One tool that is commonly used by business executives is a cost vs. benefit analysis (CBA) for new initiatives and investments. Yet I find that some entrepreneurs use a less formal approach to making decisions about their business. While I’m all for using your intuition and taking risks, there is true benefit to determining the actual cost and comparing it to the expected benefits of a project, new product launch, etc.
Company A put all the profits back in the The Odyssey Online, except for year three when the retention ratio was 74%. Company B had a retention ratio of 100% for the whole period.
The more you follow the markets the easier it will be to find your own setups. However, multiple minds along with technology is the best way to find great setups.
You cannot gather information forever. You won’t ever start MLM that way. Get out your calendar and pick a date to stop your research. Six weeks of free time searching is a reasonable amount of time to explore your options for starting an MLM business. And, if six weeks isn’t enough for you, please don’t research for longer than ninety days! You want to get through the process and not prolong it.
People use a number of financial analysis techniques, such as ratio analysis, bankruptcy analysis, sensitivity analysis, etc. The purpose of these exercises is not to arrive at some final result that looks good. Rather, the analyses are performed in order to find how the business can be improved. Never be lulled into thinking everything is good. Things can change on a dime. Look for areas than can be improved in order to give you a cushion in case things go bad.
Getting frozen in research mode is such a common problem that business gurus have given it a name – analysis paralysis. The idea is that you get just paralyzed with thinking and never act. And without action, you never really start MLM.
Get into the habit of living in and outside of your business instead of just surviving, or more bluntly, dying. To gain a fuller appreciation of how these words differ, refer to the six examples provided below.