Is this most powerful combination in business?

Sep 11, 2021
 

All right, I want to open up with this idea that as a business owner or an entrepreneur, you have access to potentially one of the most incredible opportunities that exists in life.

That is the capacity to get returns that most people would just name them as unbelievable.

The reason this came up was that we're, I was recently having a chat to our financial advisor, and they're like, Look, you guys have got to get some of your money working for you in Super, what we want you to do is to get a property.

And this is quite a common kind of idea over here in Australia that you'd buy a property and the rent pays for the mortgage plus the expenses and long term pays off, and then you've got this income coming in from this house.

And I was like, Okay, well, what are the numbers like? And they're like, Well, you know, it's, it's got about a 6% return.

I'm like, okay, and they're like, that's awesome.

Am I really, okay, if you say so.

I mean, they, I can see the point, like, the advantage of the property is that you get a lot of leverage, like the banks will lend on it.

And so you're putting down a less amount, and there's more working for you.

Yet, 6% is still a very long time to get your money back.

Yes, it will happen.

A long time ago, my grandfather gave me the rule of 72, if you divide your interest rate into 72, to get you how long it's going to take to repay.

So if it was seven, it's going to take 10 years, six, it's going to take, let's call it 12 years, to get your money back after that good, you're good to go.

And off, you go to the races.

But that's not what we're talking about your talk, we're talking about you being a business owner.

And I want to open you up to the idea that there are two aspects of business where you can get exponential returns, the first no doubt you have heard of it is called advertising.

And this idea that you could take $1, and you could put it into an ad and you could sell something to a customer and you get $2 back, basically, this is a 100% return on investment.

And obviously, with $1, you're not going to get much but if you put in 100, and you get $200, but you put in 1000, you get $2,000.

And the cool thing about ads is that may come back within 30 days or so.

And so the question comes, Well, how often should you do that? How often should you put in $1,000.

And you should do that as much as possible.

You put in 1000, you get 2000.

Back, you put in 1000, you get 2000.

Back, you should do that as much as you can.

And this, if you did it for a year, let's say that you put in your 1000, and you pulled out your 2000.

And you took that 1000, put it back in for the next month and you had this system where you just recurring, Li put that $1,000 back in and it made two took 1000, you took 1000 At the end of 12 months, you'd have an interesting scenario, you will still have your original $1,000 and you will have had 11 or 12 Not really sure payouts of $1,000.

So for your $1,000, you've now turned it into $12,000.

That is not a 6% return on investment.

That is not 6%.

Now I have to check some to make sure that the right number goes on top of the right the correct way to do it is net return divided by the cost of investment.

So you got $12,000 You put in 1000 which means you're at a 1,200% return.

You're like oh my god, do you want that 6% Are you sure you want it to look? It looks pretty attractive? 6% 6%.

I'm like, this one's doing 12 100%.

I mean, the crazy thing is to check out the return on investment on systems.

So let's take a second scenario.

And let's say that you've got a system or you don't have a system, but some works got to get done every day.

And it's taking you about two hours to do.

And somehow you magically learn how to do systems and you build a system to do that work.

And now you find that it takes you one hour instead of two, what took two without a system now takes one hour with the system.

This is not uncommon at all.

This is usually this is it might even be I would write that as a relatively poor return on investment typically would take like half an hour.

But let's use our example here.

So two hours, you can build a system and it took an hour takes one hour and let's say that system took 12 hours to build.

You're like man, I'm not very good at this.

I don't really know what I'm doing and it took you 12 hours to work out this system.

So you've put in 12 hours.

But now the work that took two hours now takes one hour.

So the first day, the next day after you built the system, you get an hour back, what would have taken you to now takes you one the next day, what would have taken you to now takes you one, how many days until you get a return on investment? How many days and to you get a return on investment, you will have your return on investment in 12 days.

So I've shown our 12 business days later, over the year, let's call it 250 business days, maybe that's a little bit over optimistic, maybe it's 240, whatever, let's say it's 250 hours saved for 12 hour investment.

How often should you do that? You should do that as much as possible.

Should you do it for your next system? Yes, you should, you should do all your systems, if you are literally saving that much money 50% In light of the costs 50 Tech's 50% of the time, that means you got to pay half payroll, that means you can keep your payroll and get twice as much done.

But here's the real killer.

Here's the awesome one.

What about if you took both of these together? You got this insane return on investment 12 100% on ads, and an insane return on investment in systems 2,000%.

Where would I be going? I'd be systemizing my ad game that is that He likes it's probably not going to be 1200 by 2000.

But it might be a 5,000% return.

It might be to say it's interesting because that's not what my clients have usually chosen.

They've like, oh, let's work on a hiring system or onboarding client system.

But from now on, I'm like, I think we should look at the ad system.

Let's get you as long as they've got to work and sales funnel.

Hopefully, they do.

This isn't for startups.

This isn't day one in business.

But they've got a way of getting customers and we just need to get them more Systemising their ad game.

This is exciting.

This is seriously exciting.

If this is something that you're interested in, if you can see what I'm talking about here, like the insane investment return that you get if you combine your ad return with your systems return and you put them together head over to systemio.dev and I hope you enjoyed tonight's episode.

I certainly enjoyed making it for you.

And I look forward to continuing our journey together as we continue to explore the power of systems to create results.

See you then.

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Even if you have NO IDEA HOW TO RUN SYSTEMS right now!
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