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The Millionaire Maker's Guide to Creating a Cash Machine for Life

by Loral Langemeier by McGraw-Hill

Hardcover

List Price: $24.95

Amazon's Price: $7.50

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Guide to Creating a Cash Machine for Life

Laurel Langemeier takes us into the journey of creating a Cash machine Action Plan--Seven weeks to Sales

Part 1- Discover your skills.

The first step in creating a Cash Machine is to evaluate what your current skill set is. By harnessing the skills you already have, you can start earning, even while you are learning to expand and deepen your skills.

You can begin to ask these questions:

• What tasks do I do at home in my own time to a high degree of competence?
• What activities would I like to be doing in my spare time if I had enough time and money ?
• What tasks do others ask me to help with?

Check the book out, its got value and lots of tools!

Part 2- Generate a business idea harnessing your skills

Once you know your personal skills set (part 1), you then need to ensure your Cash machine actually revolves around something you're good at.

Factors to consider in coming up with a business idea are:

• Consider what's missing in your town or ommunity
• Look at new and emerging customer trends
• Look at what other established companies are advertising
• Focus on identifying gaps between what's available and what's n demand

Part 3- Model your Machine on a successful business

Once you know your personal skills set (part 1), identified a need in the marketplace (Part 2), now its time to model a successful business that already exists.

You don't have time to reinvent the wheel if you want to start a cash machine within 7 weeks.

Here are some tips from the book:

• Identify a company that is comparable to what you want to accomplish.
• Talk to your friends to see if anyone knows someone internally.
• Approach the owner or manager of the other business directly, invite them to lunch in exchage for picking their brain (make sure you do your homework first by looking at their website and any other information about them so know what they are doing.
• Talk to the business's strategic partners or suppliers to see what they know about the true secrets to success in that industry.
• Visit businesses you're impressed with and observe their operations first hand to learn what's working.

If there are no companies which are similar to your proposed cash machine, break down your business into chunks and model parts of what others offer to make themselves successful.

Part 4- Test the sales potential by doing revenue modeling

Once you know your personal skills set (Part 1), identified a need in the marketplace (Part 2), have identified a business that already exists to model (Part 3) now you can look into sales modeling.

Here's how it works:

1. Decide how much money you want to make that will justify all your time, effort and energy. Perhaps you want to make $100K per year.
2. Break your annual revenue figure into a monthly, weekly, and daily number. $100K/yr, $8,333/mo, $2080/wk, $416/day.
3. Next figure out what you'll need to sell to generate your daily revenue figure. For example, if you are charging $150/hour, three hours per day will generate $416 in billing revenue. f you are selling shirts for $20 each, you'll need to sell 21 shirts every day.
4. Now you can get creative and figure out how your're going to meet your daily sales target. Look into raising your prices, partnering/joint venturing with someone who already serves your ideal market.

This is a wonderful tool as it forces you to look into the feasability and creativity needed to deploy the plan.

Part 5 - Test the sales potential by doing revenue modeling

 
Once you know your personal skills set (Part 1), identified a need in the marketplace (Part 2), have identified a business that already exists to model (Part 3) looked into sales modeling (Part 4), now we look at developing your cash machine plan.
 
Writing a cash machine plan is not a business plan its a 1-3 page document that summarizes where you want to head.
 
It covers 7 areas of importance:
 

1. Concept--what you are going to do to earn money, based on the skills you already possess. 
2. Opportunity-the unmet demand you're planning on meeting or the competitive advantage you plan on harnessing.
3. Strategy- the actual plan of action you'll take to move from concept to reality. Down to specifics on the tactics you plan on employing on a day-to-day basis.
4. Team and operations- who will be involved in running and managing the business.
5. Financials-details of your revenue model including overall sales revenues and break-even point.
6. Future directions- your cash machine's goals and anticipated developments moving forward.
7. Appendix-add your basic revenue model and your cash-flow analysis. Summarize those numbers in your cash machine plan and then staple more detailed financials on separate pages to the back of your plan. The whole idea here is to show what you're suggesting is the viable rather than pie-in-the-sky.

This is a critical area as it engages you into the numbers game which is why you do or start a project in the first place. Let's make money!