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CHAPTER 6 HOW TO GENERATE MILLIONS IN SALES & PROFITS

you use it. For example, when I first started my training
business, I hired freelance trainers and salespeople. I also
held my programs in hotels and would only pay when a
seminar was actually going on. In this way, I would not
have to incur the costs if there was no business for
that month.

Unfortunately, variable costs tend to be much higher. So,
once our business grew and sales became more stable,
we converted all variable costs to fixed cost. We started
hiring full-time staff who were paid a monthly salary
instead of freelance fees. Instead of renting hotel ballrooms,
we rented 10,000 square feet of office space to conduct
all our training, paying a fixed amount of rent every
month.

By doing so, our costs went down significantly and profits
also went up. For example, we used to pay $20,000 to
a hotel to run a five-day students’ program. By paying a
fixed $30,000 a month in rental for our own office and
training venue , we could run seven camps! By spreading
the fixed costs over the seven camps, it only cost us only
$4,000 to run each camp (in terms of venue). Compare
that to $20,000/- for just one camp in a hotel?

10) Reduce tax liability
Taxes will always a chop off a large part of your profits.
Get a good accountant who can give you some great
advice on how to reduce your taxes legally.

11) Invest in Technology to increase efficiently and reduce
costs. Is there are any technology you can invest in that
would cut down manpower costs and save you more
money in the long term?

SECRETS OF BUILDING MULTI-MILLION DOLLAR BUSINESSES 195