Mentors Magazine: Issue 3

(MENTORSMagazine) #1
MENTORS MAGAZINE | EDITION 3 | 23

Neil: Brian thank you so much for agreeing
to this interview today.


Brian Tracy: It’s a pleasure, I am very, very
happy to be with you Neil. We almost got
together last year, and now we have.


I am glad we have got together as well; it
truly is an honour.


Neil: Brian, we are going to be talking
about business model re-invention. Can
you explain what business model re-
invention is?


Brian Tracy: Well that’s a great question,
and I stumbled across this about five years
ago, and I fell in love with the subject be-
cause some of the smartest people in the
world at the top universities and the big-
gest consulting firms are now focusing on
this. And basically, your business model is
your profit model. So, there is an equal
sign between business model = profit mod-
el. So, it is how you earn profits in your
business, it’s the various things that you do
or don't do, that generate profits that de-
termine whether you are successful or not.


One of the reasons I am very happy to be
with you is because you and I have an iden-
tical commitment to helping our clients
earn more money, to be more successful in
their businesses. And sometimes, if you
just make one small mistake in your busi-
ness; you are driving down the road of life
and you take one wrong turn, it can cause
your business to fail. And an enormous
number of people are struggling.

You know the 80/20 rule is applicable eve-
rywhere, in that 80% of the profits in any
business are earned by 20% of the people.
Now I was playing around with a calculator
just the other day and I calculated, what
would that difference be? And the answer
was shocking, is that people in the top 20%
are earning on average 16 times the aver-
age of the people in the bottom 80% in the
same industry, selling the same products
and services to the same people under the
same competitive conditions. Now that is
phenomenal, to think that one person...
and there is very little difference in intelli-
gence or ability or background or anything
else... there is a lot of smart well-educated
people who were struggling, and there's a
lot of people who just started a business

With Brian Tracy, Interview by Neil Ball

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