far from the downtown area, just after the suburbs, at the beginning of a more rural region. We have deer coming in our backyard and one of our neighbors have a ranch. This is a very nice place to live, but the commute sucks if you work in town and there are no jobs nearby.
The home daycare business was a very cool idea, but there was a major problem.
The market was completely oversaturated. Many women in the area had the same idea and the competition was quite intense. The rates were low and none of them were running full capacity.
We actually have 2 other home daycare just on our own street.
There was clearly more daycare spots available than babies in our area.
Even worse, a big, state-funded, low fees, daycare with 30 spots was just opening on the main road nearby.
In addition, in this line of business, the clients are looking for someone with experience, and a nice group of kids of a similar age; trust is a big deal in this business. When you start, you have zero references from other clients and only one kid is in your group, basically, your own kid.
I told her to go for it anyway, that I was sure it would work because I knew she was on to something…
You see, she has extremely high standards and great pride when it comes to keeping the house clean, cooking quality food, cleaning our clothes and caring for my young son.
A unicorn, your thinking? No, she just comes from South Asia…
I told her, if you can give the same quality of care to your client’s baby you are giving to our son, it will certainly work.
She said: Of course! What do you think? Her reputation was on the line!
In the small village of Payatan in the Philippines, where she comes from, taking care of the house, the kids and supporting the husband who’s working the land is of high importance and is a duty taken with pride by women!
She took “problem babies”; the one the other daycares didn’t want because they required to much work and then transform them into happy, smart and healthy babies.
Her daycare is open from 6:00 am to 6:00 pm, a 12-hour shift, and if the parents could not make it in time, the baby would just have dinner with us, no problem, and no extra charge.
Sometimes some babies, even stay for the night! No problem, no extra charge.
As much meal a day as the babies can eat, all home cooked with quality organic food. Need for breakfast? No problem. No extra charge.
Even if I have a freaking daycare inside my house, I swear I have the cleanest house in this state.
When new clients come to visit, they inspect the venue and they sign the contract right away.
She never took a “sick day” in 5 years, and when she needs to absent herself, she finds a replacement for the day, the daycare is always open.
All the other daycares have to close at least a week every winter because of some gastro epidemic, with her, it has never happened.
She makes sure that all the kids learn more than the basic requirements before they start school at 5 years old. They all know how to write their name before they start kindergarten.
There is even more, trust me, those are just a few examples…
Bottom line, she goes above and beyond the expectation of the clients.
I’m sure some of those kids are in better care with her than with their own mothers.
Now, how do you think her business is going?
Well, let me tell you:
- She now charges more than the competition and she is always full capacity.
- She receives very nice gifts for her birthday and Christmas from all her clients.
- Sometimes some clients give her extra money… as an extra tip, just like that without asking.
- One of her clients brings her for an evening to the spa once every year!
In reality, she has no competition; she literally floats above all of them.
She’s just at another level, standing there alone.
Even the state-funded daycare with their “certified educators” is no match.
A high standard that exceeded the client’s expectation.
This is it.
The service she gives to her clients is the same quality she would give to her own child, which is of a higher standard than what most parents do these days, and that without any extra cost!
I know this is a small business probably next to a lemonade stand in complexity but it illustrates perfectly this fundamental principle.
The key is not to put more time, more effort, and more energy into your service/product in order to make more money…
They key is to maintain the highest standard you possibly can for yourself.
It’s a mindset, a lifestyle, you do it because it is the best you can do, period.
It doesn’t cause you to burn-out because it doesn’t stress you in a bad way.
It is your own business and you take pride in it. It is your creation, it is your life!
Don’t focus or stress about the competition. Just, give your best, take it beyond the expectation of everybody around you and do it with pride!
Not to impress anybody else, but only for yourself.
At first, do not ask for more money, it is all included, that is what makes it an AAA deal.
Do not worry about the money, with a mindset like this, you will be like a money magnet soon enough.
Why does it work so well?
1 – The universal principle of reciprocity
Most people just want to have a fair exchange, when you go above and beyond what they expect, they won’t try to negotiate for a better deal or look somewhere else, in fact, they will feel shame to pay you such a small amount for such an AAA high-quality service. Most of them will return you the favor, in a way or another.
2 – High standards are addictive.
The clients get addicted quickly to superior quality product/services. Once they tried it, unless their income is drastically reduced, they will never want to go back to the mainstream crap.
3 – The word of mouth.
When people have a connection to get something better than most have, they like to brag about it. How lucky they are, they have something better. They know a special guy…, his stuff is the bomb. They can hook you up, that how cool and generous they are! They will recommend you to all their friends and families.
4 – It’s authentic.
Your competitions are all looking to maximize profits. Maximising the shareholder’s profit is the goal of a corporation. That is why so many of them became cancerous entities run by sociopaths. The mantra of your competition is probably to do the least work possible while making as much money as they can. As soon as their clients are not looking, they cut corners. They will never really compete against you with a cost/benefit ratio mindset like that.
5 – It attracts only the best clients
Some peoples look for the cheapest service/product available, no questions. However, are those the best clients? I mean those without money… Not really. The best clients are those with money, and those with money are always willing to pay a little extra for AAA quality. Those wealthier clients are those who will line up repeatedly to buy your product.
Having AAA high standard, and offering your best to your clients, just like if they were part of own your family, simply because it is who you are, creates a lot more value than anything else.
It creates more value because there is trust and respect mixed in.
This mindset will not give you instant result, but with time, you will see that as simple as it is, it is a very powerful “business strategy” for any entrepreneur and will lead any business to success.
On this note, have extra high standards and get rich!
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