Monthly Archives: January 2015

How to increase your profits – yet work less .

The following is a true story – Using the   :  “Pareto principle  ”  which you may never have heard of when applied to commerce  ?!  ( 80% of your sales come from 20% of your clients )

By the 1980’s a former electtrical engineer named George  had established a number of very successful businesses in the South east of England .

The core business was cleaning  office buildings with his Goldsmith services ; supplying equipment  & dispensables / cleaning materials needed daily .

At the height of the business he had 91 contracts and employed 168 workers

George’s success was based on high standards at all times , to ensure this was maintained  he worked seven days each week often starting at 2:30 am to supervise night -time contracts .

He realized he could not continue to work at such a pace without long term health consequences , as well as the desire to have a reasonable lifestyle , at least as good as some of his employees !

He discussed the need for change with his wife and bank manager ; the latter had given him good advice in the past ; he now suggested  to George   keeping in mind the type of business he ran  to reduce his contracts from 91 to 17 as an ideal figure .

George decided to apply this  radical  solution to his problem  ;   this  involved talking to all his customers informing the majority of an alternative supplier in the future and thanking them for their past support .

He explained to the 17 he chose to retain they would get an even better  and more personal service in future .

Previous to the change his turnover was £ 750,000 ; this now fell to £180.000 : but an amazing thing resulted    – his actual profit margin went up !

George now had a take home pay of £ 28,000 ;  he only worked a five day week ; and at last he felt he had a lifestyle befitting  the very hard work he had put in to build the business .

He was better off in every way for the following reasons  :—

1 . The reduction in customers  gave him time to more effectively manage the business  and control standards without running himself ragged .

2, The companies he let go would not forget his integrity  in arranging alternative services – further building his reputation .

3 . The businesses he retained appreciated the stronger relationship and greater customer care he gave and increased their orders .

All business owners understand the difference between cash flow and profit  (  Amazon up to 2002 had a cash flow of £ 386 million but nil profit and a £ 2 billion overhang   !  )

The lesson George’s story can teach us is ; if the  Pareto principle  can be applied  –  ie  : 80% of your profit comes from 20% of your customers .  Care for the 20 %  only  !

Much depends on the business model you use , but the basic rule applies  . Keep in mind your revenue model and ask . ” Can i reformulate it to retain the same or more profit ?


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Water crisis in Africa – A solution for countries bordering the sea ?

”  Water ! Water everywhere but not a drop to drink “. These words from the poem ” The ancient mariner ” . Are true for many countries who border the sea . All that water yet not drinkable ..because of the salt .


In the Artic there are huge lumps of drinkable water frozen as  ice  ; how could this be made available to those countries with a critical shortage ?

Choose a iceberg  ; spray it with white insulation  foam – to slow down its melt rate ; cover a portion with solar energy cells to power electric motors and sail it to the countries in need .

At its final destination the water would be sold directly to  customers who would tap into the iceberg . Their payment would recover the cost of the sailors transportation costs.

This is another  way out  idea   :but remember yobrain is training your mind in creativity which requires the input of new ideas no matter how seemingly ” Crazy ” From the input of such ideas your mind will mull over and produce from your subconscious a possible solution to your problem . Ideas beget ideas ; we call it parallel leverage .

Please read more about this in  :  ” User guide “.  Section on  :” Your amazing brain  ”

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A business out of thin hair !

As my barber  ( read hair stylist if  USA  ) was cutting my hair – not a long job as my hairline is level with my ears !  –   He mentioned he had recently bought a water plant for his aquarium but was diappointed with his specimen , as it did  did not compare with the healthy looking one imaged in the Ad , which had enticed him to buy .

This led to a discussion in which he told me aquarium fish & related products are big business & more especially certain plants needed by tropical fish . These are difficult to obtain -importrestrictions are one factor . He mentioned one type called ” Red algae . ” Saying there is a big demand for it .

I got no more information , remember it was a short cut ! But it got me thinking   :  Is there a gap in the market for  a specialist exotic plant supplier ? Perhaps matching rare fish with rare plants , or those hard to get .

There could be a number of product areas to test the idea ……

1    A free report on the subject   .2    A white paper , including information on inporting water plants .     3   A book giving a comprehensive overview of matching exotic fish to the needed plant environment ..Perhaps in part form of a directory  .

Ther are many publications on tropical fish but  few presenting information on plants matched to fish & other related tropical creatures with a reliable supply resource . It could be in ebook format ..

This might be worth a few hours research ..If you use this business idea , i will sell your first plant to my Barber   …. I may get a free haircut  !


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