How I’d make 1 million dollars if I had to do it again…

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• 💸  How I’d make 1 million dollars if I had to do it again

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In today’s newsletter I’m going to do something a little different. Instead of giving you a business idea and a guide on how to start it I’m going to share how I’d make 1 million dollars if I had to do it all over again.

Being 24, I am extremely grateful to be in this position but it didn’t come without working my ass off. But as I’ve dove deep into different businesses one thing has become clear to me: there’s winning, and then there’s winning on easy mode.

What do I mean?
You don’t have to come up with some insane new invention that's going to cook me breakfast, make my bed, and pack my lunch.. although that would be dope.

You just need to take something that's already been proven to work and do something very similar.

Example - this plumbing company does $1.6M in revenue and $300k profit in Waco, Texas. Research how they started and do the same thing in your market. 

So here's the process I would follow if I was starting from scratch.

Option 1: Learn from people who have already done it

Go on any business marketplace like QuietLight or DealStream. 

Look at the businesses people are selling. What does it do, how much does it make, how does it get customers, etc.

Once you’ve found one that interests you, request information about it.

On QuietLight, all you do is put your name and email, sign an NDA, and you’ll be sent a package that lays out the business’ entire operations meaning all their financials and answers to all the questions I stated above.

I legit just did this for the “10-Year-Old Evergreen Content Business with Website Manager” listing that does $463k in profit and was sent the company name, owner, last 5 years of financials, SWOT analysis, and much more.

Now, if you look at a business like this and go “I could do this.” then this is the business for you. I’d then set up a call with the sellers and ask for more info about their business. 

Remember, you just need to act interested. They’re going to try and sell you “how great this business is” and how “easy it is”. That’s fine, they’re trying to sell that makes sense. Just get all the information you need and start a similar business yourself.

And remember, you don’t need to make $1M a year with the business, you only need to make ~$330k. Assuming you sell for a 3x multiple, which most are, this will get you to the one million dollar mark by selling. This makes it much more attainable when you’re thinking about it like this.

Or you can follow option 2.

Option 2: Buy a business

This is obviously more risky but you can buy a $2M business that’s doing $600k profit with $200k down with an SBA loan (that goes up to $5M). 

You typically have to put down 10% of the loan so you’ll have to come up with the $200k somehow. But it’s usually easier to go from $2M to $10M than it is from $0 to $2M so that’s why this option is actually a good strategy. You just need to make sure you’re buying a good business.

This is where mentors or any business savvy people in your life come in. 

To just show you how this math would shake out. If you bought a $2M business and made $600k profit every year (assuming you didn’t lose or expand revenues) it would take you ~4 years to break even when considering interest on the loan.

If it were me and I didn’t have any money I wouldn’t go this route. I’d say once you make your first million then go this route and attempt to take a business from $2M to $10M.

I’d go with option 1 and be scrappy but I want you guys to know this is an option because it will get you to that one million dollar mark much faster (most likely)

The worst case from spending time doing this: you’ll learn how different businesses operate and learn what you don't want to do. It’s basically like giving yourself a mini MBA for zero dollars.

So there ya have it, that’s what I’d do if anyone close to me asked how to make 1 million dollars.

If you have any questions feel free to reply to this email. I read them all!

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That's all I got for ya today folks!

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.