I got some great love and some great hate by outlining how to make $500k in 4 years. There are other ways to make that kind of money than buying a business, but I dive into the simple version here.
I had a LI video that was polarizing. I’m going to talk about it here.
I’ll breakdown the numbers in a second but I outlined how you can make $500k in years by being a business.
I had dozens of people reach out and say that video was awesome and opened up new possibilities.
But I had another 10 or so, reach out and complain that I forgot taxes, or made it sound easy or I forgot a personal guarantee or 10 other things.
Yeah of course. If it was easy, everyone would do it.
Not a single person gave me a better way to make $500k in 4 years. Not one. They just complained.
I don’t care really. I thought it was interesting to see people’s view of the world, their insecurities and fears.
PEOPLE PUT THIER FEARS AND TRAUMAS OF THEMSELVES IN YOU.
Yes, you can get lucky and have stock options at your tech company crush it. Yes you can sell one huge deal, etc. Get in on bitcoin in 2014, yeah yeah yeah.
Those aren’t normal or even realistic for most.
This is an exercise. If you wanted to make $500k in 4 years, how would you?
Serious question. How would you?
Personally, I think you can start a business or buy a business.
Super rough numbers and yes,
The Math is simple. The equation makes sense. But it’s hard.
I’ve never said buying a business is easy. I’m not selling anything here.
I never said you didn’t need to take some risks. Of course you do.
SBA’s come with a personal guarantee. Unless you take some risks somewhere or have a trust fund somewhere, then you need to take some risks.
I”m not Tony Robbins but the biggest risk most face is being in the same spot in 5 years. No progression.
More specifically, no financial progression.
BUT back to my model.
Many online businesses don’t require more than 10-15 hours a week. Maybe you don’t have that. Whatever. I didn’t say making this was easy.
If you say you don’t have 10 hours a week, then stop listening to this podcast and cut out a bunch of things.
You can choose to do it or complain about it. Or come up with your own way of making $500k in 4 years.
This is not the only way.
If you have other ways, I’d love to know. I’ll add them to the pod and create a list for everyone to see if you want me to share it publicly.
$100k a year. Buy for $300k. 3x multiple. Super common and normal.
$30k down. $270k SBA.
This takes 15 hours a week. You DON”T quit your day job or pay yourself yet.
You aggressively pay off debt. You will pay it off in 3.5-4 years.
At the same time, businesses of these size grow at 10-20% usually. This is conservative. I had someone reach out and tell me my numbers were way too conservative.
I agree but it’s for the haters out there.
20% annual growth will double in 4 years.
Your $300k biz is not worth $600k. You sell in year 4 for a lump sum. Your $30k and hard earned time got you to $500k.
Now what would you do with $500k in a lump sum?
Please share with your friends. Please share with me your ideas on how to do this or how to make $500k in 4 years.