17 Years of Business Lessons: From 6 to 9 Figures

The Journey from 6 to 9 Figures

Scaling a business from 6 to 9 figures is no easy feat. It requires strategy, perseverance, and often a complete shift in mindset. This article breaks down the key lessons learned over 17 years of business experience, providing a roadmap for entrepreneurs looking to take their ventures to the next level.

Rule 1: Never Lose Money

The first and most crucial rule in business comes from Warren Buffett: "Rule number one, never lose money. Rule number two, don't forget rule number one." But how do we apply this in practice?

Start with a Side Project

Instead of quitting your job and going all-in on a new venture, start with a side project. Keep your day job while you're building your business. Use your salary to fund your side project rather than taking on debt. Only leave your job when you have enough cash flow to cover your expenses.

This approach might seem overly cautious, but statistics show that entrepreneurs who keep their day jobs are two-thirds more likely to succeed in their startups. This strategy allows you to test your business idea without risking your financial stability.

Rule 2: Move Fast

While it's important to be cautious with your finances, it's equally crucial to move quickly when opportunities arise. Many people stay stuck because they don't move fast enough.

The Cost of Inaction

Every day you delay taking action on your goals, you're potentially losing future income. Consider the last big risk you took in your career. How much did it increase your earnings? Now imagine if you had taken that leap earlier - how much more could you have earned?

Smart Risk

The key is to take smart risks, not just any risk. The formula for smart risk is:

Skill + Preparation x Action

The more you understand your unique skills, prepare thoroughly, and take swift action, the more likely you are to succeed and increase your earnings.

Rule 3: Focus on Big Problems

To make big money, you need to focus on solving big problems. Don't get distracted by small issues that won't significantly impact your bottom line.

Productivity Hacks

To stay focused on big problems:

1. Prepare your to-do list the night before
2. Set task timers
3. Use music to boost focus
4. Block unnecessary meetings
5. Tackle your biggest task (your "frog") first thing in the morning
6. Use "Do Not Disturb" mode

The Post-it Note Challenge

Use Post-it notes to categorize your tasks by their hourly value ($5/hour, $10/hour, $25/hour, $100/hour). Focus on the high-value tasks first.

Rule 4: The 10-to-1 Rule

Give ten times for every one ask you make. This principle of reciprocity can significantly boost your business relationships and opportunities.

Example: That One Painter

The company "That One Painter" is investing $1 million to paint 100 houses for free, with the goal of turning it into a $100 million company. This goodwill in the community creates a reciprocal pull, leading to more business opportunities.

Rule 5: Do the Dirty Work

The less glamorous the business, often the more profitable it is. This is called the "Clooney Rule" - everyone wants to be in Hollywood, but most actors struggle financially.

Focus on Boring but Profitable Industries

Instead of chasing trendy or "sexy" industries, look for sectors where a high percentage of people make all their income from their day job. Finance is a good example - 99% of people in finance make all their income from their primary job.

Rule 6: Sell to Rich People

Rich people pay more and are often looking for premium products and services. To sell to the wealthy, focus on:

1. Exclusivity
2. Timeliness
3. Status
4. Privacy
5. Convenience

Add a Premium Tier

Always have a high-end option in your pricing structure. Some wealthy customers actually want to pay more for a premium experience.

Rule 7: Solve Big Problems

The bigger the problem you solve, the more money you can make. Use the RICE model to prioritize problems:

• Reach
• Impact
• Confidence
• Effort

Focus on problems with high reach, high impact, high confidence in your solution, and relatively low effort.

Rule 8: Build Once, Sell Continuously

Create a business model that allows you to build something once and sell it multiple times. This is often referred to as a "flywheel" effect.

Example: Amazon's Flywheel

Amazon created multiple revenue streams from a single customer base:

1. Fulfilled by Amazon (FBA) expanded their inventory without buying products
2. Amazon Prime Video added value to Prime subscriptions
3. Price hikes became acceptable as more features were added

Rule 9: Surround Yourself with Success

Your friend group can significantly impact your net worth and investment habits. Studies show that a 10% increase in friends worth over $100,000 correlates with a 10% increase in your net worth.

Make Your Dream Day Someone Else's Tuesday

Surround yourself with people who are already living the life you aspire to. Their habits and mindset will naturally influence yours.

Rule 10: Embrace the Pygmalion Effect

The Pygmalion effect states that high expectations lead to improved performance. Our beliefs influence our actions, which in turn influence others' beliefs and actions.

Create a Positive Environment

Ensure your work environment and team have high expectations and a positive outlook. This can significantly impact performance and results.

Rule 11: It's Never Too Late

Many successful businesses were started by people in their 40s or later. Don't let age or perceived missed opportunities hold you back.

Rule 12: Sell More, Never Apologize

As a CEO, your primary job is to be the chief salesperson. Focus on high-leverage sales activities that can significantly impact your business.

Rule 13: Don't Let Fear Stop You

Fear of failure often holds people back from achieving their potential. Remember, the world is run by C students and failed employees - don't let self-doubt stop you.

Develop a Risk Budget

Understand your comfort level with risk and find the sweet spot between low-risk, low-reward activities and high-risk, potentially high-reward opportunities.

Rule 14: Invest in Your Network

Your most valuable investment is often the people around you. As you scale to 8 and 9 figures, you can't do it alone. Surround yourself with high-performers who can help you grow.

The One Million Per Employee Rule

Aim to generate $1 million in revenue for every employee in your business. This ensures high margins and the ability to afford top talent.

Rule 15: Be Likable

Being likable can significantly impact your success, especially as you reach leadership positions. Follow these principles:

1. Open door policy - be available and present
2. Be kind, not just nice - set high standards while respecting others
3. Listen more than you speak - people want to be heard

Rule 16: Avoid Middle-Class Wealth Traps

Don't rely solely on compound interest or traditional investment advice. Focus on increasing your earnings and pairing your resources, labor, knowledge, and ideas to create wealth.

Rule 17: Embrace "Psychopath" Behavior

The most successful individuals often display an intense, almost obsessive focus on their goals. While "psychopath" is an extreme term, the principle is to be relentlessly committed to your objectives.

Compound Learning

Consistently deepen your knowledge and skills in your chosen field. This compound learning can give you a significant advantage over time.

Conclusion

Scaling a business from 6 to 9 figures requires a combination of strategic thinking, relentless focus, and the willingness to take calculated risks. By applying these 17 rules, you can position yourself for exponential growth and success in your business ventures. Remember, the journey to 9 figures is not just about making money - it's about solving big problems, creating value, and constantly evolving as an entrepreneur and leader.

Article created from: https://www.youtube.com/watch?v=VruZwjbVRUg