How to build a billion dollar business? WxM / Cindy Wong Ltd

Summary

In this video, the speaker shares their journey of starting their own business, offering key insights into obtaining funding, building a strong team, and developing a robust business strategy. They cover various funding options, including venture capital and private equity, and emphasize the importance of hiring the right people. The speaker discusses expanding a business through both B2B and B2C models, providing examples like pop-up stores for jewelry and skincare products. They also highlight the significance of customer care, brand building, and the use of fintech for business automation, all while motivating aspiring entrepreneurs to aim for significant goals.

Takeaways

• 😀 Focus on securing funding for your business to fuel growth—options include investment banks, venture capital, private equity, or private investors.
• 😀 Building a strong team is essential—consider past collaborators and those who bring valuable skills and experience.
• 😀 Craft a clear business strategy and vision—know what industries and products/services your business will focus on.
• 😀 Diversify your revenue streams—explore B2B and B2C opportunities to maximize growth and scalability.
• 😀 After-sales care is crucial—engage with customers through events, samples, and building relationships to foster loyalty.
• 😀 Create memorable customer experiences—brands like Prada engage customers beyond just selling products, offering unique experiences like branded cakes and coffee.
• 😀 Be mindful of legal and financial structures—strong legal teams and knowledge of financials (P&L, balance sheets, etc.) are essential.
• 😀 Leverage technology to automate business processes—use fintech tools to streamline payroll, expenses, and other operations.
• 😀 Set ambitious business goals—aim for exponential growth and challenge yourself to reach higher targets, just like billion-dollar companies.
• 😀 Research competitors thoroughly—use tools like company house or investor decks to understand the market and plan effectively.
• 😀 Use free resources for mentorship and guidance—offer mentorship and engage in online communities for advice and learning.

Q & A

What is the first step in starting your own business according to the script?

The first step in starting your own business is securing funding. This can be achieved through various sources such as investment banks, venture capital, private equity firms, or private investors.

Why is funding so crucial for starting a business?

Funding is crucial because without it, you will be limited in growing your business. While bootstrapping can work initially, it often restricts your ability to scale and expand quickly.

What are the different types of funding sources mentioned?

The different funding sources mentioned include investment banks, normal banks for loans, venture capital (VC) firms for early-stage businesses, private equity (PE) firms for established businesses, and private investors who may take equity in your business.

How did the speaker's business get funded?

The speaker's business was funded by partnering with a larger company, the MIT group, which provided financial backing for their business ideas, contributing to their rapid growth.

What is the importance of building a strong team when starting a business?

Building a strong team is crucial because the people you work with will help bring your vision to life. The speaker poached people from their previous businesses who were considered superstars and aligned with the company culture.

What should be considered when forming the roles and strategy for a business?

When forming roles and strategy, it is important to define your business's vision, mission, and the industries you want to be involved in. The speaker gives an example of their business, WXM, which focuses on consulting, brand loyalty apps, cryptocurrencies, and luxury goods.

What is the difference between B2B and B2C, and why is B2B more effective for growth?

B2B (Business to Business) involves selling to other businesses, while B2C (Business to Consumer) focuses on selling directly to individual customers. B2B is more effective because one deal can provide access to a large number of customers under a single contract, significantly boosting revenue.

How can businesses improve customer engagement after the sale?

Aftercare is vital for customer retention. Businesses can offer personalized customer experiences, events, and loyalty-building initiatives like skincare samples or exclusive experiences. Building rapport with customers helps generate repeat business and word-of-mouth referrals.

How can businesses create premium customer experiences similar to luxury brands?

Luxury brands like Prada and LV offer exclusive experiences, such as cafes or high-priced branded products, to create a sense of prestige. Similarly, businesses can collaborate with coffee companies or host events to provide customers with a unique and premium experience.

Why is it important to set ambitious business goals?

Setting ambitious business goals pushes you to achieve more than the basic targets. The speaker suggests setting goals that force you to think bigger, using examples like Elon Musk's goals for Tesla. This mindset can lead to exponential growth and a larger market presence.