Amway Business Plan

BUSINESS PLAN
WHY ?......
• Extra Income

• Quality Time (Time Freedom)
• Income Security
• Financial Freedom
• Royalty Income
• Income diversification
• Helping others
• Name, fame & Recognition
• Life of Significance
• Peace of Mind
• Foreign Trip
How do we earn money
 18 year education x Experience = Skill

 Skill x Time = Income

 Skill rate x time = Income

 Example:
 1000 x (10 Hrs.) = 10,000/-
 5000 x (10 Hrs.) = 50,000/-
 Skill(limited) x time (limited) = Income(limited)
 Time & Manpower compounding:
 1 skill x 10 Hrs. = A (amount)


 100 skillx (100 x 10) Hrs.= 100000 x A (amount)


 Manpower      Time
compounding compounding
Type of             Time        Money         Income Security
people
Professionals         X            √                X

Self employee         X            √                X

Employee              X            X                X

Business              √            √                √


                No Time                             No Security




                    Full Time + Money + Income Security
Mr. Robert T. Kiyoskai’s Cash flow quadrant:

  - 80% people                                              - 20% people

                               E               B            - 80% wealth
  - 20% wealth
                           (Employee)      (Business)
  - Active Income                                           - Residual Income
   √=√                                                       √=√
                                SE              I            X=√√√√√√√
   X=X
                         (Self Employee)   (Investor)
  - Hard Work                                               - Smart Work

  - Money control them                                      - They control Money


Traditional Business:
     High                               Skilled Man                        Huge
                    Infrastructure                      Mentorship
  Investment                               power                           Money
Example:
                  Hospital

                                               With in 6 to 8 months, you
                          Manager
                                               will be lie in B quadrant



                 Doctors (specialist)


  But reality is that:


      High                              Skilled Man                 Huge
                 Infrastructure                       Mentorship
   Investment                              power                    Money


  It means that, we never be shift in B quadrent
Mr. Ray Crock Principles for Business (In 1954)
  -   IBO (Independent Business Owner)
  -   Low Investment
  -    Vision
  -    Irreplaceable
                                                                    Mc
  - Time & Manpower Compound                                        -D
                                                                                         Mc
                                              Mc
                                                                                         -D
                                              -D
   Today: 109 Country : 40000 Outlets                          4%

   One outlet works 10 Hrs/day                                                      4%
                                                   4%
   Then 40,000 outlet works: 4 Lakh Hrs/day
                                         Mc
                                                               Mc.                  4%
But in whole life, we people work:       -D        4%         Donald                          Mc
                                                                                              -D

8 Hrs/day X 24 day/month X 12 Months/year          4%                               4%
                                                                         4%
X 40 years/ in whole life = 92160 Hrs/life
                                              Mc                                         Mc
Example:                                      -D                 Mc                      -D
                                                                 -D           96%
If profit/outlet = Rs. 100/Hr
                                                             10,000/-
Total profit/Hr =Rs. 4 Cr/Hour                     Sell with in 6 months: 1 Lakh/day

Profit/Day = Rs. 40 Crore/day                      This man was ill: Sell = NiL
                                                   It means active income: √ = √
                                                                           X=X
In 1959: Mr. Rich Devos & J. Van                       1. High investment
andel:                                                 2. High Risk
                                                       3. Area dependent
Market survey - Cash flow                              4. No authority to give franchisee




 Manufacturer           Distributer    Whole Sheller            Retailer           Customer




                                      Advertisement

 Manufacturing                                                                  Customer: 100%
 Cost: 40%                            Mediators: 60%



 Indian Population: 120 Crs.
 120 Crs./4 = 30 Crs.                              Consumption/months: 6000 x 60% = 3600/-
 30X100 = 3000 Crs./day                            Saving/year = 3600 x 12 = 43200/-
 3000X30 day= 90,000 Crs./Months                   But its a saving, not a business
 60% of 90,000 Crs. = 54,000 Crs./Months
40%           20%
Manufacturing   Discount               Silver   6.0 Lakes -------- 21%
    cost                   10% Govt.
                                                4.2 Lakes -------- 18%
                              Tax
                                                2.4 Lakes -------- 15%
   4% - 9%          6% - 21%                    1.2 Lakes -------- 12%
   Royalty        Performance
                                                60,000/- -------- 9%
   Income            Bonus
                                                18,000/- -------- 6%


                                            Royalty Income Start after Silver
Shopping: Its an Essential requirement
                                         Up Line
Sharing: Its an habit
                                         6000/-
     Manufa                                                                (BWW)
                                         You
     cturer                                                              Britt World
                                                                            Wide


         6000/-            6000/-        6000/-        6000/-      6000/-         6000/-




1 IBO        2 Hrs/day         6000/-       1200/-      Average Hrs. = 200/8 =25 People
                                                        1. No salary
7 IBO        14 Hrs/day        42,000/-     3720/-      2. No Accommodation
31 IBO       62 Hrs/day        1,86,000/-   12,360/-    3. No medical facility
103 IBO      206 Hrs/day       6,18,000/-   74,160/-
Recognition level                  You

   21% FIRST TIME : SILVER
   21% 3 MONTHS : GOLD
   21% 6 MONTHS : PLATINUM
   21% 12 MONTHS : F. PLATINUM




eaRnings                          You
   DIFFERENTIAL BONUS
   4% LEADERSHIP BONUS
   1% DEPTH BONUS
   2% RUBY BONUS
Facts aBoUt aMWaY
 STARTED IN USA IN 1959 WITH ONE PRODUCT
 GLOBAL TURNOVER OF Rs. 48,000 Crores
 DEBT FREE COMPANY
 LARGEST DIRECT SELLING COMPANY IN THE WORLD
 800+ PATENTS, 450+ WORLD CLASS PRODUCTS
 1.5 Lakhs+ Product & Services in USA
 100% MONEY BACK GARAUNTY ON THE PRODUCT
 32,000 FREE PRODUCT TRAINING SESSION EACH YEAR
 The AOF supports more than 80000 visually impaired children.
 BUSINESS RANKING: AAAAA+ (No. 1 in FMCG)

 In 1995: Dr. Man Mohan Singh Finance Minister (After 3yrs: FPIB)
  Estd : 5th May’1998 in Shri Atal Bihari Bajpai, Government through IDSA
 150+ Product & Services.
 15000+ Pin codes Services & 24x7 Web Ordering
 TURN OVER: Rs. 1790 Crores (2009-2010)

NUTRILITE, ARTISTRY, ATTITUDE, AMSURE, DYNAMITE, GLISTER, PERSONA,
SATINIQUE, SA8, G&H, LOC, DISH DROPS, GVP, CATALOGUE PRODUCTS etc…..
no conceRns
       CAPITAL
       RISK
       EMPLOYEES
       MAINTAINING ACCOUNTS
       EXPERTISE
       TIME
       HAVING A INFRASTRUCTURE


                       BRitt WoRlD WiDe
                         can HelP YoU
                     RealiZe YoUR DReaMs

                                       We aRe ReaDY
                                         to HelP YoU
We Believe in YoU,                to acHieve YoUR DReaMs…!
YoU aRe tHe Best                        aMWaY+ BWW
                                          aRe YoU…?
1 sur 12

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Amway Business Plan

  • 1. BUSINESS PLAN WHY ?...... • Extra Income • Quality Time (Time Freedom) • Income Security • Financial Freedom • Royalty Income • Income diversification • Helping others • Name, fame & Recognition • Life of Significance • Peace of Mind • Foreign Trip
  • 2. How do we earn money 18 year education x Experience = Skill Skill x Time = Income Skill rate x time = Income Example: 1000 x (10 Hrs.) = 10,000/- 5000 x (10 Hrs.) = 50,000/- Skill(limited) x time (limited) = Income(limited) Time & Manpower compounding: 1 skill x 10 Hrs. = A (amount) 100 skillx (100 x 10) Hrs.= 100000 x A (amount) Manpower Time compounding compounding
  • 3. Type of Time Money Income Security people Professionals X √ X Self employee X √ X Employee X X X Business √ √ √ No Time No Security Full Time + Money + Income Security
  • 4. Mr. Robert T. Kiyoskai’s Cash flow quadrant: - 80% people - 20% people E B - 80% wealth - 20% wealth (Employee) (Business) - Active Income - Residual Income √=√ √=√ SE I X=√√√√√√√ X=X (Self Employee) (Investor) - Hard Work - Smart Work - Money control them - They control Money Traditional Business: High Skilled Man Huge Infrastructure Mentorship Investment power Money
  • 5. Example: Hospital With in 6 to 8 months, you Manager will be lie in B quadrant Doctors (specialist) But reality is that: High Skilled Man Huge Infrastructure Mentorship Investment power Money It means that, we never be shift in B quadrent
  • 6. Mr. Ray Crock Principles for Business (In 1954) - IBO (Independent Business Owner) - Low Investment - Vision - Irreplaceable Mc - Time & Manpower Compound -D Mc Mc -D -D Today: 109 Country : 40000 Outlets 4% One outlet works 10 Hrs/day 4% 4% Then 40,000 outlet works: 4 Lakh Hrs/day Mc Mc. 4% But in whole life, we people work: -D 4% Donald Mc -D 8 Hrs/day X 24 day/month X 12 Months/year 4% 4% 4% X 40 years/ in whole life = 92160 Hrs/life Mc Mc Example: -D Mc -D -D 96% If profit/outlet = Rs. 100/Hr 10,000/- Total profit/Hr =Rs. 4 Cr/Hour Sell with in 6 months: 1 Lakh/day Profit/Day = Rs. 40 Crore/day This man was ill: Sell = NiL It means active income: √ = √ X=X
  • 7. In 1959: Mr. Rich Devos & J. Van 1. High investment andel: 2. High Risk 3. Area dependent Market survey - Cash flow 4. No authority to give franchisee Manufacturer Distributer Whole Sheller Retailer Customer Advertisement Manufacturing Customer: 100% Cost: 40% Mediators: 60% Indian Population: 120 Crs. 120 Crs./4 = 30 Crs. Consumption/months: 6000 x 60% = 3600/- 30X100 = 3000 Crs./day Saving/year = 3600 x 12 = 43200/- 3000X30 day= 90,000 Crs./Months But its a saving, not a business 60% of 90,000 Crs. = 54,000 Crs./Months
  • 8. 40% 20% Manufacturing Discount Silver 6.0 Lakes -------- 21% cost 10% Govt. 4.2 Lakes -------- 18% Tax 2.4 Lakes -------- 15% 4% - 9% 6% - 21% 1.2 Lakes -------- 12% Royalty Performance 60,000/- -------- 9% Income Bonus 18,000/- -------- 6% Royalty Income Start after Silver
  • 9. Shopping: Its an Essential requirement Up Line Sharing: Its an habit 6000/- Manufa (BWW) You cturer Britt World Wide 6000/- 6000/- 6000/- 6000/- 6000/- 6000/- 1 IBO 2 Hrs/day 6000/- 1200/- Average Hrs. = 200/8 =25 People 1. No salary 7 IBO 14 Hrs/day 42,000/- 3720/- 2. No Accommodation 31 IBO 62 Hrs/day 1,86,000/- 12,360/- 3. No medical facility 103 IBO 206 Hrs/day 6,18,000/- 74,160/-
  • 10. Recognition level You  21% FIRST TIME : SILVER  21% 3 MONTHS : GOLD  21% 6 MONTHS : PLATINUM  21% 12 MONTHS : F. PLATINUM eaRnings You  DIFFERENTIAL BONUS  4% LEADERSHIP BONUS  1% DEPTH BONUS  2% RUBY BONUS
  • 11. Facts aBoUt aMWaY  STARTED IN USA IN 1959 WITH ONE PRODUCT  GLOBAL TURNOVER OF Rs. 48,000 Crores  DEBT FREE COMPANY  LARGEST DIRECT SELLING COMPANY IN THE WORLD  800+ PATENTS, 450+ WORLD CLASS PRODUCTS  1.5 Lakhs+ Product & Services in USA  100% MONEY BACK GARAUNTY ON THE PRODUCT  32,000 FREE PRODUCT TRAINING SESSION EACH YEAR  The AOF supports more than 80000 visually impaired children.  BUSINESS RANKING: AAAAA+ (No. 1 in FMCG)  In 1995: Dr. Man Mohan Singh Finance Minister (After 3yrs: FPIB) Estd : 5th May’1998 in Shri Atal Bihari Bajpai, Government through IDSA  150+ Product & Services.  15000+ Pin codes Services & 24x7 Web Ordering  TURN OVER: Rs. 1790 Crores (2009-2010) NUTRILITE, ARTISTRY, ATTITUDE, AMSURE, DYNAMITE, GLISTER, PERSONA, SATINIQUE, SA8, G&H, LOC, DISH DROPS, GVP, CATALOGUE PRODUCTS etc…..
  • 12. no conceRns  CAPITAL  RISK  EMPLOYEES  MAINTAINING ACCOUNTS  EXPERTISE  TIME  HAVING A INFRASTRUCTURE BRitt WoRlD WiDe can HelP YoU RealiZe YoUR DReaMs We aRe ReaDY to HelP YoU We Believe in YoU, to acHieve YoUR DReaMs…! YoU aRe tHe Best aMWaY+ BWW aRe YoU…?