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Become A Better Leader For Our Business

Become A Better Leader For Our Business

Realizing the importance of a great CEO, leadership, and corporate procedures; Master Investor's insights from the well known company, APPLE, Inc.

Master Investor
May 27, 2024

Summary:

It's not the product only that makes a company successful.
A successful company and brand is built on the foundation of exceptional leadership.
Fear not, for exceptional leaders flourish in the face of adversity.

We have mentioned the following in a blog post regarding the significance of systems to a company's success:

A business is an intricate web of interconnected systems. And much like a body, the entire company will either perish or become crippled if one of those systems fails. Many of these systems are represented graphically by the Cash Flow Triangle. While everyone is unique, they are all connected at the same time. Because the systems depend on one other, it is challenging to distinguish between them and to determine which is more crucial.

The person in charge of ensuring that a company's systems are operating at maximum efficiency and that the appropriate systems are in place is just as crucial to its success as the technology it uses.

The CEO of the business is that person.In this article, we'll talk about the crucial job of the CEO from the standpoint of what Master Investor learned from Steve Jobs, the top entrepreneur at Apple.

But Steve Jobs was more than just a brilliant product creator.

The primary responsibility of a CEO

Steve Jobs was a living example of many of the business lessons that The Master Investor Company has taught for years now. Steve was a brilliant visionary and leader. He also set a very good example for what a business owner ought to look like.

It is the responsibility of a CEO to oversee all systems and spot flaws before they result in system failures. These mistakes can occur in a variety of ways, but when our business is expanding quickly, they are very unsettling.

When things are finally going well for them—their sales are rising, the media is highlighting their product or service, and business is expanding quickly—many CEOs find it surprised that they are suddenly unable to meet expectations. Why?

The reasons behind system failures

Usually, it's because the higher demand has caused systems to malfunction. For example, if a person lacks the extra funds or production capacity required to enhance the product or hire more staff.

For whatever reason, a breakdown in the systems causes possibilities to be lost that may propel the company to new heights of success.

Constructing ahead of the curve

The CEO is responsible for organizing the systems, such as production lines and credit lines for production demands, that will enable the next stage of growth at every new growth stage. Communication and cash flow management are powered by systems.

Us or our staff will need to put in less and less work as our processes improve.

Our company will be labor-intensive and will stall during one or more growth phases if it does not have well-designed and effective operating systems in place.

Steve Jobs and the Cash Flow Triangle

The Cash Flow Triangle is one tool at Master Investor. To put it simply, the Cash Flow Triangle is a matrix that helps us comprehend the eight integrities of a successful business.

The 8 integrities of the cash flow triangle:

Mission
Leadership
Team
Cash-Flow
Communications
Systems
Legal
Product

When starting a business, the majority of people make the mistake of believing that the product is the most crucial factor. The issue is that a lot of companies fail despite having excellent products. The Cash Flow Triangle is a helpful tool to identify the issues facing a firm when it is having trouble.

The product is the triangle's smallest component, as can be seen when you examine the Cash Flow Triangle. This is due to the fact that it is a company's least crucial component. Having a fantastic product is not the beginning point; it's the finish goal. A great team, excellent leader, and a great mission are prerequisites for having a great product.

More than most, Steve Jobs was able to apply this basic idea to build a corporation that revolutionized the industry. Let's examine the three Cash Flow Triangle outside notions and see why Steve Jobs and Apple were able to achieve such great success.

Create a spiritual mission

Every company should have a spiritual purpose statement.

A business's mission should be to meet the needs of its customers. And the business will start making money if it fills that need and fills it well.

While few businesses are driven by a spiritual goal, many eventually depend on it for long-term success.

Although Apple does not publish an official mission statement, most people believe that the company's goal can be summed up in one word: Think Differently.

A lot of businesses use their mission statement to describe their actions rather than their motivations. Therefore, a rival company to Apple can claim, "We make great computers." Apple, on the other hand, declares, "We want to fundamentally change the way you interact with technology. We think differently." Additionally, we create excellent computers."

Apple didn't begin with a single item. They had a goal before they produced a fantastic product.

Jobs acted as Apple's face and demonstrated the value of a spiritual mission in the company by his presence there and the way he saw Apple's operations.

According to him, "it is in Apple's DNA that technology alone is not enough; rather, technology married with the humanities and liberal arts produces the kinds of outcomes that make our hearts sing." And apple is more than just products, apple is an extraodinary experience to its customers.

Create a powerful team

We have to learn how to be a successful CEO if we want to be a successful businessperson. To begin with, we must realize that working on the business, not in it, is your primary responsibility. This implies that we have to become an expert at managing systems and determining when to introduce new ones.

Steve Jobs didn't finish college, but he nonetheless managed to create the world's most lucrative company—one that has more money than the US government. He was not employed by the system. He disregarded it and build a business that employ others in the world. He found a need and fill it by building a successful system of systems, with the Cash Flow Triangle. That is why even after Steve’s passing the brand of Apple continues to make an impact in the world. He build a business that solve people’s problem and made communication simpler than ever before. We are more connected now than before due to the impact of smart phones build by Apple.

Steve will teach us the lesson today. Begin by considering our motivations, the individuals we want to work with, and how we may guide them to the promised land. Experience is the finest teacher when it comes to this kind of knowledge. We will get better at it if we do it. We will undoubtedly fail along the way, but the knowledge us gain will help us succeed even more in the future.

Visit our online community here for assistance in pursuing our entrepreneurial goals and to discover more about how to become a truly remarkable CEO.

Use The Cash Flow Tetrahedron To Achieve Total Freedom and True Wealth

The way we invest is primarily for passive income. As the profits from our investments and businesses we control comes in, then we will use that capital to acquire more cash flowing assets. Therefore, theoretically the assets are free because are businesses’ revenue pays for them. That is the holy grail of investing, being able to structure everything in a way that we will receive cash flow and able to buy other assets with the cash flow. When we do that successfully and follow the formula for cash flow velocity, then we tap into infinite return on investment (when we have no money of our invested in the investment but yet we received passive income and control the asset) and total freedom.

The formula for Cash Flow Velocity is the following 5 steps:

Acquire a Cash Flowing Asset
Recoup the initial invested capital
Keep control over the asset and its debt if any
Move the positive cash flow into a new cash flowing asset
Repeat the steps successfully as many times possible 1-5

This is the only way to achieve total freedom and true wealth. By understanding how to acquire and build assets that produce cash flow and capital gains income. We must have financial education and self development to be able to lead any company into success. We also have to get an extraordinary team around us and our businesses. Remember business and investing is a team sport.

The leaders that have the best teams around him or her will beat the game of money and create total freedom. We cannot have wealth if we do not have freedom. The only way to keep control over our time without depending o someone else’s demands, is by having assets that produce cash flow and capital gains income daily. Our expenses and liabilities are all paid by cash flow and capital gains income from our investments.

We must become a better leader if we want our passive income and businesses to grow. We are using the Cash Flow Triangle and Cash Flow Tetrahedron to build our wealth here at Master Investor. Now, figure out which need are we going to fill in next with systems and following the 8 integrities of a successful business explained in our content.

Finally, we must become better leader through self development, financial education and execution of such knowledges learned. As we build our wealth we must keep in mind that our goal is to find that great CEO to work in our business, so that we can build the next business and find another greta CEO. But we can only do that when we ourselves have experience what is it to be an extraordinary CEO as we begin to build our businesses. Then, we go to become the chairman of our business with CEOs managing our businesses for us with success. We shall always incorporate ways for the staff to grow within the company by proving economic rewards and better roles for ideas that turn into cash flow for the company. This way people will remain longer in our companies as there is room for all to grow through positive actions.

True businesses can run without us present, a perfect example, would be APPLE, Inc, even without Steve, the company is creating tremendous profits and breaking historic sales record. Meaning that Apple is a true brand with intrinsic value and business integrity. Fulfilling the mission which was created to solve and continuing to innovate which is critical in this new economy in order to stay relevant. Now, we must find the need we wish to fill and start the company next. Focus on our customers needs and wants as we begin our next mission. We have to create an unforgettable experience to our customers and partners. Having a win-win environment and delivering on the mission of the business.