VIDEO TRANSCRIPT

So you are probably asking, what difference will doing Internet marketing intensive make in my business? It’s a rhetorical question I can’t see you of course I said that the couple of times today.

But the question has to be asked, who reinvests money back in their business? You should all be putting your hands up, you should all be nodding your heads and say yes I reinvest money back in my business. And we reinvest the money back into your business through various means. Perhaps Staff time. You reinvest the money we could be earning somewhere else doing something different.

A Must Business Re Investment Strategy

We reinvest the money back into our business doing systems and doing marketing. What is the reason you reinvest the money back into our business? Of course to make more money and to make more time.

That’s why people reinvest back in to their business to make more. More money and more time. But the ironic thing is I see a lot of small business owners out there with not any more money and definitely not much more time. Yet they keep reinvesting back into their business in an effort to get to a point of trying to make more money and time, but they get caught in that poverty trap, that is the poverty cycle that I was just referring to. And they get caught in that the poverty cycle because they’re missing one main ingredient. And I’ll share what that ingredient is. And I have alluded to it already if you haven’t already guessed.

Like I said, I sat on a small business development Corporation, advised the small business ministry of government on policy issues and initiatives about small business. And as part of the role, we had to read mountains and mountains of reports that came in from all across the world. There was this one report that I read that kind of rang my bell. My father used to say, “Son, the bells are always ringing. It’s whether you take heed or not.” This particular report came out of Spain of all places and it was talking about the most successful SMB’s, Small Medium Business, in Europe.

We call them SME’s in Australia. It doesn’t matter. It basically said most successful small business owners in the European economy spent 3% of turnover on research and development. They spent 3% as a KPI (If you don’t know what a KPI is you need to get some education – a Key Point Indicator). 3% of their turnover was spent on research and development. That’s what the most successful small business owners were doing in Europe.

Now before this time I always thought research and development, R & D, I just thought it was a thing that corporations did. I always thought was the thing that that big businesses did I never kind of related that to us as a small businesses as something we need to do. Now after I used to spend money on my education and training and things like that but I never had a KPI as a 3% margin.

Now I want you to just cross out the words research and development. The rhetorical question I asked is, beside your customer, who is the most important person in your business? Of course it’s you. There’s a reason why big corporations like BHP and big business spend hundreds of thousands of dollars paying their CEOs, sometimes millions of dollars a year on their CEOs because their influence filters down through the organization. Multiply that by 1000. You, your influence filters in and down through your business. If you are not on the top of your game, your business is not on the top of its game.

If you are stale and stagnant, I can guarantee you that your business will be stale and stagnant. If you are not learning and going forward, your business is not learning and going forward. So what I want you to think about, is having a KPI of your business turnover of spending 3% on your own development, ongoing we can never stop learning, especially in this world of business.

And whether you spend that 3% on marketing, sales, human resources, whatever the avenues in your business where you need better learning we can all improve in every aspect of your business. So if you’re turning over $200,000 a year, the KPI should be $6000 a year spending on your own education. I’m getting on a bit of a soapbox about this as I am very very passionate about this point because a lot of business owners miss spending money on their own education , missed spending this point of money on their own development. So if you’re turning over $500,000 a year you should be spending $15,000 a year on your own development.

So I go back to the slide who reinvests money back into their business, we all do but a lot of business owners miss this vital point to make more money and more time, because they miss this vital reinvestment strategy of education. And education is the only thing that’s going to break your poverty cycle.

Education is the only thing that’s going to break the cycle of poverty in your business.