Becoming a Millionaire in 48 Months with a Tiny 1-Person Startup (No VCs!) : Emily Rosemary Collins

Reader
March 28, 2024
Becoming a Millionaire in 48 Months with a Tiny 1-Person Startup (No VCs!)
by: Emily Rosemary Collins
blow post content copied from  Be on the Right Side of Change
click here to view original post

5/5 - (1 vote)

In this article, I’ll give you a roadmap to build a $1 million USD net worth in 48 months.

Not by luck or crazy speculation but following a simple strategy of building a small startup on the side, investing the income in an ETF, and compounding your wealth. After 4 years, you sell your tiny startup and reach millionaire status with a ~$10k per month passive income from your investments.

I’ve done it. There’s lots of material on how to build such a small startup — I assume you’re NOT an expert but you accomplish only a small fraction of the success of expert founders that would be sought-after by Silicon Valley VCs like YCombinator:

💡 Graham: “A good growth rate during YC is 5-7% a week. If you can hit 10% a week you’re doing exceptionally well. If you can only manage 1%, it’s a sign you haven’t yet figured out what you’re doing.” (source)

For our little project to $1M, I do NOT assume you reach a wild 5-7% growth rate per week or ~20-28% per month. Let’s leave those big growth rates for the big guys in Silicon Valley that target billion-dollar valuations.

We’ll cut the 7% weekly growth rate by half and then by half again to target a 7% per MONTH growth rate. That’s absolutely achievable with a bit of elbow grease.

We’ll assume a 40x multiple on MONTHLY profits. Most online businesses have a multiple of roughly 40x. It’s more towards the low end. For example, see these two businesses from Empireflippers:

Finally, we’ll assume you accumulate an investment vehicle that grows like the NASDAQ (16% compound annual growth rate). A simple ETF will do.

You can make these assumptions happen. You can do it!

Here’s the four-year plan:

  • Months 1-7: Figure out what you’re doing. $0 income.
  • Months 8-12: Scale your monthly income to $1600 through hustling and iteration.
  • Months 13-47: Just focus on one thing — keep your monthly growth rate at 7%. Do all it takes to maintain this rate. It’s not a crazy growth rate — you can do it!
  • Month 48: Sell your online business on an online marketplace (e.g., Flippa, Empireflippers, …) and buy the remaining investments from the proceeds of the sale. Voilà, you’re financially free with $1 million in a passive investment vehicle!

Next, check out our related articles:


March 28, 2024 at 04:12PM
Click here for more details...

=============================
The original post is available in Be on the Right Side of Change by Emily Rosemary Collins
this post has been published as it is through automation. Automation script brings all the top bloggers post under a single umbrella.
The purpose of this blog, Follow the top Salesforce bloggers and collect all blogs in a single place through automation.
============================

Salesforce