Oriol’s Business Wealth Formula

Article by , May 22, 2018


Every time I’m asked about how to define a successful business I always respond with my Business Wealth Formula which helps you to create a growth culture in your business, by applying 3 growth factors of this formula:

(Pr+Ca)xTa=Ti

In summary, a business that thrives is a business where:

  • Profit Grows (Pr)
  • Cash Flows (Ca)
  • Talent Leads (Ta)
  • Time Frees (Ti)

But, as you can see from my formula, it is not a simple sum. Let me explain how it works. I learned from Alan Weiss that wealth is discretionary time, and money its fuel. Therefore, the result or objective of my formula is time, and money is the vehicle to get achieve it. How?

By working with these three growth drivers:

  • A profit mindset, not revenue. Revenue rewards your ego, but profit rewards your bank account. You need to create a profit mindset and start pressing profit growth buttons, such as; clear strategy, increased revenue, reduced expenses…
  • Cash that is truly flowing. A business that thrives is a business where money is never an issue. It is always available when it’s time to invest in growth because it is generated quickly, plus all debt is a good debt which leverages your cash with the ROI in mind.
  • Finally, an effective executive team builds and implements your strategy, it doesn’t simply obey you. This driver is the key to a sustainable and thriving business because it is the one that multiplies your money and your time by simply eliminating you from the growth equation. To make it happen you should focus on areas such as leadership, effectiveness, and delegation.

Only when you put these three factors in place can you end up wealthier thanks to a successful business.

© Oriol López Villena 2018