How To Create A Million Dollar Business

How To Create A Million Dollar Business


– [Host] Okay, in this video I’m going to show you the numbers behind a million dollar business. And the reason why we even care about the million dollar mark is because in my experience, that has been where you have
a business that has real legs. That’s a business that has scalability. So we have students that have businesses that don’t do a million dollars and they have a full-time
income, they do really well. If a business is selling $50,000 a month and you have 20% profit margins, that’s a perfectly healthy
income stream for someone. But for something to have
a real scalable business that could be really big and impactful, I say the sniff test is about
a million dollar business. So by teaching you what
I’m about to teach you, I’m not saying you’re going
to make a million dollars or anything, I just want
to show you the numbers behind what it takes to build
a million dollar business. Because this little distinction,
this one little piece, just showing the numbers,
has given a lot of people the aha moment of, oh, now I
know exactly what I need to do in order to have a successful business. So we’ve got a couple
full trainings on this, some of which have been
viewed over a million times on YouTube, and I wanted
to pull out the one piece that gave the most aha moments. And it’s just these numbers behind a million dollar business. And it looks very simple, because it is. And it looks like this. If you have a business that
sells three to five products and those products sell 20 to 30 units a day… Let’s do that math for a second. So now we’re looking at
60 to 150 sales per day, or if we find the middle ground there, about 100 sales a day. And we could mix and match this. Like it might take four
products at 25 units a day. But let’s just say that it’s
100 to 120 units per day at a price point of about 25 to $35 on average. And of course you might have
some products that sell for $19 while some products sell for $36, but on average they fall in
here, between 25 and $35. That equals a million dollar business. So we can play with these
numbers in a couple of ways. We could just have one product
that sold 100 units a day, and by the way, I do have single products that sell between 150
and 400 units per day. That would be a million dollar business. Or you could have 10
products at 15 sales a day. That would be over that 100 sales day. Or you could have just products
that sell for 70 to $100. For example, we have
someone in our network who sells one product,
they sell 100 units a day. Actually, it’s more like 200 units a day. And they sell for $60. So that’s like a two or
three million dollar business with one product, and the profit margins are really, really healthy. So of course the next
question becomes, okay, what do we do in order to get this point? So we’re going to leave this alone because this would be a whole conversation of how do we keep our profit margins up, how do we keep our price high, how do we differentiate
from other businesses, and we can talk about that. What I really want to focus
on are these two here. Specifically this piece right here. So I’m going to make this
really, really simple because if you’ve got a product and you just put it in
front of the right people you can get to this
level very, very quickly. So places that you could
put products would be Amazon.com, it’s super
simple to sell on Amazon. It’s like $40 to sign up for an account and then you just list your products and submit it for approval and you could have a
product up and running in a couple weeks. Or I have a friend, all he
does is creates new products and puts them for sale on Kickstarter.com, gets them to that 20
to 50 sales a day mark, and duplicates this process. Kind of interesting. Now here’s what a lot of
people don’t talk about. If you’ve got something
like an email list, or if you’ve got, started to write sideways
here, forgive me, or if you’ve got some thing
like a YouTube channel or a blog or any place
where you can put product in front of people, that
can accelerate the process really, really quickly. Amazon’s cool because you’ve
got millions of buyers shopping there all the time. You just need a few reviews. I’ve had products that
have like 40 reviews sell 100 units a day. So there’s so much activity there that you can just throw things on there and people will start buying it and make this process a lot faster. And now I want to address this. Now we could go deep into this so we could have a whole conversation for an entire day about this, or we can look here. How do I get three to five products? And what we do here is we
just identify a person. We could just say moms. Okay, we want to serve moms. What do moms buy? They buy spatulas, they buy cookware, they buy clothes, they buy gifts, they buy all kinds of stuff. They buy diapers, they buy– Okay great, so let’s make
a list of 10 products that that person might buy and then we’re going to go
through to manufacturers through sites like, there’s
a site called Alibaba. Alibaba.com, they have
suppliers all over the world that can make any product you want and for about 50 to $100
will make a prototype for you and then you’d sell it
on one of these sites, run through this process, and in about a year, a lot of times, you could have this process
completely built out of having a handful of products that sell 20 to 40 units a day and that’s how you have a
million dollar business. So that’s a lot in just a couple minutes. So what we’ve done is we put
together free training classes at capitalism.com, where we
teach this stuff in depth. And we do this because we think the world needs more entrepreneurs. We think that it’s people’s responsibility to create jobs and
create new opportunities, so we teach this model in
depth, in detail, for free, so that you can go out and use this. And then we have
incubators and accelerators where if you need capital
to make this happen or you need partners, or we have people who have a
ton of experience in retail and they can take a
product that you created that doesn’t even exist right now and put it into retail
stores all over the world. So we have this network of people who want to work with individuals who are desiring to be entrepreneurs
and follow our training and so we have accelerators and incubators and training courses that
we put people through if you like this model
after seeing it in depth. So you could sign up for one
of those training classes for the full training and
go through this process and see exactly what it takes
to build a successful business selling physical products. Physical products that matter, that make a meaningful
difference in people’s lives, that have an impact in
your life financially and also create goodwill
for the people that use it ’cause it’s a product that
you’re really proud of. So that’s what we believe in. We believe we need more entrepreneurship, more capitalism, not less. We think that entrepreneurship and success makes the world a better place and that we need more success, and that’s why we teach
this stuff for free so you can sign up for one of our classes to see the full in depth version of exactly how to build
a successful business. Thanks for watching. Share this with someone you know who wants to be an entrepreneur or believes that capitalism is the way that we solve the world’s
problems, not through government. Thanks for watching.

Comments

  1. Post
    Author
  2. Post
    Author
  3. Post
    Author
    Nigel Cooper

    HI Ryan, what's the name of the training class that you refer to at the end of your video? Can someone post a link. Thanks!

  4. Post
    Author
  5. Post
    Author
  6. Post
    Author
  7. Post
    Author
    HolyPineapple

    Do you have a Video on finding the right manufacturer for your product? (with a little bit more information and tips other than alibaba)

  8. Post
    Author
  9. Post
    Author
    Ryan Hutchinson

    From a fellow Ryan – Ry, seen you do this calculation before and honestly our FBA business is almost there….took your formula a few months ago and started simply building/allocating our storefront around it. Thank you for the Million Dollar eCommerce Business "for dummies" version! haha

  10. Post
    Author
  11. Post
    Author
  12. Post
    Author
  13. Post
    Author
    Kristopher Ryan

    pretty straight forward model. It's not complicated to come up with this stuff. it is the basis of what passive income is all about.

  14. Post
    Author
  15. Post
    Author
    Whoever Whoever

    365 days x 100 units sold/day, $30/unit that would make you a gross income of $1M in a year. But you don't get your products out of thin air, you minus the cost for the products you paid, usually from 20%-50%. let's say 30% CoGS, you'd get $700,000 left. But don't forget, Uncle Sam wants a piece of it too! minus another what, 15%-20%? And the transportation and other expenses, that;s like another 10%? So the "million $ business" is so million when you see the net income.

  16. Post
    Author
  17. Post
    Author
  18. Post
    Author
    Noah Withington

    Haha! I just eat this stuff up! My product just went from two sales per day last week to five sales per day this week and I learned everything online for free and implemented it in a few hours per week while working at a regular job (Until I got too sick to work and all I could do was manage the listing for a couple hours per week) in order to pay for the in-depth training. I actually have experience raising capital so I collaborated with another passive investor so I didn’t use my own money to launch the product. I expect that I will have the money to pay for the full brand builder Boot Camp or whatever the next step in education is in the first quarter 2018 if not sooner. So exciting! This is not my first business but it is certainly the easiest I have ever launched and I can’t believe it survived my illness without much disruption. As I recovered I didn’t know if I would be permanently disabled but I knew that I could still be financially free because of the work that I had started selling things on Amazon. I keep thinking and worrying because it seems toI easy but at this point I am certain my risk is minimal. I can’t tell enough Family and friends about Ryan’s directions to financial freedom! The coolest thing is I haven’t even involved my audience which is 8–10,000 people! So psyched!

  19. Post
    Author
  20. Post
    Author
    Kevin Dowling

    You may have just changed my life with this information. Thank you. I had no idea how to even go about becoming a millionaire, but seeing the formula laid out like that is very eye-opening.

    I’m going to respond back to this video in 6-12 months to notify you on my progress.

  21. Post
    Author

Leave a Reply

Your email address will not be published. Required fields are marked *