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NOTABLE! The MAIN difference between someone who makes 100k /year and someone who makes 1m?

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Monica Rose

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Good point.

What I personally meant by saying scaling is having a business model that can scale.

I can’t scale because I do the coal-face work every time I take on a client, and am even turning down clients. I need to switch to a model that can allow me to scale.

I don’t do any paid advertising for my service. I couldn’t cope with the additional work.
We are working on this right now as we are in a very similar position. I have read two books recently that might help you, both of which I found on another post on this site. The first is the E-Myth Revisited by Michael E. Gerber, and the second is Built to Sell by John Warrillow. My husband and I make six figures currently running our wholesale company remotely (we have a couple of suppliers that drop ship for us), but because of the level of personalized service we offer our customers, we've been hesitant to market our business aggressively. We are currently working on improving our systems/automation (leverage) to create a business worth scaling. If we focused on scaling without the systems (leverage), we'd have to hire a team and change our business model. If we focus on leverage first and then scale with better leverage, we may still have to hire eventually but then even our employees will be able to operate more effectively and do more with less time
 

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We lie to ourselves that it's better to not have employees since it's more aligned with subconscious goals. Less employees typically equals more freedom in the short-term. They're an additional component that needs to be managed, even if you're outsourcing. So our preference is to not hire them and stay small vs hiring them and adding on short-term headaches that can eventually be delegated.

Eventually those headaches are worth it, but it's something that I see myself and other entrepreneurs avoiding as much as possible. Even in this thread I'll bet that my reply gets less likes and replies since it's not aligned with the culture of "online, automated income". However, if you look at any billionaire, almost all of them made it there by having a lot of people under them. Same if you meet with multi-millionaires - it's an extrapolation of that.
Agree completely! My husband and I are in this position ourselves where we make a decent income running a wholesale business using drop shipping. Because of our business model we've managed to grow significantly without yet adding any employees. Our suppliers have the bricks and mortar facilities and we use software/technology that has helped us scale. We've weighed the pros/cons of having employees to help us grow further, but haven't been ready to give up the freedom/independence yet. We know we will have to if we want to take our growth to the next level, but we are currently working on defining our business model/process and improving our back end systems, that way when we do hire our first people we first of all know what we need them to do, and second of all can make more efficient use of their time.
 

James Fend

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This thread is awesome... a lot of golden nuggets & angles for sure. I will be referencing back to this thread over this next year of building another SaaS company, my goal immediately after the first 10 paying customers will be scaling, scaling, scaling..
 

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You have to have a scalable product, and then an attitude to break through barriers. Yes, break through.

I just had the most fascinating conversation with a good friend of mine over the weekend. I found out things I never knew about him. Turns out this guy is a genius but has no need for admiration or approval, so he doesn't talk about it. Therefore, only he and a very few close associates knew about his ventures. Luckily, I am now on that list of the very few.

He had a business that he dominated. It did extremely well. He was the recognized leader of the "Rolls Royce" high-quality part of that business. This was an offshoot of where the main part of the market, so he never really jumped into the most profitable part of the business. I asked him why not, since he so completely conquered and dominated a smaller, more specialized, part of that business. He said the main business was closed off to him because he had to pay for a licensing fee to sell his products, and the organization that sold the licensing fees had a limit of companies they would work with - and that limit had been reached. End of story. Or so it seemed.

He never achieved breaking into the incredibly lucrative market because there was no opening available to him. I said bullshit. He said what? I didn't understand the word impossible, to which I said he was right. I spell it differently. I spell it I'm possible.

He asked me what he could have possibly have done to break through that glass ceiling. I said to do what any red-blooded business owner that was determined to succeed would do.

I said to find the weakest player in the coveted list of players and buy the company. No partnership - buy them out. Money was not an issue, as they were selling their products for triple what their competition was, and couldn't keep up with demand. But they could not bust into this other market segment.

We both hit our foreheads at the same time! He realized he had to change the rules of the game and use different tactics - and I realized that we (if we had been working together) could have easily busted into that market and conquered it, just as he had already done in a different segment.

There is ALWAYS a way. That's the rule to success. Albert Einstein said, "You have to learn the rules of the game and then play better than anyone else." That doesn't say you have to be the smartest - or the most established - or the biggest. Be the best. He was clearly the very best at what he did, but he did not have the small Rhino DNA strand that I do in my DNA. That's the difference.

Now that we both know so much more about each other, we are planning on moving forward together in different business ventures. He also had a few difficulties with former people he worked with, which I proceeded to crush right before his eyes. One was financial equity. I told him I would give up 10% of my equity to him if it meant tripling my business income. I'm not greedy. Another guy he worked with was very greedy and a very strong partnership was destroyed over a piddly amount of money. Everyone here would be surprised how much income that only 1% ownership of McDonalds would bring them (over a BILLION dollars). Go for the gusto!

This weekend was such a shocking eye-opener in so many ways. It may be the best weekend I have ever had in my life so far. I hope so anyway.

I have learned a lot here. With the focus of MJ's books, a great product, and a bit of busting through walls mentality - things are looking way up. I now also have a partner that is as close to being a blood brother as one can be to work with. We both know and trust each other completely. Well, I should say now that I know about his "secret" part of his life... he is a bit paranoid about someone stealing his ideas so he tries to be as secretive as possible. I liken him to a tiger - very stealthy. That, combined with my Rhino methods of nothing stopping us means nothing will.

Great thread. This came at just the right time.

I would add one more thing. Plan plan plan. Success is when planning intercepts with opportunity. You never know what opportunity will show up all of a sudden. I have been planning for a long time - and now everything can come together (finally!).
 

100k

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I think the main difference could be as simple as picking the right business model. E.g. Subscription vs one-off sale. Easy to scale vs not easy to scale.



For knowledge workers like myself, another consideration is encapsulating our knowledge and removing ourselves from the coal-face.

Hitting the $100k/year mark as a consultant/freelancer is common enough. Hitting 10x that is rarer.

I’m not going to hit $1m/year doing what I’m doing the way I’m doing it. I’m too much a consultant bound by my time. I could charge more, but that’s still not breaking out of the time-for-money model.

I figure I can scale using one or more of:
  • People
  • Processes
  • Technology
I’ve no desire to build a big headcount, so I’m focused on finding models that allow me to encapsulate my knowledge and scale via Processes and Technology.


EDIT: I’m wrong. The MAIN difference between a business doing $100k/year and one doing $1m/year is the jockey (because they’ll know which horse to ride and when).
With all due respect, you can reach $1 mil. there are many gurus doing those sorts of figures.

Just emulate them. From my (little bit of) research on them - what I've found is that they build ever-green webinar funnels (basically a recorded webinar that makes it seem like its live), they provide free value in the webinar and towards the end they sell a $1000 product. They then upsell their consultation for around $2500 - $5000.

With those figures its def. possible to reach $1 mil.

If you have those webinars played daily (just in time) and sell 3-5 of those $1000 value packed information products, and you upsell 1 person for every 10 people that buy the $1k product. Dude, you'll hit a million bucks easily.

You just need to hire the right agency that's familiar with building these sorts of funnels and invest $50k (half towards building the funnel other half towards ad spend for the first month).

There probably compnents I'm missing, but that's like the 10,000 feet overview of how they do it.

Ask @Lex DeVille I believe he's worked with some of them.
 

Lex DeVille

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With all due respect, you can reach $1 mil. there are many gurus doing those sorts of figures.

Just emulate them. From my (little bit of) research on them - what I've found is that they build ever-green webinar funnels (basically a recorded webinar that makes it seem like its live), they provide free value in the webinar and towards the end they sell a $1000 product. They then upsell their consultation for around $2500 - $5000.

With those figures its def. possible to reach $1 mil.

If you have those webinars played daily (just in time) and sell 3-5 of those $1000 value packed information products, and you upsell 1 person for every 10 people that buy the $1k product. Dude, you'll hit a million bucks easily.

You just need to hire the right agency that's familiar with building these sorts of funnels and invest $50k (half towards building the funnel other half towards ad spend for the first month).

There probably compnents I'm missing, but that's like the 10,000 feet overview of how they do it.

Ask @Lex DeVille I believe he's worked with some of them.
The coaches I worked with did use that process, but they didn't sell a $1,000 product at the end. They sold $15,000 to $30,000 products at the end. You can definitely hit the mil mark with that.

We do have to make the distinction between a coach and a consultant. They fulfill different roles. A consultant is in the trenches a lot more than a coach, especially a high-ticket coach.

High-ticket coaches spend $15k+ to learn the funnel system. Then they spend money to hire a team of people to build the system and get it working properly.

Once they have a proven system and they start earning sales, then they expand their sales team so they can scale that part of the process.

After that they turn their coaching into courses or group programs so they aren't exchanging 1 for 1 time. Later they bring on "breakthrough coaches" or whatever they call them. These are sub-coaches who do the coaching for them.

They also usually have a full-time assistant, business manager, copywriter, web designer and several other members of their team who may be traditional employees or just freelancers.

Coaches are supposed to help people work through problems and find their own solutions. Consultants, on the other hand, are specialists who work directly with a business to solve a specific problem in a specific way. So I'd say it's much harder to scale a consulting business, but definitely can still be done. Mainly it's a matter of charging the right amount for your time to make the numbers work.
 

astr0

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What is the difference between the entrepreneur that makes 6 figures vs. 7 figures via a web design company?

While it may not be the best/easiest way to build a 7 figure business it shoud certainly be possible. Imo if you can scale a hard to scale business to 7 figures the skills you need for that should be also very valueable for a business that's easier to scale.

Besides mindset and ambition I can think of these:
- human resources (hiring a+ employees)
- management skills (get the most value out of your employees but also your business grows the skill to manage managers that work for you)
- building repeatable processes and systems
I have a friend who co-owns a 260+ employes software outsourcing company, a CEO there, and actually founded it alone and got a partner later, so that's pretty similar to web design business I guess.

From my observations:
  • Trusting and delegating really important parts of the business.
  • Building processes/systems and company culture to make hiring easier. That's his focus #1.
  • Really thinking big and on the high level. Like the market is going that way, we should start marketing this and that and start hiring people with these skills. That's focus #2.
  • Jumping into any minor issues in his company that he knows about. Don't know if that's right, but probably it can lead to bigger issues over time so worth fixing asap. On the other hand, he's not that deep in what his company is doing well. Like he doesn't know all the clients and even how many employees he have at a given time.
  • Watching what his competition is doing and instantly responding to it. Often I have a feeling that he knows more about his competition than about his own company, lol.
  • Constantly looking for a way to scale both in terms of landing clients and the delivery part of the business. That's focus #3.
  • Have really high ambitions. They made a deal with his partner that they would sell a company for $10m one day and got a real offer for that not long ago. Passed, cause he thought that the deal was $10m each, not in total... His partner is a little upset about that, but their goal now is $50m in total.
A short story of the company.

It got stuck on ~24 employees for about two years. That's when he got a CTO partner, allowing him to focus 100% on CEO responsibilities. Then quickly grew to 80 and slowly to 120 again. After that it really took off, almost doubling in a year. He had like 220 employes in winter, 260 now so still growing fast.
 
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Andy Black

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With all due respect, you can reach $1 mil. there are many gurus doing those sorts of figures.

Just emulate them. From my (little bit of) research on them - what I've found is that they build ever-green webinar funnels (basically a recorded webinar that makes it seem like its live), they provide free value in the webinar and towards the end they sell a $1000 product. They then upsell their consultation for around $2500 - $5000.

With those figures its def. possible to reach $1 mil.

If you have those webinars played daily (just in time) and sell 3-5 of those $1000 value packed information products, and you upsell 1 person for every 10 people that buy the $1k product. Dude, you'll hit a million bucks easily.

You just need to hire the right agency that's familiar with building these sorts of funnels and invest $50k (half towards building the funnel other half towards ad spend for the first month).

There probably compnents I'm missing, but that's like the 10,000 feet overview of how they do it.

Ask @Lex DeVille I believe he's worked with some of them.
The coaches I worked with did use that process, but they didn't sell a $1,000 product at the end. They sold $15,000 to $30,000 products at the end. You can definitely hit the mil mark with that.

We do have to make the distinction between a coach and a consultant. They fulfill different roles. A consultant is in the trenches a lot more than a coach, especially a high-ticket coach.

High-ticket coaches spend $15k+ to learn the funnel system. Then they spend money to hire a team of people to build the system and get it working properly.

Once they have a proven system and they start earning sales, then they expand their sales team so they can scale that part of the process.

After that they turn their coaching into courses or group programs so they aren't exchanging 1 for 1 time. Later they bring on "breakthrough coaches" or whatever they call them. These are sub-coaches who do the coaching for them.

They also usually have a full-time assistant, business manager, copywriter, web designer and several other members of their team who may be traditional employees or just freelancers.

Coaches are supposed to help people work through problems and find their own solutions. Consultants, on the other hand, are specialists who work directly with a business to solve a specific problem in a specific way. So I'd say it's much harder to scale a consulting business, but definitely can still be done. Mainly it's a matter of charging the right amount for your time to make the numbers work.
Thanks @100k @Lex DeVille

What Lex described is totally not the vision I have for my business. I even have a filter that any email mentioning "webinar" gets deleted. I'm not a coach, I'm a consultant/practitioner. I prefer getting it done rather than coaching people to do a half-arsed job in 10x the time it would take me to do it. If I was to ever create a marketplace ad it would be to hire me to do the work, not to get coached by me. I don't want to sell shovels, I want to be in the mine digging the gold out. I’m allergic to the shovel selling guru world.

However, I do want to setup some info-seeker funnels, get people onto a short automated course delivered by email, and take it from there. I'll just use Google paid search to send visitors to a squeeze page (as we do for some clients funnily enough). To scale I have to put a money nozzle on the end that is NOT dependent on my 1-2-1 time (like my course, paid email newsletter, a plugin I have in mind, signing up to a directory or some other productised service, etc.). I’d be embarrassed to put an automated webinar up on a sales page that pretends to be live. Just call it a video and let people watch it ffs.
 

MJ DeMarco

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Upgraded to NOTABLE, lots of great insights.
 

Pat D. Rick

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I think Network should also be mentioned here.

It's when business owners appear on shark tank, looking for investors to open some doors for them.
It's when you have a client that reffers you to another even higher paying client, so you can make money on magnitude.
It's when Elon Musk's businesses were out of cash, but he knew who to call to get some more money in.

Getting in touch with the right people should not be underestimated, especially if they have the right mindset as well.
 

AceVentures

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Exceptional people skills.

One common trait I find among all the millionaires I know - they all have an uncanny ability to win people over. They're typically very charismatic, have a wonderful sense of humor, are genuinely friendly in their approach with people they're meeting, they offer tremendous value in conversations and meetings, they handle tense situations calmly, they're open-minded and receptive to new ideas, etc. The list goes on, but the takeaway is their people skills.

To be bold, to form a dream team, to properly network, to build a scalable business, and all of the other great answers I've read throughout this thread - this can only be achieved by developing exceptional people skills. Learn to read people, read body language, become in tune with people's emotions, learn to decipher people's subconscious intentions, etc. These are invaluable, I believe, in becoming a million dollar man.
 

Tiago

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We lie to ourselves that it's better to not have employees since it's more aligned with subconscious goals. Less employees typically equals more freedom in the short-term. They're an additional component that needs to be managed, even if you're outsourcing. So our preference is to not hire them and stay small vs hiring them and adding on short-term headaches that can eventually be delegated.

Eventually those headaches are worth it, but it's something that I see myself and other entrepreneurs avoiding as much as possible. Even in this thread I'll bet that my reply gets less likes and replies since it's not aligned with the culture of "online, automated income". However, if you look at any billionaire, almost all of them made it there by having a lot of people under them. Same if you meet with multi-millionaires - it's an extrapolation of that.
This post has been a slap in my face. I've read it two days ago and it's rumbling inside.

Thank you so much, this has changed how I go about growing my business.
 

lydialeads

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Question for the forum...

What is the MAIN difference you see between someone who makes 100k /year and someone who makes 1 million plus?

It is a bit of a simplistic question but I am curious how people on here would answer this...

- Habits, discipline, mindset?

- Systems and scaling?

- Value in the marketplace and demand?

- All of the above and more?

This question isn't meant to be a "what is the one thing that will make me a millionaire" but rather when you look at REAL examples of people making a million plus a year what trends or common characteristics of them or their businesses do you see? (if any)
This is what I see...
24964
I guess these efforts can also be said for someone (entrepreneur) making 100k, especially if you're a newbie. But if you're in the slowlane making this, then I don't think it fits the event/process model.
 

apollo_web

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To have a crack at this myself I would say - scale.

The three friends closest who are multi-millionaires all made/make their money through massive scale.

- One made 100,000s of sales of a product
- The other has 10,000s of monthly users
- The last works with massive businesses to help protect 10,000s of assets.

They all have massive maths on their side that makes their income easily reach 7 figures annually.
Love this, really interesting!

Going after the "scale" thing myself, taking a long while, but will get there!
 
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Asked a MM friend 2 days ago 'is it true person working your biz and making $50k vs you making MM is close to amount of work?' he said absolutely, thats to MJ's point early on.

other thing i suppose is your motivation for doing it - one guy just cant stop making biz, and as he said 'i have a kid, if i stop people die' early on to me.

other one was burned by a golddigging gf in college and has a hangup that he must be successful. he's better w it now, but as we were discussing his very expensive rent he said 'im not sure i like living in such an expensive place..and i wish i did buy a used luxury car instead of new' he can afford both easily though..but money goes into the biz, which brings me to third point

those 100k and under guys dont have MM assets like warehouses, where the other guys do. so when you have a warehouse which will net you 250-300k in rents thats pretty fkn great and you can do whatever...problem is i dont think either one of them will stop anytime soon, lofty goals.
 

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Damian Pros

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Scale and the mathematics inherent in the business.

The $1M dude is probably also a slightly better marketer.

However my bet is that BOTH ENTREPRENEURS work EQUALLY as hard.
What is it that precedes scale though? What is it that even allows scale to be possible?

A company might have potential for scale because it has an offer that the market wants (demand).

However, at the very fundamental level of every business, what's the catalyst that let's it maximize that potential?

The Customer Experience

(And I do NOT mean customer support. Support is a part of the experience. The experience is everything in the buying and delivering process that creates a positive or negative perception of your business in the customer's mind)

No matter how good your marketing is, no matter how much the market wants what you sell, no matter your leadership skills, your motivation, your boldness and all other things that have been mentioned...does the business even stand a chance without an optimized customer experience?

Because when the customer is satisfied from transacting with you, they will come back, spend more, spend consistently and bring referrals who will also do the same.

The question is "for how long can you maintain an excellent standard of customer experience?"

Can you do it for long enough to gain sufficient market share so that you slowly but surely dominate your space and achieve a monopoly?

Or will you sit back and rest after you've achieved some decent success, only to find yourself losing customers because you stopped paying attention?

I don't believe that scale can even be achieved without maintaining an excellent standard of customer experience.

The difference is between a $100k and a $1million a year business is apparently scale.

But what is it that facilitates scale?

That's what we should be thinking.

The customer experience is one of the must crucial ingredients of the recipe, which is most often overlooked.

A product that solves a problem or fulfills a need of the market is another (demand). Marketing is one more.

Overall, I do not think there is a one single thing that makes all else redundant, rather than a mix of components properly combined to achieve the end result.

But like the recipe for a great cocktail, it's the combination of multiple ingredients, in the right dosage that make or break the result.
 

lunga ngcobo

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Question for the forum...

What is the MAIN difference you see between someone who makes 100k /year and someone who makes 1 million plus?

It is a bit of a simplistic question but I am curious how people on here would answer this...

- Habits, discipline, mindset?

- Systems and scaling?

- Value in the marketplace and demand?

- All of the above and more?

This question isn't meant to be a "what is the one thing that will make me a millionaire" but rather when you look at REAL examples of people making a million plus a year what trends or common characteristics of them or their businesses do you see? (if any)
I think the answer is all about building a business that is easy to automate and at the same time allows you to easily scale up with unlimited revenue possibilities.
Once you set up the business then you may hire professionals to run it. You will be amaized of how some other people can do the job much better than the founder but are stuck in the employee mindset.:happy::happy::happy:
 

astr0

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Hanged out with 250+ employee CEO friend and he told a story that might be relevant here.

A week ago an owner of another software outsourcing company who stuck on around 100 employees for years visited him to ask for advice on how to grow past 100 and insights how is it going with 250+.
His advice was something like this:
"I focus on building systems and processes, delegate everything and avoid interactions with people as much as possible. (A long story about their recent part-wins and loses on tenders where they could win big if he was involved). It's not very efficient short-term but pays well long term with scale and automation. I'm not involved in sales or client engagement but enjoy casual talks with long term clients in bars, probably that builds the relationship too.".

Talked about my business and it quickly went south to discussing the company where my wife previously worked (our office is in the nearby building). He said they "worth nothing" and their CEO/owner is "crazy stupid, almost insane". I haven't believed him at first, so we had to check LinkedIn. Basically, he split the company into 3: one making their own products, one for outsourcing, one for outstaffing. Fired a lot of people during this, and even more left. They down to 80 people from 120+...
 

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1. Whether you even need it - most people from this forum are from the US, and many of them are from expensive cities where 100k/year isn't enough to live comfortably. Even if they make 500k, in some cities this is only slightly above middle class, which is probably not in line with what people have in mind when they think of hitting the Fastlane.
Not to derail, but where is that true? Even in San Francisco, $64,177 to $192,530 is considered middle-class. It's kind of hard to believe $308k more than the top-end of middle class is 'slightly-above'.
 

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Not to derail, but where is that true? Even in San Francisco, $64,177 to $192,530 is considered middle-class. It's kind of hard to believe $308k more than the top-end of middle class is 'slightly-above'.
Depends on your definition, but San Francisco is actually a good example here:




But of course, it depends on what you consider middle class. In my opinion, assuming that the average rent is $3,609 per month for a 792 sq feet apartment, anything below $100k a year is barely middle class as you have to spend almost 50% of your income just on rent alone. And that's just renting an average apartment, not that big for the US standards. I'd imagine "proper" middle class in the US to have their own house (not a rental) with at least a small backyard.

If we consider sales prices, with a median sales price ridiculous $1,400,000, then it's clear to see how little you can do with, say, the aforementioned $192,530.

Also, just for clarification, what I meant by "probably not in line with what people have in mind when they think of hitting the Fastlane," is that in my opinion, from a purely financial viewpoint, a person won't feel Fastlane rich if they have to save 100% of their income for ten years just to afford an average house, not even something upper-middle class.

The solution can be to accept the crazy prices and, as a side effect, perhaps change your mindset (or go crazy trying to keep up with the rising costs of living), or move to a more affordable place where you can buy a nice (not average) house for 3, 4, or 5x less money and not have to worry about constantly making more and more so you can spend more time actually enjoying your life. Again, depends on what you want and need.
 

Lee H

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In my mind the key difference between a$100k business owner and a $1m or even $1bn business is vision.

Those that create massive multi-million dollar businesses have tremendous vision, they look to solve bigger problems at a higher scale than someone running a$100k/yr business.

They also look at how they solve the problems associated with building such a business - building an amazing team, leveraging others, building relationships, automation, marketing, customer experience etc. Basically all of the things people have mentioned in this thread.

But it all starts with a huge vision followed by a willingness to take risks and execute on that vision.
 

roguehillbilly

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The solution can be to accept the crazy prices and, as a side effect, perhaps change your mindset (or go crazy trying to keep up with the rising costs of living), or move to a more affordable place where you can buy a nice (not average) house for 3, 4, or 5x less money and not have to worry about constantly making more and more so you can spend more time actually enjoying your life. Again, depends on what you want and need.
Fair enough -- I love the financial samurai btw :)
Alright, enough derailing.

I don't make a million bucks yet but I've made six figures so I can't exactly answer this question, yet.
I think the scale idea makes a lot of sense though. Doing what you are successfully en masse will bring riches.
 

TreyAllDay

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Great question, I'm actually going through this right now- 2.5 years in I earn about $200k/year, I've plateaued around here for about 12 months with no growth and have been evaluating why. Here's what I've learned:

In a majority of businesses - it seems the skillset, technique, mindset - (whatever you want to call it) you need to earn your first 100-200k is a different set of skills than you need to get to $1Million. The initial 100k was more focused on:
  • Qutting my job, releasing the scripted mindset and going for it.
  • Perfecting skills like sales, meeting the right people.
  • Learning to love long hours and be passionate about the goal.
  • Having the balls to take the risk without earning any money yet.

The issues I am facing now are more:
  • Managing my first employee
  • Managing my business time and time with my family to be productive
  • Learning to say NO to people who want me to get tied up in their businesses (which is very difficult to me)
  • Not lending money to friends/family or blowing money on trips
  • Also feel like I've been stuck at $200k/year because somewhere deep down I am satisfied with it.
The inspiration to grow comes easy when you're earning $50k/year, begging for a day off from your boss. At around $15K/month you live pretty comfortably and the "F*ck this" event isn't really there any more.
 
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Joe Cassandra

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In my opinion the most successful people I have seen have an active income from their business pursuits and a secondary income from another industry.

The most common one is somebody owning a business and then funneling the profit they make into Real Estate. That's where you get the saying that Real Estate makes the most millionaires.

You focus on growing your business during the day and then in the evenings/weekends seek out property deals, financing to leverage debt etc...
This is what we're at the beginning stages of at the moment. Funneling all the money into investments that grow in a real estate business.

My current business is in a small niche, where even trying to grow an 'agency' would require going after clients outside the niche (as it's so small).

I lack the vision to grow it past $300k/year.

Funny enough, for our new real estate venture, I have the vision and the written path to make multi-millions in different ways.

So, we'll be taking a more unconventional path to 7-figures. Service-based biz ---> investments ---> grow investments fast ---> reinvest cashflow ---> start over.

I think leverage is important, but as just mentioned...you need the Vision + Massive Action to get to 7-figures. Obviously, employees/leverage will fall into the vision.
 

G_Alexander

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So much of what has been said here is great, and relevant! What I'll say is... *all other things held constant (desire, ambition, work ethic, etc.)*: The big thing that separates the $100K from the $1M earner... and the $1M from the $100M is DELEGATION.

Our first brick and mortar deal, we did almost everything. Sourcing, financing, hiring, firing, construction contracting/rehab, etc. We also needed to go to the location and manage 10 employees for 4 days a week once we were operational (while at the same time still running my online business). 7 months in (once we had cut our teeth) we hired a great General Manager and paid him handsomely. I no longer needed to be on site anymore (my time was now freed).

For locations #2 and #3, I still had to do the deal-side stuff (source, manage the construction/rehab, and handle the financing), but this time we hired in more managers right away on the operating side. I never had to be on site once we opened. So the money rolls in... and 30 employees take care of themselves across 3 locations.

Now for location #4, on the deal side I only visited it once to make the acquisition decision - and answered about 30 emails and a few bank phone calls. That's it. My GM managed the rehab/construction. The systems are in place, the team growing, and things are starting to shift to the business perpetuating itself.

My eCommerce business has 6 full time employees and also needs nothing from me except SEO maintenance (which I can't/won't farm out at this time). Some months I work 5 hours on it, some months I work 60 hours. Depends on what I feel like doing.

Delegation is scary (at first). But realizing there are other people out there who can do things as well (or better) than you is paramount to growing your business. And providing people with a job they love and BIG opportunities for growth in their career is more rewarding than any Lamborghini or fancy dinner.
 

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