← Action Academy | Millionaire Mentorship For Your Life & Business
Action Academy | Millionaire Mentorship For Your Life & Business
The Fastest Way To Turn $100k Into $1,000,000 + (yeah, seriously)
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What's up guys? In today's episode, we're going to be covering the fastest way to take $100,000 and turn it into a million dollars plus. No, it's not bitcoin. No, it's not day trading. I would say no, it's not even commercial real estate. This is just what we have done personally and I want to share the story here because we are talking about how specifically we pull this off through business acquisition. So first off, we'll start off with an idea, then we'll get into the story and the actual way that this happened and then the lesson that you can learn from go apply into your life and hopefully where you go buy a bunch of businesses and make a bunch of money, namely millions of dollars. From the title of today's podcast episode. So my girlfriend is an insurance broker currently, until I get her out of her job. Haha. But so yeah, so she's an insurance broker. And the guys and girls in her brokerage, mostly guys, I think like 98% male in her brokerage, they make a lot of money. So they're essentially in the sales game. And anything from insurance sales to tech sales to uniform sales, like I did, you have a lot of skill sets and you make a lot of money. And so I was talking to my girlfriend and she's like, there are so many freaking badasses in this company that if they owned a business, would make millions and millions and millions of dollars. And I thought back to when I was working at my uniform company, I could name 10 to 15 people that all off the top of my head where I was like, God dang man. If they owned any company, if they owned a plumbing company, an H vac company, if they own any company, they could freaking figure out how to generate large amounts of profit for that company of something that they own a hundred percent of. Instead of you getting a 10% commission, you get the 90% of the sale and you pay your sales rep that works for you, a 10% commission. And so that's where I want to start this off today because it's a very valuable lesson. A lot of you guys that listen to this podcast podcast will listen for one month, three months, three years, and you won't even book a call with Action Academy, our community, because you think that you aren't deserving of buying a business, that you can't do it. And that's absolutely ridiculous. There are most people shouldn't buy a business. But if you're listening to this podcast every single day, every single week, I would venture to say that you probably are in the minority percentage of people that should buy a company. And so it's insane to kind of see this happen year after year after year of you guys just convincing yourself that you're better off as an employee. Like that is just insane. And so today, the story that we're going to share is the story of Pearson, one of my business partners and operators of two of the businesses that we purchased. Kitchen cleaning company. So we clean kitchen hoods. So it's think about a fry cook in a commercial kitchen. Vent is above all the grease splatters up. Hoods capture all the grease and we go clean the hoods by law. So Pearson was making $167,000 in a sales role. He was a sales professional in the restaurant industry. So he was already kind of sort of in the same industry, selling to the same buyer Persona, right? And then, good God, how long was it go? Two years. Was it freaking two years ago that we bought a business together, our first business? I think so. And so me and him buy the company together and I'm like, this guy's going to crush it. And fast forward to today in, well, In February of 2026, he won all these awards as franchisee of the year, rookie of the year. As the business owner. As the business owner. So just remember, this was a guy that was winning awards as a sales professional, as an employee, and now he's also winning awards as a freaking business owner. And now here's where the hundred thousand dollars to a million dollar jump comes, right? Because a lot of you guys are trying to buy these companies and you're like, oh, I want to replace 100 to $300,000 of cash flow so I can be financially free. That's cute. You can do that if you want. But I would venture to say that most of us, as soon as you buy that company, you, you're going to dive in, roll up your sleeves, get your hands dirty, and turn that freaking a hundred thousand dollars into a million. And it's not as difficult as you think. It's not complicated. It's not some crazy formula. On paper, it is literally very, very simple fourth level, fourth grade level math. And I want to cover that math with you right now. So for you to make a million dollars in equity or in personal income in a W2, what is that? Maybe 1%, 2% of all W2 sales reps or professionals, unless you're 40 years deep in senior leadership in C suite, it just doesn't happen for you to Be able to make a million dollars plus. However, if you own the company like Pearson does, he was making $167,000 in his job of being the best. When you own the company and you buy that company at a 4x multiple of profit, I think that we bought hoods at 5x multiple of profit. Okay, so let's say that your profit's $400,000 and you buy that at a 5x multiple. What's the valuation of that business? $2 million. Right. See? Easy math. Fourth grade math, elementary school. Anybody can do this. Kids could do this math. If you buy a company, any company, at a 5x multiple in the market rate for that day one of purchase of acquisition is 5x or 4x multiple. Okay? Every $200,000 of profit that you add to that company is a million dollars of business valuation. That's called Enterprise Value EV. Every $200,000 of profit. Now, you may think, oh, well, that seems like a lot. Back up. If you're making 100,000 to $300,000 as a sales rep, you are probably bringing in millions of dollars of revenue and already that same amount of profit in yourself, to the company. Like, for me to make a quarter million dollars a year, I generated about $7.1 million in contracted revenue for my company back when I was employed a fortnight ago, like, for, what was it, 40 years now? Dear God. Holy crap. We're coming up on four years. And even when I was doing affiliates on this podcast in 2021, 2022, you know, when I started this podcast as a side hustle, I was, you know, affiliating. So I was basically promoting masterminds that I was in, coaches I was using, and I'd get a 10% cut. I'm like, wait a second. Say I could just do this for my own business and I could do it better. And that's what I chose to do. And that's how Action Academy was born. And then in 2023, we launched the community. And now here we are in 2026, three years later, it gets even crazier. Is the jump in Multiple valuations from $500,000 to a million versus a million to 2 million are w different. So if I get up to $5 million in profit, we're looking at a 7 to 8x multiple because of that profit level of a business. That's where private equity wants to come in and they want to play. So if you're doing $5 million of profit, that probably means you're doing 12 to $15 million in revenue. And this is the game that I play. Like this is what I'm choosing to focus on. I don't go do a million different things. I'm just like, oh well, I'm just going to do that. Like, why don't I just focus on one business for multiple years, for a decade and then just passively invest in these other companies? And so the moral of the story is today, not even mine, it's of Pearson Pearson winning these awards, going from $100,000 guy in corporate to now, every single $200,000 of profit that he adds to his company, he gets a 5x multiple in return of that profit. Now of course there's business partners, there's investors, myself included, that are included in all of that. And there's debt as well. But still, that is insane. And now what you do is you can go even crazier, which is say that you added $200,000 of profit organically, right? And you get million dollar extra valuation. What's to stop you from buying another company that cleans kitchen hoods that is already doing another $500,000 of profit and you just combine them together and all of a sudden you just not only added $200,000 of organic profit, but you just added $500,000 of acquisition profit. So now that's $700,000 of profit and you combine them together. So now what does that equal? And that's called the roll up strategy. That's called the bolt on strategy. That's what we're doing currently right now, just year after year, we're like, okay, well what's another company that we can add to it? What's another company we can add to it? What's another company? And so you guys see the difference? Like this is the game that I've four years now and I'm just going to keep playing this for the rest of the decade. And while I'm playing this game, you guys are still trying to get 6% raises. I don't even think you get 6% raises in corporate. I don't, I'm so far removed from corporate, I don't even know what you get. Do you get 2% raises? I think 6%'s inflation. Do you get 2% raises? It's insane. So stop playing these games, guys. Why are you playing these games? You need to get out. Like, hopefully just this idea of how this works will get implanted into your brain and you'll actually do something about it. Like, it's absolutely ridiculous. And so the closing of this is like, send this to somebody that is making a bunch of money that you think is a highly competent individual in corporate America. Like, give them the math. They need to know the math of this. Because anybody that's a high performer would listen to this and be like, no shit. I can add $200,000 of profit to a business I buy. Duh, of course I can. I could do that in my sleep. You should be a business owner. Thousand percent. So if you guys are enjoying the podcast, of course, share this with somebody else that you think you get value from it. And if you've been listening and lurking for years or months or even weeks up to this point, dude, Action Academy, our actual business, our community, our mastermind. Like, this is what we do full time. Is this. So, like, come in and we'll literally hold your hand and kick your ass through every single step of the business buying process so that you can make millions of dollars, too. That is the goal. Thanks, guys, and talk soon.