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I was browsing my archive of Wealth Strategies from the Truly Rich Club when I read about this 20/20/60 Magic Formula for Business Growth. This information was also shared by COL Founder, Mr. Edward Lee, during the recently held Wealth Summit.
I believe this is what Chinese businessmen do that makes them grow their businesses. My partner and I have started using this formula. I am also sharing this to my future business partners/workmates because we will be starting a new business in the next three months.
So, here is what my mentor says.
At the end of the year, you divide the profits by 20/20/60.
Twenty percent of the profits goes to the owners of the company. If you will be working fulltime for the business, pay yourself a tiny salary.
Twenty percent goes to the team. Share it with all your employees, like a profit sharing at the end of the year.
The remaining sixty percent is the secret sauce. This is where your business growth will come from. You reinvest it. To expand your business. To build new branches. To go into new businesses.
Most businesses do not grow because they take all the profit off the table at the end of the year. Imagine that compounding effect of that sixty percent year after year.
I am applying this formula for my business income. And I am currently applying the 10/10/10/20/50 formula for my personal income.
Know these formulas.
Apply them.
Become wealthy and remember that the main purpose of wealth is to love and serve others.
P.S.
Do you want to gain financial wealth and spiritual abundance at the same time? Do you want to learn how to recognize business opportunities and have other income generating source? Sign up at the Truly Rich Club. CLICK here
