In this video I’m going to show what 99% miss when climbing the ladder of success and how it can make a difference to you.
Congratulations! Less than 39% make it to Step 5.
Proven Systems Increase Your Chance Of Success
Did you know that most businesses fail? I’m sure you’ve heard that before.
Depending on what source you use, approximately 50% of all new businesses will fail in their first five years. Less than a third survive 10 years.
Other sources show an even higher number of 80% failure in the first 18 months, if you factor in small non-registered businesses.
Not exactly encouraging is it?
When I used to hear these statistics, I found them extremely discouraging. “What makes me think I can do better than the average person?” I’d ask myself.
Here’s what I’ve since learned: The reason so many businesses fail is because they have the wrong business model, and the entrepreneur running the business is focused on all the wrong things (and not enough of the right ones).
I’ll prove it to you. Even though most businesses fail, there’s one category of business owner who has a staggeringly higher success rate:
According to research conducted by the IFA Educational Foundation, more than 90 percent of franchisees renew their agreements at the end of their contracts.
Clearly, franchise termination and transfer rates would be much higher if operating a franchise was not a prosperous way to make a living. Given that most franchise contracts have a term of seven to ten years, the data seems to indicate there is a much higher business continuation, or survival rate, among franchises than other small businesses.
Franchisees are people who buy into a franchise business and leverage someone else’s proven business model. Working with a proven brand and system makes business operations easier and more enjoyable.
In a 2014 survey by Franchise Business Review on franchisees’ relationship with their franchisors it was determined:
- 90% enjoy operating their business
- 88% of franchisees enjoy being part of their organization
- 85% feel positive about their affiliation with their franchisor
- 83% respect their franchisor
- 80% feel their franchisor operates with a high level of honesty
- 78% would recommend their franchise brand to others
- 73% would “Do it all over again” if they had the option
All of your life you’ve been seeing proof of how successful these business owners can be—every time you see a McDonald’s.
There are 36,525 McDonald’s restaurants around the world today, 21,147 of which are owned and operated by franchisees. (The rest are company-owned or are otherwise licensed.)
Do you really think the success of these individual McDonald’s outlets (on average about $2.6 million in revenue per year) is due to the brilliance and talent of the franchisees who operate them?
Do you really think the McDonald’s corporation managed to find extraordinary entrepreneurs to run those 21,147 outlets?
Or, could it be more likely that these franchisees are average people, and it’s the McDonald’s system itself that is brilliant?
Of course it’s the latter.
The reason why franchisees are so much more likely to succeed in business than the average start-up is because they have a proven system.
They have step-by-step processes they can follow. As long as they follow the instructions, they have a high likelihood of being successful.
The truth is, some business models are easier to succeed with than others.
I go into a lot more detail on this in the first chapter of Limitless (which you should be receiving soon).
My mentor (and billionaire investor) Warren Buffett has famously said: “Go for a business that any idiot can run—because sooner or later, any idiot probably is going to run it.”
Interesting Facts About The Franchise Business Model
Did you know that when the franchise model was first introduced people ridiculed it.
The concept of leveraging someone else’s system, name or assets in exchange for a royalty fee started to appear in the Middle Ages.
In those days, some local governments granted high positioned officials a license to maintain order, assess taxes and perform business-related activities. These franchisees paid a royalty to the lords in exchange for, among other things, “protection.”
In the Colonial period, a local lord would authorize individuals to hold markets, run local ferries, hold fairs, or to even hunt on his land. This concept extended to the kings, who would grant a franchise for different types of business activities.
When you buy a franchise you’re buying a license to use an existing name, product or system that will make your business operations easier.
Leveraging A Proven System: Hypothetical Scenario
One of my favorite businesses of all time is Starbucks (mainly because I love their coffee).
Wherever I am in the world, the first thing I do after breakfast is get my coffee. And every single day I order the same thing: a venti iced latte with four shots of espresso and no sugar. It must also have a cardboard sleeve around it, so the ice doesn’t melt so fast.
This habit is so strong that I even changed the ship we sail on for the annual MOBE Leader’s Cruise from the 3,500 room Independence of the Seas to the 7,000 room Oasis of the Seas, because it had a Starbucks on board! (Also, it’s a much better ship, and our top earners deserve the best).
Now here’s my question to you: pretend for a moment you were going to get into the coffee business.
You’d never run a coffee business before but being enthusiastic about how much money you could potentially make, and the idea of being in business for yourself, you decided to open your shop.
The first thing you’d need would be a good location. It would need to have enough foot traffic going by every day to support the business.
Then you’d need to invest in equipment. You’d get yourself a big coffee machine that could make lattes, espressos, cappuccinos, etc.
And of course, you’d need furniture. And staff to help you fill all the orders.
What next? Advertising, of course! If no one has heard of you before, you’ll need to get the word out and start promoting your new brand.
In the first few days, there would likely be very few customers. But when they did start coming into your store, it would likely be chaos. There would be 100 little things you’d not thought of which you’d need to get.
Imagine where you would be after one week—concerned, possibly, but also optimistic about the future.
Now just imagine that Monday morning, opening your coffee shop for its second week, you noticed a brand new Starbucks coffee shop opening right across the street.
The big Starbucks sign was right there in front of you.
How would you feel in that moment?
How do you think your new coffee business would fare against this more established brand?
The reality is that you (or anyone else in your position) would be in a lot of trouble.
Even if the person running that Starbucks store were brand new to business, they’d still be much more likely to succeed than you would.
Because they would be leveraging a proven system.
They would have training on how to run it. They’d have an operations manual full of detailed, documented procedures showing exactly what needed to be done. They’d have proven products. They’d have a proven brand.
Their system was so ‘proven’ that in 2015, Starbucks had over 23,043 stores worldwide.
Starbucks started in the United States and the corporate head office owns most of the stores in the US and Canada. However they do offer what they call “Licensed Stores” to select airports and grocery stores. But the business model is so successful that they now offer it on a franchise basis for international locations.
When it comes to starting an online business, do you really want to be the start-up first-timer coffee shop operator?
Or do you want to own and operate a Starbucks?
Now franchising is very popular and has dedicated resources for reviews and regulations like www.franchisebusinessreview.com or www.franchise.org the International Franchise Association, the world’s oldest and largest organization representing franchising worldwide. There you will be able to search for Franchise opportunities by category, investment or by keyword.
There are also ranking systems like the Franchise 500 compiled by Entrepreneur.com, where you will be able to review the top performing franchises in the United States, along with statistics on initial investments and operational costs.
Today’s action step is a very simple one and requires you to do some research.
I want you to inquire about buying a franchise. Specifically, I want you to look for franchises that have the ability to generate a seven-figure turnover (more than $1 million) each year. Then answer these questions:
- What is the required investment to get started?
- What kind of support do they provide?
- What kind of ongoing royalties and operating costs do you need to pay?
- What is the general success rate?
Here are several websites to get you started:
Congratulations on completing Step 5—You’re doing great!
In The Next Step: If you don’t have hundreds of thousands of dollars in cash to invest in a proven franchise that can generate millions, keep reading. In the next step, you’ll discover something even better at a fraction of the price.
Then, in Step 7 you’ll find out how to set up your payment account so you can start receiving your very first “high ticket affiliate marketing” commissions!
If for any reason you have any issues accessing the steps or video training in this 21 Step System or any of our other training programs, please contact our support team at mobe.com/support or call 1-844-662-3787.