Nothing in this world is forever

Every generation needs a revolution - an entrepreneurial revolution

It was observed that in this locality a local businessman engaged in steel distribution business acted as if he could be forever.  He bought two locations for two warehouses in a residential subdivision ignoring the restrictions and trucks crowded in the subdvision and pavements, sidewalks were broken.    He spent lavishly on fireworks, bought other locations right and left

But right now, there are plenty of competition,  There are more steel mills.  One has invested billions for two steel mills:   one in Sariaya and the other at Concepcion Tarlac

No progress and grwoth lasts forever. There are limits to growth.   Know when it is time to diversify and/or prepare for the future.

Does buying trucks, equipment, even plants make you a businessman

Every generation needs a revolution - an entrepreneurial revolution

Managing a system

In this video, a worker dreamt of buying his own tools and truck so that he becomes self employed.    But the billionaire saw him and advised him that doing so will limit his ability to become rich.  He is limited by his physical self and its better for him to think of system and management so that he can hire other contractors, not lift a hammer and earn more.  It is about managing a system, getting contracts, and getting the profits

So being technically minded knowing how to repair assemble does not make you businessman, but being able to organize all factors:  finance production, marketing can make you rich.

Tips by Chinese, KPI for business. So easy to remember

Every generation needs a revolution - an entrepreneurial revolution

From FB

0 “BLOOD-AND-BONE” CALCULATIONS OF THE CHINESE BUSINESS MINDSET

Chinese business owners don’t rely on theory or gut feelings.

They rely on simple, brutally practical calculations to make sure they survive first — and profit later.

These are 10 numbers they calculate again and again every day

— and every serious business owner must memorize them.

 SURVIVAL CALCULATIONS

 Break-even Point

 “How many bowls, cups, or orders must I sell each day to start making money?”

This number decides whether a business lives or dies.

 Cash Flow

 “Is the cash on hand enough to pay rent, salaries, and suppliers next month?”

Chinese business owners are obsessed with cash flow.

Paper profits mean nothing without real cash in the drawer.

 PROFIT OPTIMIZATION CALCULATIONS

 Gross Profit Margin

 After raw materials, how much percentage is left?

Too low = prices too cheap or costs too high.

 Food Cost Percentage

 For F&B, the “golden range” is 25–35%.

Above that, profits are being eaten away.

 Labor Cost Percentage

 Should stay under 20–25% of revenue.

Go beyond that, and the system becomes bloated — profits disappear.

 MANAGEMENT CALCULATIONS

 Revenue per Square Meter

 Is your space generating money or just taking up rent?

 Table Turnover Rate

 How many customers does one table serve per day?

Higher turnover = higher efficiency.

 CUSTOMER-BASED CALCULATIONS

 Average Order Value (AOV)

 How much does each customer spend on average?

Increase AOV = higher profit without more customers.

 Customer Acquisition Cost (CAC)

 How much marketing money is needed to get one new customer?

 Customer Retention Rate

 What percentage of customers come back?

Chinese businesses treat repeat customers as living assets.

 CORE LESSON

Business is not emotional.

Behind the Chinese “owner mindset”

is an obsession with survival numbers.

No fancy degrees required —

just absolute mastery of these core calculations.

 Whoever controls the numbers, controls the fate of the business.

 THE PRACTICAL SOLUTION FOR BUSINESS OWNERS

All of these critical metrics are clearly explained in the book:

“10 Indexes That Determine the Fate of a Business”

 Simple, not academic

 No accounting background needed

 Designed for shop owners, cafés, small and growing businesses

 Learn more at: https://www.smartlifebooks.online/index?utm_source=a1

This book helps you:

Understand gross profit and net profit correctly

Know your real break-even point

Detect where money is leaking

Make decisions based on data, not intuition

 Many readers have escaped losses simply by understanding the right numbe