In this edited excerpt, the authors explain how gaining customers through trust builds long-term equity, earnings potential and, ultimately, wealth.
I’ve long believed that, rather than getting customers to make sales, it is smarter to make sales to get customers. The first provides only income. The second provides income and equity. The majority of businesspeople think only about income every day.
The exceptionally smart few who get rich from business think about both, every day.
I’ve deliberately worked at creating what I call “lifers” – customers who stay engaged with me for decades, continuing to buy whatever I next bring forward, so that the getting of one in the first place is not just consummation of a transaction, but the start of a permanent relationship.
In order to do this in my particular business – essentially the dispensing-of-advice business – I knew I had to earn and keep trust. I figured out that the three key factors in trust-based equity are, being known as a candid, blunt teller of truth; establishing constant, evident principles in all my works; and never abusing my customers for short-term profit.
My customers can trust that I won’t endorse anyone or anything or sell them anything that I don’t genuinely believe is honest, beneficial and the best in its category. For me, this has worked out very nicely. Many clients have been with me for 10, 20, 30, even approaching 40 years.
And this translated to equity, as the company has been twice sold, providing a good share of my wealth. This asset can be built upon and leveraged into ever-growing wealth, or it can be destroyed, depending on the thinking and actions of the people who have stewardship of it.
My favourite company of all is Disney. In industries that were entirely transactional – amusement parks, films, toys – Walt Disney built trust-based brand equity and relationship equity. Relationship equity is still a major part of Disney’s business today, driving premium-priced attractions, time-share real estate and very frequent repeat purchasing.
A series of CEOs that have held stewardship of Walt’s legacy have, amazingly, resisted almost all temptations to undermine the trust that the company’s fans, customers, the public and even investors have for Disney.
Donald Trump has done something no other real estate developer and magnate has ever done: built a publicly recognised brand that adds price elasticity to every building and real estate project that bears his name, and, most recently, to product licensing and a successful TV franchise. Real estate buyers trust Trump to provide “the best.”
Consumers who aren’t about to buy a $3 million penthouse apartment buy a Trump necktie or splurge for a stay at a Trump hotel or resort.
Income tends to be spent. Equity accumulates and converts to wealth.
So everybody needs to be thinking about equity, early, and it is my contention that the only real equity is a quality relationship with committed, continuing customers. So I would suggest that anybody in any business ask themselves: What are the key factors that will make me such a trusted and relied on presence in my customers’ lives that they stay and spend with me for life?
Don’t reject the question because you think your business doesn’t automatically lend itself to such a relationship.
If you own hardware stores or other retail stores or restaurants, why can’t you become a trusted and significant part of your customers’ lives? To many, Martha Stewart has made herself just that, and she dispenses much the same sort of ideas, information, and inspiration it would be appropriate for a hardware store owner to dispense.
If you are a physician, chiropractor, a dentist, look at Dr. Oz. Whatever your business, there is a way to be found and figured out, to elevate your status and cement your importance to your clientele.
There are profound links between trust and relationship, relationship and equity, equity and wealth. Brand-name, over-the-counter remedies – the brands we grew up with – continue to substantially outsell generic versions of the same formulations and products displayed right next to them, and selling for up to 50 percent less.
Why? Because Bayer is a trusted name. The 50 percent price and profit differential, from which much wealth can be derived, has nothing to do with product ingredients, product superiority, distribution or service, and everything to do with trust.
For most, trust is more complex than just a recognised brand name, and few of us have the resources or patience to wait to harvest future fortunes from such slowly accumulated trust. We need a more complex approach that can accelerate the achievement of high trust.
A seismic shift begins with a change in the fundamental question of advertising, marketing and selling – from how can I make a sale and money today, to how can I make sales and money today but also create trust today?
A World Of Opportunity Awaits With Peli Peli
Business ownership has always been the entrepreneur’s way of shaping their future. If you’ve always wanted to experience life in the US, this is your chance.
Global media has been reporting that the chances of non-American citizens being granted access to move to the US are getting slimmer with the new administration. However, there is still one channel of access that allows people the opportunity to relocate that hasn’t been amended by the presidency.
The EB-5 Visa programme was created by Congress in 1990 to stimulate the US economy through job creation and capital investment by foreign investors. Under a programme initially enacted as a pilot in 1992, and regularly re-authorised since then, investors may also qualify for EB-5 classification by investing through regional centres designated by USCIS based on proposals for promoting economic growth.
The question most commonly asked by foreign investors is where to start selecting a relatively low-risk company to invest their money into. One such entity that has been granted designation under the EB-5 programme is the restaurant group Peli Peli.
Peli Peli is a South African cuisine restaurant that has gained incredible traction in the competitive American restaurant industry. They currently have six successful branches opened in the Texas area. Peli Peli Vintage park, which opened in 2009, generated revenue of $5,3 million in 2016.
Peli Peli Galleria opened in 2015, and had $5,2 million revenue in 2016. Peli Peli Kitchen, their first fast casual concept, opened in October 2016 and reported revenue of $2 million in 2017. Peli Deli, a downtown fast food casual lunch concept and Peli Peli Cinco Ranch, which opened in February and July 2017, respectively, are both showing incredible growth to match their predecessors.
At least two more locations will be opening in 2018, and as all new Peli Peli locations have historically generated positive cash flow within the first year, the company expects to increase its revenue exponentially.
The power team behind the brand
The restaurant chain has garnered popularity, and won a multitude of awards, including Best Service & Best Atmosphere — Readers’ Choice Award (Houston Press) and 2013 Diners’ Choice Award winner for the Top 100 American Fare Restaurants in the United States (OpenTable). Peli Peli is also rated in the top ten in Houston, Texas (which boasts over 12 000 restaurants) on both Tripadvisor and Yelp.
The Peli Peli trio who own the business are Chef Paul Friedman, Thomas Nguyen and Aiki Tran. These three dynamic businessmen have their own share of accolades to speak of. Chef Paul, who is a born and bred Joburger, has been a contestant on Cutthroat Kitchen for multiple episodes on the Food Network. He won the People’s Choice Award and was placed third as a judge in the Gumbo Smackdown 2014. He received the 2013 Chef of Chef Awards in the 9th Annual Houston Wine and Food week, as well as being the 2013 Cadillac Culinary Master. He was also one of 60 Houston Chefs to be listed in the book Best Chefs America.
Thomas Nguyen, who is Chief of Marketing for Peli Peli, graduated from the University of Texas School of Law and was a former litigation attorney. He was the Houston Business Journal’s 40 under 40 award recipient in 2015 and an EY Entrepreneur of the Year Gulf Coast finalist in 2016 and 2017. He was Entrepreneur of the Year — Houston Asian Chamber of Commerce and is also a freelance writer for the Houston Press.
Peli Peli’s CEO, Aiki Tran, has over 12 years of experience in restaurant technology and won the 2007 Entrepreneur of the Year award — Houston Asian Chamber of Commerce. He was responsible for streamlining the technology infrastructure for franchises such as Popeyes and Wings, Pizza N Things. He also became the number one reseller of Aldelo and Dineware POS systems in Texas, with installations in over 200 restaurants.
Joining their ranks is South African Ryan Stewart. Having owned 16 restaurants throughout the country, he is also the CEO and co-founder of the Mozambik restaurant chain. Ryan has 17 years’ experience in the industry and is being brought on board by Peli Peli to assist in their revenue and store location growth.
Your path to the US
With the combined talent, brainpower and experience of these four businessmen, it’s no wonder Peli Peli is achieving success. The investment required to qualify for an EB-5 Visa through Peli Peli is an amount of $500 000 and is structured as an equity investment at risk. It entitles the foreign investor to permanent residency, and within two years of living in the United States, a green card for the investor and his/her dependents.
For more information on how
You can be a part of the EB-5 Visa programme through Peli Peli.
4 Ways To Find Your Own Business Style
The only way to develop a business style is step-by-step over time.
Finding a style in finance will define how you react to changes and how you approach new situations. It’s as important in business as it is in stock trading. Developing a business style and developing a stock trading system are extremely similar pursuits.
But I’m not going to pretend that it’s easy to do. It will take time and you do have to be willing to work at it.
Here are my four ways of finding your own business style.
1. Get rid of your expectations
You can’t force anything to work. It’s necessary for you to be flexible when it comes to finding a business style. Begin by letting go of any expectations you have before trying a new style.
Prior to attempting a new style, you have to be willing to go into it with no expectations. You never know what you’re going to find.
2. Track your movements
Some things are going to work and some things aren’t going to work. I always tell my students in the Tim Sykes Millionaire Challenge that they should keep records of the things they’re doing. Keep these records as detailed as possible because attempting trial and error can quickly lead you in circles.
Don’t fall into the trap (as I did in the beginning) of trying the same thing multiple times because you never tracked the results.
I keep large spreadsheets with notes of the various styles and systems I’ve tried in business. Business mistakes can be costly, so you need to do everything you can to avoid making them.
3. Look at what others are doing
I refuse to believe that someone is doing something truly unique. The moment someone makes a breakthrough in business there are a hundred people replicating the same things. And that can be a powerful tool. Consider what others are doing and see whether you can learn something.
It’s why I also advocate finding a mentor to help you out. They’ll be able to help you out and you’ll benefit from their enhanced experiences in business.
Again, track what you’re taking from other people so you know whether something is working.
4. Refine what you do
Rarely will anything in business work the first time. However, your first attempts will give you a good benchmark as to what you need to do next.
You should never be satisfied with what you have, even if it’s working. Always work on improving your business style. I believe this is the most important thing because it also teaches you how to adapt to changing conditions over time.
Last Word – Constantly Growing
There’s no step-by-step guide for how to develop a business style. The only way to do it is to obey the fundamentals and then develop everything over time.
Even though the process is long, you’re guaranteed to learn a lot of lessons and gain from a huge number of experiences over time.
This article was originally posted here on Entrepreneur.com.
6 Questions You Should Be Asking When Coaching
Top athletes have coaches because they’re winners. Business leaders should be the same.
Whether you’re a CEO looking for a mentor, coaching your management team, or structuring a coaching programme for your managers to implement, there are six questions that can help anyone get better at anything.
Dr Marshall Goldsmith is a best-selling author and world-renowned business educator and coach. He has coached top CEOs, including Alan Mulally, former President and CEO of Ford Motor Company.
The key to a successful coaching programme is simple dialogue and establishing responsibility. The person being coached must understand and agree that success lies in their hands. They must take responsibility for their actions.
Once every few months, have a direct coaching session. Ask (or answer for yourself) these six questions:
- Where are we going?
- Where are you going?
- What are you doing well?
- Do you have suggestions for my improvement?
- How can I help you?
- So you have suggestions for me?
- 5 Thoughts To Give You The Courage To Make Change
- Develop Digital Marketing Competency In 3 Simple Steps
- How To Build Organisational Wealth Through Increased Efficiency
- The Workspace And MiWay Announce Entrepreneur Competition
- Successful People Always Chase the Impossible – Here’s Why
- A Top Lesson From Vinewave: Success Doesn’t Happen Overnight
- Budget 2018/9: 3 Key Tax Areas To Look Out For In The Speech
Start-up Industry Specific3 months ago
How Do I Start A Transport Or Logistics Business?
Entrepreneur Profiles3 months ago
10 SA Entrepreneurs Who Built Their Businesses From Nothing
Business Plan Advice3 months ago
Writing a Business Plan May Not Be Your Idea Of Fun, But It Forces You To Build These 4 Crucial Habits
Company Posts1 month ago
Enhance Your Entrepreneurial Flair With An Online Postgraduate Diploma From The University Of Pretoria