How to Build the World's Best Business

You probably didn't click on this link to read some self-aggrandizing personal backstory.

You're more likely here because you want the simple and succinct truth on? how to build a competition flogging, category-conquering, headline-hogging business.

So without diversion, distraction or delay...

Here are the 7 things you must do to become the Nike of your niche.

1. Get your customers to spend the most

2. Ensure your customers stay for the longest

3. Secure the healthiest profit margins

4. Build the best lead generation and sales conversion systems

5. Develop the most defensible intellectual property

6. Attract and acquire the most skilled people and the most effective systems

7. Establish the greatest market share

These are the 7 pillars of "best in the world" success.

Think of Apple, FedEx, Uber and Disney.

It's a common misconception that these "best in the world" brands are built with visually captivating logos and websites, viral social media posts, and ingenious advertising campaigns.?

But that's a very small part of their market domination.

The best brands and businesses are built on SEVEN pillars.?

A.M.P.L.I.F.Y is my Simonesque acronym for these seven pillars.

(This is where I skip over the emotionally charged and gripping origin story).

The 7 Pillars of A.M.P.L.I.F.Y

1. A = Average Order Value

Customers spend the most.

Example:? Starbucks

In a recent brand equity ranking, Starbucks ranked #5 while Dunkin’ was ranked #85. Starbucks has a higher average ticket price per customer, with an estimated $5.60 per customer visit compared to Dunkin’ Donuts’ $3.10

2. M = Maximized Lifetime Value

Customers stay the longest.

Example: Apple

Apple is currently the most valuable brand in the world. Apple iPhone customers are valued anywhere between $700-$900 every two years. With 90% of Apple's customers being fiercely loyal, that's an average Lifetime Customer Value of $8,000 over 20 years – assuming customers get a new phone every two years.

3. P = Profit

Margins are the healthiest.

Example: ?Louis Vuitton

Louis Vuitton has been the world's most valuable luxury brand for 18 years. While Louis Vuitton's profit margin of 40% might seem only slightly more than Gucci's 35%, it's a significant gap in luxury fashion, and highlights? Louis Vuitton's mastery in creating more value per product.

4. L = Lead Generation & Sales

Perfect customers are attracted and retained.

Example:? Tesla

Tesla's direct sales model, bypassing traditional dealerships, has been key to establishing it as the most valuable car brand in the world. This innovative approach resulted in over 435,000 vehicle deliveries in Q3 2023 and a staggering $81.462 billion revenue in 2022.

5. I = Intellectual Property

Brands are the most dominant and defensible.

Example:? LEGO

LEGO's Disney-themed sets, particularly Star Wars, exemplify strategic IP utilization. This partnership created in-demand products and defended market position against competitors, while contributing to a 13% sales increase for LEGO in 2020.

6. F = Faculties and Facilities

Employees are most skilled and processes are most effective.

Example:? Airbnb

Recognized as a top employer by Glassdoor in 2016 and 2017, Airbnb's workplace culture has attracted and engaged top talent, enabling it to propel revenue to $2.484 billion in 2023, a 45.9% valuation increase. With a record 115.1 million stays in Q2 2022, Airbnb's success underscores the significant impact of talent on business performance.

7. Y = Yard Size

Market share is most significant.?

Example:? Meta (Facebook)

Meta's acquisitions of Instagram and WhatsApp dramatically expanded its market share, adding billions of users. This growth enhances Meta's advertising reach and data collection capabilities, further solidifying its position as a leader in social media and digital communication.

But sophisticated strategies and tactics are not enough.

A lot of companies have fancy models and methods, but still fail to become category kings.?

To rise to the ranks of royalty in your industry, you'll need one more thing:?

4-dimensional perspective.

Consider the classic clash between Blockbuster and Netflix.

Blockbuster had all the strategies and tactics down, with a massive store network and extensive inventory. But they missed something crucial – a forward-looking vision and the ability to adapt to a changing world of media consumption.?

Netflix, on the other hand, not only had great strategies, but also a clear vision of the future of entertainment. This vision galvanized their purpose and propelled them to become the king of the home entertainment category.

On the flip side, a grand vision and inspiring purpose without the right strategies and tactics can lead to missed opportunities and unfulfilled potential.?

Segway is a great example.

Dean Kamen had a vision to revolutionize global transportation.

With heavyweights like Steve Jobs and Jeff Bezos backing him, success seemed inevitable.?

But Segway ultimately failed because its short term execution was out of alignment with its grand vision.

Understanding the different scopes and timelines is crucial:

Vision imagines your business in generations and constellations.

Purpose steers your business through seasons and landscapes.

Strategies guide your business in months and miles.

Tactics are executed in the minutes and meters.

Most business owners struggle to straddle two of these perspectives.

But building a "world's best" business requires a 4D perspective.

Being able to hold all four perspectives at the same time, is a rare genius that comes along once in a few centuries — think: Leonardo da Vinci – which is why building a "world's best" business is such an elusive accomplishment.

(Here's where you might typically have to wade through a not-so-soft pitch for a premium-priced signature system that was developed to "solve this exact problem", but let's not do that here).

Future installments of this newsletter will dig into the super specific details of building a "world's best" business.

We'll explore many different worlds: from home services and sports & entertainment, to health and beauty, and everything in between.

We'll navigate the ins and outs of building a "world's best" business within the confines and contexts of those different world's — with fresh perspective and insight across each of the 4-dimensions of vision, purpose, strategies and tactics.

I'll also make LOTS of references to A.M.P.L.I.F.Y — because ideologies and frameworks are like children: you love your own more than anyone else's.

And to (hopefully) make this more appealing than the usual vanilla-flavored starch of business growth newsletters, blogs and channels, I'll sprinkle in some Dr. Seuss-style limericks; Eminemesque raps; and (to really stre-e-e-tch myself) case studies wrapped in Brothers Grimm-type fiction.

If you decide to come along for the journey (with boisterous enthusiasm I welcome you to do so), please keep in mind that feedback is the breakfast of champions: I want to be a champion, and I really do love breakfast.

Here's to YOUR "best in the world" success.