$3,000 to $1,000,000 in 15 months: HOW TO DO IT

[Russ H]

JScott-

Funny that Forex seems to be the latest in a long line of gazillion-percent ROI schemes.

On the RD forums, we'd see this every few months. Some folks (the same ones) kept bouncing from one to the next, never really getting anywhere.

While the traditional investors on those boards made millions-- but they did it one step at a time, over a period of months and years.

********

To RECAP: My challenge on this thread is to develop a business idea that is scalable and has a large enough market to generate 7 figures (or high six figures) within a short period of time.

Assuming your business idea is sound, even if you don't achieve $1M in 15 months, perhaps your model can get to $750,000, or to $1M in 24 months.

It's all about developing a concept that will grow exponentially, based on repeatable metrics.

It is not about being an "S" (self employed) trader or investor, relying solely on your own personal cunning and labors to amass a fortune. Very, very few people can do this-- while a business owner with a solid, scalable plan can-- by learning to leverage other people's money, time, and skills/expertise (OPM, OPT, and OPE) to build an empire.

Using leverage is one of the key elements of this exercise.

So is learning how to think like a rich person (or soon to be rich person), instead of an "S".

-Russ H.

 

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[imirza]

This is something completely crazy but will probably work. SELL YOURSELF. Literally.
Start a website and sell shares of yourself. Describe yourself. Convey that your are a motivated driven person who does whatever it takes to succeed and make people buy a stake in you. Sell shares of yourself at $10 a pop. People who buy shares are entitled to future revenues that you make in your business ventures. I'm sure you can find 100,000 people in 15 months who will buy a stake in you for $10. Infact find some people who really believe in you and they will buy $100 or even $1000 of your shares. Even if you fail it will be great marketing.

I thought of this after I read about a baseball player selling his future revenue streams online.

 

[About-time]

Ok, Here goes. After reading all the posts on this subject, I think it can be done with some help. So I think one of the first things is to protect the idea while you get help. So where does one (me) get a workable non disclosure agreement? Second, should money be spent on a trademark at the inception? Third, i have the idea, does anyone care to invest? I am going to do this and it may fail but I do not think so.
Also, I have put together a business plan for a brick and mortar business, where are examples of the same thing in an internet business? How do you make money on the internet besides subscriptions, which I don't think will work for this idea or ads?
I want to leverage the minds and maybe your money and expertise in this forum and help myself.

What questions do I need to ask?

If you are willing to help, I will do.

Thanks

 

[Russ H]

Not to be rude, but when you're gonna implement your plan, you've also gotta think "What am I'm offering the other guy?"...

How ironic that you post this, Bear.

I realize that you think posting silly investment scenarios and then quoting yourself is funny, making your own running gag.

But I repeat my earlier comment, posed originally to another poster:

Think about your posts on this thread: How do they help others?

-Russ H.

 

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[MJ DeMarco]

How am I helping others? Hopefully deterring a few newbies from getrichquick hopes.

This is the mentality that excludes folks from entering the Fastlane. "Get Rich Quick" is not synonymous with "Get Rich Easy" ... there is a difference: One is reality and one is illusion.

 

[Russ H]

Bear-

The whole goal of this thread is to dispel the notion of "get rich quick"-- not through sarcasm, but by showing someone that getting rich is a *process*.

By having people see the work (and planning) involved to make this challenge happen, it's clear that it's not "get rich easy" or even "get rich quick", but "get rich in a relatively short period of time by developing a scalable concept that fills a need."

We read about these stories all the time-- from the facebook template girl (making hundreds of thousand of $$, so fast she dropped out of high school and got a GED), to any one of the other young entrepreneurs who "strike it rich" in a matter of months.

They get there through hard work, AND by having a concept where growth is not tied directly to their personal time (so their business can grow exponentially without needing exponential time commitments from the founder).

I'm sorry that you read the entire thread, and didn't see this.

-Russ H.

 

[Jill]

Ah, this will be fun. In fact I've been looking for a young hungry buck to teach just what I have learned. If only I could go back to 17 with the knowledge I have now. Mmm, mmm, mmm. I would do exactly what I did with my (now) husband. If you have $3k with which to start, then you're WAY ahead of the game. We started with $50! This will sound over-simplistic, but it is exactly what we did. Sit back and enjoy my little novella.

Spend a few days learning everything you can learn about a product niche. For us, it was menswear, since we both already had some knowledge. Then go to every thrift and resale store you can find and buy every garment they have in the top 10(ish) brands. You'd better know what sells on ebay, because that's where you're going to have to sell them. I swear I'm not selling a "get rich on ebay" seminar. This was our reality for 5+ years. This is how the numbers will unfold (could be slightly different today, as I've not done this for over a year, but it will be darned close):

$3K will buy you (on average) 250 garments, which you will sell for an avg of $80/ea. The first month, this will take you all month (at least!) to turn that inventory around, as you learn the biz. But your gross on this first round was $20K. Note: Our worst month was $2K, our best was just over $30K.

The lesson we learned WAY too late was this: While this is a very profitable venture, it is NOT repeatable, duplicatable or scale-able, because each ebay ad is unique. So in order to grow this exponentially, you will either need to:
- teach the system to employees who will duplicate what you are doing (preferrably in other cities so that you're not all competing for the same inventory) for a cut (or if you're lucky, a paycheck)
- use part of your profits to source one or two items from one of the many 3rd-world countries that are now producing textiles for pennies on the dollar (compared to US and European factories). And yes, if you have cash, they don't care if you're 17. This is easy $$. One photo shoot + one ad = multiple sales. While the margin isn't as good as the second-hand clothing, the $/hour is a no-brainer and involves no measuring, no mothhole fixing and no crotch-rot cleaning. (Should I add this to the list of sh!t jobs on the other thread?)

After 6 months, our young protege could easily have amassed $100K. At this point, he could continue to grow this business or, if he could get a parent involved, start to make some serious investments in real estate. With someone over the age of majority to sign on, I would buy REOs at 60% of assessed value (which in my area, is fairly accurate, as prices don't fluctuate like they do in many other areas), then sell them ASAP for 80% of "market" value. Even if you couldn't get financing, then put the entire sum into an house, flip it and repeat. Without the power of leverage, this would take MUCH longer. But the numbers still work.

OK, I'm braced. Shoot holes in it. I know for a fact that the ebay part of the story works. Unfortunately, we burned out before we got wise to the part about repeatable business. So we were starting every month at 0. Since we were two adults, with two homes and a child in private school to support, we didn't have the benefit of low overhead that a 16 or 17-yr-old living at home would have. But we DID manage to hire several part-time hourly folks to help us with the more mundane aspects of the business.

The real estate piece, I'm pretty sure would work - at least on paper. I hope I'm on the right track there, because that's my next step . . .

 

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[MJ DeMarco]

So let me get this straight -- you bought used clothes at thrift stores and sold them on Ebay?

 

[Jill]

LOL. Yes. It's about that simple. We got them from consignment stores and estate sales as well. But 95% of them came from thrift stores. Amazing what people will throw away / donate. I never would've believed it, but now I find myself doing the same thing.

The thrift stores love it, because the purpose of the stores is to raise money for their other programs - not provide cheap clothes for the homeless, as many mistakenly think it is. Not many "street people" need a $5000 Oxxford suit or $600 Incotex trousers or $2000 John Lobb shoes.

 

[CardinalsFan]

This is the post I put in the introduction section last night:

Hey everybody, I've been checking this site out for a while and finally decided to sign up after I read some of the posts.

I'm Aaron and I am a sophomore at Appalachian State University in North Carolina. In case you haven't heard of us we are the 3time national champions in the 'championship subdivision' formally known as D1 AA. If you still don't know, we are the team that beat Michigan in the greatest upset ever.

I am really interested in entrepreneurship and I know that I will hate working for anyone but for myself...so that's why I'm here; to learn from people who are doing just that. I really started pursuing entrepreneurship after I heard Ryan Allis from iContact speak to me and some friends about his life story and all his dreams. From then on I decided I wouldn't let anything hold me back from doing anything I wanted. As Robert Kiyosaki said 'why work your way up the ladder when you could own the ladder.'<-not an exact quote I don't think, but you get the point.

So here is what I am hoping to get from yall, just keep me accountable in reaching my goal of being successful. Here is what I am doing to get the ball rolling:
(this kind of goes along with the $3000 to 1,000,000 in 15 months thing, only I'm 19not 17. Anybody feel free to critique this approach.)
1) working nights as a security guard, starting broke
2) soon will have enough to buy a old 15 passenger van to use as a the "Boone Party Bus" basically a cheap DD or Taxi that will cater to college students
3) already bought 500 koozies, I plan on printing "Boone Party Bus" with the number on them. Will go out and hand them out for free to people when I'm partying
4) Start running that Thursday-Sunday
5) Soon as I make enough money $10,000ish I plan on hiring a lawyer and putting together a contract between me and landlords up here. This will be for a web site idea I have...cant let you know too much bout that. (Buuut, I know nothing about web design, or hosting options or anything like that. Any help with that would be awesome. I have decided on a domain name already, should I go ahead and buy it?)
6) Make money with the website and expand it to be a nation wide deal.
7) Sell site for 1 million+

Thanks and good meeting you guys.-Aaron

After I posted this I got some replys from a member who recommended that I go ahead and buy the domain. I just bought housingpuzzle.com from aptohosting.com and I emailed Tom to figure out the next steps as far as site development.

 

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[LamboMP]

So let me get this straight -- you bought used clothes at thrift stores and sold them on Ebay?

this made me laugh out loud..

 

[Russ H]

So let me get this straight -- you bought used clothes at thrift stores and sold them on Ebay?

Actually, my sister in law has been doing this w/baby and kids clothes for the past 7 years.

She buys only the top line stuff at garage sales and thrift stores, has her kids wear them (so they're always dressed in the best stuff), then when they outgrow the stuff, she sells it on E Bay. Kids have so many clothes that they never wear them out, so what she sells (after any repairs or clean up) is top grade.

She also buys multiples if she knows it's a popular item, and then resells the stuff right away.

Based on what she's said, I'm guessing she's made about $50K a year doing this, easy.

-Russ H.

 

[biophase]

So let me get this straight -- you bought used clothes at thrift stores and sold them on Ebay?

This is all about knowing the market. I have friends who are into fashion and love to shop. They know when they see a good deal, like some name brand dress that was only $50 and sells for $200. They used to buy just one, then they started buying 2 and selling to their friends at $50 (no profit) until they figured out their friends either didnt want them or it wouldn't fit them. Instead of returning them, they sold them on ebay. After a while, they just bought everything that was a good deal while they were shopping.

 

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[Jill]

this made me laugh out loud..

Yeah, me too. I never thot that the thrift stores had many decent clothes because the one time I'd shopped in one, I was just looking for my size and tastes. But when you're looking for all sizes, it opens up all kinds of possibilities.

If you can pick up high-end NWT things on an 80% off sale, you may be able to turn around and sell it for 50-60% of retail. But 1) the things that usually end up on the 80% off rack are usually there for a reason and 2) the margin just wasn't there compared to the other stuff. Like someone else said, you have to know your market. e.g. a luxury branded handbag may sell on eBay for 60- up to 90% of retail, because they rarely go on sale in the stores. But a NWT pair of trousers will rarely fetch more than 40 or 50% of retail.

We chose menswear, because 1) we had a good deal of knowledge about it already and 2) men's fashions don't change every season like women's do, so it was possible to get a 10 yr-old suit that had been just hanging in someone's closet until it was outgrown, but it didn't look dated.

Not a glamorous business, to be sure. But quite lucrative. Got us over a rough patch when my fiance's industry went flat for a few years. He started selling off his own personal things - canoe, hockey gear, aquarium - just to raise a little money to make ends meet and keep his daughter in private school. Then he sold some of his nicer clothes (which were those high-end brands).
When we realized what people would pay for 2nd-hand clothes, the light came on :idx: and we were off to the thrift stores to find more!

 

[mglshark]

When it comes to E Bays Sydney Johnston is the queen. She does a number of e bay methods besides direct sales, her goal is to capture names and build a client list for the back end. Ultimately she gets her list off E Bay for direct / affiliate sales. E Bay is the greatest internet portal for finding people that like to buy thru the web.

Think about that.

They are use to transactions thru the web, no face to face, no qualms about running a credit card online, etc.Her top student is Tod doing over mill a year reselling women's clothes on /off E Bay. Nothing to laugh at! Search her on the web under auction genius. amazing what people come up with.

My sister has a nice PT biz selling people's stuff through E Bay / Craig's List, all cash, little overhead. Makes me envy, she is like the janitor card in cash flow game, no overhead, frugal, one good size deal and she is out of the rat race.

mgl

 

[MJ DeMarco]

So let me get this straight -- you bought used clothes at thrift stores and sold them on Ebay?

I didn't say this to be facetious .. just gathering more evidence about the power or marketing, and re-marketing.

In effect, you act as an EFFICIENT medium between buyers and sellers -- whereas the item of clothing sitting in a smelly thrift shop amongst 50,000 other articles of clothing is INEFFECIENT.

This is a great example on how you can take something stale and old, remarket it, and make a profit.

Speed+ for Jill.

 

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[pitboss]

Russ,

Here's how to go from $1100 to $1B+ :coco:

Just thought you needed a laugh today.

Nothing like a good pyramid scheme.

[ame="http://www.youtube.com/watch?v=BhwJlKj3wdw"]YouTube - Billionaire In 60 Months?[/ame]

 

[Russ H]

OK, I tried to watch the whole thing, but I was laughing too hard.

"And the best thing is, it's tax free! You are the only one who knows about this and you can decide if you want to report this as income or not!"

And as this is playing, the guy is smiling smugly and smokin' a cig.

:Lies::Lies::Lies::Lies::Lies:

Truly sad, and pathetic.

And how about those high production values? Playing a cassette tape on a PC camera, and holding up a sheet of paper for us to read?

Sheesh.

-Russ H.

 

[PEERless]

OH WOW! Tell me this is fake. Restore my faith in humanity!

 

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[Jill]

Omg...

 

[MJ DeMarco]

I copied the last few posts into its own thread ... that guy is classic!!!

 

[CarrieW]

jill- I just have to lol! this is what we are about to do!!!!

I have 26 yes count them 26 huge lawn and garden sized trash bags full of kids clothes. from infant to size 6 boys and girls(including alot of really nice holiday outfits), tons and tons of christmas decorations and alot of nick knacks and collectables(nascar clocks, cars, antique trains e i e i o). a 150 gallon fish tank with a full saltwater filter system setup. and probably over 10k in kids toys to get rid of. all already owned by us! oh and an extra car lol.

our plan is to list in the free newspaper for 2 wks and try to get rid of what we can there then have a huge yard sale. then whatever is leftover is going on ebay!!!

I am going to read thru this entire thread now. thanks for the link!!!

 

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[Jill]

Good for you. A few pointers, if you're interested.

The kids clothes will probably sell better in lots, divided up by sizes. You won't get as much for them that way. But your listing fees will be far less. It will also be FAR less labor intensive. If you have a lot of time on your hands, then I recommend taking REALLY good pictures, good lighting, with well-focused close-ups. Just look online to see what ads you like the best, and would be the most likely to buy from. Your gross rev/unit won't be that great, because you aren't talking about a garment that retails for for a lot to begin with. But considering the volume of stuff you have to work with, you should be able to generate some good cash fairly quickly! Good luck!

 

[CarrieW]

thanks for the tips Jill!

sorry to hijack the thread russ...

I am still trying to figure out a plan following the guidelines you set. I am drawing a blank lol.

only thing I can think of is to forex trade, take 8k and get a patent and prototype for an invention I have in mind sell it to the highest bidding manufacturer that makes the products I am redesigning. and while I am doing all this make a bunch(maybe 50 or 100) niche websites and optimize the crap out of them.

this is far from a plan I know but its all I got lol...

 

[kimberland]

I love eBay,
especially being Cdn.

I collect a brand of figurines.
They're available for free in tea boxes
so they resell in the local markets for not much.
The thing is,
the figurines in the U.S. and Canada are totally different.
So I used to sell the Cdn figurines to Americans
and the American figurines to Canadians.

Now, the items I sold were low ticket value
(nothing over $100)
but I've seen some people do that with big ticket items.
My cousins do that with cars
(they purchase in the U.S. and resell in Canada).

 

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[CarrieW]

hey I think I have some of those kimber!

those little ceramic animal figurines from I forget what brand of tea lol. My friend in pa used to collect them and had a bunch of duplicates so she gave them to me and the kids. wonder what box they are in. lol.

 

[kimberland]

If they say Wade on them, yep, that's it
(Red Rose Tea gives them away).
They collect them in England too
but the Brits usually buy in bulk
'cause the postage is killer.

I toyed with reselling men's ties
(I love my vintage ties).
I'd buy mass quantities at estate sales
(we were there anyway looking for furniture)
and then resell them.
The issue was that the hubby would steal all the good ones.
It got too frustrating.

 

[andviv]

The issue was that the hubby would steal all the good ones.

He didn't steal them, he just re-purposed them
great idea though

 

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[bflbob]

I toyed with reselling men's ties
(I love my vintage ties).
I'd buy mass quantities at estate sales
(we were there anyway looking for furniture)
and then resell them.
The issue was that the hubby would steal all the good ones.
It got too frustrating.

Already done...
I read this in Millionaires Blueprint mag.

Keith Daniels Schwartz is a company man, and he has the ties to
complete the look. What began as a side business selling ugly
polyester ties, has developed into a full-fledged empire for a man
who was simply bored with his job. Schwartz now owns two
businesses, each with a thriving line of products purchased by retailers around the world.

http://www.sbnonline.com/Local/Article/1486/82/0/Tied_up_in_the_global_game.aspx

 

[Sid23]

Ah, this will be fun. In fact I've been looking for a young hungry buck to teach just what I have learned. If only I could go back to 17 with the knowledge I have now. Mmm, mmm, mmm. I would do exactly what I did with my (now) husband. If you have $3k with which to start, then you're WAY ahead of the game. We started with $50! This will sound over-simplistic, but it is exactly what we did. Sit back and enjoy my little novella.

I cannot believe I never thought of this! My fiancee donates clothes a couple times a year to the Salvation Army, simply because they clutter her closet and she gets annoyed.

We just donated 4 garbage bags worth of women's clothes, shoes, etc the other day. And we're talking Gucci, Prada, etc. All things she bought in her "former" life.

WOW. I'm definitely looking into this idea.

thanks for sharing, Jill. rep speed +++

best,
SeanS

P.S. And please don't misunderstand, I'm not saying donating is a bad thing and I'm not trying to be selfish. But for a young couple trying to become financially free (and one who plans to donate LARGE SUMS of money in the future) making some $$ on our clothes might be a better idea. At least for now!