Transcript
0:00 How many people do you and I meet that have gone from zero to a little bit and then they're stuck? >> Okay, so I've given a huge amount of thought to this. There's a bolus of entrepreneurs between one and three million dollars and for whatever reason there's this swamp there and I think there's a couple of factors. So number one is that usually between one and three million dollars of revenue, you've actually made enough money to satisfy personal needs. You can pretty much go to every dinner, go to every hotel, take the vacations and like you're good to go. And to be fair, nothing wrong with that. However, if you want more, if you do, then you have to change the way you play and the reason it's the swamp is that it takes more risk to get out of the swamp than to get into it.
0:33 >> Oh boy, so true. >> Let's say it's a two million dollar business, 20% margins. If you have 20% margins in the business at this point, you have $400,000 to play with, all right? Now, you're going to leave maybe 100 grand in the account cuz you want to like have some safety net, so maybe 300 grand. Your first real leader in the business, a director level, not just a manager, you're probably looking at high ones, maybe mid twos, at you know, as a small business owner. So that means that on this one hire or maybe a vendor, you're going to risk half or more of your profit on one bet.
1:02 And because most people are unwilling to do this, and arguably, logically, they stay stuck. >> This is my favorite interview we've done. My favorite interview.