Becoming a Billion Dollar Company

The following 6 points are common among enterprises that have become billion dollar companies:

Widespread exposure- Martha Stewart's opportunity arrived when Kmart started pumping millions of dollars into making her name known in every household. Hillary Duff leveraged her fame acquired through Lizy McGuire and being a Disney Kid. Turning into a household name requires millions of dollars. How are you planning to harness enough marketing strength to put you in front of your prospect on a constant basis? Limit your exposure to markets that you can pound seriously with continual reoccurring messages.

Leadership- You must be a clear and decisive leader. If you are not able to communicate your vision plainly, make intelligent decisions, and manage your time effectively, then get out of your own way.

Line and Brand Extensions- "Line" extension and "Brand" extension are two very different things. "Line" extension means that you have multiple products in one category. "Brand" extension is utilizing the power of your name to sell products in multiple categories. The capability of doing both is something billion dollar companies have.

High Demand, Consumable and Unique Products- When demand is high the sales cycle is shortened therefore increasing profitability. Consumable means that the same customers repurchase the same products several times. Repeat purchases increase your profitability each time they buy. Uniqueness raises profitability because it can dramatically strengthen your value proposition and diminish the points of comparison that adjust the price.

Expert Management- Nearly all people avoid employing professional management because they feel they have inadequate resources. People with a lot of experience can really shoot you forward. Martha Stewart acquired her magazine rights from Time Warner for $70 million by going public and re-negotiating contracts with Kmart based on the direction of a professional manager she brought on as a partner. One of my own companies doubled its capital acquisition rate in a single day due to a professional CEO we hired. In counting the cost, one may realize that refusing to hire professionals could cost you your financial freedom.

Cross Selling through Circular Promotion- Jump at every opportunity to advertise your products. All your products should compliment the others and lead to a natural purchasing cascade. Hillary Duff is fast out pacing Britney Spears in per title record sales and is merchandising through Target. However, she will outgrow her market.

Becoming a billion dollar revenue generator is no minor undertaking. It is critical that you have the vision, the enthusiasm, the desire, and the essential leadership skills.

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Rod Alan Richardson has dedicated his life to teaching people to succeed in free enterprise through Business Training. To read the full version of this article go to Billion Dollar Idea.