Scenario: "We're going to be sofareaking rich with this opportunity, and it's gonna-be-sofareaking easy. High-five!" So, what does Billy and his cronies do? They go through the cycle of doom:
- Start a project.
- Find no real big success.
- Repeat cycle with another project.
Why Entrepreneurs Fail
Why do 90% of entrepreneurs fail, and return home to their mamas? Probably because of this:
- Peeps think making big bucks = easy, with their "ideas".
- Peeps pitch their ideas to the real world, and make measly cents.
- Peeps then either (1) give up, thinking their ideas suck; or (2) start different businesses thinking that'll instantly make it big -- which won't happen.
Here's the rule:
- Making it big takes time.
- Making it big takes persistence.
- Making it big takes consistently improving.
- Making it big takes small-wins-on-top-of-small-wins.
How Much Can You Earn This Week?
Say your goal is to build a million-dollar business.
- "But hey! I can only earn $100 this month!" you scream.
And, so we're like -- "Hey doodsie, no problem! You can still do it!" Here's the deal-i-o:
Tell yo-bad-self: "I will improve my startup's earnings by ___%, monthly." Ta-da-sha-bam-dizzle! (one.of.the.greatest.stuff.we.know)
The $1,000,000 Formula in Action
Your scenario: "I will improve my startup's earnings by 20% monthly!" (Fortunately, your earnings growth is sky-high when you're starting.) So, you tell yourself and your company:
- "Each month, we will be 20% more efficient."
- "Each month, we will talk to 20% more prospects."
- "Each month, we will close 20% more business."
- "Each month, we will cut our costs by 20%."
- "Each month, we will improve productivity by 20%."
The magic of the 20% compounding rate on your company's monthly earnings:
- Month 1 earnings: $100.
- Month 2 earnings: $120.
- Month 8 earnings: $358.
- Month 12 earnings: $743.
- Month 16 earnings: $1540.
- Month 20 earnings: $3194.
- Month 24 earnings: $6624.
- Month 27 earnings: $11,447.
- Month 31 earnings: $23,737.
- Month 35 earnings: $49,222.
- Month 39 earnings: $102,067.
Ding, ding, ding! You just put your business on pace to earn over one million bucks over the next 12 months, oh-no-you-didn't! "Oh, yes I did!" you holler. With your consistent improvements over time, you gradually built a ridiculously wealthy business that's on pace for another ridiculous run. While Billy's home with his mama tinkering with another idea, you celebrate cruisin' the docks, sipping your juice, and basking in the glory of it all. Congrats-to-you.
Consistently small wins, playa.
Posted on September 18
Next tip »