8 point test of a Real Business by Vincent Uy, Core Team

Here are the 8 point test of a Real Business in which I found it extremely important. With just one element missing, the whole business operation may not be successful. So here we go:

1.) Mission – Typically, a lot of people wants to start and build their own businesses but only few of them prioritize to establish first a Mission. The Mission must be very strong and clear enough. What is it that you are going to do by starting this business? Is it simply just to earn money? Or bragging out to the world that you own a business? There must be a stronger reason for you to start your business. In my opinion, it is the first step. As you register your business name to DTI or SEC, they will ask for your mission and vision.

2.) Leadership – as mentioned on my previous blog, it is as important as establishing a good business location as well as target market. A good leader is a good follower, it simply means coachable. To gather a huge number of good leaders for your business, you must first become the good leader you deserve. When you get yourself shape into a good leader, the rest of the good and better leaders in the world will be attracted to you.

3.) Teamwork – this is one of the crucial parts of a business. Sometimes, it is very hard to determine if the cause of the problem in business is the system, product or people. Cooperation and Coordination. Just like basketball, pass the ball to your fellow teammates until one of you were able to get a chance to shoot the ball to the goal. If you squeeze the ball tightly by yourself, the chance is you’ll be gang up by the opposing team members (5 on 1?). In the world of Big Businesses, if you don’t have business partners who are working as your teammates to support you, you will be trampled by the other big business owners. (Clue: Yuchenco Group, Metrobank group, Lucio Tan's Group)

4.) Cashflow – Typically, investors will often look at the cashflow of your business. Many investors fail to invest money on startup companies due to the problem found on cashflow. I’m presuming we understand capital is the blood and cashflow is the blood circulation of a business. Normally, a start up business will start as negative cashflow. But don’t get mislead here, it doesn’t take money to earn money. The reason why business starts with negative cashflow is simply because of the start up expenses. (Ex. Equipments, monthly amortizations, bills and salaries) Most of the time, investors only invest on a business with negative cashflow if the proposed business plan is innovating and different from the other existing businesses, the investor might invest. But it also depends if the investor really understands and like your proposed business plan. (Check out the 3 types of investors on the book "Why we want you to be rich?")

5.) System – a while ago, I mentioned system. Today, whenever I share the word “system” to my friends, the system that I require on a business before I consider myself jamming in. Majority of them fail to understand what I’m talking about, or to be precise: they don’t understand the importance of a system. Let’s use Mc Donald as an example. The system of Mc Donald is: the security guard will open the door for the customer to come in, the service crews standing beside the area regardless of what they are doing, they must shout the word “Good Morning Ma’am Sir Welcome to Mc Donalds!!!” with a big smile as big as possible then continue doing what they are doing. The customer gets closer to the counter to order their food. While interacting with the counter (cashier), the food the customer ordered is almost ready. Surprisingly, the food is being served within 5 minutes. Now that’s a system! What if your business doesn’t have a system? Are you going to be the one to welcome your customer, take order, cook and serve food? Alone? With your husband or wife? If you’re doing it alone, the business owns you. Coz you’re the system ^_^

6.) Communication – Robert Kiosaki often relate business to the Vietnam War he had experienced. In War, Communication is very important. If there is no communication, will you ever receive commands from your commander? What if there are mines a few steps away and you didn’t receive the warning message from your team, you are mostly going to put yourself in danger. According to Sir Alan Sugar from the Apprentice UK, “Business is all about pressure”. And once we are pressured, there are two possible things that will happen to us: First, we decided to do it alone. Second, we ask for help and form in a group. The second one is the most recommended communication skill. Because it follows by teamwork and leadership.

7.) Legal – Aside from having a very good business plan, huge capital, best leaders and best products. The next question is… is your business Legal? Legal in terms of approved or accredited by our Local Government. In case of emergency, do you have company lawyers to protect your business against your competitors? In Network Marketing, if the company you’ve chosen is Legitimate. You do not need to have your own Lawyer. And that surely cuts off your company expenses. And the risk is lower because the required capital for investment is very small that a typical employee could afford one. To find out which Networking companies are accredited by our government, simply go to the website of DSAP (Direct Selling Association Philippines). http://www.dsap.ph/ If you are into traditional business, you have to pay for the Legal expenses in order to create a legitimate business. I swear to you, it really cost a LOT, perhaps 6 digits (hundred thousand pesos above, the cheapest).

8.) Product – last but not the least, the Product. Is your product a problem solver or problem creator? In my previous experience of Networking, a lot of the companies sell really lousy products. They use the strategies of training the members by making them hard sell using powerful sales talk and eventually clients will buy at once after the long speech. I was one of the members who undergone intense sales training. During that time, I felt like I’m a talking machine. I was only trained to sell, sell and sell. What a life! I just couldn’t stand being so selfish… It’s good that I don’t look like a fish… but still I sell fish. Sometimes the lousy products only work 1 to 2 months and if that happens… I’m pretty much sure my clients will be texting or calling me and shoot me their infinite complains towards my products. That really destroys my credibility and integrity. Entrepreneur is a person who solves other person’s problem for a profit or pay. In my opinion, before solving someone’s problem, make sure the solution is effective and will not create more problems. ^_^

So these are the 8 point test of a real business. If you are starting a new business, buying an existing business, franchising, networking or nothing? Take a few moment to check out the 8 elements. ^_^

For more information: Please read the book “Why we want you to be rich by Robert Kiosaki and Donald Trump.” It should help you understand more >_^

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