Loading summary
Transcript10 lines
- [00:01]
MasterCard Representative
Running a small business takes endurance, determination and the right support to reach your goals. And MasterCard is here to help fuel that journey in a fast paced digital world. With innovative tools and resources. We're here to guide businesses every step of the way digitally. Because when small business wins, everyone wins. Let's power up our communities one small business and one step at a time, keeping the community running strong. Priceless.
- [00:31]
T-Mobile Representative
It's better over here at&T customers switching to T Mobile has never been easier. We'll pay off your existing phone and give you a new one free. All on America's largest 5G network. Visit t mobile.com CarrierFreedom to switch today.
- [00:48]
Pay off up to $650 via virtual prepaid MasterCard in 15 days. Free phone up to $830 via 24 monthly bill credits plus tax qualifying port and trade in service on go 5G next and credit required. Contact us before canceling entire account to continue bill credits or credits stop and bounce and required finance agreement is due.
- [01:08]
Omar Zenhom
Hey everyone, welcome Back to the $100 MBA Show. I'm Omar Zenholm and in today's lesson, you will learn the fastest way to make a million dollars. Now let's get something clear first. What do I mean by a million dollars? Are we talking about just a million dollars cumulatively or a million dollars a year? Are we talking revenue? Are we talking profit? So for today's lesson, we're going to be talking about how to make a million dollars a year in revenue. Because if you're hitting a million dollars a year in revenue, you have a viable business. You have a business that's providing something that people want enough for you to make that kind of money and it has potential to grow beyond that. And this is what I've seen with many businesses that I've mentored and many entrepreneurs I've worked with that once you hit the million dollar revenue mark, sky's the limit. You really can go beyond that and you have something that's really got product, market, fit. So I'm going to walk you through what are the five things I think are most important to get you to a million dollar business as soon as possible. And these are things that worked for me. In my experience, it took me some time to get there and once I got there I looked back and I thought, man, I worked on a lot of things that really didn't matter. But these five things I'm going to share with you today really do matter and really make all the difference to helping you get to that million dollar mark. But before that quick stat that might surprise you. Did you know that the average self made millionaire took about 12 to 20 years to make their first million? That's according to a study by the Ramsey Solutions Group. Think about that. 12 to 20 years. Are you willing to put in the work, even if it's minimum 12 years to get to that point? So it's not an overnight thing. It's not something that happens in a matter of days or weeks. It takes a lot of years because it takes years to become the person you need to become, to put pull that off, to be able to provide that kind of value to the world, to make that kind of revenue. So today we're going to be focusing on some things I think that will fast track that a little bit. Based on what I've learned through my own experiences through building businesses, whether it's on the side when I first got started or full time with my software business or this business, the hundred dollar mba. I'm going to show you what works, what doesn't and what to focus on so that you can fast track your way to a million dollars a year in revenue. Let's start with the first one which is build a scalable business. Let me define that. Too many people think they can become wealthy or millionaires or making, you know, multimillion dollars every single year. Being a solopreneur or being a freelancer, it's very hard for you to do this when you're exchanging time for money. You really need to build something that scales, that you can be able to produce once and then sell over and over again. Regardless if you're working or not, regardless if you're around or not. A good example of this is like a product or service that other people are providing. You know, if you have an agency for example, that's providing services, this is a good example. So one of the easiest ways to do this is through technology. You know, building a software like I did, webinar Ninja or building an online course that can be sold regardless if you're working or not. It can be sold on your website, online or providing some sort of service like say marketing services or website design. And you have a team of people that are doing this for you that can scale. So a scalable business is something that I really recommend. This kind of is a no brainer, but a lot of people think they can just kind of get started as a freelancer or a solopreneur and they can get there. It's much harder to do that when you're trying to you know, swap time for money. And what you want to do here is get out of that equation and start scaling with other forms of leverage like we talked about before, like labor, like capital, like technology, like media. For example, when I was running my software company, Webinar Ninja, that I started and grew for 10 years with my team and my co founder Nicole, and eventually exited, every day I would wake up in the morning when I was working on the software and I would see sales from customers, you know, buying my software when I was sleeping. Because we built the product, it serves our customers, they use it, they could buy, they could check out anytime online. Super simple. It takes some time to invest to build an asset like that, but then it reaps its benefits, it reaps the rewards as you start improving it, growing it, and start selling it over and over and over 24, seven around the world because of the beauty of the Internet. So I really got a good tip taste of how amazing SaaS businesses or software as the service businesses are. And it's not the only way. I mean, but it's a, an example. You could sell courses, you could sell, you know, consulting, like I mentioned, that is outsourced from other people, services, anything that is a digital product, a book. All these things are things that you create once or provide and then you can provide without your input. So start asking yourself, how can I leverage my skills to create something that doesn't require me to trade time for money? Focus on building a scalable product or service on a platform that can, can allow you to grow. And essentially what happens here is you become a creator, you become a manager, you become a recruiter because you're hiring people to produce this stuff for you eventually. So that way you don't have to actually be there to make it happen. So number one is build a scalable business. This doesn't require you to trade time for money. Number two, focus on high profit margins. I can't tell you how much this is not talked about. A lot of people don't talk about profit margins. Profit margins are going to allow you to keep more of what you are getting in terms of revenue because your expenses are far less than your revenue. Now the reason why profit margins are so important is because you could take those profits and reinvest in your business and grow it faster. So for example, let's say I made $10,000 in revenue in a month and my expenses are only $2,000. That means I made a profit of $8,000. I could take that $8,000 reinvest it into my business to get me another additional $10,000 in revenue. So next month I'm making 20,000 in revenue. So you get the point. The point here is that it's hard for you to really scale and grow and get to that million dollar mark if you don't have high profit margins to allow you to reinvest in your business. I'm a big believer in marketing and investing in marketing. It's a great way for you to get known and get enough customers to get through your doors so that you can get to that point of that million dollar mark. High revenue businesses with low profit margins will keep you stuck in the cycle of working hard without seeing any substantial financial. The key is to focus on businesses with high profit margins where your costs are low but the value that you offer is high so you can charge a good amount of money and keep those margins fat. The highest profit margin type businesses are any kind of business that doesn't cost you so much money to produce or to sell every single time. Like I mentioned, ebooks, courses, a software. These are high profit margin businesses because you create them once, of course, you have to maintain them, you have to update them. But every time you sell it to a customer, there's no cost involved. You already paid for that cost because you created that software or created the book or the course. So basically, let's say for example, you create a course and you sell it over and over. Every time you sell it to a customer, you're just selling a login really to get access to that course. And it's really not going to cost you much more if you have one customer or 100 customers. So this is a really scalable type of business that of course has high profit margins because you're not shelling out cash every single time you need a supply. That of course has high profit margins because you're not pulling out cash in your pocket every time you need to serve a customer. You know, one of the businesses that have low profit margins that are very popular these days is E Commerce. You know, E Commerce is a tough, tough business. I know. I had my own clothing line for a good number of years. The reason why I don't have it anymore is because the profit margins are really sad. They make you cry every day, you know, because every time you sell a product to a customer, it costs you money because you got a shop ship it to the customer. You got to actually create the product that costs you money. That individual product, that shirt or whatever it might be, and then that has A cost and then you got to sell to the customer. There's so much cost involved. Every single time you sell to a customer, your margins are quite thin, let alone you know, your team expenses, you know, the website hosting, all those other stuff that you have to pay for to keep that business alive. So the point here is that if you create something and then you can sell to a customer over and over again, or many customers, and it doesn't cost you much more to sell to one customer versus 100 customers, this is a high profit margin business. So whatever you're doing right now, if it's not a high profit margin business, ask yourself what can you do to make it a high profit margin business? Can you make it into a product? Can you take that service and make it into a product? Can you transform it into some sort of service that is fulfilled by other people? Can you create a digital tool or sort of course or guide around that topic so that you don't have to put in the work and the time every single time you need to serve a customer? Ask yourself the these questions. It'll get you thinking how to get a little bit more profitable. Number three, super important niching down by using your unique skills and experiences. So many people forget that you have experience in life. You have skills and you kind of sometimes neglect these skills. For example, I was an educator, a high school university teacher in the classroom for over a decade, right? When I transitioned out of my full time job into full time entrepreneurship, I didn't just neglect my teaching career. This is all I have. These are the skills I have. This is my experience. I'm going to use everything to my advantage to try to win at this thing called business. Okay, so what you want to do here is you want to niche down, meaning you don't want to serve everybody. You want to actually serve a submarket using your skills and experiences. For example, I started a software company called the Webinar Ninja. It's all about webinars. And webinars are about basically teaching online. It's sharing what you know to build trust and make sales. Right? So I used my skills as a teacher to show how this product really works and how it's beneficial. And I used to run webinars with my software to sell my products or services. I used my unique skills and I didn't just serve everybody, I only served other people that did this for a living, right? Coaches and creators. That was our niche for Webinar Ninja. So here's a piece of advice I wish somebody told me when I got started. I learned this the hard way. But you really want to niche down as much as possible so that you can really have a big chunk of that market. Okay. A good understanding of what I'm talking about here is what market can you dominate? Meaning you can have 50% or more of that market share within 12 months. Right. With, you know, reasonable amount of marketing and, you know, promotion. So that's how niche you want to go when you get started. You can always kind of expand out of that as you dominate that market. So say, for example, you want to appeal to people that want to learn how to play the piano. But. But there's so many people that want to play the piano. You want to niche down. What market can you dominate or be, you know, have 50% of that market share in less than 12 months or within 12 months? Let's think about that. Okay, so maybe I have some experience teaching adults. Maybe I was teaching night school or something like that, and I teach adults. So I'm going to teach adults how to play the piano. Right. Well, also, I'm going to teach adults who play the piano, has never learned an instrument, music and instrument. I'm also going to teach adults that play the piano that never learned a musical instrument, that can't read music. Okay, what else? I'm gonna teach adults who want to play the piano and they want to learn to play piano, but they're not trying to do it as a profession or try to become professional piano player. They want to just do it as a hobby. They want to do it, impress their family, maybe on Christmas and play a tune. Right. Actually, I'm gonna niche down and just teach people how to play piano Christmas songs, and they're 45 and above. Right. So I'm trying to niche, niche, niche down so that when I go into this market, I can dominate and I'll be everywhere and everybody think I'm the person that they need to teach from. And in their bubble, in their world, I seem like this big deal. And once I've dominated a market, have 50% market share or more, I can then expand. I can then say, okay, maybe I'll just remove one of those variables and go a little bit wider, a little bit wider, a little bit wider. And that's how you get traction and get some wins under your belt and become a market leader quickly. It's better over here.
- [13:50]
T-Mobile Representative
After investing billions to light up our network, T Mobile is America's largest 5G network. Plus right now you can switch, keep your phone, and we'll pay it off up to $800. See how you can save on every plan versus Verizon and at&t@t mobile.com KeepAndSwitch.
- [14:09]
Up to four lines via virtual prepaid card.
- [14:11]
Allow 15 days qualifying unlock device credit.
- [14:13]
Service ported 90 plus days with device ineligible carrier and timely redemption required. Card has no cash access and expires in six months.
- [14:20]
Omar Zenhom
As entrepreneurs, when it comes to our finances, it can get confusing. It can get overwhelming, from expenses to vendor payments. Reconciling accounting It's a lot if you're looking for a better way to simplify your finance operations, Ramp can be a complete game changer for you. Ramp is the corporate card and spend management software designed to help you save time and put money back in your pocket. I like the sound of that. Ramp gives finance teams unprecedented control and insight into company spend. With ramp, you're able to issue cards to every employee with limits and restrictions and automate expense reporting so you can stop wasting time at the end of the month. This allows you to delegate certain tasks that require them to pay for things without you worrying about security. One of my favorite features is RAMP's accounting software automatically collects receipts and categorizes your expenses in real time so you don't have to do it. This makes reconciling so easy you'll never have to chase down a receipt again, and your employees will no longer spend hours submitting expense reports. The time you'll save each month on employee expenses will allow you to close your books even faster. Ramp estimates eight times faster. Businesses that use Ramp save an average of 5% the first year and now get $250. When you join RAMP, just go to ramp.commba ramp.commba R A M P.com MBA cards issued by Sutton bank member FDIC terms and conditions apply. A business that comes to mind is a business called the still, which focuses exclusively on indoor plants for apartment dwellers. They didn't try to sell everything to everyone. They focused on a niche and became the leader in that space. So you want to narrow down your target market and focus on solving a specific problem for a specific group using your unique skills and experiences from the past so that you can really resonate with that target audience. And a good way to kind of get started is like, what market can you get to 50% market share within 12 months? That niche down? Number four solve a painful problem In a growing market, the biggest businesses solve the most painful, urgent problems for their customers. Okay, the more painful it is, the better. You want to sell something that people Feel like a pressing need for. Okay. And your solution will allow you to fast track your results. All right. Too many people are not attempting to build businesses that are actually solving a painful problem. When you do this, when you actually go after solving a painful problem, even if you don't solve it completely, even if you don't solve it very well, you will still attract a lot of customers that are happy to pay because they're desperate. Okay. And what I call this is like pushing a boulder down the hill rather than up the hill. Too many people are trying to build businesses that are pushing a boulder up the hill, which is incredibly painful. It's really hard to get momentum. But pushing boulder down the hill takes minimal effort, and there's a lot of momentum. You have gravity on your side. An example of this is a company that sells these cards called Workshop Tactics. Okay, Workshop Tactics. I have their other deck of cards, also called Storyteller Tactics. But the reason why I bring this up is because now remote work is quite popular, and a lot of people are working from different parts of the world. But often people or companies will bring their teams together to a team retreat and will. What do you do with these team retreats? How do you actually run workshops? How do you make sure people are collaborating? How do you make sure that people are having a good time and learning about the company or expanding upon their knowledges or we're learning from each other? Well, this product is great for that, right? It shows people how to do this with a deck of cards, which is pretty cool. This is a shameless plug to them. But I have no affiliation with this company, but I just use their product. I love it. And we used it in our own team retreat with our companies. So these are just basically ways to collaborate and do workshops. And these cards have different themes and different things to do. But the reason why I bring it up is because this product is in a growing market. It's part of a growing market of people working remotely and companies doing team retreats, more team retreats, because they want to meet in person, whether it's like off sites every quarter or whatever it might be. And these companies and these team leaders don't know what to do, how to facilitate some of these workshops when people haven't seen each other in person that often. So good example. Solving a painful problem. Because you have to get this done. You have to do workshops at a team retreat. There's no way around it, right? And at the same time, it's in a growing market. Number five, this one is huge. And it really changed a lot of my businesses big time. And that's hire great talent, okay? One of the fastest ways to scale your business is to hire people that are smart than you, okay? Better than you. Can do whatever your business requires. Better than you, okay? A lot of us as entrepreneurs, as doers, as go getters, we have a high opinion of ourselves. And I'm here to tell you that we're not that special, okay? We learn something, we know how to do something, Other people can learn it even better, can do it even better. And the best entrepreneurs I've seen are the people that build an incredible team around them with people more talented and smarter and more efficient and better. Better than they are. And that's really what makes you a great entrepreneur, is being a great recruiter, right? The right team can help you expand quickly, more efficiently and build a better product or service for your customers and solve that painful problem. Better than your competition. Listen, I started a software company and I am not a coder, right? I'm a very amateur engineer developer. I can barely, you know, code an HTML, css, a bit of php. I'm nowhere near as skilled as I need to be to build a complex software like webinar, right? But I built a great team of engineers. I found some incredible leaders, a great CTO along the way that helped me, a great infrastructure person, to build my infrastructure on aws. So my app scales and it's reliable on the servers. The point here is that, like, I didn't have all the skills I needed, right, to build a great software company. It didn't mean, oh, software company, out the window. I'm not going to do it. No. I'm going to find people that can do it and I'm going to get them to be part of my team. I'm going to sell them on my vision. I'm going to tell them what I'm trying to do here, pay them well because they're talented, and then I'm going to go ahead and build that thing and scale my business. So one of the things a lot of people do, they try to find a diamond in the rough. They try to find somebody who's inexpensive but really talented. I'm not going to say they don't exist, but they're really hard to find and they're probably going to elude you. You're not going to find them consistently. It's actually much better to find somebody that is expensive, right? That is talented and can get the job done. Because I found especially it comes to technical Skills. You know, the most expensive people are 10 times more productive and talented than somebody who's just slightly less expensive or a little bit less expensive. And they can do so much more. They could build so much better software, they could build better products, they could design better pages on your website, whatever it might be. The point here is that don't go cheap on talent. Get the as talented person that you can afford because they're going to get you that return on investment by building your great product or business or whatever. You need to be able to fulfill your goals as an entrepreneur. If you don't have the money to hire somebody, think about getting a co founder that you know complements your skills. If you're good at sales and marketing, but need a technical person, find a CTO and they can become your business partner or vice versa, whatever it might be. Right? But in my opinion, you just can't do this alone and build a profitable, affordable, scalable business without the help of others. I'm not saying it's impossible, but you're making your life harder. The fastest way to make a million dollars in revenue isn't about luck. It's about strategy. It's about building a scalable business focusing on high profit margins. Right? Niching down. Okay. And using your expertise and your experiences in serving that niche, solving real problems, real pains that people have in a growing market and hiring great talent. Right? You can accelerate your journey to financial freedom and hit that million dollar revenue mark a lot faster than I did. At least by following these five that I've learned the hard way. Okay, thanks for tuning into the Hundred Dollar Ba show. Hope you found this episode valuable and you're ready to implement these strategies. Don't just, you know, listen to this. It's great. Thanks for listening to the podcast or watching it on YouTube. But I want you to implement. Even if you just take one of these and implement them and start practicing them and start making a part of your daily life and part of the business, you're building imp where it's at. Right? That's what's really going to take you from 0 to 1. This is what's going to take you to the next level. Or take you wherever you want to go beyond the point you are today. Right? Don't just consume information. Implement, even if it's just one little thing. Thanks so much and I'll check you in the next episode.
- [23:48]
T-Mobile Representative
There's saving for retirement and then there's living in it. At Fidelity, we can help you make that transition and plan for whatever comes Next Next With a free personalized income plan, you can view and manage your cash flow across accounts. Plus, you'll get investing insights to help you make your savings. Last Ready to take on retirement? Get started@fidelity.com incomeplanning expenses charged by your investments and other costs and fees associated with trading or transacting in your account. Apply Fidelity Brokerage Services member nyse, SIPC.