By guest Moises Hamui:
Nowdays the dream of building a huge profitable company that might potentially make you a millionaire is really difficult; you have to find a problem for a big enough market, come up with an amazing idea to solve that problem, prove that people will be willing to pay for it, get funding, work shit hard ( although the “work hard” part applies no matter what you do in life) then hope that all of the stars above you line up to make your company succeed.
After all that if you want an exit, then you have to become one of those dudes that are less than a 1% who sold their company for more than 10 million. Do you even know the probabilities of that happening? I don’t what to disappoint you but it’s really f*ing improbable to achieve that. We only hear about the success stories, but there are thousands of failures for each success story that we don’t hear about.
So I rather work with the probabilities of creating a company that achieves 10k-20k per month in profits which after all my research, I found it was WAY more probable than building a unicorn.
Also, I prefer the idea of building a profitable businesses instead of building a “startup” since the cute dream of getting funding to justify growth and impact most times doesn’t pay off that well for investors. Business take time and patience, and reinvestment but still you can build a self funded business that is profitable in a couple months.
So I thought, why I don’t simply create as many 10 to 20k/month profits companies as I can?
Then it began; I founded my first company and took me 8 months to get to that point, and on parallel 4 months after founding the first one I reinvested all my profit and founded a second one 4 months later the second one also achieve my profits goal.
So that is my plan, I will keep reinvesting as much as I can in letting my companies grow at their rhythm and building as many “small/medium” companies as I can (and feel excited about) on the way.
I guess what I’m trying to prove is that all the glamour of becoming the next unicorn is all about ego. When you realize that you can love many companies and still become a millionaire without all of the hesitation of raising capital, suffering after 10 months because you are running out of money, and do it all over again until you go broke or succeed, then you can honestly choose your path without fairytales.
My advice as of now: Just create a company that can be successful and profitable since the 2nd month. I promise you’ll be way more relaxed and excited about it.
So, in case you are interested in how to do it, here are my steps on how to build a company that can give you the ROI that you want.
- Found a niche market
- Found a great margin product
- Invest 20% of the value of the product into marketing
- Create an e-commerce (Shopify is a great option)
- Outsource your packaging and shipping
- Enjoy the sales.
So stop your hero story and leave that ego behind just create things and make money and add value. Companies like Snapchat that doesn’t create enough revenue for such a long time, are really hard to build and even more hard to sustain, to be completely honest I rather use the odds for me than against me.
It is still going to take sh*t loads of work and time but it will be safer and more realistic throughout time.
This is just my current strong perspective, and there is space for all perspectives so I would love to hear yours.
Let me know your thoughts in the comments and find me on:
By Alex – the yogi coder:
This is Moises, a good friend of mine and a successful businessman, I respect his hard work and perspective on business and growth marketing, that is why I invited him to write on my blog, hope you enjoyed it and let me know your thoughts on this type of collaborations I just want to bring more perspectives to the table.