Despite all the financial segments on network TV, gurus, and books out there, no one really tells you how to successfully become a business owner…
A lot of this “advice” is either just motivational or written by people who have never run a company…
And to top it all off, you never get any actionable steps you can follow.
Now, I plan on changing all that.
I’m going to lay out my practical guide to create a business that is not only successful, but can make millions or even billions of dollars.
Before you take my word for it, I’ll go ahead and share my credentials with you.
I HAVE 15 HIGHLY PROFITABLE, PRIVATELY HELD COMPANIES. I ALSO HAVE A MULTI-BILLION-DOLLAR REAL ESTATE PORTFOLIO.
At this point, I think it is fair to say that I can walk the walk.
Nonetheless, when I was first starting out, I felt the same way you probably do right now…
Confused. Frustrated. No clue where to start.
As if that wasn’t enough, all the top players weren’t sharing how to win the game. That left me to find out how to do this on my own.
For this reason, I made a promise that when I became wealthy, I wasn’t going to keep my methods a secret.
This playbook on how to become a 10X business owner is just part of delivering on that promise.
Why Do Entrepreneurs Fail?
Before I show you the plan to become the founder of a booming company, here are some eye-opening stats:
- 56% of small businesses have four employees or fewer.
- 20% of companies this size fail within their first year.
What can we take away from this information?
I believe it reflects that — in this market and into future ones — staying small isn’t an option.
If I were to examine these entrepreneurs who didn’t make it, it would boil down to one factor.
BUSINESSES FAIL BECAUSE THEY DON’T GENERATE REVENUE.
So, even if you are at the stage of, “I want to start a business, but have no ideas,” know that making money is a non-negotiable — no matter what industry you go into.
Every one of those companies that shut down had a “great idea,” but they couldn’t sell it or scale it.
Keep that in mind as you read the rest of this guide.
How Can You Become a Successful Business Owner?
Being profitable as a business owner is imperative. I stand by that.
Yet equally important is to have a purpose bigger than money…
I call this the “Million-Dollar Why.”
Without this, it will be extremely difficult — if not impossible — to become the founder of a cash-producing company.
That being said, you have to figure out your “Million-Dollar Why” on your own because it will be different for everyone. So unfortunately, I can’t help you with that one.
However, I will tell you that once you are certain about WHY you want to be wealthy, you will discover the HOW.
And your Uncle G is here to help you maximize every step you take on the way to becoming a millionaire business owner.
1. Do the Million-Dollar Math
After you have your why, it’s time to do the exact math to lay the foundation for a prosperous business.
There are two ways you can run these numbers — one based on product sales and another method based on time.
I am going to show you how to do it both ways.
First, this is how you figure out how much product you need to sell to make $1 million dollars — or whatever revenue target you want to reach.
To have a million-dollar business, you have to sell a:
- $1 product 1 million times
- $100 product 10,000 times
- $100,000 product 10 times
- $1 million product — once
It’s as simple as that.
By the way, it takes as much work to sell the one-dollar item as it does the higher priced offer. For this reason, an ideal business model would have packages or products at every price point.
Second, here is the formula you will use if you want to figure out what you need to earn monthly, weekly, even hourly to hit a million big ones a year. This calculation is especially useful if you plan to run any sort of firm in which you charge clients based on your time with them.
So, let’s say you work 40 hours a week, 52 weeks a year. That’s a total of 2,080 hours in a year.
Next, divide 2,080 hours from the $1 million. That means that you need to figure out how to make 480 bucks an hour.
Look, I understand that all this may seem daunting at first, especially if you are just figuring out how to become a business owner…
But it’s important to confront the numbers. It is only at that point you know exactly what it’s going to take to hit your target. This million-dollar math makes the importance of every client and deal a reality.
In the same way, you can see how easy it is for people to underestimate the effort it takes to make a company solvent. Then, as a result, we have the stats from earlier on.
On the other hand, now that you’ve confronted the tough stuff, I’ll share with you how to find the ideal business idea for you — the one that will make money.
2. Uncover Your Winning Business Idea
Whether you or not you have some sense of direction for your business, I have a message for you…
The concept of your company should have nothing to do with “what you love.”
Yes, your big plan needs to align with your purpose. However, you can’t support your family — let alone yourself — if your beloved business is failing.
Instead, answer these questions to develop an idea for an enterprise which will benefit you, your loved ones, and your customers.
What can I do that people will find valuable?
This is not about passion, this is about skills.
A guy may make great birdhouses, but his medical degree is probably more valuable to more people.
Which problem am I going to solve? And is this solution scalable?
The bigger the problem, the more people will pay for it.
Who is my audience?
Next, you are going to identify the people who are going to buy your product or offer.
The answer to this question can have multiple answers, especially if your business idea is a solution for the majority.
Get as detailed as you can with your target customers. Doing so will help you market your company.
How should I price my products/services?
Understanding who you are selling to can give you a good sense of pricing.
After taking the cost of production or investments into account, set the appropriate numbers.
What does my offer look like?
If you’ve crunched the numbers from the previous section, this will go a lot easier for you.
As I have mentioned, a variety of offers at multiple price points will expand your reach. So structure your offer with additional perks or financing plans to accommodate customer needs.
How am I going to sell it?
If you thought that being the company founder excluded you from selling, you are sorely mistaken. In fact, you should be your product’s greatest sales rep.
Never sold anything before? I wrote an article on my step-by-step sales cycle for your reference.
Anyway, all your answers to the above will help you with a basic outline for a lucrative company. Finding the right structure for your business is another matter altogether…
3. Choose the Best Type of Business Structure for You
Now that you have your product, solution, audience, price, and offer nailed down, it’s time to think about what your business will look like.
Please do not consider any of this financial or legal advice. You should consult a CPA or attorney on these matters.
But here’s a quick rundown of my thoughts on business structure…
A) Sole Proprietorship
The first approach you could take to structuring your business is a sole proprietorship. Personally, I do not like or recommend this one in the long run…
While this setup doesn’t mean that you run your entire company by yourself, it does mean that there is no legal distinction between you and your company.
Broken down, that means when tax time comes around, your business’s income is considered your income. Therefore, everything regarding your business is your financial responsibility — good or bad.
We are going to discuss a few types of partnerships, but here are the basics.
In general, a partnership consists of two or more owners who share profits and liabilities of the business. Depending on where you are located, there can be tax benefits attached to this arrangement.
I would advise you to research both the advantages and disadvantages of a partnership with your accountant. Also, who you partner with can make or break this type of structure. Do your homework on them as well.
C) Limited Partnership
In this type of partnership, there is one general partner who manages the day-to-day operations of the company. The other “limited” or “silent” partners only provide financial backing and are liable only for the amount of funding they have provided.
For example, if the silent partner flows you $50,000, they are only at risk of losing up to $50K if something goes wrong.
While the limited partner shares the income stream, they still can be held accountable for business debts.
On the other hand, the general partner has that same risk, as well as their personal assets possibly being attacked if things get messy…
However, as far as control of the business, it’s up to the GP.
When a corporation is formed, it is seen as its own separate entity. No one person is liable for its debts or can take advantage of its profits.
A corporation is owned by its shareholders, then run by a board of directors who appoint others to handle the management of the company.
Depending on the type of business you have in mind, a corporation may or may not be a good structure to follow. Nonetheless, it certainly is the right path for some companies.
E) Limited Liability Company
If you have shown interest in how to become a business owner, I know you have heard the term limited liability company or LLC.
A simple way to describe an LLC is that its structure is a mix of a sole proprietorship, partnership, and corporation.
Multiple people and entities can be involved in a limited liability company. However, instead of being called “partners,” they are referred to as members.
Much like a partnership, the owner and other members of an LLC are separate from the business in a legal sense. At the same time, because an LLC is a flow-through entity, its profits and losses are taxed through the individual members.
There are other nuances to an LLC, but they differ from place to place. Really dig in before you take this route, but it does have its advantages.
So, these are the main ways in which you can structure your business.
And again, everyone’s situation is different. So, please consult with experts to make the right choice for you.
While structures are a big part of planning a successful business, you won’t get anywhere without marketing…
Understand early on that promotion is critical to your company’s survival.
IF PEOPLE DON’T KNOW YOUR PRODUCT, HOW DO YOU EXPECT THEM TO BUY IT?
And with all the information we’re flooded with these days, it’s more important than ever to market yourself.
Luckily, with social media, it’s also easier than ever to promote yourself, even if you are the new founder of a company with no money.
However, the key to making social media promotion work is to do it 10X more than you think you need to.
Get on every platform. Post, tweet, share everything going on with your business.
Never worry about followers or algorithms. What’s important is that people know you.
You might see commenters say you’re doing too much. Good. This is a sign to keep it up and get even more people on board.
As counterintuitive as this may sound, I promise this is what works. Everyone else is keeping it low-key — and they stay average.
5. Establish Parallel Flows of Income
Next, I am going to cover a real power play that both new and veteran business owners misunderstand — parallel flows of income.
I used the word “parallel” and not “multiple” for a reason. It is easy to see how this nuance is relevant when you consider the following example…
An individual with a car dealership wants another flow of income. For this reason, they opened a restaurant. Both of these businesses take a considerable amount of time, and more importantly, are not similar enough to help one another.
Multiple — not parallel — and probably not going to work out.
On the flip side, we could easily take this same illustration and turn it into a successful one.
Let’s say the same car dealership owner opens a car wash. There are tons of opportunities for cross-promotion…
“Hey, with this new car, I’m going to give you your first three car washes for free.”
“Noticed as you came in for your wash, your car is an older model. My dealership has great trade-in rates right now.”
See the difference?
Just as important, you must have your first flow of income solid before taking on another. If your main company’s revenue is up and down, don’t get into other games.
But once you do, the real objective is to keep expanding…
6. Go Big — and Bigger
Earlier, I laid some stats on small businesses. I am going to share one more before I hammer again on why you should always be looking to go bigger…
THE AVERAGE SMALL BUSINESS IN THE UNITED STATES MAKES $46,978 PER YEAR.
That’s less than the average American income of $51,480!
Although the small business owner has more tax advantages… they’re probably working 12-hour days to get ‘em.
So, statistically speaking, this tells me you could work a normal job almost anywhere else and make more than running a small business.
Anyway, I believe there is a “myth of smallness” that keeps people from growing their businesses.
At first glance, the advantages of a modest company appear to be:
- A more manageable workload
- Producing higher quality products
- Working for yourself.
- Less risk
- Scavenging business from your “big” competitors.
All this may sound great… but it’s a trap. One that I fell into myself.
The truth of the matter is that staying under the radar in business results in annihilation whenever the market gets tough.
So even once you’ve “made it” as a business owner, keep getting bigger.
And now, I am going to tell you the surefire way to make it…
7. Put in the Hours
“Work smarter, not harder” does NOT apply here.
In all my years being in business, I haven’t figured out a fast way to build a profitable company. However, I know putting the time in is the way to make sure it gets done.
When you are building this business, weekends, holidays, special events should be put on the backburner. Unless, of course, there is an opportunity to network or make deals.
PAY THE PRICE NOW SO YOU CAN PAY ANY PRICE LATER.
You can’t approach your company like a side hustle if you want it to make you a million bucks one day.
Late nights and long stretches without days off should not just be expected — but are necessary to long-term success.
In spite of this, I promise when your company is thriving, it will be worth it.
Come to think of it, I do know one way to fast-track your way to the top…
Don’t Make the Mistakes I Made in Business
Blunders. Missteps. Errors. Even the best of us make mistakes — that includes me.
Despite where I am today, there are some things I would do differently. Let me share them with you to avoid on your way to becoming a millionaire business owner.
The first major mistake I made in business, I made over and over. In fact, I did it from the time I was 29 to 42…
Thinking Too Small
I’ve covered in detail why this is such a big mistake.
There’s no risk to wanting and doing more…
And it literally costs nothing.
Underestimating the Market
Regardless of what Bloomberg says, the potential and longevity in the marketplace goes further than you can imagine.
There will always be a reason not to get your products out there or expand your business.
I’m here to tell you to do it anyway.
Not Investing in My Company Fast Enough
Like many of you, I was hesitant to invest capital into my business in its early stages. This may seem like being responsible and conservative.
Actually, though, not investing slows down the expansion necessary to remain solvent.
You should be putting cash into your company, in addition to putting some of its profits aside for yourself as the business owner.
To be specific, the following error is probably the most devastating…
Resting on My Laurels
To really take home the gravity of this mistake, I’ll tell you what happened when I made this HUGE miscalculation…
Rewind to the early 2000s, and I had achieved what most people would consider a reasonable amount of wealth. I had a beautiful home in California, my seminar business was doing well, and I had made some moderate investments in the housing market.
Then, there was the subprime mortgage crisis in 2008.
Suddenly, the bank that bought out my lender wanted all the money they had loaned me NOW, although I had never been late or missed a payment.
I WAS BEING PUNISHED FOR MY LENDER GOING UNDER.
I realized that had I not been “comfortable” and grown big enough as a business owner, no economic crash would affect me.
Unless your business can handle a catastrophe of any size, staying satisfied isn’t an option.
Choosing Bad Partners
When I trusted others in my partnerships without proof, I ended up in almost as much trouble.
I let good impressions and social graces get in the way of good sense.
As a result, I ended up in business with people who were taking money from me.
Don’t be sweet-talked into not seeing potential associates’ credentials on paper. Whoever you are considering involving in your company, vet them thoroughly.
Last, not changing my operating basis as times went on and I expanded was a mistake. Resisting change and thinking I knew everything only hurt me as a business owner.
What got you to this point won’t get you to the next level. If you don’t adapt, you won’t be able to communicate and service new customers.
Enough talk about what you shouldn’t do…
Instead, Do Whatever It Takes to Dominate
At the end of the day, there is only one way to become a badass business owner…
FORGET ABOUT COMPETITION AND AIM TO DOMINATE YOUR SECTOR.
Being the master of your industry, market, and niche takes big thinking, discipline, and doing whatever it takes to make your company a success.
This isn’t just motivational mumbo jumbo, either.
I’ve given you the steps. Anyone can follow those.
But if you don’t go after this with enthusiasm and a fire in your eyes, you’ll get an average level of profit.
However, this is a million-dollar business owner’s playbook. So, I already know you want more…
You just have to be willing to go after it.
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