| From World War II until his death Getty was | | | | be channeled includes; business processes or |
| considered one of the richest men in the world, in | | | | systems, cost of production or cost of service |
| this post I share his 10 winning formulas for business | | | | delivery, product or service features and benefits, |
| success. These rules were extracted from his | | | | human resources, research and development, |
| legendary book "How to be Rich", I have added | | | | customer relationship management, finance, |
| footnotes to each of the rules to make it more | | | | distribution etc. Remember, "opportunity is a haughty |
| relevant to our age and time. I hope you find this as | | | | goddess who wastes no time with those who are |
| useful as I did and make a commitment to apply | | | | unprepared". Now, not later or tomorrow, is always |
| these rules to your business. | | | | the time to make room for improvement! |
| Here are the rules; | | | | 7. Take only justified risks: a businessman must be |
| 1. Adequate knowledge of the business: Almost | | | | willing to take risks - to risk his own capital and lose |
| without exception, there is only one way to make a | | | | his credit and to risk borrowed money as well when, |
| great deal of money in the business world-and that is | | | | in his considered opinion, the risks are justified. But |
| in one's own business. The man who wants to go | | | | borrowed money must promptly be repaid. Nothing |
| into business for himself should choose a field which | | | | will write finis to a career faster than a bad credit |
| he knows and understands. Obviously, he can't know | | | | rating. |
| everything there is to know from the very beginning, | | | | Footnote |
| but he should not start until he has acquired a good, | | | | Taking risks in order to meet the needs and solve |
| solid working knowledge of the business. | | | | the problem of the society is the essence of |
| Footnote | | | | entrepreneurship. However, not all risks are worth |
| There's no way one can run a business successfully | | | | taking. A businessman or woman who desires to be |
| without having adequate knowledge of the nitty | | | | successful in business would always evaluate and |
| gritty of the particular business he or she is venturing | | | | analyze any risk they choose to take so as to justify |
| into. Take your time to learn as much as you can | | | | its viability. It has always been said, "It's not the |
| about the particular industry, market and peculiar | | | | entrepreneur with the best idea that wins but the |
| characteristics of the prospective customers your | | | | entrepreneur with an idea whose time has come." |
| product or service will serve. Also, make sure you | | | | Adequate care must be taken in ensuring that |
| have the necessary skills needed as the leader of the | | | | whatever project or venture a businessman or |
| business. Remember, "time spent learning and planning | | | | woman chooses to embark on has a positive return |
| is considered an investment in business and the | | | | on investment (ROI). There are various tools that |
| knowledge eventually acquired is an asset and | | | | can be used to analyze the viability of a venture or |
| competitive advantage to the business." | | | | project some of which are; Best/Worst analysis |
| 2. Commitment to the central purpose of a business: | | | | (BWA), capital budgeting techniques, SWOT analysis |
| the businessman should never lose sight of the | | | | etc. |
| central aim of all business-to produce more and | | | | 8. Seek new business opportunities: a businessman |
| better goods or to provide more and better services | | | | must constantly seek new horizons and untapped or |
| to more people (customers) at lower cost. | | | | under-exploited markets. Today's shrewd |
| Footnote | | | | businessman looks to foreign markets. |
| In the words of Management Guru, Peter F. Drucker, | | | | Footnote |
| to know what a business is, we have to start with | | | | Businesses exists because of the opportunities |
| its purpose. Its purpose must lie outside of the | | | | created by the needs and problems of the society in |
| business itself. In fact, it must lie in society since | | | | which they operate. If these needs or problems |
| business enterprise is an organ of society. There is | | | | weren't present, the entrepreneur wouldn't have any |
| only one valid definition of business purpose: to | | | | cause to go into business in the first place. Each need |
| create a customer. This then is achieved through the | | | | or problem represents a business opportunity usually |
| continuous production of more and better goods or | | | | called an 'untapped-market'. It becomes paramount |
| the provision of more and better services to the | | | | then to the alert businessman or woman who desires |
| society at lower cost. Because its purpose is to | | | | to succeed in any business to constantly be on the |
| create a customer, the business enterprise has | | | | lookout for more needs or problems that may |
| two-and only these two-basic functions: MARKETING | | | | represent business opportunities within the society in |
| and INNOVATION. It is not necessary for a business | | | | which they operate. Taking advantage of these |
| to grow BIGGER; but it is necessary that it | | | | opportunities is what innovation is all about. An |
| constantly grows BETTER. A businessman or woman | | | | innovative business is one that is alert to the needs |
| who runs a business that isn't doing this should not | | | | and problems of the market it serves. Once a |
| hope to achieve any form of business success. | | | | business becomes dead or indifferent to the needs |
| 3. Financial management: a sense of thrift (economy) | | | | and problems of the society, its demise is inevitable. |
| is essential for success in business. The businessman | | | | In today's world, the society in which a business |
| must discipline himself to practice economy wherever | | | | operates has greater implications as a result of the |
| possible, in his personal life as well as his business | | | | changes created by Information and Communications |
| affairs. "Make your money first - then THINK about | | | | Technology (ICT). The world as we know is now a |
| spending it," is the best mantra for the man who | | | | global village making the operating environment in |
| wishes to succeed! | | | | which businesses function to be unlimited. A local |
| Footnote | | | | business enterprise can fully meet the needs and |
| There's no way a business can be successfully | | | | solve the problems of an international market through |
| managed without a good sense of money | | | | the aid of Information and Communications |
| management on the part of the business owner. | | | | Technology. For example, millions of businesses are |
| There must be a clear line of difference between | | | | created on the internet every day, businesses open |
| 'necessary expenses' and 'luxury expenses'. Always | | | | up branches in different parts of the world as a |
| remember you're not in business to satisfy your own | | | | result of strategic alliances/partnerships formed over |
| personal desires, but to satisfy your customers' | | | | the internet, goods and services are now being |
| desires consistently through the production of more | | | | bought and sold online, meetings are held in various |
| and better goods or the provision of more and | | | | places over the internet across the world. Never |
| better services at lower cost. To do this, firstly, you | | | | before in the history of mankind has such a time like |
| must practice budgeting-a process of prioritizing | | | | this where opportunities abound for the alert |
| necessary expenses essential to the survival and | | | | businessman or woman to capitalize on and make the |
| operational stability of the business. Secondly, | | | | most of the 'boundary-less markets' open to them. |
| negotiate everything! Always strive for a bargain no | | | | 9. Trust is a social capital: nothing builds confidence |
| matter how small or intangible it may seem. | | | | and volume faster or better than a reputation for |
| 4. Seek continuous growth through necessary | | | | standing behind one's work or products. Guarantees |
| expansion: legitimate opportunities for expansion | | | | should always be honoured-and in doubtful cases, the |
| should never be overlooked or ignored. On the other | | | | decision should always be in the customers' favour. A |
| hand, the businessman must always be on his guard | | | | generous service policy should always be maintained. |
| against the temptation to over expand or launch | | | | The firm that is known to be completely reliable will |
| expansion programs blindly, without sufficient | | | | have little difficulty filling its order books and keeping |
| justification and planning. Forced growth can be fatal | | | | them filled. |
| to any business, new or old. | | | | Footnote |
| Footnote | | | | Business at its very core is a social activity. The |
| Every business like every child ultimately wants to | | | | whole concept of business is built around human |
| grow; this is the natural inclination of every living | | | | interaction. All the parties needed for the successful |
| entity. The alert businessman or woman would seek | | | | operations of a business are people; your customers, |
| various ways through which the business can grow | | | | employees, suppliers, professional partners, etc., are |
| through expansions. There are a few strategies for | | | | all people. So there's hardly any thing one can do in |
| business expansion such as; buying over other related | | | | the world of business without dealing with people or |
| businesses, licensing of products or services, selling of | | | | social interaction. This places a great burden on the |
| franchises, opening of more branches, creation of | | | | character of every businessman or woman much |
| strategic alliances and the cheapest; network | | | | more than they probably bargained for. In the world |
| marketing. Adequate planning and research must be | | | | of business, whether you're just starting out or |
| fully carried out before any of these strategies can | | | | you're an established entrepreneur, your character is |
| be adopted. Any business which fails to grow through | | | | a valuable asset that must be jealously guarded. |
| necessary expansion faces the risk of extinction! | | | | Before you became a businessman or woman, very |
| 5. You're the BOSS, call the shots: a businessman | | | | few people counted on you and how you lived your |
| must run his own business. He cannot expect his | | | | personal life. The moment you choose to start your |
| employees to think or do as well as he can. If they | | | | own business, the reverse is the case; every one |
| could, they would not be his employees. When "The | | | | within the world of business watches your every |
| Boss" delegates authority or responsibility, he must | | | | move and character. Your employees look up to you |
| maintain close and constant supervision over the | | | | for leadership, your customers hold on to your brand |
| subordinates entrusted with it. | | | | promises, your suppliers bank on your credit |
| Footnote | | | | worthiness, your professional partners count on your |
| The great Inventor and entrepreneur, Henry Ford | | | | integrity. Everywhere you turn in the world of |
| was once accused of being uneducated and rather | | | | business, your character as an entrepreneur is daily |
| than feel offended he posed a challenge telling his | | | | put to test; your long term success in business will |
| accusers to ask him any question whatsoever. With | | | | greatly depend on how well you are perceived by |
| every question asked, Henry Ford simply called upon | | | | those you work with in business. Do you keep your |
| any of his workers who was qualified enough | | | | word to your customers, employees, suppliers, |
| academically to answer the questions. On answering | | | | professional partners? Do you sell or produce inferior |
| all the questions through his workers, his accusers | | | | goods or services? Do you cut corners to get the |
| claimed to have proved their allegations of Henry | | | | project done? Do you make all the money and treat |
| Ford's illiteracy. Henry Ford smiling made a profound | | | | your employees like rags? Are you sincere and |
| statement which will never go down in history; "I | | | | honest in your business dealings? What you must |
| don't bother to do the work anyone can do, I do the | | | | always bear in mind at all times is this; "business is like |
| hardest work of all-thinking, which only a few men | | | | making babies, you can't do it alone!" And the golden |
| can do." The few men who can think are those who | | | | rule of dealing with people is; "do unto others as you |
| become business owners employing those who | | | | would have them do unto you-treat people like they |
| cannot think but simply follow orders. Your key task | | | | would like to be treated" |
| as a businessman or woman lies in these words: | | | | 10. You are an instrument of nature: no matter how |
| directing human activities. And only those who know | | | | many millions an individual amasses, if he is in business |
| how to think can direct those who don't think. To do | | | | he must always consider his wealth as a means of |
| this, you have to know a little about a lot (versatility) | | | | improving living conditions everywhere. He must |
| and employ those who know a lot about a few | | | | remember that he has the responsibilities toward his |
| (specialization). | | | | associates, employees, stockholders-and the public. |
| 6. Seek continuous improvement: the businessman | | | | Footnote |
| must be constantly alert for new ways to improve | | | | Entrepreneurship is a call that is obeyed. There is a |
| his products or services and increase his production | | | | spiritual side to it. History is filled with great men and |
| and sales. He should also use prosperous periods to | | | | women who built businesses that have significantly |
| find the ways by which techniques and operational | | | | improved our existence as humans here on earth. |
| processes may be improved and costs lowered. It is | | | | Imagine what the world would have been like if there |
| only human for people to give little though to | | | | weren't people like Thomas Edison who invented light |
| economies when business is booming. That, however, | | | | bulb? Imagine a world without computers; would |
| is just the time when the businessman has the | | | | there ever be a term like global village? Imagine a |
| mental elbow room to examine his operations calmly | | | | world where we had to gaze at the sun to know |
| and objectively and thus effect important savings | | | | what time of the day it is? There are countless |
| without sacrificing quality or efficiency. Many | | | | examples the world over of breakthrough inventions |
| businessmen wait for lean periods to do these things | | | | that has radically changed our existence, all these |
| and, as a result, often hit the panic button and slash | | | | were made possible by men and women like you and |
| costs in the wrong places. | | | | I who felt it more compelling to use their wealth and |
| Footnote | | | | talents for the good of humanity rather than |
| Success they say is a lazy teacher who makes her | | | | wallowing in their own fantasies enjoying all the good |
| student complacent and comfortable. The best time | | | | their wealth can possibly buy. Entrepreneurs are the |
| to examine your business and seek ways for | | | | architects of civilization. We are the instruments of |
| improvement isn't when it's declining, but rather when | | | | nature being used for the good of humanity. |
| it is booming. A businessman or woman who desires | | | | In conclusion, in the words of the legend himself, J. |
| success in business must deliberately seek out more | | | | Paul Getty; |
| and more ways of improving their business | | | | "do you want to make a million? Believe me, you can |
| operations, products or services long before it | | | | - if you are able to recognize the limitless |
| becomes an emergency. Entrepreneurship is not a | | | | opportunities and potentials around you and will apply |
| destination one is heading to, but a journey one | | | | these rules and work hard. For today's alert, |
| embarks on; it has no end but death. In other words, | | | | ambitious and able young men and women, all that |
| there is no stationary spot or a point for resting on | | | | glitters truly CAN be gold! |
| one's laurels. Areas through which improvements can | | | | |