Many people dream about starting a successful online business, but most of those same people shy away from their ambitions when they realize how much work it will take.
One entrepreneur started a company in 2023 and turned it into a seven-figure business after three years, and the details are on Reddit. This entrepreneur also believes $3 million to $5 million in annual revenue is possible in th0e next three years.
The entrepreneur didn't share their success to brag. Instead, the Reddit post serves as a reality check for any business owner who wants to reach seven figures in a short amount of time.
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"If I burst some bubbles and dash some hopes with this post, then I've done my job," the entrepreneur said.
The entrepreneur proceeded to lay out the three things you need to build a company and scale it to $1 million.
Startup Capital
It's possible to operate on a shoestring budget. The entrepreneur brought up "immigrants who came to America with $3 in their pockets" who went on to start dry cleaners and other local businesses. However, you will typically need capital, according to this entrepreneur.
"This is the hard truth nobody wants to hear," the entrepreneur said. "It takes money to start and scale a business, any business. I made an initial investment of $20,000 to get my business going. [That's] not a lot of money in the startup world. Most businesses require much more to get off the ground, but many wantrepreneurs are unable or unwilling to risk even minimal capital to get a real operation going."
If you don't have that type of money readily available, the entrepreneur suggested working hard, living cheap, and saving money.
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Marketing Is Critical
You have to promote your product or service to attract potential customers. While most business owners know this fact, the entrepreneur went deeper into constructing a marketing strategy in the Reddit post.
"Marketing is mostly pay-to-play, so if you’re just hoping to scale by building an organic social media following or going door-to-door, you will have a hard time growing to $1 million," the entrepreneur wrote. "Developing a marketing plan that works requires a lot of trial and error. Whatever strategy you initially thought would win customers probably won’t work as expected. You need to try a variety of marketing channels, track your ROIs, drop the ones that don’t work, and invest more into the ones that do."
However, the entrepreneur also explained that once you have a marketing strategy and channels that work, it's like having a "free money machine." Then, it's just a matter of pouring profits back into proven marketing campaigns to boost revenue and visibility.
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Work With The Right People
The entrepreneur wrapped up the post by telling other business owners that they need employees to scale to a $1 million business. You can start as a solo business owner, but you will eventually face time constraints as your company grows. Then, it becomes necessary to hire employees if you want to reach new revenue milestones.
"Too many business owners get stuck in the cycle of trying to do everything themselves, and their business stagnates as a result. Think of a new employee as an investment. They will cost you money in the beginning, but in time, a good employee will help grow your business and provide a return on your investment," the entrepreneur said.
Eventually, you have to distance yourself from the day-to-day tasks and hand more responsibilities to others.
"As your business grows, you have to step out of the trenches so you can survey the battlefield, strategize, and lead your troops," the entrepreneur said. "This is how you scale to $1 million and beyond. I couldn’t have done it without my team, and they couldn’t have done it without effective leadership."
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