By David O.
Regardless of what you do, there is someone who is not as good as you currently are who is making more money. The secret is in something most people think so little about — the environment. Who you do business with determines to a large extent the kind of money you will earn. And some people become millionaires so fast because they are in an environment where millions circulate easily. That is one reason, but there is more.
This Makes a Huge Difference
A wise man once said that if you find a very successful person in business in the 20s or early 30s, check who the friends are. These successful people are those who “eat with elders”. They can have mates that they roll with, but they regularly listen to the successful people that have gone way ahead.
Another reason people become millionaires so fast is that they got help from other millionaires. If you are among a group of people who have made multiple millions, it is easy for you to make it too.
First, they will make a million small in your eyes. This is the first step. And then, they will attract to you the resources they have that have created their fortune.
You will also have access to their insight, especially the things that took them years to figure out. The connections they’ve built all those years will be of tremendous benefit. Others will be struggling to figure it all out alone on their own.
When any person gets help from other millionaires, they rise to the top faster.
Some Numbers Work Better Than Others
There are two types of business profit models. The first one is where the business has to sell a lot of products (or offers) because they make a marginal profit on each sale.
The second model is where the transaction size is so large that a lot of money is made on just two or three sales. This model is more likely to get anyone to millionaire status than the other one.
But it takes certain skill sets to master the second method and it is more delicate than the first method. Making a million dollars is somewhat a numbers game. You can calculate how much sales you’d have to make in your business to get there.
For example, if you make $1 profit on each sale, it means you’d have to make a million sales to get to a million. If that is the case, then the product or service better be something people buy easily and repeatedly.
A Valuable Tip from Ray Dalio
Ray Dalio is a billionaire investor and he said something every entrepreneur needs to think about. He said:
“I just got good at something that if you get good at, you’d make a lot of money.”
People who become millionaires so fast rarely do it in a unique or novel way. Those with unique pathways to success often go very slow. The faster path is the path where it has been established to make people millionaires.
Too many people make the mistake of getting good at something that isn’t so profitable in the long run. If every other person you have heard about has struggled with the business, why do you think you’ll become super successful at it?
It is difficult to be a pioneer and be successful very fast. Pioneers pave way for others. But fast millionaires take the path that has already been paved. Trying to reinvent the wheel takes time — a lot of time.
So, people who become millionaires so fast get good at something that has already made countless millionaires. Not one or two millionaires, but hundreds and thousands of millionaires. So, they are not the first.
The Billionaire Blueprint
Becoming a billionaire is similar to becoming a millionaire. There is a pathway that almost guarantees it if you can walk in that pathway. But the pressure is something though.
The first stage is to begin a startup. Create a minimum viable product based on bootstrapping.
The next stage is to seek funding. And the success of this stage is based on several things. This is often the most difficult phase for entrepreneurs but those who “eat at the table of elders” find it quite easy.
The following stage is getting the startup viral. If the startup doesn’t go viral somehow after the first funding, it will be more of a struggle. Nothing is impossible, but some things are very difficult.
After going viral, the next step is easier. And that is raising more money. Now, they don’t need to explain themselves to investors any more. Investors become the ones chasing the startup.
With more funding secured, the business can scale. And scaling means that they can create processes or systems where the business can run without the presence of a particular person or thing. A startup that is successfully scaled can run on autopilot. The business now has a strong community.
After scaling, then the business can expand. To expand, the business needs more funding. This is the easiest funding process. Investors can already see the inevitable successful future.
After that round of funding, the business must achieve profitability. And not just small profits but sizable chunks. And that leads to the billionaire move.
The final billionaire move is IPO. Some companies don’t even wait until they are profitable to do an IPO. An IPO is largely based on timing. The timing must be just right. And just like that, the founders hit billionaire status if the IPO is successful.
Sounds simple, but a serious challenge in reality. But it is a game some very wealthy people have gotten good at.
These are the reasons some people become millionaires so fast:
- They have help from other millionaires
- They have a huge transaction size
- They got good at a game that has made countless millionaires already
- They follow the Billionaire Blueprint
- They do business in an environment where millions circulate
What advantage are you going to maximize in your case? Think about that. Cheers.
David O. writes what he’s been doing: “Bringing you new perspectives about money, entrepreneurship, investing, and psychology. Be a hero to someone today :)” He is a #1 Amazon bestselling author. This article first appeared in Medium.